§ 44-59-6. Agreement requirements.
The tax administrator shall not enter into the Streamlined Sales and Use Tax Agreement
unless the Agreement requires each state to abide by the following requirements:
(1) Uniform state rate. The Agreement must set restrictions to achieve over time more uniform state rates
through the following:
(i) Limiting the number of state rates.
(ii) Limiting the application of maximums on the amount of state tax that is due on a transaction.
(iii) Limiting the application of thresholds on the application of state tax.
(2) Uniform standards. The Agreement must establish uniform standards for the following:
(i) The sourcing of transactions to taxing jurisdictions.
(ii) The administration of exempt sales.
(iii) The allowances a seller can take for bad debts.
(iv) Sales and use tax returns and remittances.
(3) Uniform definitions. 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.
(4) Central registration. The Agreement must provided a central, electronic registration system that allows
a seller to register to collect and remit sales and use taxes for all signatory states.
(5) 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.
(6) 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:
(i) Restricting variances between the state and local tax bases.
(ii) 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.
(iii) 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.
(iv) Providing notice of changes in local sales and use tax rates and of changes in the
boundaries of local taxing jurisdictions.
(7) Monetary allowances. The Agreement shall outline any monetary allowances that are to be provided by the
states to sellers or certified service providers in exchange for collecting sales
and use taxes.
(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 the laws of the member
state, with all provisions of the Agreement while a member.
(9) 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.
(10) Advisory councils. 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 the administration of the Agreement.