Workshop covers sales tax ‘streamlining’

Merchants must change the way they determine sales taxes July 1. The Washington State Department of Revenue will hold a workshop in Spokane on Tuesday to review the changes and explain the tools and subsidies that are available to help smooth the transition.

Sales tax “streamlining” approved by the Legislature last year will distribute sales tax revenues to the government jurisdictions where they are delivered. Traditionally, the revenues have been divvied up among the jurisdictions where the goods are sold.

Streamlining is a response to Internet sales that deprive the state of revenue and put bricks-and-mortar retailers at a disadvantage. The new system has been adopted by 22 states, and more than 1,000 Internet merchants are also voluntarily complying.

The change will apply only to goods delivered within Washington and not to goods delivered where they are sold.

There are 357 sales tax jurisdictions in Washington, six in Spokane County alone.

Spokesman Mike Gowrylow said the department has developed software, maps and other materials to help merchants make the switch. They can also use the service of a third party, which the state will help pay for.

“We hope to minimize the costs,” he said.

The change will also shift about $32 million in revenues from urban areas to rural areas, but the Legislature set aside funds to cover any short-term losses. Gowrylow noted total sales tax revenues in Washington total about $2.5 billion.

Tuesday’s workshop will be held at the Northwest Museum of Arts and Culture, 2316 W. First Ave. The two-hour session begins at 2 p.m.