423.11 - AGREEMENT REQUIREMENTS.

        423.11  AGREEMENT REQUIREMENTS.         The director shall not enter into the agreement unless the      agreement requires each state to abide by the following requirements:         1.  Uniform state rate.  The agreement must set restrictions      to achieve more uniform state rates through the following:         a.  Limiting the number of state rates.         b.  Limiting the application of maximums on the amount of      state tax that is due on a transaction.         c.  Limiting the application of thresholds on the application      of state tax.         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.  The allowances a seller can take for bad debts.         d.  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 provide a      central, electronic registration system that allows a seller to      register to collect and remit sales and use taxes for all member      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 member states must 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:         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 must 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.         7.  Monetary allowances.  The agreement must outline any      monetary allowances that are to be provided by the states to sellers      or certified service providers.         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 nonmember state representatives to consult      with in the administration of the agreement.  
         Section History: Recent Form
         2003 Acts, 1st Ex, ch 2, §104, 205         Referred to in § 423.1 
         Footnotes
         Former § 423.11 repealed effective July 1, 2004, by 2003 Acts, 1st      Ex, ch 2, § 151, 205