The Streamlined Sales Tax Governing Board backed a program on Oct. 14 that lets unregistered remote sellers settle back sales tax with a 24-month lookback.
If you run a high-ticket store, this is aimed at you. One $2,400 order per week into a single state can cross an economic nexus line you never tracked, and the program is a multi-state way to come forward with penalties waived and a capped lookback. It only works if you move before a state contacts you, according to the amendment text. I write this for store owners at Ecommerce Paradise, so that is the lens throughout.
Below: what the amendment says, where it came from, what a 24-month cap does to a high-ticket store’s math, and five moves for this week. One caveat up front. I read the amendment text posted for the Oct. 14 and 15 meeting plus trade press, not the final adopted wording, so confirm the terms before you file anything. If you are still building and want the basics first, start with my guide to what high-ticket dropshipping is.
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Streamlined Sales Tax Board Backs 24-Month Lookback Program
Law360 Tax Authority reported on Oct. 14 that the Streamlined Sales Tax Governing Board “backed a proposal Wednesday” that would let unregistered remote sellers settle back sales and use tax and comply going forward, per reporter Maria Koklanaris. A committee of the board had backed the plan the day before, according to Law360’s Paul Williams. The excerpts I could read do not give a vote count.
The board met Oct. 14 and 15 at the Jackson Hole Conference Center. Its posted agenda lists “Section 402.1 Voluntary Disclosure Program for Qualified Remote Sellers” as an action item for a possible vote.
The terms below come from the Nebraska-sponsored amendment AM26010-01, which repeals the old Section 402 amnesty and replaces it with the Streamlined Sales Tax Voluntary Disclosure Program, called SSTVD.
The program begins Jan. 1, 2027 and sunsets Dec. 31, 2027 unless the board votes to extend it. December 31, 2027 is the last day to apply. The lookback is limited to “no more than the prior twenty-four months,” and it starts the day before the seller’s effective registration date. It excludes any period before the seller met the state’s economic nexus threshold.
Penalties and late filing fees for the lookback period are eliminated “to the extent state law allows.” The seller still owes the underlying tax. The text I read does not expressly address interest.
A “qualified remote seller” has to certify that economic nexus is the only reason it would have to register in a state. Wholesale-only, marketplace-only and non-taxable sales do not trigger a registration requirement for qualification. Inventory sitting in a third-party warehouse the seller does not control does not disqualify it, per the amendment.
The exclusions are where most store owners will get stuck. A seller is out if it was already registered in that state before joining, received an audit notice, is under audit or was audited on or after June 21, 2018, is under criminal investigation, was contacted by the state about registering on or after June 21, 2018, or collected sales tax and failed to remit it. The amendment carves out limited exceptions to the registration and contact rules.
The clock is tight once you apply. You sign the state contract within 30 calendar days of receiving it. You register and start collecting by the first day of a month no more than 60 days after submitting it. Lookback returns are due within 12 months of the state returning the signed contract, and the balance is due 30 days after the state sends notice. You then stay registered for at least 24 months, or until your activity drops below the state’s threshold and you properly inactivate.
States opt in. Full member states must notify the board’s executive director in writing at least 30 days before the program starts. The posted text does not list which states will participate, and I have not seen a final list.
Wayfair to SSTVD: How Remote Sellers Got Here
The June 21, 2018 date in the amendment is not random. It is the date of the Supreme Court’s South Dakota v. Wayfair decision, which let states require out-of-state sellers to collect tax based on economic activity alone. The Streamlined board posted its own statement on Wayfair that same day. Sellers who were audited or contacted by a state on or after that date are carved out of the program.
This proposal took two years. Bloomberg Tax reported on Aug. 28, 2024 that a new work group of the board’s executive committee was weighing a voluntary disclosure program for the board’s 24-state agreement, and that Streamlined President Michael Walsh wanted a proposal before the October meeting that year. It did not arrive then. It arrived in October 2026.
