May, 2007: New Streamlined Sales Tax Legislation Will Bring
Revenue to Lake Forest Park
From the Computer of Mayor Dave
The State Legislature passed and the Governor signed Streamlined Sales Tax (SST) legislation. We have been working on this legislation for the past two years. SST legislation is not a new tax. It is a mechanism to collect taxes that are legally required on remote sales such as Internet and catalog orders. Without this legislation, Main Street retailers were at a competitive disadvantage since they have to collect sales tax. Remote sellers often did not collect any sales taxes.
The benefit of the sales tax collected accrues to the point of delivery city rather than the city where it was purchased. So the tax on an item purchased in another city and delivered to Lake Forest Park would benefit Lake Forest Park. The State Department of Revenue estimates that the City will receive $340,000 additional sales tax revenue starting in 2009. This revenue replaces some of the Motor Vehicle Excise Tax revenue that the City formerly received.