Certified services providers; allowances for sellers and certified
service providers under the agreement
Sec. 10. (a) A certified service provider is the agent of a seller,
with whom the certified service provider has contracted, for the
collection and remittance of sales and use taxes. As the seller's agent,
the certified service provider is liable for sales and use tax due each
member state on all sales transactions it processes for the seller
except as set out in this section. A seller that contracts with a
certified service provider is not liable to the state for sales or use tax
due on transactions processed by the certified service provider unless
the seller misrepresented the type of items it sells or committed
fraud. In the absence of probable cause to believe that the seller has
committed fraud or made a material misrepresentation, the seller is
not subject to audit on the transactions processed by the certified
service provider. A seller is subject to audit for transactions not
processed by the certified service provider. The member states acting
jointly may perform a system check of the seller and review the
seller's procedures to determine if the certified service provider's
system is functioning properly and the extent to which the seller's
transactions are being processed by the certified service provider.
(b) A person that provides a certified automated system is
responsible for the proper functioning of that system and is liable to
the state for underpayments of tax attributable to errors in the
functioning of the certified automated system. A seller that uses a
certified automated system remains responsible and is liable to the
state for reporting and remitting tax.
(c) A seller that has a proprietary system for determining the
amount of tax due on transactions and has signed an agreement
establishing a performance standard for that system is liable for the
failure of the system to meet the performance standard.
(d) The department shall allow any monetary allowances that are
provided by the member states to sellers or certified service
providers in exchange for collecting the sales and use taxes as
provided in article VI of the agreement.
As added by P.L.107-2001, SEC.1. Amended by P.L.195-2005,
SEC.4.
Last modified: May 28, 2006