Executive Committee Task Force on State and Local Taxation Summary

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Updated July 10, 2013

History

In 1999, the NCSL Executive Committee established the Task Force on State and Local Taxation of Communications and Electronic Commerce to review and make recommendations to the states on the simplification of the administration and collection of sales and use taxes on out of state transactions, especially with the growth of such sales occurring as a result of electronic commerce as well as the reform of the monopoly era taxation of communications services. The task force’s jurisdiction was expanded the first time in 2001 to review corporate income taxes, and now includes consideration of other multistate tax issues of interest to taxpayers. This evolution led to a formal change in the task force's name to the Task Force on State and Local Taxation in 2012 to make clear that its scope encompasses the entirety of state and local taxation.

Streamlined Sales Tax

From its inception, the task force made the streamlining of states’ outdated sales and use tax systems a top priority.  The task force was instrumental in the formation of the Streamlined Sales Tax Governing States in 2001, then the Implementing States, the Conforming States and now with the Governing Board.  The task force continues to serve in an oversight capacity of the streamlined sales tax process and the Governing Board.

Mission

As our nation’s economy continues to evolve from a primarily state-based system into a more integrated national and global economy, state tax systems must adapt in a manner that does not impede economic growth, provides clarity and simplicity to taxpayers and ensures the necessary revenue for appropriate government functions. This task force addresses important and timely issues on tax policy in order to provide guidance to state legislators as they address the emerging taxation issues in the 21st century’s economy.

The task force has endeavored to maintain state sovereignty while acknowledging the need for a tax system that can work across state lines.  Our success has been due to our ability to regularly educate state legislators about these issues through meetings, seminars and technical assistance to legislatures.  This task force plays an important role in helping state legislatures understand the policy choices they face. By working in a bipartisan manner, the task force identifies the issues that legislatures will need to address – and provides guidance to the states by developing model principles for tax reform and modernization.

Topics

Below is a list of topics and resolutions that the Task Force has considered:

  • Communications Tax Reform
  • Internet Commerce Taxation
  • Franchise Fees on Communications Providers
  • Corporate Income Taxes
  • Business Activity Taxation
  • Uniform Division of Income for Tax Purposes Act
  • Excise Tobacco Taxation
  • Telecommuting
  • Taxation of Personal Income for Employee Work Related Travel
  • Direct Broadcast Satellite Taxation
  • E911 Fees
  • Affiliate Nexus
  • Taxation of Online Reservation Services
  • Combined Reporting
  • Contingent-Fee Based Auditing
  • Multistate Tax commission
  • Deal of the Day Vouchers
  • Cloud Computing
  • Automated Sales Suppression device (Tax Zappers)
  • Digital Goods and Services
  • Independent Tax Tribunals
  • Vendor Liability Risks: Qui Tam Actions and Class Action Law Suits
  • Taxation of Communications Infrastructure
  • Insurance Gross Premium Taxes
  • Sales Tax Fairness & Simplification Act
  • Mobile Workforce
  • The Internet Tax Non-Discrimination Act
  • VOIP Regulatory Freedom Act
  • Moratorium on Taxation of Internet Access
  • Mobile Telecommunications Sourcing Act