Sec. 7. Agreement requirements.

548 words·~2 min read·/il/chapter-35/act-171/7

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Sec. 7. Agreement requirements. The Department of Revenue shall not enter into the Streamlined Sales and Use Tax Agreement unless the Agreement requires each state to abide by the following requirements:

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

(b)Uniform standards. 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)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.

(d)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.

(e)Local sales and use taxes. The Agreement must provide for reduction of the burdens of complying with local sales and use taxes, as those terms are defined by each signatory state in the Act by which the state authorizes its entry into the Agreement, 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 with regard to these taxes.

(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.

(f)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 by July 1, 2002.

(g)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.

(h)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.

(i)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 in the administration of the Agreement.

(j)Nothing in the Agreement shall require a signatory state to administer a tax levied by a local jurisdiction unless the tax is a sales tax or use tax as defined by the signatory state in the Act by which the state authorizes its entry into the Agreement.