,i #aacth ,,congress #ast ,session ,h4 ,r4 #be ,,in ,,the ,,house ,,of ,,representatives ,january #c1 #bjac ,mr4 ,woodall 7for himself1 ,mr4 ,price of ,georgia1 ,mr4 ,duncan of ,south ,carolina1 ,mr4 ,king of ,iowa1 ,mr4 ,conaway1 ,mr4 ,brooks of ,alabama1 ,mr4 ,brady of ,texas1 ,mr4 ,westmoreland1 ,mr4 ,gingrey of ,georgia1 ,mr4 ,mc,caul1 ,mr4 ,pearce1 ,mr4 ,long1 ,ms4 ,foxx1 ,mr4 ,young of ,alaska1 ,mr4 ,graves of ,georgia1 ,mr4 ,collins of ,georgia1 ,mr4 ,bishop of ,utah1 ,mr4 ,flores1 ,mr4 ,thornberry1 ,mr4 ,broun of ,georgia1 ,mr4 ,walberg1 ,mr4 ,olson1 ,mr4 ,nugent1 ,mr4 ,culberson1 ,mr4 ,roe of ,tennessee1 ,mr4 ,lankford1 ,mr4 ,posey1 ,mr4 ,benishek1 ,mr4 ,harris1 ,mr4 ,hensarling1 ,mr4 ,ross1 ,mr4 ,huelskamp1 ,mr4 ,franks of ,arizona1 ,mr4 ,mica1 ,mr4 ,stutzman1 ,mr4 ,mc,clintock1 ,mr4 ,carter1 ,mr4 ,duncan of ,tennessee1 ,mr4 ,bonner1 ,mr4 ,crenshaw1 ,mr4 ,issa1 ,ms4 ,jenkins1 ,mr4 ,kingston1 ,mr4 ,lucas1 ,mr4 ,pompeo1 ,mr4 ,bilirakis1 ,mr4 ,neugebauer1 ,mr4 ,poe of ,texas1 ,mr4 ,farenthold1 ,ms4 ,granger1 ,mr4 ,rigell1 ,mr4 ,hall1 ,mr4 ,miller of ,florida1 and ,mr4 ,hunter7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to promote freedom1 fairness1 and economic opportunity by repealing the income tax and other taxes1 abolishing the ,internal ,revenue ,service1 and enacting a national sales tax to be administered primarily by the ,states4 #a4 ,short title2 table of contents 7a7 ,short ,title ,this ,act may be cited as the ,fair ,tax ,act of #bjac4 7b7 ,table of ,contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,congressional findings4 ,title ,i--,repeal of the ,income ,tax1 ,payroll ,taxes1 and ,estate and ,gift ,taxes ,sec4 #aja4 ,income taxes repealed4 ,sec4 #ajb4 ,payroll taxes repealed4 ,sec4 #ajc4 ,estate and gift taxes repealed4 ,sec4 #ajd4 ,conforming amendments2 effective date4 ,title ,,ii--,sales ,tax ,enacted ,sec4 #bja4 ,sales tax4 ,sec4 #bjb4 ,conforming and technical amendments4 ,title ,,iii--,other ,matters ,sec4 #cja4 ,phase-out of administration of repealed ,federal taxes4 ,sec4 #cjb4 ,administration of other ,federal taxes4 ,sec4 #cjc4 ,sales tax inclusive ,social ,security benefits indexation4 ,title ,,iv--,sunset of ,sales ,tax if ,sixteenth ,amendment not ,repealed ,sec4 #dja4 ,elimination of sales tax if ,sixteenth ,amendment not repealed4 #b4 ,congressional findings 7a7 ,findings ,relating to ,federal ,income ,tax ,congress finds the ,federal income tax-- 7#a7 retards economic growth and has reduced the standard of living of the ,american public2 7#b7 impedes the international competitiveness of ,united ,states industry2 7#c7 reduces savings and investment in the ,united ,states by taxing income multiple times2 7#d7 slows the capital formation necessary for real wages to steadily increase2 7#e7 lowers productivity2 7#f7 imposes unacceptable and unnecessary administrative and compliance costs on individual and business taxpayers2 7#g7 is unfair and inequitable2 7#h7 unnecessarily intrudes upon the privacy and civil rights of ,united ,states citizens2 7#i7 hides the true cost of government by embedding taxes in the costs of everything ,americans buy2 7#aj7 is not being complied with at satisfactory levels and therefore raises the tax burden on law abiding citizens2 and 7#aa7 impedes upward social mobility4 7b7 ,findings ,relating to ,federal ,payroll ,taxes ,congress finds further that the ,social ,security and ,medicare payroll taxes and self-employment taxes-- 7#a7 raise the cost of employment2 7#b7 destroy jobs and cause unemployment2 and 7#c7 have a disproportionately adverse impact on lower income ,americans4 7c7 ,findings ,relating to ,federal ,estate and ,gift ,taxes ,congress finds further that the ,federal estate and gift taxes-- 7#a7 force family businesses and farms to be sold by the family to pay such taxes2 7#b7 discourage capital formation and entrepreneurship2 7#c7 foster the continued dominance of large enterprises over small family-owned companies and farms2 and 7#d7 impose unacceptably high tax planning costs on small businesses and farms4 7d7 ,findings ,relating to ,national ,sales ,tax ,congress finds further that a broad-based national sales tax on goods and services purchased for final consumption-- 7#a7 is similar in many respects to the sales and use taxes in place in #de of the #ej ,states2 7#b7 will promote savings and investment2 7#c7 will promote fairness2 7#d7 will promote economic growth2 7#e7 will raise the standard of living2 7#f7 will increase investment2 7#g7 will enhance productivity and international competitiveness2 7#h7 will reduce administrative burdens on the ,american taxpayer2 7#i7 will improve upward social mobility2 and 7#aj7 will respect the privacy interests and civil rights of taxpayers4 7e7 ,findings ,relating to ,administration of ,national ,sales ,tax ,congress further finds that-- 7#a7 most of the practical experience administering sales taxes is found at the ,state governmental level2 7#b7 it is desirable to harmonize ,federal and ,state collection and enforcement efforts to the maximum extent possible2 7#c7 it is sound tax administration policy to foster administration and collection of the ,federal sales tax at the ,state level in return for a reasonable administration fee to the ,states2 and 7#d7 businesses that must collect and remit taxes should receive reasonable compensation for the cost of doing so4 7f7 ,findings ,relating ,to ,repeal of ,present ,federal ,tax ,system ,congress further finds that the #afth amendment to the ,united ,states ,constitution should be repealed4 ,i ,repeal of the ,income ,tax1 ,payroll ,taxes1 and ,estate and ,gift ,taxes #aja4 ,income taxes repealed ,subtitle ,a of the ,internal ,revenue ,code of #aihf 7relating to income taxes and self-employment taxes7 is repealed4 #ajb4 ,payroll taxes repealed 7a7 ,in ,general ,subtitle ,c of the ,internal ,revenue ,code of #aihf 7relating to payroll taxes and withholding of income taxes7 is repealed4 7b7 ,funding of ,social ,security ,for funding of the ,social ,security ,trust ,funds from general revenue1 see section #bja of the ,social ,security ,act 7#db ,u4,s4,c4 #dja74 #ajc4 ,estate and gift taxes repealed ,subtitle ,b of the ,internal ,revenue ,code of #aihf 7relating to estate and gift taxes7 is repealed4 #ajd4 ,conforming amendments2 effective date 7a7 ,conforming ,amendments ,the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking subtitle ,h 7relating to financing of ,presidential election campaigns71 and 7#b7 by redesignating-- 7,a7 subtitle ,d 7relating to miscellaneous excise taxes7 as subtitle ,b1 7,b7 subtitle ,e 7relating to alcohol1 tobacco1 and certain other excise taxes7 as subtitle ,c1 7,c7 subtitle ,f 7relating to procedure and administration7 as subtitle ,d1 7,d7 subtitle ,g 7relating to the ,joint ,committee on ,taxation7 as subtitle ,e1 7,e7 subtitle ,i 7relating to the ,trust ,fund ,code7 as subtitle ,f1 7,f7 subtitle ,j 7relating to coal industry health benefits7 as subtitle ,g1 and 7,g7 subtitle ,k 7relating to group health plan portability1 access1 and renewability requirements7 as subtitle ,h4 7b7 ,redesignation of #aihf ,code 7#a7 ,in general ,the ,internal ,revenue ,code of #aihf enacted on ,october #bb1 #aihf1 as heretofore1 hereby1 or hereafter amended1 may be cited as the ,internal ,revenue ,code of #bjac4 7#b7 ,references in laws1 etc ,except when inappropriate1 any reference in any law1 ,executive order1 or other document-- 7,a7 to the ,internal ,revenue ,code of #aihf shall include a reference to the ,internal ,revenue ,code of #bjac1 and 7,b7 to the ,internal ,revenue ,code of #bjac shall include a reference to the provisions of law formerly known as the ,internal ,revenue ,code of #aihf4 7c7 ,additional ,amendments ,for additional conforming amendments1 see section #bjb of this ,act4 7d7 ,effective ,date ,except as otherwise provided in this ,act1 the amendments made by this ,act shall take effect on ,january #a1 #bjae4 ,,ii ,sales ,tax ,enacted #bja4 ,sales tax 7a7 ,in ,general ,the ,internal ,revenue ,code of #bjac is amended by inserting before subtitle ,b 7as redesignated by section #ajd7;a77#b77;,a77 the following new subtitle3 ,a ,sales ,tax ,sec4 #a4 ,principles of interpretation4 ,sec4 #b4 ,definitions4 ,chapter #a4 ,interpretation2 ,definitions2 ,imposition ,of ,tax2 ,etc4 ,chapter #b4 ,credits2 refunds ,chapter #c4 ,family consumption allowance ,chapter #d4 ,federal and state cooperative tax administration ,chapter #e4 ,other administrative provisions ,chapter #f4 ,collections2 appeals2 taxpayer rights ,chapter #g4 ,special rules ,chapter #h4 ,financial intermediation services ,chapter #i4 ,additional matters #a4 ,principles of interpretation 7a7 ,in ,general ,any court1 the ,secretary1 and any sales tax administering authority shall consider the purposes of this subtitle 7as set forth in subsection 7b77 as the primary aid in statutory construction4 7b7 ,purposes ,the purposes of this subtitle are as follows3 7#a7 ,to raise revenue needed by the ,federal ,government in a manner consistent with the other purposes of this subtitle4 7#b7 ,to tax all consumption of goods and services in the ,united ,states once1 without exception1 but only once4 7#c7 ,to prevent double1 multiple1 or cascading taxation4 7#d7 ,to simplify the tax law and reduce the administration costs of1 and the costs of compliance with1 the tax law4 7#e7 ,to provide for the administration of the tax law in a manner that respects privacy1 due process1 individual rights when interacting with the government1 the presumption of innocence in criminal proceedings1 and the presumption of lawful behavior in civil proceedings4 7#f7 ,to increase the role of ,state governments in ,federal tax administration because of ,state government expertise in sales tax administration4 7#g7 ,to enhance generally cooperation and coordination among ,state tax administrators2 and to enhance cooperation and coordination among ,federal and ,state tax administrators1 consistent with the principle of intergovernmental tax immunity4 7c7 ,secondary ,aids to ,statutory ,construction ,as a secondary aid in statutory construction1 any court1 the ,secretary1 and any sales tax administering authority shall consider-- 7#a7 the common law canons of statutory construction2 7#b7 the meaning and construction of concepts and terms used in the ,internal ,revenue ,code of #aihf as in effect before the effective date of this subtitle2 and 7#c7 construe any ambiguities in this ,act in favor of reserving powers to the ,states respectively1 or to the people4 #b4 ,definitions 7a7 ,in ,general ,for purposes of this subtitle-- 7#a7 ,affiliated firms ,a firm is affiliated with another if #a firm owns #ej percent or more of-- 7,a7 the voting shares in a corporation1 or 7,b7 the capital interests of a business firm that is not a corporation4 7#b7 ,conforming state sales tax ,the term conforming ,state sales tax means a sales tax imposed by a ,state that adopts the same definition of taxable property and services as adopted by this subtitle4 7#c7 ,designated commercial private courier service ,the term designated commercial private courier service means a firm designated as such by the ,secretary or any sales tax administering authority1 upon application of the firm1 if the firm-- 7,a7 provides its services to the general public1 7,b7 records electronically to its data base kept in the regular course of its business the date on which an item was given to such firm for delivery1 and 7,c7 has been operating for at least #a year4 7#d7 ,education and training ,the term education and training means tuition for primary1 secondary1 or postsecondary level education1 and job-related training courses4 ,such term does not include room1 board1 sports activities1 recreational activities1 hobbies1 games1 arts or crafts or cultural activities4 7#e7 ,gross payments ,the term gross payments means payments for taxable property or services1 including ,federal taxes imposed by this title4 7#f7 ,intangible property 7,a7 ,in general ,the term intangible property includes copyrights1 trademarks1 patents1 goodwill1 financial instruments1 securities1 commercial paper1 debts1 notes and bonds1 and other property deemed intangible at common law4 ,the ,secretary shall1 by regulation resolve differences among the provisions of common law of the several ,states4 7,b7 ,certain types of property ,such term does not include tangible personal property 7or rents or leaseholds of any term thereon71 real property 7or rents or leaseholds of any term thereon7 and computer software4 7#g7 ,person ,the term person means any natural person1 and unless the context clearly does not allow it1 any corporation1 partnership1 limited liability company1 trust1 estate1 government1 agency1 administration1 organization1 association1 or other legal entity 7foreign or domestic47 7#h7 ,produce1 provide1 render1 or sell taxable property or services 7,a7 ,in general ,a taxable property or service is used to produce1 provide1 render1 or sell a taxable property or service if such property or service is purchased by a person engaged in a trade or business for the purpose of employing or using such taxable property or service in the production1 provision1 rendering1 or sale of other taxable property or services in the ordinary course of that trade or business4 7,b7 ,research1 experimentation1 testing1 and development ,taxable property or services used in a trade or business for the purpose of research1 experimentation1 testing1 and development shall be treated as used to produce1 provide1 render1 or sell taxable property or services4 7,c7 ,insurance payments ,taxable property or services purchased by an insurer on behalf of an insured shall be treated as used to produce1 provide1 render1 or sell taxable property or services if the premium for the insurance contract giving rise to the insurer's obligation was subject to tax pursuant to section #hja 7relating to financial intermediation services74 7,d7 ,education and training ,education and training shall be treated as services used to produce1 provide1 render1 or sell taxable property or services4 7#i7 ,registered seller ,the term registered seller means a person registered pursuant to section #ejb4 7#aj7 ,sales tax administering authority ,the term sales tax administering authority means-- 7,a7 the ,state agency designated to collect and administer the sales tax imposed by this subtitle1 in an administering ,state1 or 7,b7 the ,secretary1 in a ,state that is neither-- 7i7 an administering ,state1 nor 7ii7 a ,state that has elected to have its sales tax administered by an administering ,state4 7#aa7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury4 7#ab7 ,taxable employer 7,a7 ,in general ,the term taxable employer includes-- 7i7 any household employing domestic servants1 and 7ii7 any government except for government enterprises 7as defined in section #gjd74 7,b7 ,exceptions ,the term taxable employer does not include any employer which is-- 7i7 engaged in a trade or business1 7ii7 a not-for-profit organization 7as defined in section #gjf71 or 7iii7 a government enterprise 7as defined in section #gjd74 7,c7 ,cross reference ,for rules relating to collection and remittance of tax on wages by taxable employers1 see section #ajc7;b77#b74 7#ac7 ,tax inclusive fair market value ,the term tax inclusive fair market value means the fair market value of taxable property or services plus the tax imposed by this subtitle4 7#ad7 ,taxable property or service 7,a7 ,general rule ,the term taxable property or service means-- 7i7 any property 7including leaseholds of any term or rents with respect to such property7 but excluding-- 7,i7 intangible property1 and 7,,ii7 used property1 and 7ii7 any service 7including any financial intermediation services as determined by section #hja74 7,b7 ,service ,for purposes of subparagraph 7,a71 the term service-- 7i7 shall include any service performed by an employee for which the employee is paid wages or a salary by a taxable employer1 and 7ii7 shall not include any service performed by an employee for which the employee is paid wages or a salary-- 7,i7 by an employer in the regular course of the employer's trade or business1 7,,ii7 by an employer that is a not-for-profit organization 7as defined in section #gjf71 7,,iii7 by an employer that is a government enterprise 7as defined in section #gjd71 and 7,,iv7 by taxable employers to employees directly providing education and training4 7#ae7 ,united states ,the term ,united ,states1 when used in the geographical sense1 means each of the #ej states1 the ,district of ,columbia1 and any commonwealth1 territory1 or possession of the ,united ,states4 7#af7 ,used property ,the term used property means-- 7,a7 property on which the tax imposed by section #aja has been collected and for which no credit has been allowed under section #bjb1 #bjc1 or #bje1 or 7,b7 property that was held other than for a business purpose 7as defined in section #ajb7;b77 on ,december #ca1 #bjad4 7#ag7 ,wages and salary ,the terms wage and salary mean all compensation paid for employment service including cash compensation1 employee benefits1 disability insurance1 or wage replacement insurance payments1 unemployment compensation insurance1 workers' compensation insurance1 and the fair market value of any other consideration paid by an employer to an employee in consideration for employment services rendered4 7b7 ,cross ,references 7#a7 ,for the definition of business purposes1 see section #ajb7;b74 7#b7 ,for the definition of insurance contract1 see section #bjf7;e74 7#c7 ,for the definition of qualified family1 see section #cjb4 7#d7 ,for the definition of monthly poverty level1 see section #cjc4 7#e7 ,for the definition of large seller1 see section #eja7;e77#c74 7#f7 ,for the definition of hobby activities1 see section #gja4 7#g7 ,for the definition of gaming sponsor1 see section #gja7;a74 7#h7 ,for the definition of a chance1 see section #gja7;b74 7#i7 ,for the definition of government enterprise1 see section #gjd7;b74 7#aj7 ,for the definition of mixed use property1 see section #gje4 7#aa7 ,for the definition of qualified not-for-profit organization1 see section #gjf4 7#ab7 ,for the definition of financial intermediation services1 see section #hja4 #a ,interpretation2 definitions2 imposition of tax2 etc4 ,sec4 #aja4 ,imposition of sales tax4 ,sec4 #ajb4 ,intermediate and export sales4 ,sec4 #ajc4 ,rules relating to collection and remittance of tax4 #aja4 ,imposition of sales tax 7a7 ,in ,general ,there is hereby imposed a tax on the use or consumption in the ,united ,states of taxable property or services4 7b7 ,rate 7#a7 ,for #bjae ,in the calendar year #bjae1 the rate of tax is #bc percent of the gross payments for the taxable property or service4 7#b7 ,for years after #bjae ,for years after the calendar year #bjae1 the rate of tax is the combined ,federal tax rate percentage 7as defined in paragraph 7#c77 of the gross payments for the taxable property or service4 7#c7 ,combined federal tax rate percentage ,the combined ,federal tax rate percentage is the sum of-- 7,a7 the general revenue rate 7as defined in paragraph 7#d771 7,b7 the old-age1 survivors and disability insurance rate1 and 7,c7 the hospital insurance rate4 7#d7 ,general revenue rate ,the general revenue rate shall be #ad4ia percent4 7c7 ,coordination ,with ,import ,duties ,the tax imposed by this section is in addition to any import duties imposed by chapter #d of title #ai1 ,united ,states ,code4 ,the ,secretary shall provide by regulation that1 to the maximum extent practicable1 the tax imposed by this section on imported taxable property and services is collected and administered in conjunction with any applicable import duties imposed by the ,united ,states4 7d7 ,liability for ,tax 7#a7 ,in general ,the person using or consuming taxable property or services in the ,united ,states is liable for the tax imposed by this section1 except as provided in paragraph 7#b7 of this subsection4 7#b7 ,exception where tax paid to seller ,a person using or consuming a taxable property or service in the ,united ,states is not liable for the tax imposed by this section if the person pays the tax to a person selling the taxable property or service and receives from such person a purchaser's receipt within the meaning of section #eji4 #ajb4 ,intermediate and export sales 7a7 ,in ,general ,for purposes of this subtitle-- 7#a7 ,business and export purposes ,no tax shall be imposed under section #aja on any taxable property or service purchased for a business purpose in a trade or business4 7#b7 ,investment purpose ,no tax shall be imposed under section #aja on any taxable property or service purchased for an investment purpose and held exclusively for an investment purpose4 7#c7 ,state government functions ,no tax shall be imposed under section #aja on ,state government functions that do not constitute the final consumption of property or services4 7b7 ,business ,purposes ,for purposes of this section1 the term purchased for a business purpose in a trade or business means purchased by a person engaged in a trade or business and used in that trade or business-- 7#a7 for resale1 7#b7 to produce1 provide1 render1 or sell taxable property or services1 or 7#c7 in furtherance of other bona fide business purposes4 7c7 ,investment ,purposes ,for purposes of this section1 the term purchased for an investment purpose means property purchased exclusively for purposes of appreciation or the production of income but not entailing more than minor personal efforts4 #ajc4 ,rules relating to collection and remittance of tax 7a7 ,liability for ,collection and ,remittance of the ,tax ,except as provided otherwise by this section1 any tax imposed by this subtitle shall be collected and remitted by the seller of taxable property or services 7including financial intermediation services74 7b7 ,tax ,to ,be ,remitted by ,purchaser in ,certain ,circumstances 7#a7 ,in general ,in the case of taxable property or services purchased outside of the ,united ,states and imported into the ,united ,states for use or consumption in the ,united ,states1 the purchaser shall remit the tax imposed by section #aja4 7#b7 ,certain wages or salary ,in the case of wages or salary paid by a taxable employer which are taxable services1 the employer shall remit the tax imposed by section #aja4 7c7 ,conversion of ,business or ,export ,property or ,services ,property or services purchased for a business purpose in a trade or business or for export 7sold untaxed pursuant to section #ajb7;a77 that is subsequently converted to personal use shall be deemed purchased at the time of conversion and shall be subject to the tax imposed by section #aja at the fair market value of the converted property as of the date of conversion4 ,the tax shall be due as if the property had been sold at the fair market value during the month of conversion4 ,the person using or consuming the converted property is liable for and shall remit the tax4 7d7 ,barter ,transactions ,if gross payment for taxable property or services is made in other than money1 then the person responsible for collecting and remitting the tax shall remit the tax to the sales tax administering authority in money as if gross payment had been made in money at the tax inclusive fair market value of the taxable property or services purchased4 #b ,,credits2 ,,refunds ,sec4 #bja4 ,credits and refunds4 ,sec4 #bjb4 ,business use conversion credit4 ,sec4 #bjc4 ,intermediate and export sales credit4 ,sec4 #bjd4 ,administration credit4 ,sec4 #bje4 ,bad debt credit4 ,sec4 #bjf4 ,insurance proceeds credit4 ,sec4 #bjg4 ,refunds4 #bja4 ,credits and refunds 7a7 ,in ,general ,each person shall be allowed a credit with respect to the taxes imposed by section #aja for each month in an amount equal to the sum of-- 7#a7 such person's business use conversion credit pursuant to section #bjb for such month1 7#b7 such person's intermediate and export sales credit pursuant to section #bjc for such month1 7#c7 the administration credit pursuant to section #bjd for such month1 7#d7 the bad debt credit pursuant to section #bje for such month1 7#e7 the insurance proceeds credit pursuant to section #bjf for such month1 7#f7 the transitional inventory credit pursuant to section #ijb1 and 7#g7 any amount paid in excess of the amount due4 7b7 ,credits ,not ,additive ,only one credit allowed by chapter #b may be taken with respect to any particular gross payment4 #bjb4 ,business use conversion credit 7a7 ,in ,general ,for purposes of section #bja1 a person's business use conversion credit for any month is the aggregate of the amounts determined under subsection 7b7 with respect to taxable property and services-- 7#a7 on which tax was imposed by section #aja 7and actually paid71 and 7#b7 which commenced to be #ie percent or more used during such month for business purposes 7within the meaning of section #ajb7;b774 7b7 ,amount of ,credit ,the amount determined under this paragraph with respect to any taxable property or service is the lesser of-- 7#a7 the product of-- 7,a7 the rate imposed by section #aja1 and 7,b7 the quotient that is-- 7i7 the fair market value of the property or service when its use is converted1 divided by 7ii7 the quantity that is one minus the tax rate imposed by section #aja1 or 7#b7 the amount of tax paid with respect to such taxable property or service1 including the amount1 if any1 determined