N.Y. Tax Law § 1175 — Agreement requirements

§ 1175. Agreement requirements. The department shall not enter into\nthe streamlined sales and use tax agreement unless the agreement\nrequires each state to abide by the following requirements:\n (a) The agreement must set restrictions to limit over time the number\nof state rates.\n (b) The agreement must establish uniform standards for the following:\n (1) The sourcing of transactions to taxing jurisdictions.\n (2) The administration of exempt sales.\n (3) Sales and use tax returns and remittances.\n (c) The agreement must require states to develop and adopt uniform\ndefinitions of sales and use tax terms. The definitions must enable a\nstate to preserve its ability to make policy choices not inconsistent\nwith the uniform definitions.\n (d) The agreement must provide a central, electronic registration\nsystem that allows a seller to register to collect and remit sales and\nuse taxes for all signatory states.\n (e) The agreement must provide that registration with the central\nregistration system and the collection of sales and use taxes in the\nsignatory states will not be used as a factor in determining whether the\nseller has nexus with a state for any tax.\n (f) The agreement must provide for reduction of the burdens of\ncomplying with local sales and use taxes through the following:\n (1) Restricting variances between the state and local tax bases.\n (2) Requiring states to administer any sales and use taxes levied by\nlocal jurisdictions within the state so that sellers collecting and\nremitting these taxes will not have to register or file returns with,\nremit funds to, or be subject to independent audits from local taxing\njurisdictions.\n (3) Restricting the frequency of changes in the local sales and use\ntax rates and setting effective dates for the application of local\njurisdictional boundary changes to local sales and use taxes.\n (4) Providing notice of changes in local sales and use tax rates and\nof changes in the boundaries of local taxing jurisdictions.\n (g) The agreement must outline any monetary allowances that are to be\nprovided by the states to sellers or certified service providers.\n (h) The agreement must require each state to certify compliance with\nthe terms of the agreement prior to joining and to maintain compliance,\nunder the laws of the member state, with all provisions of the agreement\nwhile a member.\n (i) The agreement must require each state to adopt a uniform policy\nfor certified service providers that protects the privacy of consumers\nand maintains the confidentiality of tax information.\n (j) The agreement must provide for the appointment of an advisory\ncouncil of private sector representatives and an advisory council of\nnon-member state representatives to consult with in the administration\nof the agreement.\n