The Bonadio Group’s Robin Brand wrote on Sept. 10, 2026 that the pilot’s two-year lookback is shorter than the three or four years typical in traditional voluntary disclosure programs. Sterlinx Global, a tax advisory firm, summarized the same terms on Oct. 14, before the outcome was reported, and noted the proposal was still being considered.
The counterpoint is real. Brand wrote that states may worry a shorter lookback leaves too much history uncollected, and that businesses that registered promptly after Wayfair may see it as unfair to competitors who waited. Streamlined officials, per the same article, argue the program puts noncompliant sellers on a more level footing. Both sides have a point, and the states that choose not to participate will show which argument wins.
This is the same thread I have been following on EP. I covered Pennsylvania enforcing local sales tax on remote sellers on Oct. 1, and the pressure on sellers is only going one direction. States want registrations, and this program is the offer they are making to get them without a fight.
What a 24-Month Lookback Does to a High-Ticket Store’s Tax Bill
My read is that this program is built for the seller who knows they are exposed, has not been contacted, and wants to stop the meter. High-ticket stores are the textbook case. A store selling $2,000 to $5,000 items does not need many orders to cross a state’s line, and the tax per order is large, so the exposure compounds faster than it does for a $40 product.
Here is hypothetical math, not a reported figure. Say a store ships 60 orders a year at $2,400 into one state with a 6% tax rate. That is $144,000 in sales and $8,640 in tax per year. Over 24 months the unpaid tax is $17,280. Over a 48-month lookback it is $34,560. The cap saves $17,280 in that one state, before penalties, interest and local rates, which vary. Many states use $100,000 in sales as one trigger, but each state sets its own number, so check them one at a time.
The cap helps less than it sounds in one case. The lookback starts when you crossed the threshold, not at an arbitrary date. A store that crossed 14 months ago has a 14-month exposure either way. The program’s real value is the penalty waiver and a single contract process across participating states, instead of negotiating state by state.
Here are three scenarios with thresholds, again my own framing and not data. First, you are registered everywhere you owe and your books tie out. Nothing to join, but confirm that in writing. Second, you are unregistered in one to three states and the unpaid tax is small. Price a professional’s fee against the savings, because a small balance may not justify the program’s 24-month commitment. Third, you are unregistered in many states and nobody has contacted you. This is the case the program exists for, and I would move before Dec. 31, 2027, not wait for it.
The trap is the contact rule. If a state reaches out first, you are excluded in that state. If you register on your own before applying, you are also excluded in that state, with limited exceptions. So the order of operations matters more than speed. I am not a tax or legal advisor, and this is the place to hire one before you click anything on a state website.
Your books are the other pressure point. You need sales by state, by month, with tax rates and exemption records, and most stores cannot produce that on demand. This is the argument for tying payouts to the ledger. I explained why in your ecommerce payout is not your profit.
Finaloop is built for this kind of ecommerce bookkeeping. QuickBooks works too if you already live there.
Sales tax also follows you into a sale of the business. A buyer’s diligence will look for unregistered states, and unresolved exposure comes straight off the price. I walk through that in how to value an ecommerce store before you sell it. Cleaning up exposure now is cheaper than negotiating it later.
Watch the neighbors too. California is taxing SaaS from Jan. 1, per K&L Gates’ Oct. 8 analysis, and I covered what that does to your tool stack in my post on California taxing SaaS. State tax rules are moving on several fronts at once, which is exactly the kind of admin load that eats an owner’s week.
If you would rather hand the store build and daily operations to a team and keep compliance as the only thing on your desk, that is what my turnkey done-for-you service is for.
Want to compare your sales tax setup with other store owners and me before you talk to a CPA? Join the Skool community →
Five Moves Before the Jan. 1 Disclosure Window Opens
Do these five in order. None of them involves registering anywhere yet.
- Pull 36 months of sales by state from your Shopify reports, by month, with order counts. Sort by state and mark every one where you passed $100,000 in sales or 200 orders, then look up each state’s actual threshold.
