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H0007aa.............................................by REVENUE AND TAXATION
SIMPLIFIED SALES AND USE TAX ADMINISTRATION ACT - Adds to existing law to
provide the "Simplified Sales and Use Tax Administration Act."
01/15 House intro - 1st rdg - to printing
01/16 Rpt prt - to Rev/Tax
01/29 Rpt out - rec d/p - to 2nd rdg
01/30 2nd rdg - to 3rd rdg
02/05 To Gen Ord
02/13 Rpt out amen - to engros
02/14 Rpt engros - 1st rdg - to 2nd rdg as amen
02/15 2nd rdg - to 3rd rdg as amen
02/21 3rd rdg as amen - FAILED - 33-37-0
AYES -- Bell, Black, Block, Bock, Boe, Bolz, Chadderdon, Chavez,
Chew, Collins, Durst, Henbest, Killen, King, Lake, LeFavour,
Marriott, Pasley-Stuart, Pence, Ring, Ringo, Ruchti, Rusche, Sayler,
Shepherd(2), Shirley, Shively, Smith(30), Smith(24), Snodgrass,
Stevenson, Trail, Wills
NAYS -- Anderson, Andrus, Barrett, Bayer, Bedke, Bilbao, Brackett,
Bradford, Clark, Crane, Edmunson, Eskridge, Hagedorn, Hart, Harwood,
Henderson, Jaquet, Kren, Labrador, Loertscher, Luker, Mathews,
McGeachin, Mortimer, Moyle, Nielsen, Nonini, Patrick, Raybould,
Roberts, Schaefer, Shepherd(8), Thayn, Vander Woude, Wood(27),
Wood(35), Mr. Speaker
Absent and excused -- None
Floor Sponsors - Lake & Smith(24)
Filed in Office of the Chief Clerk
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 7
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO SALES AND USE TAXES; AMENDING TITLE 63, IDAHO CODE, BY THE ADDI-
3 TION OF A NEW CHAPTER 45, TITLE 63, IDAHO CODE, TO PROVIDE A SHORT TITLE,
4 TO PROVIDE DEFINITIONS, TO PROVIDE A STATEMENT OF FINDINGS AND INTENT, TO
5 PROVIDE DUTIES OF THE STATE TAX COMMISSION, TO AUTHORIZE THE COMMISSION TO
6 ENTER THE STREAMLINED SALES TAX AGREEMENT, TO PROVIDE THAT THE AGREEMENT
7 DOES NOT PREEMPT STATE LAW, TO PROVIDE MINIMUM TERMS AND CONDITIONS FOR
8 ENTERING INTO THE AGREEMENT, TO PROVIDE THAT THE AGREEMENT IS AN ACCORD
9 AMONG COOPERATING SOVEREIGNS, TO PROVIDE LIMITATIONS ON ACTIONS UNDER THE
10 AGREEMENT, TO PROVIDE FOR CERTIFIED SERVICE PROVIDERS, TO REQUIRE THE
11 STATE TAX COMMISSION TO PREPARE PROPOSED LEGISLATION TO IMPLEMENT THE PRO-
12 VISIONS OF THE STREAMLINED SALES TAX AGREEMENT; AND DECLARING AN EMER-
13 GENCY.
14 Be It Enacted by the Legislature of the State of Idaho:
15 SECTION 1. That Title 63, Idaho Code, be, and the same is hereby amended
16 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
17 ter 45, Title 63, Idaho Code, and to read as follows:
18 CHAPTER 45
19 SIMPLIFIED SALES AND USE TAX ADMINISTRATION ACT
20 63-4501. SHORT TITLE. This chapter shall be known and cited as the
21 "Simplified Sales and Use Tax Administration Act."
22 63-4502. DEFINITIONS. The definitions in this section apply throughout
23 this chapter unless the context clearly requires otherwise.
24 (1) "Agreement" means the streamlined sales and use tax agreement as
25 adopted.
