What Is Sales Tax Amnesty?

If you live in some parts of the country, then you may have the opportunity to use a sales tax amnesty. Also known as the Streamlined Sales and Use Tax Agreement, this process is designed to encourage small businesses which are not registered to start collecting sales tax. This means that all companies which make sales to Minnesota without collecting tax can now become registered.

How does it Work

The sales tax amnesty applies to all businesses, including ones that work online, which have previously made sales to the participating states, but have not taken in the tax. For a period of a few months, the states will allow businesses to register their trade, and collect sales tax in their local area. In return for remitting the taxes to the state, the local government promises not to perform any sales audits in the months leading up to the business's registration.

Who is Eligible?

All businesses that are not currently registered in these states are eligible, unless they have previously collected tax in the state. In addition, any business which has been given notice that an audit will occur, and has not yet completed that audit, is also not eligible for the sales tax amnesty.

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