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

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

(2)  The agreement must establish uniform standardsfor:

(A)  The sourcing of transactions to taxingjurisdictions;

(B)  The administration of exempt sales; and

(C)  Sales and use tax returns and remittances;

(3)  The agreement must provide a central, electronicregistration system that allows a seller to register to collect and remit salesand use taxes for all signatory states;

(4)  The agreement must provide that registration withthe central registration system and the collection of sales and use taxes inthe signatory states will not be used as a factor in determining whether theseller has a nexus with a state for any tax;

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

(A)  Restricting variances between the stateand local tax bases;

(B)  Requiring states to administer any salesand use taxes levied by local jurisdictions within the state so that sellerscollecting and remitting these taxes will not have to register or file returnswith, remit funds to, or be subject to independent audits from local taxingjurisdictions;

(C)  Restricting the frequency of changes inthe local sales and use tax rates and setting effective dates for theapplication of local jurisdictional boundary changes to local sales and usetaxes; and

(D)  Providing notice of changes in local salesand use tax rates and of changes in the boundaries of local taxingjurisdictions;

(6)  The agreement must outline any monetaryallowances that are to be provided by the states to sellers or certifiedservice providers;

(7)  The agreement must allow for a joint public andprivate sector study of the compliance cost for sellers and certified serviceproviders to collect sales and use taxes for state and local governments undervarious levels of complexity to be completed by July 1, 2004;

(8)  The agreement must require each state to certifycompliance with the terms of the agreement before joining and to maintaincompliance, under the laws of the member state, with all provisions of theagreement while a member;

(9)  The agreement must require each state to adopt auniform policy for certified service providers that protects the privacy ofconsumers and maintains the confidentiality of tax information; and

(10)  The agreement must provide for the appointment ofan advisory council of private sector representatives and an advisory councilof nonmember state representatives to consult with in the administration of theagreement. [L 2003, c 173, pt of §2]