§ 6-2.5-11-7 — Requirements in agreement

Indiana § 6-2.5-11-7

• Jurisdiction: Indiana
• Art. 2.5: STATE GROSS RETAIL AND USE TAXES
• Ch. 11: Simplified Sales and Use Tax Administration Act

Text

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.

Legislative History

As added by P.L.107-2001, SEC.1.