in accordance with section #gje 7relating to mixed use property74 #bjc4 ,intermediate and export sales credit ,for purposes of section #bja1 a person's intermediate and export sales credit is the amount of sales tax paid on the purchase of any taxable property or service purchased for-- 7#a7 a business purpose in a trade or business 7as defined in section #ajb7;b771 or 7#b7 export from the ,united ,states for use or consumption outside the ,united ,states4 #bjd4 ,administration credit 7a7 ,in ,general ,every person filing a timely monthly report 7with regard to extensions7 in compliance with section #eja shall be entitled to a taxpayer administrative credit equal to the greater of-- 7#a7 #bjj1 or 7#b7 one-quarter of #a percent of the tax remitted4 7b7 ,limitation ,the credit allowed under this section shall not exceed #bj percent of the tax due to be remitted prior to the application of any credit or credits permitted by section #bja4 #bje4 ,bad debt credit 7a7 ,financial ,intermediation ,services ,any person who has experienced a bad debt 7other than unpaid invoices within the meaning of subsection 7b77 shall be entitled to a credit equal to the product of-- 7#a7 the rate imposed by section #aja1 and 7#b7 the quotient that is-- 7,a7 the amount of the bad debt 7as defined in section #hjb71 divided by 7,b7 the quantity that is one minus the rate imposed by section #aja4 7b7 ,unpaid ,invoices ,any person electing the accrual method pursuant to section #ejc that has with respect to a transaction-- 7#a7 invoiced the tax imposed by section #aja1 7#b7 remitted the invoiced tax1 7#c7 actually delivered the taxable property or performed the taxable services invoiced1 and 7#d7 not been paid #ahj days after date the invoice was due to be paid1 shall be entitled to a credit equal to the amount of tax remitted and unpaid by the purchaser4 7c7 ,subsequent ,payment ,any payment made with respect to a transaction subsequent to a section #bje credit being taken with respect to that transaction shall be subject to tax in the month the payment was received as if a tax inclusive sale of taxable property and services in the amount of the payment had been made4 7d7 ,partial ,payments ,partial payments shall be treated as pro rata payments of the underlying obligation and shall be allocated proportionately-- 7#a7 for fully taxable payments1 between payment for the taxable property and service and tax1 and 7#b7 for partially taxable payments1 among payment for the taxable property and service1 tax and other payment4 7e7 ,related ,parties ,the credit provided by this section shall not be available with respect to sales made to related parties4 ,for purposes of this section1 related party means affiliated firms and family members 7as defined in section #cjb7;b774 #bjf4 ,insurance proceeds credit 7a7 ,in ,general ,a person receiving a payment from an insurer by virtue of an insurance contract shall be entitled to a credit in an amount determined by subsection 7b71 less any amount paid to the insured by the insurer pursuant to subsection 7c71 if the entire premium 7except that portion allocable to the investment account of the underlying policy7 for the insurance contract giving rise to the insurer's obligation to make a payment to the insured was subject to the tax imposed by section #aja and said tax was paid4 7b7 ,credit ,amount ,the amount of the credit shall be the product of-- 7#a7 the rate imposed by section #aja1 and 7#b7 the quotient that is-- 7,a7 the amount of the payment made by the insurer to the insured1 divided by 7,b7 the quantity that is one minus the rate imposed by section #aja4 7c7 ,administrative ,option ,the credit determined in accordance with subsection 7b7 shall be paid by the insurer to the insured and the insurer shall be entitled to the credit in lieu of the insured1 except that the insurer may elect1 in a form prescribed by the ,secretary1 to not pay the credit and require the insured to make application for the credit4 ,in the event of such election1 the insurer shall provide to the ,secretary and the insured the name and tax identification number of the insurer and of the insured and indicate the proper amount of the credit4 7d7 ,coordination ,with ,respect to ,exemption ,if taxable property or services purchased by an insurer on behalf of an insured are purchased free of tax by virtue of section #b7;a77#h77;,c71 then the credit provided by this section shall not be available with respect to that purchase4 7e7 ,insurance ,contract ,for purposes of subsection 7a71 the term insurance contract shall include a life insurance contract1 a health insurance contract1 a property and casualty loss insurance contract1 a general liability insurance contract1 a marine insurance contract1 a fire insurance contract1 an accident insurance contract1 a disability insurance contract1 a long-term care insurance contract1 and an insurance contract that provides a combination of these types of insurance4 #bjg4 ,refunds 7a7 ,registered ,sellers ,if a registered seller files a monthly tax report with an overpayment1 then1 upon application by the registered seller in a form prescribed by the sales tax administering authority1 the overpayment shown on the report shall be refunded to the registered seller within #fj days of receipt of said application4 ,in the absence of such application1 the overpayment may be carried forward1 without interest1 by the person entitled to the credit4 7b7 ,other ,persons ,if a person other than a registered seller has an overpayment for any month1 then1 upon application by the person in a form prescribed by the sales tax administering authority1 the credit balance due shall be refunded to the person within #fj days of receipt of said application4 7c7 ,interest ,no interest shall be paid on any balance due from the sales tax administering authority under this subsection for any month if such balance due is paid within #fj days after the application for refund is received4 ,balances due not paid within #fj days after the application for refund is received shall bear interest from the date of application4 ,interest shall be paid at the ,federal short-term rate 7as defined in section #eaa74 7d7 ,suspension of ,period ,to ,pay ,refund ,only if ,federal or ,state ,court ,ruling ,the #fj-;day periods under subsections 7a7 and 7b7 shall be suspended with respect to a purported overpayment 7or portion thereof7 only during any period that there is in effect a preliminary1 temporary1 or final ruling from a ,federal or ,state court that there is reasonable cause to believe that such overpayment may not actually be due4 #c ,family consumption allowance ,sec4 #cja4 ,family consumption allowance4 ,sec4 #cjb4 ,qualified family4 ,sec4 #cjc4 ,monthly poverty level4 ,sec4 #cjd4 ,rebate mechanism4 ,sec4 #cje4 ,change in family circumstances4 #cja4 ,family consumption allowance ,each qualified family shall be eligible to receive a sales tax rebate each month4 ,the sales tax rebate shall be in an amount equal to the product of-- 7#a7 the rate of tax imposed by section #aja1 and 7#b7 the monthly poverty level4 #cjb4 ,qualified family 7a7 ,general ,rule ,for purposes of this chapter1 the term qualified family shall mean one or more family members sharing a common residence4 ,all family members sharing a common residence shall be considered as part of #a qualified family4 7b7 ,family ,size ,determination 7#a7 ,in general ,to determine the size of a qualified family for purposes of this chapter1 family members shall mean-- 7,a7 an individual1 7,b7 the individual's spouse1 7,c7 all lineal ancestors and descendants of said individual 7and such individual's spouse71 7,d7 all legally adopted children of such individual 7and such individual's spouse71 and 7,e7 all children under legal guardianship of such individual 7or such individual's spouse74 7#b7 ,identification requirements ,in order for a person to be counted as a member of the family for purposes of determining the size of the qualified family1 such person must-- 7,a7 have a bona fide ,social ,security number2 and 7,b7 be a lawful resident of the ,united ,states4 7c7 ,children ,living ,away ,from ,home 7#a7 ,students living away from home ,any person who was a registered student during not fewer than #e months in a calendar year while living away from the common residence of a qualified family but who receives over #ej percent of such person's support during a calendar year from members of the qualified family shall be included