26 (2) "Certified automated system" means software certified jointly by the
27 states that are signatories to the agreement to calculate the tax imposed by
28 each jurisdiction on a transaction, determine the amount of tax to remit to
29 the appropriate state, and maintain a record of the transaction.
30 (3) "Certified service provider" means an agent certified jointly by the
31 states that are signatories to the agreement to perform all of the seller's
32 sales tax functions.
33 (4) "Commission" means the Idaho state tax commission.
34 (5) "Person" means an individual, trust, estate, fiduciary, partnership,
35 limited liability company, limited liability partnership, corporation, or any
36 other legal entity.
37 (6) "Sales tax" means the tax levied by section 63-3619, Idaho Code, and
38 local sales taxes levied in accordance with chapter 26, title 63, Idaho Code,
39 chapter 10, title 50, Idaho Code, section 67-4718, Idaho Code, or section
40 67-4917B, Idaho Code.
41 (7) "Seller" means any person making sales, leases, or rentals of per-
2
1 sonal property or services.
2 (8) "State" means any state of the United States and the District of
3 Columbia.
4 (9) "Use tax" means the tax levied by section 63-3621, Idaho Code, and
5 local sales taxes levied in accordance with chapter 26, title 63, Idaho Code,
6 chapter 10, title 50, Idaho Code, section 67-4718, Idaho Code, or section
7 67-4917B, Idaho Code.
8 63-4503. STATEMENT OF FINDINGS AND INTENT. The legislature finds that a
9 simplified sales and use tax system will reduce and over time eliminate the
10 burden and cost for all vendors to collect this state's sales and use tax.
11 The legislature further finds that this state should participate in multistate
12 discussions to review or amend the terms of the agreement to simplify and mod-
13 ernize sales and use tax administration in order to substantially reduce the
14 burden of tax compliance for all sellers and for all types of commerce.
15 63-4504. DUTIES OF THE COMMISSION. (1) For the purposes of reviewing or
16 amending the agreement embodying the simplification requirements in section
17 63-4507, Idaho Code, the state shall enter into multistate discussions. For
18 purposes of these discussions, the commission shall represent the state. The
19 governor may appoint up to four (4) persons to consult with the commission at
20 these discussions. The persons advising the commission shall not be compen-
21 sated and are not entitled to payment of travel expenses by the state.
22 (2) The commission shall regularly consult with an advisory group com-
23 posed of two (2) members from the senate, appointed by the president pro tem-
24 pore of the senate and two (2) members of the house of representatives
25 appointed by the speaker of the house of representatives; representatives of
26 retailers, including those selling via mail, telephone, and the internet; rep-
27 resentatives of large and small businesses; and representatives of counties
28 and cities. The commission shall use its best efforts to consult with the
29 advisory group before any multistate discussions in which it is anticipated
30 that amendments may be proposed to the agreement embodying the simplification
31 requirements in section 63-4507, Idaho Code.
32 63-4505. AUTHORIZATION FOR AGREEMENT. The commission shall enter into the
33 streamlined sales and use tax agreement and the streamlined sales tax project
34 with one (1) or more states to simplify and modernize sales and use tax admin-
35 istration in order to substantially reduce the burden of tax compliance for
36 all sellers and for all types of commerce. In furtherance of the agreement,
37 the commission may act jointly with other states that are members of the
38 agreement to establish standards for certification of a certified service pro-
39 vider and certified automated system and establish performance standards for
40 multistate sellers. The commission is further authorized to take other actions
41 reasonably required to implement this chapter. Other actions authorized by
42 this section include, but are not limited to, the adoption of rules and the
43 joint procurement, with other member states, of goods and services in further-
44 ance of the cooperative agreement. The commission, or the commission's desig-
45 nee, may represent this state before the other states that are signatories to
46 the agreement.
