KRS 139.789 — Requirements for entering into agreement

The department shall not enter into the SSUTA agreement unless the SSUTA agreement
requires each state to abide by the following requirements:
(1) The SSUTA agreement shall set restrictions to achieve more uniform state rates
through the following:
(a) Limiting the number of state rates;
(b) Limiting the application of maximums on the amount of state tax that is due
on a transaction; and
(c) Limiting the application of thresholds on the application of state tax.
(2) The SSUTA agreement shall establish uniform standards for the following:
(a) The sourcing of transactions to taxing jurisdictions;
(b) The administration of exempt sales;
(c) The allowances a seller can take for bad debts; and
(d) Sales and use tax returns and remittances.
(3) The SSUTA agreement shall require states to develop and adopt uniform definitions
of sales and use tax terms. The definitions shall enable a state to preserve its ability
to make policy choices not inconsistent with the uniform definitions.
(4) The SSUTA agreement shall prov ide a central, electronic registration system that
allows a seller to register to collect and remit sales and use taxes for all signatory
states.
(5) The SSUTA agreement shall provide that registration with the central registration
system and the collectio n of sales and use taxes in the signatory state will not be
used as a factor in determining whether the seller has nexus with a state for any tax.
(6) The SSUTA agreement shall provide for a reduction of the burdens of complying
with local sales and use taxes through the following:
(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 fre quency 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 change s in
the boundaries of local taxing jurisdictions.
(7) The SSUTA agreement shall outline any monetary allowances that are to be
provided by the states to sellers or certified service providers.
(8) The SSUTA agreement shall require each state to certify co mpliance with the terms
of the agreement prior to joining and to maintain compliance under the laws of the
member state, with all provisions of the SSUTA agreement while a member.
(9) The SSUTA agreement shall require each state to adopt a uniform policy f or
certified service providers that protects the privacy of consumers and maintains the
confidentiality of tax information.
(10) The SSUTA agreement shall provide for the appointment of an advisory council of
private sector representatives and an advisory council of non -member state
representatives to consult with in the administration of the SSUTA agreement.