as part of the family unit whose members provided said support for purposes of this chapter4 7#b7 ,children of divorced or separated parents ,if a child's parents are divorced or legally separated1 a child for purposes of this chapter shall be treated as part of the qualified family of the custodial parent4 ,in cases of joint custody1 the custodial parent for purposes of this chapter shall be the parent that has custody of the child for more than one-half of the time during a given calendar year4 ,a parent entitled to be treated as the custodial parent pursuant to this paragraph may release this claim to the other parent if said release is in writing4 7d7 ,annual ,registration ,in order to receive the family consumption allowance provided by section #cja1 a qualified family must register with the sales tax administering authority in a form prescribed by the ,secretary4 ,the annual registration form shall provide-- 7#a7 the name of each family member who shared the qualified family's residence on the family determination date1 7#b7 the ,social ,security number of each family member on the family determination date who shared the qualified family's residence on the family determination date1 7#c7 the family member or family members to whom the family consumption allowance should be paid1 7#d7 a certification that all listed family members are lawful residents of the ,united ,states1 7#e7 a certification that all family members sharing the common residence are listed1 7#f7 a certification that no family members were incarcerated on the family determination date 7within the meaning of subsection 7l771 and 7#g7 the address of the qualified family4 ,said registration shall be signed by all members of the qualified family that have attained the age of #ba years as of the date of filing4 7e7 ,registration ,not ,mandatory ,registration is not mandatory for any qualified family4 7f7 ,effect of ,failure ,to ,provide ,annual ,registration ,any qualified family that fails to register in accordance with this section within #cj days of the family determination date1 shall cease receiving the monthly family consumption allowance in the month beginning #ij days after the family determination date4 7g7 ,effect of ,curing ,failure ,to ,provide ,annual ,registration ,any qualified family that failed to timely make its annual registration in accordance with this section but subsequently cures its failure to register1 shall be entitled to up to #f months of lapsed sales tax rebate payments4 ,no interest on lapsed payment amount shall be paid4 7h7 ,effective ,date of ,annual ,registrations ,annual registrations shall take effect for the month beginning #ij days after the family registration date4 7i7 ,effective ,date of ,revised ,registrations ,a revised registration made pursuant to section #cje shall take effect for the first month beginning #fj days after the revised registration was filed4 ,the existing registration shall remain in effect until the effective date of the revised registration4 7j7 ,determination of ,registration ,filing ,date ,an annual or revised registration shall be deemed filed when-- 7#a7 deposited in the ,united ,states mail1 postage prepaid1 to the address of the sales tax administering authority2 7#b7 delivered and accepted at the offices of the sales tax administering authority2 or 7#c7 provided to a designated commercial private courier service for delivery within #b days to the sales tax administering authority at the address of the sales tax administering authority4 7k7 ,proposed ,registration ,to ,be ,provided ,thirty or more days before the family registration date1 the sales tax administering authority shall mail to the address shown on the most recent rebate registration or change of address notice filed pursuant to section #cje7;d7 a proposed registration that may be simply signed by the appropriate family members if family circumstances have not changed4 7l7 ,incarcerated ,individuals ,an individual shall not be eligible under this chapter to be included as a member of any qualified family if that individual-- 7#a7 is incarcerated in a local1 ,state1 or ,federal jail1 prison1 mental hospital1 or other institution on the family determination date1 and 7#b7 is scheduled to be incarcerated for #f months or more in the #ab-month period following the effective date of the annual registration or the revised registration of said qualified family4 7m7 ,family ,determination ,date ,the family determination date is a date assigned to each family by the ,secretary for purposes of determining qualified family size and other information necessary for the administration of this chapter4 ,the ,secretary shall promulgate regulations regarding the issuance of family determination dates4 ,in the absence of any regulations1 the family determination date for all families shall be ,october #a4 ,the ,secretary may assign family determination dates for administrative convenience4 ,permissible means of assigning family determination dates include a method based on the birthdates of family members4 7n7 ,cross ,reference ,for penalty for filing false rebate claim1 see section #ejd7;i74 #cjc4 ,monthly poverty level 7a7 ,in ,general ,the monthly poverty level for any particular month shall be one-twelfth of the annual poverty level4 ,for purposes of this section the annual poverty level shall be the sum of-- 7#a7 the annual level determined by the ,department of ,health and ,human ,services poverty guidelines required by sections #feb and #fgc7b7 of the ,omnibus ,reconciliation ,act of #aiha for a particular family size1 and 7#b7 in case of families that include a married couple1 the annual marriage penalty elimination amount4 7b7 ,annual ,marriage ,penalty ,elimination ,amount ,the annual marriage penalty elimination amount shall be the amount that is-- 7#a7 the amount that is two times the annual level determined by the ,department of ,health and ,human ,services poverty guidelines required by sections #feb and #fgc7b7 of the ,omnibus ,reconciliation ,act of #aiha for a family of one1 less 7#b7 the annual level determined by the ,department of ,health and ,human ,services poverty guidelines required by sections #feb and #fgc7b7 of the ,omnibus ,reconciliation ,act of #aiha for a family of two4 #cjd4 ,rebate mechanism 7a7 ,general ,rule ,the ,social ,security ,administration shall provide a monthly sales tax rebate to duly registered qualified families in an amount determined in accordance with section #cja4 7b7 ,persons ,receiving ,rebate ,the payments shall be made to the persons designated by the qualifying family in the annual or revised registration for each qualified family in effect with respect to the month for which payment is being made4 ,payments may only be made to persons #ah years or older4 ,if more than #a person is designated in a registration to receive the rebate1 then the rebate payment shall be divided evenly between or among those persons designated4 7c7 ,when ,rebates ,mailed ,rebates shall be mailed on or before the first business day of the month for which the rebate is being provided4 7d7 ,smartcards and ,direct ,electronic ,deposit ,permissible ,the ,social ,security ,administration may provide rebates in the form of smartcards that carry cash balances in their memory for use in making purchases at retail establishments or by direct electronic deposit4 #cje4 ,change in family circumstances 7a7 ,general ,rule ,in the absence of the filing of a revised registration in accordance with this chapter1 the common residence of the qualified family1 marital status and number of persons in a qualified family on the family registration date shall govern determinations required to be made under this chapter for purposes of the following calendar year4 7b7 ,no ,double ,counting ,in no event shall any person be considered part of more than #a qualified family4 7c7 ,revised ,registration ,permissible ,a qualified family may file a revised registration for purposes of section #cjb7;d7 to reflect a change in family circumstances4 ,a revised registration form shall provide-- 7#a7 the name of each family member who shared the qualified family's residence on the filing date of the revised registration1 7#b7 the ,social ,security number of each family member who shared the qualified family's residence on the filing date of the revised registration1 7#c7 the family member or family members to whom the family consumption allowance should be paid1 7#d7 a certification that