Important Update for Destination-Based Sourcing

Effective January 1, 2005 all retailers are required to be in full compliance with the destination-based sourcing provisions. During the period between July 1, 2004 and December 31, 2004, although the destination-based sourcing rules remain in effect, retailers not yet implementing those rules may apply the origin-based sourcing rules in effect prior to July 1, 2003. The Secretary of Revenue is authorized to waive penalties and interest for failure to properly implement destination-based sourcing, provided such failure is due to reasonable causes. (Senate Bill 147)