[§255D-9]  Seller and third party liability. 
[See note below.]  (a)  A certified service provider is the agent of a
seller, with whom the certified service provider has contracted for the
collection and remittance of sales and use taxes.  As the seller's agent, the
certified service provider is liable for the sales and use taxes due each
member state on all sales transactions it processes for the seller except as
provided in this section.



(b)  A seller that contracts with a certified
service provider is not liable to the State for sales or use taxes due on
transactions processed by the certified service provider unless the seller
misrepresented the type of items it sells or committed fraud.  In the absence
of probable cause to believe that the seller has committed fraud or made a
material misrepresentation, the seller is not subject to audit on the
transactions processed by the certified service provider.  A seller is subject
to audit for transactions not processed by the certified service provider.  The
member states acting jointly may perform a system check of the seller and
review the seller's procedures to determine if the certified service provider's
system is functioning properly and the extent to which the seller's
transactions are being processed by the certified service provider.



(c)  A person that provides a certified
automated system is responsible for the proper functioning of that system and
is liable to the State for underpayments of tax attributable to errors in the
functioning of the certified automated system.  A seller that uses a certified
automated system remains responsible and is liable to the State for reporting
and remitting tax.



(d)  A seller that has a proprietary system for
determining the amount of tax due on transactions and has signed an agreement
establishing a performance standard for that system is liable for the failure
of the system to meet the performance standard. [L 2003, c 173, pt of §2]



 



Note



 



  Section effective when State becomes a member of the
streamlined sales and use tax agreement.  L 2003, c 173, §4.