all listed family members are lawful residents of the ,united ,states1 7#e7 a certification that all family members sharing the commoner residence are listed1 7#f7 a certification that no family members were incarcerated on the family determination date 7within the meaning of section #cjb7a771 and 7#g7 the address of the qualified family4 ,said revised registration shall be signed by all members of the qualified family that have attained the age of #ba years as of the filing date of the revised registration4 7d7 ,change of ,address ,a change of address for a qualified family may be filed with the sales tax administering authority at any time and shall not constitute a revised registration4 7e7 ,revised ,registration ,not ,mandatory ,revised registrations reflecting changes in family status are not mandatory4 #d ,federal and ,state cooperative tax administration ,sec4 #dja4 ,authority for ,states to collect tax4 ,sec4 #djb4 ,federal administrative support for ,states4 ,sec4 #djc4 ,federal-,state tax conferences4 ,sec4 #djd4 ,federal administration in certain ,states4 ,sec4 #dje4 ,interstate allocation and destination determination4 ,sec4 #djf4 ,general administrative matters4 ,sec4 #djg4 ,jurisdiction4 #dja ,authority for ,states to collect tax 7a7 ,in ,general ,the tax imposed by section #aja on gross payments for the use or consumption of taxable property or services within a ,state shall be administered1 collected1 and remitted to the ,united ,states ,treasury by such ,state if the ,state is an administering ,state4 7b7 ,administering ,state ,for purposes of this section1 the term administering ,state means any ,state-- 7#a7 which maintains a sales tax1 and 7#b7 which enters into a cooperative agreement with the ,secretary containing reasonable provisions governing the administration by such ,state of the taxes imposed by the subtitle and the remittance to the ,united ,states in a timely manner of taxes collected under this chapter4 7c7 ,cooperative ,agreements ,the agreement under subsection 7b77#b7 shall include provisions for the expeditious transfer of funds1 contact officers1 dispute resolution1 information exchange1 confidentiality1 taxpayer rights1 and other matters of importance4 ,the agreement shall not contain extraneous matters4 7d7 ,timely ,remittance of ,tax 7#a7 ,in general ,administering ,states shall remit and pay over taxes collected under this subtitle on behalf of the ,united ,states 7less the administration fee allowable under paragraph 7#b77 not later than #e days after receipt4 ,interest at #aej percent of the ,federal short-term rate shall be paid with respect to amounts remitted after the due date4 7#b7 ,administration fee ,an administering ,state may retain an administration fee equal to one-quarter of #a percent of the amounts otherwise required to be remitted to the ,united ,states under this chapter by the administering ,state4 7e7 ,limitation on ,administration of ,tax by ,united ,states ,the ,secretary may administer the tax imposed by this subtitle in an administering ,state only if-- 7#a7 7,a7 such ,state has failed on a regular basis to timely remit to the ,united ,states taxes collected under this chapter on behalf of the ,united ,states2 or 7,b7 such ,state has on a regular basis otherwise materially breached the agreement referred to in subsection 7b77#b72 7#b7 the ,state has failed to cure such alleged failures and breaches within a reasonable time2 7#c7 the ,secretary provides such ,state with written notice of such alleged failures and breaches2 and 7#d7 a ,district ,court of the ,united ,states within such ,state1 upon application of the ,secretary1 has rendered a decision-- 7,a7 making findings of fact that-- 7i7 such ,state has failed on a regular basis to timely remit to the ,united ,states taxes collected under this chapter on behalf of the ,united ,states1 or such ,state has on a regular basis otherwise materially breached the agreement referred to in subsection 7b77#b72 7ii7 the ,secretary has provided such ,state with written notice of such alleged failures and breaches2 and 7iii7 the ,state has failed to cure such alleged failures and breaches within a reasonable time2 and 7,b7 making a determination that it is in the best interest of the citizens of the ,united ,states that the administering ,state's authority to administer the tax imposed by this subtitle be revoked and said tax be administered directly by the ,secretary4 ,the order of the ,district ,court revoking the authority of an ,administering ,state shall contain provisions governing the orderly transfer of authority to the ,secretary4 7f7 ,reinstitution ,a ,state that has had its authority revoked pursuant to subsection 7e7 shall not be an administering ,state for a period of not less than #e years after the date of the order of revocation4 ,for the first calendar year commencing #h years after the date of the order of revocation1 the ,state shall be regarded without prejudice as eligible to become an administering ,state4 7g7 ,third ,state ,administration ,permissible ,it shall be permissible for a ,state to contract with an administering ,state to administer the ,state's sales tax for an agreed fee4 ,in this case1 the agreement contemplated by subsection 7c7 shall have both the ,state and the ,federal ,government as parties4 7h7 ,investigations and ,audits ,administering ,states shall not conduct investigations or audits at facilities in other administering ,states in connection with the tax imposed by section #aja or conforming ,state sales tax but shall instead cooperate with other administering ,states using the mechanisms established by section #djb1 by compact or by other agreement4 #djb4 ,federal administrative support for ,states 7a7 ,in ,general ,the ,secretary shall administer a program to facilitate information sharing among ,states4 7b7 ,state ,compacts ,the ,secretary shall facilitate1 and may be a party to a compact among ,states for purposes of facilitating the taxation of interstate purchases and for other purposes that may facilitate implementation of this subtitle4 7c7 ,agreement ,with ,conforming ,states ,the ,secretary is authorized to enter into and shall enter into an agreement among conforming ,states enabling conforming ,states to collect conforming ,state sales tax on sales made by sellers without a particular conforming ,state to a destination within that particular conforming ,state4 7d7 ,secretary's ,authority ,the ,secretary shall have the authority to promulgate regulations1 to provide guidelines1 to assist ,states in administering the national sales tax1 to provide for uniformity in the administration of the tax and to provide guidance to the public4 #djc4 ,federal-,state tax conferences ,not less than once annually1 the ,secretary shall host a conference with the sales tax administrators from the various administering ,states to evaluate the state of the national sales tax system1 to address issues of mutual concern and to develop and consider legislative1 regulatory1 and administrative proposals to improve the tax system4 #djd4 ,federal administration in certain ,states ,the ,secretary shall administer the tax imposed by this subtitle in any ,state or other ,united ,states jurisdiction that-- 7#a7 is not an administering ,state1 or 7#b7 elected to have another ,state administer its tax in accordance with section #dja7;g74 #dje4 ,interstate allocation and destination determination 7a7 ,destination ,generally ,the tax imposed by this subtitle is a destination principle tax4 ,this section shall govern for purposes of determining-- 7#a7 whether the destination of taxable property and services is within or without the ,united ,states1 and 7#b7 which ,state or territory within the ,united ,states is the destination of taxable property and services4 7b7 ,tangible ,personal ,property ,except as provided in subsection 7g7 7relating to certain leases71 the destination of tangible personal property shall be the ,state or territory in which the property was first delivered to the purchaser 7including agents and authorized representatives74 7c7 ,real ,property ,the destination of real property1 or rents or leaseholds on real property1 shall be the ,state or territory in which the real property is located4 7d7 ,other ,property ,the destination of any other taxable property shall be the residence of the purchaser4 7e7 ,services 7#a7 ,general rule ,the destination of services shall be the ,state or territory in which the use or consumption