House Bill hb1329

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    Florida House of Representatives - 2001                HB 1329

        By Representative Gannon






  1                      A bill to be entitled

  2         An act relating to the Simplified Sales and Use

  3         Tax Administration Act; creating said act;

  4         providing definitions; providing legislative

  5         findings; authorizing the state to enter into

  6         multistate discussions to review and/or amend

  7         the Streamlined Sales and Use Tax Agreement;

  8         providing for appointment of delegates;

  9         directing the Department of Revenue to enter

10         into the agreement and act jointly with other

11         states to establish certain standards;

12         specifying relationship of the agreement to

13         state law; providing requirements for the

14         agreement; specifying that the agreement is an

15         accord among individual cooperating sovereigns;

16         specifying the effect of the agreement with

17         respect to individual persons; providing

18         liabilities of sellers, certified service

19         providers, and providers of certified automated

20         systems; providing an effective date.

21

22  Be It Enacted by the Legislature of the State of Florida:

23

24         Section 1.  Short title.--This act may be cited as the

25  "Simplified Sales and Use Tax Administration Act."

26         Section 2.  Definitions.--As used in this act:

27         (1)  "Agreement" means the Streamlined Sales and Use

28  Tax Agreement as amended and adopted on January 27, 2001, by

29  the Executive Committee of the National Conference of State

30  Legislatures.

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    Florida House of Representatives - 2001                HB 1329

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  1         (2)  "Certified automated system" means software

  2  certified jointly by the states that are signatories to the

  3  agreement to calculate the tax imposed by each jurisdiction on

  4  a transaction, determine the amount of tax to remit to the

  5  appropriate state, and maintain a record of the transaction.

  6         (3)  "Certified service provider" means an agent

  7  certified jointly by the states that are signatories to the

  8  agreement to perform all of the seller's sales tax functions.

  9         (4)  "Person" means an individual, trust, estate,

10  fiduciary, partnership, limited liability company, limited

11  liability partnership, corporation, or any other legal

12  entity.

13         (5)  "Sales tax" means the tax levied under chapter

14  212, Florida Statutes.

15         (6)  "Seller" means any person making sales, leases, or

16  rentals of personal property or services.

17         (7)  "State" means any state of the United States and

18  the District of Columbia.

19         (8)  "Use tax" means the tax levied under chapter 212,

20  Florida Statutes.

21         Section 3.  Legislative findings.--The Legislature

22  finds that a simplified sales and use tax system will reduce

23  and, over time, eliminate the burden and cost for all vendors

24  to collect this state's sales and use tax. The Legislature

25  further finds that this state should participate in multistate

26  discussions to review and/or amend the terms of the agreement

27  to simplify and modernize sales and use tax administration in

28  order to substantially reduce the burden of tax compliance for

29  all sellers and for all types of commerce.

30         Section 4.  Authority to participate in multistate

31  negotiations.--For the purposes of reviewing and/or amending

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    Florida House of Representatives - 2001                HB 1329

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  1  the agreement embodying the simplification requirements as

  2  contained in section 7, the state shall enter into multistate

  3  discussions. For purposes of such discussions, the state shall

  4  be represented by four delegates, one appointed by the

  5  Governor, one appointed by the President of the Senate, one

  6  appointed by the Speaker of the House of Representatives, and

  7  one appointed by the executive director of the Department of

  8  Revenue.

  9         Section 5.  Authority to enter agreement.--

10         (1)  The Department of Revenue is authorized and

11  directed to enter into the Streamlined Sales and Use Tax

12  Agreement with one or more states to simplify and modernize

13  sales and use tax administration in order to substantially

14  reduce the burden of tax compliance for all sellers and for

15  all types of commerce. In furtherance of the agreement, the

16  department is authorized to act jointly with other states that

17  are members of the agreement to establish standards for

18  certification of a certified service provider and certified

19  automated system and establish performance standards for

20  multistate sellers.

21         (2)  The department is further authorized to take other

22  actions reasonably required to implement the provisions set

23  forth in this act. Other actions authorized by this section

24  include, but are not limited to, the adoption of rules and the

25  joint procurement, with other member states, of goods and

26  services in furtherance of the cooperative agreement.

27         (3)  The department is authorized to represent this

28  state before the other states that are signatories to the

29  agreement.

30         Section 6.  Relationship to state law.--No provision of

31  the agreement authorized by this act in whole or in part

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    Florida House of Representatives - 2001                HB 1329

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  1  invalidates or amends any provision of the law of this state.

  2  Adoption of the agreement by this state does not amend or

  3  modify any law of this state. Implementation of any condition

  4  of the agreement in this state, whether adopted before, at, or

  5  after membership of this state in the agreement, must be by

  6  the action of this state.

  7         Section 7.  Agreement requirements.--The Department of

  8  Revenue shall not enter into the Streamlined Sales and Use Tax

  9  Agreement unless the agreement requires each state to abide by

10  the following requirements:

11         (1)  SIMPLIFIED STATE RATE.--The agreement must set

12  restrictions to limit over time the number of state rates.

13         (2)  UNIFORM STANDARDS.--The agreement must establish

14  uniform standards for the following:

15         (a)  The sourcing of transactions to taxing

16  jurisdictions.

17         (b)  The administration of exempt sales.

18         (c)  Sales and use tax returns and remittances.

19         (3)  CENTRAL REGISTRATION.--The agreement must provide

20  a central, electronic registration system that allows a seller

21  to register to collect and remit sales and use taxes for all

22  signatory states.

23         (4)  NO NEXUS ATTRIBUTION.--The agreement must provide

24  that registration with the central registration system and the

25  collection of sales and use taxes in the signatory states will

26  not be used as a factor in determining whether the seller has

27  a nexus with a state for any tax.

