SB 0620 Allows participation in multistate cooperative agreement for sales & use tax administration
LR Number:2039S.01I Fiscal Note:2039-01
Committee:Ways and Means
Last Action:03/08/01 - Second Read and Referred S Ways & Means Committee Journal page:S449
Effective Date:August 28, 2001
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Current Bill Summary

SB 620 - This act authorizes the Director of the Department of Revenue to enter into a cooperative agreement with other states for simplification of the administration of state sales and use taxes. States which are members to the cooperative agreement shall establish standards for automated systems and multistate sellers. While this act does not modify any existing state law regarding sales and use taxes, requirements of the cooperative agreement would mandate changes in the following areas of the law:

1. Simplifying sales and use tax rates; 2. Establishing uniform standards for sales and use tax returns and remittances; 3. Allowing for a centralized, electronic registration system, which allows a seller to register, collect and remit sales and use tax for all member states; 4. Restricting variances between state and local taxes; 5. Administering sales taxes such that sellers will not be subject to audits from local taxing jurisdictions; 6. Restricting the frequency of changes in local sales and use tax rates; 7. Establishing notice requirements for changes in rates and in the boundaries of local taxing jurisdictions; and 8. Adopting a uniform policy for Certified Service Providers.

This act authorizes Certified Service Providers to contract with sellers to collect and remit sales and use taxes due to each member state. Sellers are not subject to audit on those transactions handled by the Certified Service Provider.