The Streamlined Sales Tax Governing Board has requested input on whether to change the Streamlined Agreement’s rules on how to source sales of digital goods where purchasers do not provide addresses when completing the transaction. Without the full delivery address that would be obtained if a physical product was being delivered, a seller of digital goods may only obtain the 5-digit zip code necessary for processing the credit card payment.

The committee has proposed a draft recommendation that “If a Seller does not obtain a complete street address or 9-digit zip code, the seller should calculate and collect the tax at the highest combined state and local rates in the 5-digit zip code.” Under the recommendation, sellers that only collect the 5-digit zip code may be held liable if the seller does not collect at the highest combined rate in the 5-digit code. This recommendation incorporates the survey results from participating states and participation by state and local governmental representatives, business representatives, and certified service providers’ representatives. The draft also contains alternative options.