47 63-4506. AGREEMENT NOT TO PREEMPT STATE LAW. No provision of the agree-
48 ment authorized by this chapter in whole or in part invalidates or amends any
49 provision of the laws of this state. Adoption of the agreement by this state
50 does not amend or modify any law of this state. Implementation of any condi-
51 tion of the agreement in this state, whether adopted before, at, or after mem-
3
1 bership of this state in the agreement, must be by the action of the legisla-
2 ture or by administrative rules of the commission authorized by the legisla-
3 ture.
4 63-4507. TERMS AND CONDITIONS OF AGREEMENTS. The commission shall not
5 enter into the streamlined sales and use tax agreement unless the agreement
6 requires each state to abide by the requirements in this section.
7 (1) The agreement must set restrictions to limit over time the number of
8 state rates.
9 (2) The agreement must establish uniform standards for:
10 (a) The sourcing of transactions to taxing jurisdictions;
11 (b) The administration of exempt sales; and
12 (c) Sales and use tax returns and remittances.
13 (3) The agreement must provide a central, electronic registration system
14 that allows a seller to register to collect and remit sales and use taxes for
15 all signatory states.
16 (4) The agreement must provide that registration with the central regis-
17 tration system and the collection of sales and use taxes in the signatory
18 states will not be used as a factor in determining whether the seller has
19 nexus with a state for any tax.
20 (5) The agreement must provide for reduction of the burdens of complying
21 with local sales and use taxes by:
22 (a) Restricting variances between the state and local tax bases;
23 (b) Requiring states to administer any sales and use taxes levied by
24 local jurisdictions within the state so that sellers collecting and remit-
25 ting these taxes will not have to register or file returns with, remit
26 funds to, or be subject to independent audits from local taxing jurisdic-
27 tions;
28 (c) Restricting the frequency of changes in the local sales and use tax
29 rates and setting effective dates for the application of local jurisdic-
30 tional boundary changes to local sales and use taxes; and
31 (d) Providing notice of changes in local sales and use tax rates and of
32 changes in the boundaries of local taxing jurisdictions.
33 (6) The agreement must outline any monetary allowances that are to be
34 provided by the states to sellers or certified service providers. The agree-
35 ment must allow for a joint public and private sector study of the compliance
36 cost on sellers and certified service providers to collect sales and use taxes
37 for state and local governments under various levels of complexity.
38 (7) The agreement must require each state to certify compliance with the
39 terms of the agreement before joining and to maintain compliance, under the
40 laws of the member state, with all provisions of the agreement while a member.
41 (8) The agreement must require each state to adopt a uniform policy for
42 certified service providers that protects the privacy of consumers and main-
43 tains the confidentiality of tax information.
44 (9) The agreement must provide for the appointment of an advisory council
45 of private sector representatives and an advisory council of nonmember state
46 representatives to consult with in the administration of the agreement.
47 63-4508. ACCORD AMONG COOPERATING SOVEREIGNS. The agreement authorized by
48 this chapter is an accord among individual cooperating sovereigns in further-
49 ance of their governmental functions. The agreement provides a mechanism
50 among the member states to establish and maintain a cooperative, simplified
51 system for the application and administration of sales and use taxes under the
52 duly adopted law of each member state.
4
1 63-4509. LIMITATIONS ON ACTIONS. (1) The agreement authorized by this
2 chapter binds and inures only to the benefit of this state and the other mem-
3 ber states. No person, other than a member state, is an intended beneficiary
4 of the agreement. Any benefit to a person other than a state is established by
5 the laws of this state and the other member states and not by the terms of the
6 agreement.
7 (2) Consistent with subsection (1) of this section, no person has any
8 cause of action or defense under the agreement or by virtue of this state's
9 approval of the agreement. No person may challenge, in any action brought
10 under any provision of law, any action or inaction by any state, agency, other
11 instrumentality of this state, or any political subdivision of this state on
12 the ground that the action or inaction is inconsistent with the agreement.
13 (3) No law of this state, nor the application thereof, may be declared
14 invalid as to any person or circumstance on the ground that the provision or
15 application is inconsistent with the agreement.
