§7126. Agreement requirements

The State Tax Assessor may not enter into the agreement unless the agreement requires each state to abide by the following requirements.   [PL 2001, c. 496, §1 (NEW).]

1.  Uniform state rate.  The agreement must set restrictions to achieve over time more uniform state rates through:

A. Limiting the number of state rates;   [PL 2001, c. 496, §1 (NEW).]

B. Limiting the application of maximums on the amount of state tax that is due on a transaction; and   [PL 2001, c. 496, §1 (NEW).]

C. Limiting the application of thresholds on the application of state tax.   [PL 2001, c. 496, §1 (NEW).]

[PL 2001, c. 496, §1 (NEW).]

2.  Uniform standards.  The agreement must establish uniform standards for:

A. The sourcing of transactions to taxing jurisdictions;   [PL 2001, c. 496, §1 (NEW).]

B. The administration of exempt sales;   [PL 2001, c. 496, §1 (NEW).]

C. The allowances a seller can take for bad debts; and   [PL 2001, c. 496, §1 (NEW).]

D. Sales and use tax returns and remittances.   [PL 2001, c. 496, §1 (NEW).]

[PL 2001, c. 496, §1 (NEW).]

3.  Uniform definitions.  The agreement must require states to develop and adopt uniform definitions of sales and use tax terms. The definitions must enable each state to preserve its ability to make policy choices not inconsistent with the uniform definitions.

[PL 2001, c. 496, §1 (NEW).]

4.  Central registration.  The agreement must provide for a central, electronic registration system that allows a seller to register to collect and remit sales and use taxes for all signatory states to the agreement.

[PL 2001, c. 496, §1 (NEW).]

5.  No nexus attribution.  The agreement must provide that registration with the central registration system described in subsection 4 and the collection of sales and use taxes in the signatory states to the agreement are not factors in determining whether a seller has a nexus with a state for any tax.

[PL 2001, c. 496, §1 (NEW).]

6.  Local sales and use taxes.  The agreement must provide for reduction of the burdens of complying with local sales and use taxes through:

A. Restricting variances between the state and local tax bases;   [PL 2001, c. 496, §1 (NEW).]

B. Requiring a state to administer any sales and use taxes levied by local jurisdictions within the state so that sellers collecting and remitting these taxes do not have to register or file returns with, remit funds to or be subject to independent audits from local taxing jurisdictions;   [PL 2001, c. 496, §1 (NEW).]

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; and   [PL 2001, c. 496, §1 (NEW).]

D. Providing notice of changes in local sales and use tax rates and of changes in the boundaries of local taxing jurisdictions.   [PL 2001, c. 496, §1 (NEW).]

[PL 2001, c. 496, §1 (NEW).]

7.  Monetary allowances.  The agreement must outline any monetary allowances that are to be provided by the states to sellers or certified service providers.

[PL 2001, c. 496, §1 (NEW).]

8.  State compliance.  The agreement must require each state to certify compliance with the terms of the agreement prior to joining and to maintain compliance under its laws with all provisions of the agreement while a member.

[PL 2001, c. 496, §1 (NEW).]

9.  Taxpayer privacy.  The agreement must require each state to adopt a uniform policy for certified service providers that protects the privacy of taxpayers and maintains the confidentiality of tax information.

[PL 2001, c. 496, §1 (NEW).]

10.  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 with the signatory states to the agreement in the administration of the agreement.

[PL 2001, c. 496, §1 (NEW).]

SECTION HISTORY

PL 2001, c. 496, §1 (NEW).