28         (5)  LOCAL SALES AND USE TAXES.--The agreement must

29  provide for reduction of the burdens of complying with local

30  sales and use taxes through the following:

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    Florida House of Representatives - 2001                HB 1329

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  1         (a)  Restricting variances between the state and local

  2  tax bases.

  3         (b)  Requiring states to administer any sales and use

  4  taxes levied by local jurisdictions within the state so that

  5  sellers collecting and remitting these taxes will not have to

  6  register or file returns with, remit funds to, or be subject

  7  to independent audits from local taxing jurisdictions.

  8         (c)  Restricting the frequency of changes in the local

  9  sales and use tax rates and setting effective dates for the

10  application of local jurisdictional boundary changes to local

11  sales and use taxes.

12         (d)  Providing notice of changes in local sales and use

13  tax rates and of changes in the boundaries of local taxing

14  jurisdictions.

15         (6)  MONETARY ALLOWANCES.--The agreement must outline

16  any monetary allowances that are to be provided by the states

17  to sellers or certified service providers. The agreement must

18  allow for a joint public and private sector study of the

19  compliance cost on sellers and certified service providers to

20  collect sales and use taxes for state and local governments

21  under various levels of complexity to be completed by July 1,

22  2002.

23         (7)  STATE COMPLIANCE.--The agreement must require each

24  state to certify compliance with the terms of the agreement

25  prior to joining and to maintain compliance, under the laws of

26  the member state, with all provisions of the agreement while a

27  member.

28         (8)  CONSUMER PRIVACY.--The agreement must require each

29  state to adopt a uniform policy for certified service

30  providers that protects the privacy of consumers and maintains

31  the confidentiality of tax information.

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    Florida House of Representatives - 2001                HB 1329

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  1         (9)  ADVISORY COUNCILS.--The agreement must provide for

  2  the appointment of an advisory council of private sector

  3  representatives and an advisory council of nonmember state

  4  representatives to consult with in the administration of the

  5  agreement.

  6         Section 8.  Cooperating sovereigns.--The agreement

  7  authorized by this act is an accord among individual

  8  cooperating sovereigns in furtherance of their governmental

  9  functions. The agreement provides a mechanism among the member

10  states to establish and maintain a cooperative, simplified

11  system for the application and administration of sales and use

12  taxes under the duly adopted law of each member state.

13         Section 9.  Limited binding and beneficial effect.--

14         (1)  The agreement authorized by this act binds and

15  inures only to the benefit of this state and the other member

16  states. No person, other than a member state, is an intended

17  beneficiary of the agreement. Any benefit to a person other

18  than a state is established by the law of this state and the

19  other member states and not by the terms of the agreement.

20         (2)  Consistent with subsection (1), no person shall

21  have any cause of action or defense under the agreement or by

22  virtue of this state's approval of the agreement. No person

23  may challenge, in any action brought under any provision of

24  law, any action or inaction by any department, agency, or

25  other instrumentality of this state, or any political

26  subdivision of this state on the ground that the action or

27  inaction is inconsistent with the agreement.

28         (3)  No law of this state, or the application thereof,

29  may be declared invalid as to any person or circumstance on

30  the ground that the provision or application is inconsistent

31  with the agreement.

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    Florida House of Representatives - 2001                HB 1329

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  1         Section 10.  Seller and third-party liability.--

  2         (1)(a)  A certified service provider is the agent of a

  3  seller, with whom the certified service provider has

  4  contracted, for the collection and remittance of sales and use

  5  taxes. As the seller's agent, the certified service provider

  6  is liable for sales and use tax due each member state on all

  7  sales transactions it processes for the seller except as set

  8  out in this section.

  9         (b)  A seller that contracts with a certified service

10  provider is not liable to the state for sales or use tax due

11  on transactions processed by the certified service provider

12  unless the seller misrepresented the type of items it sells or

13  committed fraud. In the absence of probable cause to believe

14  that the seller has committed fraud or made a material

15  misrepresentation, the seller is not subject to audit on the

16  transactions processed by the certified service provider. A

17  seller is subject to audit for transactions not processed by

18  the certified service provider. The member states acting

19  jointly may perform a system check of the seller and review

20  the seller's procedures to determine if the certified service

21  provider's system is functioning properly and the extent to

22  which the seller's transactions are being processed by the

23  certified service provider.

24         (2)  A person that provides a certified automated

25  system is responsible for the proper functioning of that

26  system and is liable to the state for underpayments of tax

27  attributable to errors in the functioning of the certified

28  automated system. A seller that uses a certified automated

29  system remains responsible and is liable to the state for

30  reporting and remitting tax.

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    Florida House of Representatives - 2001                HB 1329

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  1         (3)  A seller that has a proprietary system for

  2  determining the amount of tax due on transactions and has

  3  signed an agreement establishing a performance standard for

  4  that system is liable for the failure of the system to meet

  5  the performance standard.

  6         Section 11.  This act shall take effect upon becoming a

  7  law.

  8

  9            *****************************************

10                          HOUSE SUMMARY

11
      Creates the Simplified Sales and Use Tax Administration
12    Act. Authorizes the state to enter into multistate
      discussions to review and/or amend the Streamlined Sales
13    and Use Tax Agreement and provides for appointment of
      delegates. Directs the Department of Revenue to enter
14    into the agreement and act jointly with other states to
      establish certain standards. Specifies relationship of
15    the agreement to state law. Provides requirements for the
      agreement. Specifies that the agreement is an accord
16    among individual cooperating sovereigns. Specifies the
      effect of the agreement with respect to individual
17    persons. Provides liabilities of sellers, certified
      service providers, and providers of certified automated
18    systems.

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