16 63-4510. CERTIFIED SERVICE PROVIDER. (1) A certified service provider is
17 the agent of a seller, with whom the certified service provider has con-
18 tracted, for the collection and remittance of sales and use taxes. As the
19 seller's agent, the certified service provider is liable for sales and use tax
20 due each member state on all sales transactions it processes for the seller
21 except as set out in this section. A seller that contracts with a certified
22 service provider is not liable to the state for sales or use tax due on trans-
23 actions processed by the certified service provider unless the seller misrep-
24 resented the type of items it sells or committed fraud. In the absence of
25 probable cause to believe that the seller has committed fraud or made a mate-
26 rial misrepresentation, the seller is not subject to audit on the transactions
27 processed by the certified service provider. A seller is subject to audit for
28 transactions not processed by the certified service provider. The member
29 states acting jointly may perform a system check of the seller and review the
30 seller's procedures to determine if the certified service provider's system is
31 functioning properly and the extent to which the seller's transactions are
32 being processed by the certified service provider.
33 (2) A person that provides a certified automated system is responsible
34 for the proper functioning of that system and is liable to the state for
35 underpayments of tax attributable to errors in the functioning of the certi-
36 fied automated system. A seller that uses a certified automated system remains
37 responsible and is liable to the state for reporting and remitting tax.
38 (3) A seller that has a proprietary system for determining the amount of
39 tax due on transactions and has signed an agreement establishing a performance
40 standard for that system is liable for the failure of the system to meet the
41 performance standard.
42 63-4511. NECESSARY REMEDIAL LEGISLATION. Upon becoming a member of the
43 streamlined sales and use tax agreement, the commission shall prepare legisla-
44 tion conforming state law as necessary and shall provide such legislation to
45 the governor and to the senate local government and taxation committee and the
46 house of representatives revenue and taxation committee.
47 SECTION 2. An emergency existing therefor, which emergency is hereby
48 declared to exist, this act shall be in full force and effect on and after its
49 passage and approval.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
Moved by Roberts
Seconded by Lake
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO H.B. NO. 7
1 AMENDMENT TO SECTION 1
2 On page 1 of the printed bill, delete lines 34 through 41 and on page 2,
3 delete lines 1 through 7 and insert:
4 "(5) "Committee" means the Idaho streamlined sales tax committee estab-
5 lished in section 63-4504, Idaho Code.
6 (6) "Person" means an individual, trust, estate, fiduciary, partnership,
7 limited liability company, limited liability partnership, corporation, or any
8 other legal entity.
9 (7) "Sales tax" means the tax levied by section 63-3619, Idaho Code, and
10 local sales taxes levied in accordance with chapter 26, title 63, Idaho Code,
11 chapter 10, title 50, Idaho Code, section 67-4718, Idaho Code, or section
12 67-4917B, Idaho Code.
13 (8) "Seller" means any person making sales, leases, or rentals of per-
14 sonal property or services.
15 (9) "State" means any state of the United States and the District of
16 Columbia.
17 (10) "Use tax" means the tax levied by section 63-3621, Idaho Code, and
18 local sales taxes levied in accordance with chapter 26, title 63, Idaho Code,
19 chapter 10, title 50, Idaho Code, section 67-4718, Idaho Code, or section
20 67-4917B, Idaho Code.".
21 On page 2, delete lines 15 through 46 and insert:
22 "63-4504. IDAHO STREAMLINED SALES AND USE TAX COMMITTEE -- ORGANIZATION
23 AND DUTIES. For the purposes of reviewing or amending the agreement embodying
24 the simplification requirements in section 63-4507, Idaho Code, the state
25 shall enter into multistate discussions. For the purpose of these discussions,
26 the state shall be represented by the Idaho streamlined sales and use tax com-
27 mittee. The committee shall be composed of two (2) members from the senate,
28 appointed by the president pro tempore and two (2) members of the house of
29 representatives appointed by the speaker of the house of representatives who
30 shall jointly appoint one (1) of their members chairman. The chairman or his
31 designee shall act as the spokesman for the committee and the state in meet-
32 ings and discussions relating to the streamlined sales and use tax agreement.
