Requirements in agreement
Sec. 7. The department shall not enter into the agreement unless
the agreement requires each state to abide by the following
requirements:
(1) Simplified State Rate. The agreement must set restrictions
to limit over time the number of state rates.
(2) Uniform Standards. The agreement must establish uniform
standards for the following:
(A) The sourcing of transactions to taxing jurisdictions.
(B) The administration of exempt sales.
(C) Sales and use tax returns and remittances.
(3) Central Registration. The agreement must provide a central
electronic registration system that allows a seller to register to
collect and remit sales and use taxes for all signatory states.
(4) No Nexus Attribution. The agreement must provide that
registration with the central registration system and the
collection of sales and use taxes in the signatory states will not
be used as a factor in determining whether the seller has nexus
with a state for any tax.
(5) Local Sales and Use Taxes. The agreement must provide for
reduction of the burdens of complying with local sales and use
taxes through the following:
(A) Restricting variances between the state and local tax
bases.
(B) Requiring states to administer any sales and use taxes
levied by local jurisdictions within the state so that sellers
collecting and remitting these taxes will not have to register
or file returns with, remit funds to, or be subject to
independent audits from local taxing jurisdictions.
(C) Restricting the frequency of changes in the local sales
and use tax rates and setting effective dates for the
application of local jurisdictional boundary changes to local
sales and use taxes.
(D) Providing notice of changes in local sales and use tax
rates and of changes in the boundaries of local taxing
jurisdictions.
(6) Monetary Allowances. The agreement must outline any
monetary allowances that are to be provided by the states to
sellers or certified service providers. The agreement must allow
for a joint public and private sector study of the compliance
cost on sellers and certified service providers to collect sales
and use taxes for state and local governments under various
levels of complexity to be completed on or before July 1, 2002.
(7) State Compliance. The agreement must require each state to
certify compliance with the terms of the agreement before
joining and to maintain compliance, under the laws of the
member state, with all provisions of the agreement while the
state is a member.
(8) Consumer Privacy. The agreement must require each state
to adopt a uniform policy for certified service providers that
protects the privacy of consumers and maintains the
confidentiality of tax information.
(9) Advisory Councils. The agreement must provide for the
appointment of an advisory council of private sector
representatives and an advisory council of nonmember state
representatives to consult in the administration of the
agreement.
As added by P.L.107-2001, SEC.1.
Last modified: May 28, 2006