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Proposed Amendments to the Streamlined Sales and Use Tax Agreement

A motion by Utah to amend Section 306 of the Agreement relating to relief from liability in certain circumstances:

Section 306: RELIEF FROM CERTAIN LIABILITY

A.         Each member state shall relieve sellers and CSPs using databases pursuant to subsections (F), (G) and (H) of Section 305 from liability to the member state and local jurisdictions for having charged and collected the incorrect amount of sales or use tax resulting from the seller or CSP relying on erroneous data provided by a member state on tax rates, boundaries, or taxing jurisdiction assignments.  After providing adequate notice as determined by the governing board, a member state that provides an address-based database for assigning taxing jurisdictions pursuant to Section 305, subsection (G) or (H) may cease providing liability relief for errors resulting from the reliance on the database provided by the member state under the provisions of Section 305, subsection (F).  If a seller demonstrates that requiring the use of the address-based database would create an undue hardship, a member state and the governing board may extend the relief from liability to such seller, and to the purchaser in each transaction, for a designated period of time.

B.         1.  A member state shall relieve a purchaser from liability for tax, penalty, and interest to that member state and its local jurisdictions for having failed to pay the correct amount of sales or use tax in the following circumstances:

a.          A purchaser’s seller or CSP relied on erroneous data provided by that member state on tax rates, boundaries, taxing jurisdiction assignments, or in the taxability matrix completed by that member state pursuant to Section 328;

b.         A purchaser holding a direct pay permit relied on erroneous data provided by that member state on tax rates, boundaries, taxing jurisdiction assignments, or in the taxability matrix completed by that member state pursuant to Section 328; or.

c.          A purchaser using databases pursuant to subsections (F), (G) and (H) of Section 305  relied on erroneous data provided by that member state on tax rates, boundaries, or taxing jurisdiction assignments, or a purchaser relied on erroneous data in the taxability matrix completed by that member state pursuant to Section 328.  After providing adequate notice as determined by the governing board, a member state that provides an address-based database for assigning taxing jurisdictions pursuant to Section 305, subsection (G) or (H) may cease providing liability relief for errors resulting from the reliance on the database provided by the member state under the provisions of Section 305, subsection (F).

2.  For purposes of this subsection, the term “penalty” means an amount imposed for noncompliance that is not fraudulent, willful, or intentional which is in addition to the correct amount of sales or use tax and interest.

3.  A member state may allow relief on terms and conditions more favorable to a purchaser than the terms required by this subsection.