§231-3.6 - Streamlined sales and use tax agreement compliance.

[§231-3.6] Streamlined sales and use tax
agreement compliance. (a) A seller that registers to pay or collect and
remit sales or use tax in accordance with the terms of the streamlined sales
and use tax agreement may select one of the following methods of remittance or
other method allowed by law to remit the taxes collected, as follows:

(1) A model 1 seller, who shall be a seller who
selects a certified service provider as an agent to perform all the seller’s
sales or use tax functions, other than the seller’s obligation to remit tax on
its own purchases;

(2) A model 2 seller, who shall be a seller who
selects a certified automated system to use which calculates the amount of tax
due on a transaction; or

(3) A model 3 seller, who shall be a seller who uses
its own proprietary automated sales tax system that has been certified as a
certified automated system.

(b) A certified service provider in model 1
shall be allowed a monetary allowance in accordance with the terms of the
contract that the states participating in the streamlined sales and use tax
agreement execute with the provider. The director shall prescribe the
allowance in accordance with the terms of the contract, which shall be funded
entirely from money collected in model 1.

A monetary allowance to a certified service
provider may be based on one or more of the following incentives:

(1) A base rate that applies to taxable transactions
processed by the provider; and

(2) For a period not to exceed twenty-four months
following a voluntary seller’s registration through the streamlined sales and
use tax agreement’s central registration process, a percentage of tax revenue
generated for a member state by the voluntary seller for each member state for
which the seller does not have a requirement to register to collect the tax.

(c) A model 2 seller shall be allowed a
monetary allowance that the director shall prescribe in accordance with the
terms agreed to by the member states of the streamlined sales and use tax
agreement. The member states initially anticipate that they will provide a
monetary allowance to sellers under model 2 based on the following:

(1) Each seller shall receive a base rate for a
period not to exceed twenty-four months following the commencement of
participation by the seller; and

(d) A model 3 seller and all other sellers
that are not under model 1 or model 2 shall be allowed a monetary
allowance that the director shall prescribe in accordance with the terms agreed
to by the member states of the streamlined sales and use tax agreement. The
member states initially anticipate that they will provide a monetary allowance
to sellers under model 3 and to all other sellers that are not under models 1
or 2 based on the following:

(1) For a period not to exceed twenty-four months
following a voluntary seller’s registration through the streamlined sales and
use tax agreement’s central registration process; and

(2) A percentage of tax revenue generated for a
member state by the voluntary seller for each member state for which the seller
does not have a requirement to register to collect the tax.

(e) Pursuant to the streamlined sales and use
tax agreement, the director is authorized to accept certified automated systems
and certified service providers to aid in the administration of the collection
of the tax imposed under chapter 237 and chapter 238.

(f) No person required to collect any tax
imposed by chapter 237 or 238, or any tax authorized to be collected under the
streamlined sales and use tax agreement shall be held liable for having charged
and collected the incorrect amount of sales or use tax by reason of reliance on
erroneous data provided by the director with respect to tax rates, boundaries,
or taxing jurisdiction assignments.

(g) In connection with a purchaser's request
from a seller of over-collected sales or use taxes, a seller shall be presumed
to have a reasonable business practice, if in the collection of the sales or
use taxes, the seller:

(1) Uses either a provider or a system, including a
proprietary system, that is certified by the State; and

(2) Has remitted to the State all taxes collected
less any deductions, credits, or collection allowances.

(h) For the purposes of this section,
"streamlined sales and use tax agreement" means the agreement
authorized under chapter 255D. [L Sp 2005, c 3, §2]