33 The chairman shall appoint five (5) additional members who shall cumulatively
34 represent large and small retailers selling by fixed outlets, mail, telephone
35 or the internet. The chairman of the state tax commission, or a member of the
36 state tax commission that he may designate, shall be an ex officio nonvoting
37 member of the committee. The committee shall consult with the commission
38 before any multistate discussions in which it is anticipated that amendments
39 may be proposed to the agreement embodying the simplification requirements in
40 section 63-4507, Idaho Code.
41 63-4505. AUTHORIZATION FOR AGREEMENT. The committee shall enter into the
42 streamlined sales and use tax agreement and the streamlined sales tax project
2
1 with one (1) or more states to simplify and modernize sales and use tax admin-
2 istration in order to substantially reduce the burden of tax compliance for
3 all sellers and for all types of commerce. In furtherance of the agreement,
4 the committee may act jointly with other states that are members of the agree-
5 ment to establish standards for certification of a certified service provider
6 and certified automated system and establish performance standards for multi-
7 state sellers. The committee is further authorized to take other actions rea-
8 sonably required to implement this chapter. Other actions authorized by this
9 section include, but are not limited to, the adoption of rules and the joint
10 procurement, with other member states, of goods and service, in furtherance of
11 the cooperative agreement.".
12 On page 4, delete lines 42 through 46 and insert:
13 "63-4511. NECESSARY REMEDIAL LEGISLATION. The commission shall prepare
14 draft legislation conforming state law to the requirements of the streamlined
15 sales and use tax agreement and shall provide such legislation to the commit-
16 tee. The committee shall provide the draft legislation, together with its rec-
17 ommendation relating thereto, to the governor and to the senate local govern-
18 ment and taxation committee and the house of representatives revenue and taxa-
19 tion committee.".
20 CORRECTION TO TITLE
21 On page 1, delete line 5 and insert: "ESTABLISH AN IDAHO STREAMLINED SALES
22 AND USE TAX COMMITTEE, TO AUTHORIZE THE COMMITTEE TO"; and delete lines 10
23 through 12 and insert: "AGREEMENT, TO PROVIDE FOR CERTIFIED SERVICE PRODUCERS,
