On February 2, 2003, many online retailers in the U.S., including Amazon.com and retailers hosted by Amazon.com, began collecting sales taxes in the state where the consumer made the order. For some of these companies, this new practice is part of an amnesty agreement with 38 states and the District of Columbia which agreed not to charge for back taxes owed, if the companies began voluntarily collecting the taxes. This initiative relates closely to the Streamlined Sales Tax Project, and the Streamlined Sales Tax and Use Agreement passed on November 12, 2002 to solve some of the operational hurdles for governments and retailers on and off the Net. As of November 2002, there were about 7,500 sales tax jurisdictions in the U.S. For additional information, visit: http://www.streamlinedsalestax.org http://www.nga.org/nga/salestax/1,1169,,00.html http://www.washingtonpost.com/wp-dyn/articles/A31210-2003Feb5.html For the full text of the Streamlines Sales Tax and Use Agreement, please visit: http://66.28.69.53/sline/Final%20Agreement%20Adopted%2011-12-02.pdf

E-TIPS® ISSUE

03 02 13

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