- Compare that list with your registrations. Any state where you crossed the line and have no sales tax permit is a candidate, and any state where you collected tax from customers without remitting it is a separate problem to raise with a professional first.
- Check for contact. Search your mail and email for notices from any state revenue department, including old ones sent to a previous address. My guide to getting a business address without renting an office covers keeping that mail from getting lost.
- Get the data clean. Post your payouts to the books with A2X or Synder, and record which supplier or warehouse shipped each order, using the vetting steps in my dropshipping suppliers guide. If you use Inventory Source, Wholesale2b or Spocket, export the shipment records so a tax professional can see them.
- Book a sales tax professional before you apply anywhere, then watch for the board’s final text and the list of participating states. If you want a second set of eyes on your numbers and your structure, grab a discovery call with my team.
If your entity setup is shaky, fix that in parallel. My walkthrough of how to form your business is the starting point.
The cost breakdown in how much it costs to form an LLC keeps the budget honest. My holding company explainer covers when a second entity makes sense.
Frequently Asked Questions
Is the program in effect right now?
No. The amendment text says it begins Jan. 1, 2027 and runs through Dec. 31, 2027 unless extended. I have not seen the final adopted wording, so verify it with the Streamlined board’s published materials.
Does every state participate?
Not necessarily. Full member states must notify the board in writing at least 30 days before the start, and I have not seen a participant list. Participation is state by state.
Will penalties and interest both be waived?
The amendment eliminates penalties and late filing fees to the extent state law allows. It does not expressly address interest, and you still owe the underlying tax.
What if I sell through Amazon or eBay only?
The amendment says marketplace-only sales do not trigger the registration requirement for qualification. Marketplace facilitators generally collect on those sales. I covered one example in Texas dropping sales tax on marketplace fees.
What disqualifies me?
Being registered in the state first, a state audit or contact on or after June 21, 2018, a criminal investigation, or collecting sales tax without remitting it. Limited exceptions exist for some registration and contact cases.
Do I need a tax professional?
I would hire one. The exclusions are strict, and registering in the wrong order can cost you eligibility. For the filing side, start with my ecommerce tax filing guide, and I am not a tax or legal advisor. For software to track the numbers, see best tax software for ecommerce sellers.
Want my team to build and run your high-ticket store so compliance is the only thing left on your desk? See the turnkey done-for-you service →
Sales tax is boring until a state letter shows up, and then it is the only thing you think about. Get your by-state numbers this week while you still have the choice. Subscribe to the YouTube channel for daily breakdowns. More breaking news coming through the day.
Related Articles
If this was useful, these go deeper:
- Pennsylvania Enforces Local Sales Tax on Remote Sellers
- California Taxes SaaS Jan. 1: Audit Your Store Tool Stack
- Best Accounting Software for Dropshipping 2026: Thin Margins, Real Numbers
- Do I Need a Business License for My Ecommerce Store?
- Shopify Tax Adds Sales Tax to US Return Shipping Fees Oct. 23
Trevor Fenner is an ecommerce entrepreneur and the founder of Ecommerce Paradise, a platform focused on helping entrepreneurs build and scale profitable high-ticket ecommerce and dropshipping businesses. With over a decade of hands-on experience, Trevor specializes in high-ticket dropshipping strategy, niche and product selection, supplier recruiting and onboarding, Google & Bing Shopping ads, ecommerce SEO, and systems-driven automation and scaling. Through Ecommerce Paradise, he provides free education via in-depth guides like How to Start High-Ticket Dropshipping, advanced training through the High-Ticket Dropshipping Masterclass, and fully done-for-you turnkey ecommerce services for entrepreneurs who want a faster, more hands-off path to growth. Trevor is known for emphasizing sustainable, real-world ecommerce models over hype-driven tactics, helping store owners build scalable, sellable, and location-independent brands.