24 TO PROVIDE FOR PROPOSED LEGISLATION TO IMPLEMENT THE PROVISIONS OF THE
25 STREAMLINED SALES AND USE TAX AGREEMENT AND TO PROVIDE FOR DISTRIBUTION OF THE
26 PROPOSED LEGISLATION; AND DECLARING AN EMER-".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 7, As Amended
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO SALES AND USE TAXES; AMENDING TITLE 63, IDAHO CODE, BY THE ADDI-
3 TION OF A NEW CHAPTER 45, TITLE 63, IDAHO CODE, TO PROVIDE A SHORT TITLE,
4 TO PROVIDE DEFINITIONS, TO PROVIDE A STATEMENT OF FINDINGS AND INTENT, TO
5 ESTABLISH AN IDAHO STREAMLINED SALES AND USE TAX COMMITTEE, TO AUTHORIZE
6 THE COMMITTEE TO ENTER THE STREAMLINED SALES TAX AGREEMENT, TO PROVIDE
7 THAT THE AGREEMENT DOES NOT PREEMPT STATE LAW, TO PROVIDE MINIMUM TERMS
8 AND CONDITIONS FOR ENTERING INTO THE AGREEMENT, TO PROVIDE THAT THE AGREE-
9 MENT IS AN ACCORD AMONG COOPERATING SOVEREIGNS, TO PROVIDE LIMITATIONS ON
10 ACTIONS UNDER THE AGREEMENT, TO PROVIDE FOR CERTIFIED SERVICE PRODUCERS,
11 TO PROVIDE FOR PROPOSED LEGISLATION TO IMPLEMENT THE PROVISIONS OF THE
12 STREAMLINED SALES AND USE TAX AGREEMENT AND TO PROVIDE FOR DISTRIBUTION OF
13 THE PROPOSED LEGISLATION; AND DECLARING AN EMERGENCY.
14 Be It Enacted by the Legislature of the State of Idaho:
15 SECTION 1. That Title 63, Idaho Code, be, and the same is hereby amended
16 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
17 ter 45, Title 63, Idaho Code, and to read as follows:
18 CHAPTER 45
19 SIMPLIFIED SALES AND USE TAX ADMINISTRATION ACT
20 63-4501. SHORT TITLE. This chapter shall be known and cited as the
21 "Simplified Sales and Use Tax Administration Act."
22 63-4502. DEFINITIONS. The definitions in this section apply throughout
23 this chapter unless the context clearly requires otherwise.
24 (1) "Agreement" means the streamlined sales and use tax agreement as
25 adopted.
26 (2) "Certified automated system" means software certified jointly by the
27 states that are signatories to the agreement to calculate the tax imposed by
28 each jurisdiction on a transaction, determine the amount of tax to remit to
29 the appropriate state, and maintain a record of the transaction.
30 (3) "Certified service provider" means an agent certified jointly by the
31 states that are signatories to the agreement to perform all of the seller's
32 sales tax functions.
33 (4) "Commission" means the Idaho state tax commission.
34 (5) "Committee" means the Idaho streamlined sales tax committee estab-
35 lished in section 63-4504, Idaho Code.
36 (6) "Person" means an individual, trust, estate, fiduciary, partnership,
37 limited liability company, limited liability partnership, corporation, or any
38 other legal entity.
39 (7) "Sales tax" means the tax levied by section 63-3619, Idaho Code, and
40 local sales taxes levied in accordance with chapter 26, title 63, Idaho Code,
41 chapter 10, title 50, Idaho Code, section 67-4718, Idaho Code, or section
2
1 67-4917B, Idaho Code.
2 (8) "Seller" means any person making sales, leases, or rentals of per-
3 sonal property or services.
4 (9) "State" means any state of the United States and the District of
5 Columbia.
6 (10) "Use tax" means the tax levied by section 63-3621, Idaho Code, and
7 local sales taxes levied in accordance with chapter 26, title 63, Idaho Code,
8 chapter 10, title 50, Idaho Code, section 67-4718, Idaho Code, or section
9 67-4917B, Idaho Code.
10 63-4503. STATEMENT OF FINDINGS AND INTENT. The legislature finds that a
11 simplified sales and use tax system will reduce and over time eliminate the
12 burden and cost for all vendors to collect this state's sales and use tax.
13 The legislature further finds that this state should participate in multistate
14 discussions to review or amend the terms of the agreement to simplify and mod-
15 ernize sales and use tax administration in order to substantially reduce the
16 burden of tax compliance for all sellers and for all types of commerce.
17 63-4504. IDAHO STREAMLINED SALES AND USE TAX COMMITTEE -- ORGANIZATION
18 AND DUTIES. For the purposes of reviewing or amending the agreement embodying
19 the simplification requirements in section 63-4507, Idaho Code, the state
20 shall enter into multistate discussions. For the purpose of these discussions,
21 the state shall be represented by the Idaho streamlined sales and use tax com-
22 mittee. The committee shall be composed of two (2) members from the senate,
23 appointed by the president pro tempore and two (2) members of the house of
24 representatives appointed by the speaker of the house of representatives who
25 shall jointly appoint one (1) of their members chairman. The chairman or his
26 designee shall act as the spokesman for the committee and the state in meet-
27 ings and discussions relating to the streamlined sales and use tax agreement.
28 The chairman shall appoint five (5) additional members who shall cumulatively
29 represent large and small retailers selling by fixed outlets, mail, telephone
30 or the internet. The chairman of the state tax commission, or a member of the
31 state tax commission that he may designate, shall be an ex officio nonvoting
32 member of the committee. The committee shall consult with the commission
33 before any multistate discussions in which it is anticipated that amendments
34 may be proposed to the agreement embodying the simplification requirements in
35 section 63-4507, Idaho Code.
