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SMART TAX USA - The Multistate Tax Commission (MTC)

As the Internet continues to grow and interstate commerce increases, the need for a printable multistate tax form that taxpayers can download online also continues to increase. The Multistate Tax Commission has created a Uniform Sales and Use Tax Exemption Certificate to meet this need and the MTC multistate tax form has been accepted by 38 states for use as a blanket resale certificate. A blanket resale certificate is applicable to multiple transactions between a buyer and a seller.

The Multistate Tax Commission is an intergovernmental state tax agency located at 444 North Capitol Street NW in Washington, DC. It was established in 1967 as part of the Multistate Tax Compact, an agreement formalized into law by many states in order to create more stability for interstate commerce.

The Multistate Tax Commission works with states and taxpayers to facilitate the uniform administration of state and local tax laws. The mission of the Multistate Tax Commission is to:

• promote uniformity and compatibility between significant components of different state’s tax systems

• increase the ease of complying with state laws for taxpayers who are required to comply with state sales tax regulations

• avoid duplicate taxation of goods or services by different states

• facilitate the equitable apportionment of tax bases and the settlement of apportionment disputes

Taxpayers can easily download the Multistate Tax Commission’s printable multi-jurisdiction tax form online in either Microsoft Word format or PDF format. Instructions on how to properly fill out the form are contained in the Uniform Sales and Use Tax Exemption Certificate. The Certificate also lists the states where the MTC tax form will be accepted and contains some specific limitations on its use. However the list of states is subject to change because states may alter their tax policies without informing the Multistate Tax Commission. Each state’s most current sales tax regulations should be verified.

Taxpayers who purchase merchandise for resale can download the printable form of the multi-jurisdiction Sales and Use Tax Exemption Certificate, fill it out and give it to vendors so that vendors will not charge sales tax. Taxpayers who sell merchandise should maintain current copies of the Certificate on file in case supporting documentation of tax exemptions are required by tax authorities.

Some states require the buyer to be registered with the state in order to collect sales tax. Some states will accept the Sales and Use Tax Exemption Certificate if a tax ID number from the home state of the buyer is provided. The relevant state for taxation may be the one where the seller is located or it could be where the sales transaction occurs. It is increasingly common for American companies to conduct business in more than half of the 50 states and SMART TAX USA has successfully assisted many large corporations through the complicated maze of interstate sales tax regulations.

The Multistate Tax Commission also works to preserve the concept of fair taxation by:

• developing uniform state tax policies for interstate commerce

• providing training and education in complex multistate tax issues

• supporting states that are involved in major tax litigation

• balancing the states’ goals with federal goals for interstate commerce

• encouraging consistency in enforcement of tax laws through the Multistate Tax Commission’s Joint Audit and National Nexus programs

• mediating disputes in cases of alleged duplicate taxation of a taxpayer by two or more states through the Alternative Dispute Resolution Program

The Multistate Tax Commission’s most active and involved member states are known as compact member states. These are states that have enacted the Multistate Tax Compact into their own state laws. Compact member states also help to govern the Multistate Tax Commission and regularly participate in a wide range of the Commission’s projects and programs. The compact member states are Alabama, Alaska, Arkansas, California, Colorado, District of Columbia, Hawaii, Idaho, Kansas, Michigan, Minnesota, Missouri, Montana, New Mexico, North Dakota, Oregon, South Dakota, Texas, Utah and Washington.

Sovereignty member states support the Multistate Tax Compact by providing financial assistance to the Multistate Tax Commission and by participating in some of the Commission’s programs. Sovereignty member states tend to be concerned about preserving state taxing authority and they include Georgia, Kentucky, Louisiana, Maryland, New Jersey and West Virginia.

Associate member states may participate in multistate programs and they may also participate in meetings of the Multistate Tax Commission. The associate member states are Arizona, Connecticut, Florida, Illinois, Indiana, Iowa, Maine, Massachusetts, Mississippi, Nebraska, New Hampshire, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Wisconsin and Wyoming.

Only three states in America are not members of the Multistate Tax Commission. Those states are Delaware, Nevada and Virginia.

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SMART TAX USA, T 214-500-7056 , FAX 866-539-7906