[§255D-6]  Agreement requirements.  The
department shall not enter into the streamlined sales and use tax agreement
unless the agreement requires each state to abide by the following
requirements:



(1)  The agreement must set restrictions to limit over
time the number of state tax rates;



(2)  The agreement must establish uniform standards
for:



(A)  The sourcing of transactions to taxing
jurisdictions;



(B)  The administration of exempt sales; and



(C)  Sales and use tax returns and remittances;



(3)  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)  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 a nexus with a state for any tax;



(5)  The agreement must provide for reduction of the
burdens of complying with local sales and use taxes by:



(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; and



(D)  Providing notice of changes in local sales
and use tax rates and of changes in the boundaries of local taxing
jurisdictions;



(6)  The agreement must outline any monetary
allowances that are to be provided by the states to sellers or certified
service providers;



(7)  The agreement must allow for a joint public and
private sector study of the compliance cost for 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, 2004;



(8)  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 a member;



(9)  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; and



(10)  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. [L 2003, c 173, pt of §2]