36 63-4505. AUTHORIZATION FOR AGREEMENT. The committee shall enter into the
37 streamlined sales and use tax agreement and the streamlined sales tax project
38 with one (1) or more states to simplify and modernize sales and use tax admin-
39 istration in order to substantially reduce the burden of tax compliance for
40 all sellers and for all types of commerce. In furtherance of the agreement,
41 the committee may act jointly with other states that are members of the agree-
42 ment to establish standards for certification of a certified service provider
43 and certified automated system and establish performance standards for multi-
44 state sellers. The committee is further authorized to take other actions rea-
45 sonably required to implement this chapter. Other actions authorized by this
46 section include, but are not limited to, the adoption of rules and the joint
47 procurement, with other member states, of goods and service, in furtherance of
48 the cooperative agreement.
49 63-4506. AGREEMENT NOT TO PREEMPT STATE LAW. No provision of the agree-
50 ment authorized by this chapter in whole or in part invalidates or amends any
51 provision of the laws of this state. Adoption of the agreement by this state
3
1 does not amend or modify any law of this state. Implementation of any condi-
2 tion of the agreement in this state, whether adopted before, at, or after mem-
3 bership of this state in the agreement, must be by the action of the legisla-
4 ture or by administrative rules of the commission authorized by the legisla-
5 ture.
6 63-4507. TERMS AND CONDITIONS OF AGREEMENTS. The commission shall not
7 enter into the streamlined sales and use tax agreement unless the agreement
8 requires each state to abide by the requirements in this section.
9 (1) The agreement must set restrictions to limit over time the number of
10 state rates.
11 (2) The agreement must establish uniform standards for:
12 (a) The sourcing of transactions to taxing jurisdictions;
13 (b) The administration of exempt sales; and
14 (c) Sales and use tax returns and remittances.
15 (3) The agreement must provide a central, electronic registration system
16 that allows a seller to register to collect and remit sales and use taxes for
17 all signatory states.
18 (4) The agreement must provide that registration with the central regis-
19 tration system and the collection of sales and use taxes in the signatory
20 states will not be used as a factor in determining whether the seller has
21 nexus with a state for any tax.
22 (5) The agreement must provide for reduction of the burdens of complying
23 with local sales and use taxes by:
24 (a) Restricting variances between the state and local tax bases;
25 (b) Requiring states to administer any sales and use taxes levied by
26 local jurisdictions within the state so that sellers collecting and remit-
27 ting these taxes will not have to register or file returns with, remit
28 funds to, or be subject to independent audits from local taxing jurisdic-
29 tions;
30 (c) Restricting the frequency of changes in the local sales and use tax
31 rates and setting effective dates for the application of local jurisdic-
32 tional boundary changes to local sales and use taxes; and
33 (d) Providing notice of changes in local sales and use tax rates and of
34 changes in the boundaries of local taxing jurisdictions.
35 (6) The agreement must outline any monetary allowances that are to be
36 provided by the states to sellers or certified service providers. The agree-
37 ment must allow for a joint public and private sector study of the compliance
38 cost on sellers and certified service providers to collect sales and use taxes
39 for state and local governments under various levels of complexity.
40 (7) The agreement must require each state to certify compliance with the
41 terms of the agreement before joining and to maintain compliance, under the
42 laws of the member state, with all provisions of the agreement while a member.
43 (8) The agreement must require each state to adopt a uniform policy for
44 certified service providers that protects the privacy of consumers and main-
45 tains the confidentiality of tax information.
46 (9) The agreement must provide for the appointment of an advisory council
47 of private sector representatives and an advisory council of nonmember state
48 representatives to consult with in the administration of the agreement.
