Streamlined Sales Tax: An Introduction

The Streamlined Sales Tax Agreement is a multi-state agreement to simplify the nation's varying sales tax laws. The Agreement became effective October 1, 2005. It is the culmination of a multi-year, nationwide effort by 44 states, the District of Columbia, local governments, and members of the business community. They designed, tested, and implemented a system that radically simplifies sales and use tax collection and administration by retailers and states. The Agreement took effect just shy of three years from its initial approval date on November 12, 2002.

On July 1, 2005, Iowa was granted full membership in the Streamlined Sales and Use Tax Agreement. Iowa joined 17 other states as either full or associate members of the Agreement.