The Tennessee Department of Revenue has published information on its Web site regarding the Streamlined Sales and Use Tax Project and how it will affect the administration of the sales and use tax in Tennessee. To access this information, visit www.Tennessee.gov/revenue and click on "Streamlined Sales Tax Project" under "Did You Know?"

The Department of Revenue is providing phone numbers and an e-mail address devoted to questions regarding the Streamlined Sales Tax Project and Tennessee’s conforming legislation. Callers from within Tennessee can call (877) 250-2299. Callers from Nashville and outside Tennessee should call (615) 253-0752. Questions should be e-mailed to treamlined.Salestax.QandA@state.tn.us.

As part of its educational outreach efforts, Revenue has mailed a survey to all active registered sales and use taxpayers. The information collected from this questionnaire will help the department focus its education efforts and ensure all local tax collections continue to be allocated properly.

The Streamlined Sales Tax Project is a three-year effort by Tennessee, 38 other states, and many businesses to develop more simplified and uniform tax laws in all states so that business can more easily comply with sales and use tax requirements. The Streamlined Sales and Use Tax Project and Implementing States passed the Streamlined Sales Tax Agreement on Nov. 12, 2002. The Agreement provides a way to address the uneven playing field that exists between local merchants and remote merchants with regard to sales tax collection requirements. In addition, the Agreement provides a way to address the loss of revenues that states are experiencing as a result of the growth of electronic commerce.

Legislation to allow Tennessee to comply with the requirements of the Streamlined Sales and Use Tax Agreement, Public Chapter 357, was passed in June 2003. This legislation will become effective no earlier than July 1, 2004.

The delayed effective date of this legislation allows the Department of Revenue an opportunity to educate the public and our taxpayers about the changes required by the Streamlinedlegislation. The Department of Revenue is working on a comprehensive education campaign to advise taxpayers of the changes required for Tennessee to be in compliance with the Agreement. The department will announce speaking engagements across the state, publications, updates to the department’s Web site and other avenues for educating our taxpayers.

For more information on the Streamlined Sales Tax or other taxes administered by the Department of Revenue, visit www.Tennessee.gov/revenue, which provides links to the Web sites of the Streamlined Sales and Use Tax Project and the Federation of Tax Administrators.

The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2002-2003 fiscal year, the department collected $8.4 billion in state taxes and fees. In addition to collecting state taxes, $1.5 billion of local sales tax was collected by the department for local governments during the 2002-2003 fiscal year. Besides collecting taxes, the department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution to the various state funds and local units of government. To learn more about the department, log onto www.Tennessee.gov/revenue.