49 63-4508. ACCORD AMONG COOPERATING SOVEREIGNS. The agreement authorized by
50 this chapter is an accord among individual cooperating sovereigns in further-
51 ance of their governmental functions. The agreement provides a mechanism
52 among the member states to establish and maintain a cooperative, simplified
53 system for the application and administration of sales and use taxes under the
4
1 duly adopted law of each member state.
2 63-4509. LIMITATIONS ON ACTIONS. (1) The agreement authorized by this
3 chapter binds and inures only to the benefit of this state and the other mem-
4 ber states. No person, other than a member state, is an intended beneficiary
5 of the agreement. Any benefit to a person other than a state is established by
6 the laws of this state and the other member states and not by the terms of the
7 agreement.
8 (2) Consistent with subsection (1) of this section, no person has any
9 cause of action or defense under the agreement or by virtue of this state's
10 approval of the agreement. No person may challenge, in any action brought
11 under any provision of law, any action or inaction by any state, agency, other
12 instrumentality of this state, or any political subdivision of this state on
13 the ground that the action or inaction is inconsistent with the agreement.
14 (3) No law of this state, nor the application thereof, may be declared
15 invalid as to any person or circumstance on the ground that the provision or
16 application is inconsistent with the agreement.
17 63-4510. CERTIFIED SERVICE PROVIDER. (1) A certified service provider is
18 the agent of a seller, with whom the certified service provider has con-
19 tracted, for the collection and remittance of sales and use taxes. As the
20 seller's agent, the certified service provider is liable for sales and use tax
21 due each member state on all sales transactions it processes for the seller
22 except as set out in this section. A seller that contracts with a certified
23 service provider is not liable to the state for sales or use tax due on trans-
24 actions processed by the certified service provider unless the seller misrep-
25 resented the type of items it sells or committed fraud. In the absence of
26 probable cause to believe that the seller has committed fraud or made a mate-
27 rial misrepresentation, the seller is not subject to audit on the transactions
28 processed by the certified service provider. A seller is subject to audit for
29 transactions not processed by the certified service provider. The member
30 states acting jointly may perform a system check of the seller and review the
31 seller's procedures to determine if the certified service provider's system is
32 functioning properly and the extent to which the seller's transactions are
33 being processed by the certified service provider.
34 (2) A person that provides a certified automated system is responsible
35 for the proper functioning of that system and is liable to the state for
36 underpayments of tax attributable to errors in the functioning of the certi-
37 fied automated system. A seller that uses a certified automated system remains
38 responsible and is liable to the state for reporting and remitting tax.
39 (3) A seller that has a proprietary system for determining the amount of
40 tax due on transactions and has signed an agreement establishing a performance
41 standard for that system is liable for the failure of the system to meet the
42 performance standard.
43 63-4511. NECESSARY REMEDIAL LEGISLATION. The commission shall prepare
44 draft legislation conforming state law to the requirements of the streamlined
45 sales and use tax agreement and shall provide such legislation to the commit-
46 tee. The committee shall provide the draft legislation, together with its rec-
47 ommendation relating thereto, to the governor and to the senate local govern-
48 ment and taxation committee and the house of representatives revenue and taxa-
49 tion committee.
50 SECTION 2. An emergency existing therefor, which emergency is hereby
51 declared to exist, this act shall be in full force and effect on and after its
5
1 passage and approval.
STATEMENT OF PURPOSE
RS 16517
This legislation allows Idaho to participate with forty-five
other states in the Streamlined Sales Tax Project (SSTP.) The
State Tax Commission is charged with participating and voting in
SSTP discussions after conferring with Idaho legislative and
industry representatives. The State Tax Commission will prepare
and recommend to the next legislative session, legislation
necessary to conform Idaho’s sales and use tax laws to the
provisions of the Streamlined Sales Tax Agreement.
FISCAL NOTE
None.
CONTACT
Name: Dan John/Ted Spangler
Agency: State Tax Commission
Phone: (208) 334-7500
STATEMENT OF PURPOSE/FISCAL NOTE H 7