The Streamlined Sales and Use Tax Agreement was introduced in 1999 by the National Governor’s Association (NGA) and the National Conference of State Legislatures (NCSL) in order to simplify the collection of sales tax as sales tax is second largest source of state revenue after personal income taxes. It resulted in decveloping a simpler and business friendly sales tax system.

The Agreement decreases costs and administrative burdens of sales tax collection on retailers, especially those operating in multiple states.