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This entry was published on 2014-09-22
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SECTION 1175
Agreement requirements
Tax (TAX) CHAPTER 60, ARTICLE 28-B
§ 1175. Agreement requirements. The department shall not enter into
the streamlined sales and use tax agreement unless the agreement
requires each state to abide by the following requirements:

(a) The agreement must set restrictions to limit over time the number
of state rates.

(b) The agreement must establish uniform standards for the following:

(1) The sourcing of transactions to taxing jurisdictions.

(2) The administration of exempt sales.

(3) Sales and use tax returns and remittances.

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

(d) 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.

(e) 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.

(f) The agreement must provide for reduction of the burdens of
complying with local sales and use taxes through the following:

(1) Restricting variances between the state and local tax bases.

(2) 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.

(3) 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.

(4) Providing notice of changes in local sales and use tax rates and
of changes in the boundaries of local taxing jurisdictions.

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

(h) The agreement must require each state to certify compliance with
the terms of the agreement prior to joining and to maintain compliance,
under the laws of the member state, with all provisions of the agreement
while a member.

(i) 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.

(j) The agreement must provide for the appointment of an advisory
council of private sector representatives and an advisory council of
non-member state representatives to consult with in the administration
of the agreement.