of the services occurred4 ,allocation of service invoices relating to more than #a jurisdiction shall be on the basis of time or another method determined by regulation4 7#b7 ,telecommunications services ,the destination of telecommunications services shall be the residence of the purchaser4 ,telecommunications services include telephone1 telegraph1 beeper1 radio1 cable television1 satellite1 and computer on-line or network services4 7#c7 ,domestic transportation services ,for transportation services where all of the final destinations are within the ,united ,states1 the destination of transportation services shall be the final destination of the trip 7in the case of round or multiple trip fares1 the services amount shall be equally allocated among each final destination74 7#d7 ,international transportation services ,for transportation services where the final destination or origin of the trip is without the ,united ,states1 the service amount shall be deemed #ej percent attributable to the ,united ,states destination or origin4 7#e7 ,electrical service ,the destination of electrical services shall be the residence of the purchaser4 7f7 ,financial ,intermediation ,services ,the destination of financial intermediation services shall be the residence of the purchaser4 7g7 ,rents ,paid for the ,lease of ,tangible ,property 7#a7 ,general rule ,except as provided in paragraph 7#b71 the destination of rents paid for the lease of tangible property and leaseholds on such property shall be where the property is located while in use4 7#b7 ,land vehicles2 aircraft1 water craft ,the destination of rental and lease payments on land vehicles1 aircraft and water craft shall be-- 7,a7 in the case of rentals and leases of a term of #a month or less1 the location where the land vehicle1 aircraft1 or water craft was originally delivered to the renter or lessee2 and 7,b7 in the case of rentals and leases of a term greater than #a month1 the residence of the renter or lessee4 7h7 ,allocation ,rules ,for purposes of allocating revenue-- 7#a7 between or among administering ,states from taxes imposed by this subtitle or from ,state sales taxes administered by third-party administering ,states1 or 7#b7 between or among ,states imposing conforming ,state sales taxes1 the revenue shall be allocated to those ,states that are the destination of the taxable property or service4 7i7 ,federal ,office of ,revenue ,allocation ,the ,secretary shall establish an ,office of ,revenue ,allocation to arbitrate any claims or disputes among administering ,states as to the destination of taxable property and services for purposes of allocating revenue between or among the ,states from taxes imposed by this subtitle4 ,the determination of the ,administrator of the ,office of ,revenue ,allocation shall be subject to judicial review in any ,federal court with competent jurisdiction4 ,the standard of review shall be abuse of discretion4 #djf4 ,general administrative matters 7a7 ,in ,general ,the ,secretary and each sales tax administering authority may employ such persons as may be necessary for the administration of this subtitle and may delegate to employees the authority to conduct interviews1 hearings1 prescribe rules1 promulgate regulations1 and perform such other duties as are required by this subtitle4 7b7 ,resolution of ,any ,inconsistent ,rules and ,regulations ,in the event that the ,secretary and any sales tax administering authority have issued inconsistent rules or regulations1 any lawful rule or regulation issued by the ,secretary shall govern4 7c7 ,adequate ,notice ,to ,be ,provided ,except in the case of an emergency declared by the ,secretary 7and not his designee71 no rule or regulation issued by the ,secretary with respect to any internal revenue law shall take effect before #ij days have elapsed after its publication in the ,federal ,register4 ,upon issuance1 the ,secretary shall provide copies of all rules or regulations issued under this title to each sales tax administering authority4 7d7 ,no ,rules1 ,rulings1 or ,regulations ,with ,retroactive ,effect ,no rule1 ruling1 or regulation issued or promulgated by the ,secretary relating to any internal revenue law or by a sales tax administering authority shall apply to a period prior to its publication in the ,federal ,register 7or ,state equivalent7 except that a regulation may take retroactive effect to prevent abuse4 7e7 ,review of ,impact of ,regulations1 ,rules1 and ,rulings on ,small ,business 7#a7 ,submission to small business administration ,after publication of any proposed or temporary regulation by the ,secretary relating to internal revenue laws1 the ,secretary shall submit such regulation to the ,chief ,counsel for ,advocacy of the ,small ,business ,administration for comment on the impact of such regulation on small businesses4 ,not later than the date #cj days after the date of such submission1 the ,chief ,counsel for ,advocacy of the ,small ,business ,administration shall submit comments on such regulation to the ,secretary4 7#b7 ,consideration of comments ,in prescribing any final regulation which supersedes a proposed or temporary regulation which had been submitted under this subsection to the ,chief ,counsel for ,advocacy of the ,small ,business ,administration1 the ,secretary shall-- 7,a7 consider the comments of the ,chief ,counsel for ,advocacy of the ,small ,business ,administration on such proposed or temporary regulation1 and 7,b7 in promulgating such final regulation1 include a narrative that describes the response to such comments4 7#c7 ,submission of certain final regulation ,in the case of promulgation by the ,secretary of any final regulations 7other than a temporary regulation7 which do not supersede a proposed regulation1 the requirements of paragraphs 7#a7 and 7#b7 shall apply1 except that the submission under paragraph 7#a7 shall be made at least #cj days before the date of such promulgation1 and the consideration and discussion required under paragraph 7#b7 shall be made in connection with the promulgation of such final regulation4 7f7 ,small ,business ,regulatory ,safeguards ,the ,small ,business ,regulatory ,enforcement ,fairness ,act 7,public ,law #ajd-aba2 #aaj ,stat4 #heg 7,,sbrefa77 and the ,regulatory ,flexibility ,act 7#e ,u4,s4,c4 #fja-fab 7,,rfa77 shall apply to regulations promulgated under this subtitle4 #djg4 ,jurisdiction 7a7 ,state ,jurisdiction ,a sales tax administering authority shall have jurisdiction over any gross payments made which have a destination 7as determined in accordance with section #dje7 within the ,state of said sales tax administering authority4 ,this grant of jurisdiction is not exclusive of any other jurisdiction that such sales tax administering authority may have4 7b7 ,federal ,jurisdiction ,the grant of jurisdiction in subsection 7a7 shall not be in derogation of ,federal jurisdiction over the same matter4 ,the ,federal ,government shall have the right to exercise preemptive jurisdiction over matters relating to the taxes imposed by this subtitle4 #e ,,other ,,administrative ,,provisions ,sec4 #eja4 ,monthly reports and payments4 ,sec4 #ejb4 ,registration4 ,sec4 #ejc4 ,accounting4 ,sec4 #ejd4 ,penalties4 ,sec4 #eje4 ,burden of persuasion and burden of production4 ,sec4 #ejf4 ,attorneys' and accountancy fees4 ,sec4 #ejg4 ,summons1 examinations1 audits1 etc4 ,sec4 #ejh4 ,records4 ,sec4 #eji4 ,tax to be separately stated and charged4 ,sec4 #eaj4 ,coordination with title #aa4 ,sec4 #eaa4 ,applicable interest rate4 #eja4 ,monthly reports and payments 7a7 ,tax ,reports and ,filing ,dates 7#a7 ,in general ,on or before the #aeth day of each month1 each person who is-- 7,a7 liable to collect and remit the tax imposed by this subtitle by reason of section #ajc7;a71 or 7,b7 liable to pay tax imposed by this subtitle which is not collected pursuant to section #ajc7;a71 shall submit to the appropriate sales tax administering authority 7in a form prescribed by the ,secretary7 a report relating to the previous calendar month4 7#b7 ,contents of report ,the report required under paragraph 7#a7 shall set forth-- 7,a7 the gross payments referred to in section #aja1 7,b7 the tax collected under chapter #d in connection with such payments1 7,c7 the amount and type of any credit claimed1 and 7,d7 other information reasonably required by the ,secretary or the sales tax administering authority for the administration1 collection1 and remittance of the tax imposed by this subtitle4 7b7 ,tax ,payments ,date 7#a7 ,general rule ,the tax imposed by this subtitle during any calendar month is due and shall be paid to the appropriate sales tax administering authority on or before the #aeth day of the succeeding month4 ,both ,federal tax imposed by this subtitle and conforming ,state sales tax 7if any7 shall be paid in #a aggregate payment4 7#b7 ,cross reference ,see subsection 7e7 relating to remitting of separate segregated funds for sellers that are not small sellers4 7c7 ,extensions for ,filing ,reports 7#a7 ,automatic extensions for not more than #cj days ,on application1 an extension of not more than #cj days to file reports under subsection 7a7 shall be automatically granted4 7#b7 ,other extensions ,on application1 extensions of #cj to #fj days to file such reports shall be liberally granted by the sales tax administering authority for reasonable cause4 ,extensions greater than #fj days may be granted by the sales tax administering authority to avoid hardship4 7#c7 ,no extension for payment of taxes ,notwithstanding paragraphs 7#a7 and 7#b71 no extension shall be granted with respect to the time for paying or remitting the taxes under this subtitle4 7d7 ,telephone ,reporting of ,violations ,the ,secretary shall establish a system under which a violation of this subtitle can be brought to the attention of the sales tax administering authority for investigation through the use of a toll-free telephone number and otherwise4 7e7 ,separate ,segregated ,accounts 7#a7 ,in general ,any registered seller that is not a small seller shall deposit all sales taxes collected pursuant to section #ajc in a particular week in a separate segregated account maintained at a bank or other financial institution within #c business days of the end of such week4 ,said registered seller shall also maintain in that account sufficient funds to meet the bank or financial institution minimum balance requirements1 if any1 and to pay account fees and costs4 7#b7 ,small seller ,for purposes of this subsection1 a small seller is any person that has not collected #bj1jjj or more of the taxes imposed by this subtitle in any of the previous #ab months4 7#c7 ,large sellers ,any seller that has collected #ajj1jjj or more of the taxes imposed by this subtitle in any of the previous #ab months is a large seller4 ,a large seller shall remit to the sales tax administering authority the entire balance of deposited taxes in its separate segregated account on the first business day following the end of the calendar week4 ,the ,secretary may by regulation require the electronic transfer of funds due from large sellers4 7#d7 ,week ,for purposes of this subsection1 the term week shall mean the #g-;day period ending on a ,friday4 7f7 ,determination of ,report ,filing ,date ,a report filed pursuant to subsection 7a7 shall be deemed filed when-- 7#a7 deposited in the ,united ,states mail1 postage prepaid1 addressed to the sales tax administering authority1 7#b7 delivered and accepted at the offices of the sales tax administering authority1 7#c7 provided to a designated commercial private courier service for delivery within #b days to the sales tax administering authority at the address of the sales tax administering authority1 or 7#d7 by other means permitted by the ,secretary4 7g7 ,security ,requirements ,a large seller 7within the meaning of subsection 7e77#c77 shall be required to provide security in an amount equal to the greater of #ajj1jjj or one and one-half times the seller's average monthly tax liability during the previous #f calendar months4 ,security may be a cash bond1 a bond from a surety company approved by the ,secretary1 a certificate of deposit1 or a ,state or ,united ,states ,treasury bond4 ,a bond qualifying under this subsection must be a continuing instrument for each calendar year 7or portion thereof7 that the bond is in effect4 ,the bond must remain in effect until the surety or sureties are released and discharged4 ,failure to provide security in accordance with this section shall result in revocation of the seller's section #ejb registration4 ,if a person who has provided security pursuant to this subsection-- 7#a7 fails to pay an amount indicated in a final notice of amount due under this subtitle 7within the meaning of section #fje7;d771 7#b7 no ,taxpayer ,assistance ,order is in effect relating to the amount due1 7#c7 either the time for filing an appeal pursuant to section #fjd has passed or the appeal was denied1 and 7#d7 the amount due is not being litigated in any judicial forum1 then the security or part of the security1 as the case may be1 may be forfeited in favor of the ,secretary to the extent of such tax due 7plus interest if any74 7h7 ,rewards ,program ,the ,secretary is authorized to maintain a program of awards wherein individuals that assist the ,secretary or sales tax administering authorities in discovering or prosecuting tax fraud may be remunerated4 7i7 ,cross ,reference ,for interest due on taxes remitted late1 see section #ffja4 #ejb4 ,registration 7a7 ,in ,general ,any person liable to collect and remit taxes pursuant to section #ajc7;a7 who is engaged in a trade or business shall register as a seller with the sales tax administering authority administering the taxes imposed by this subtitle4 7b7 ,affiliated ,firms ,affiliated firms shall be treated as #a person for purposes of this section4 ,affiliated firms may elect1 upon giving notice to the ,secretary in a form prescribed by the ,secretary1 to treat separate firms as separate persons for purposes of this subtitle4 7c7 ,designation of ,tax ,matters ,person ,every person registered pursuant to subsection 7a7 shall designate a tax matters person who shall be an individual whom the sales tax administering authority may contact regarding tax matters4 ,each person registered must provide notice of a change in the identity of the tax matters person within #cj days of said change4 7d7 ,effect of ,failure ,to ,register ,any person that is required to register and who fails to do so is prohibited from selling taxable property or services4 ,the ,secretary or a sales tax administering authority may bring an action seeking a temporary restraining order1 an injunction1 or such other order as may be appropriate to enforce this section4 #ejc4 ,accounting 7a7 ,cash ,method ,to ,be ,used ,generally ,registered sellers and other persons shall report transactions using the cash method of accounting unless an election to use the accrual method of accounting is made pursuant to subsection 7b74 7b7 ,election ,to ,use ,accrual ,method ,a person may elect with respect to a calender year to remit taxes and report transactions with respect to the month where a sale was invoiced and accrued4 7c7 ,cross ,reference ,see section #bje for rules relating to bad debts for sellers electing the accrual method4 #ejd4 ,penalties 7a7 ,failure ,to ,register ,each person who is required to register pursuant to section #ejb but fails to do so prior to notification by the sales tax administering authority shall be liable for a penalty of #ejj4 7b7 ,reckless or ,willful ,failure ,to ,collect ,tax 7#a7 ,civil penalty2 fraud ,each person who is required to and recklessly or willfully fails to collect taxes imposed by this subtitle shall be liable for a penalty equal to the greater of #ejj or #bj percent of tax not collected4 7#b7 ,criminal penalty ,each person who is required to and willfully fails as part of a trade or business to collect taxes imposed by this subtitle may be fined an amount up to the amount determined in accordance with paragraph 7#a7 or imprisoned for a period of not more than #a year or both4 7c7 ,reckless or ,willful ,assertion of ,invalid ,exemption 7#a7 ,civil penalty2 fraud ,each person who recklessly or willfully asserts an invalid intermediate or export sales exemption from the taxes imposed by this subtitle shall be liable for a penalty equal to the greater of #ejj or #bj percent of the tax not collected or remitted4 7#b7 ,criminal penalty ,each person who willfully asserts an invalid intermediate or export sales exemption from the taxes imposed by this subtitle may be fined an amount up to the amount determined in accordance with paragraph 7#a7 or imprisoned for a period of not more than #a year or both4 7d7 ,reckless or ,willful ,failure ,to ,remit ,tax ,collected 7#a7 ,civil penalty2 fraud ,each person who is required to and recklessly or willfully fails to remit taxes imposed by this subtitle and collected from purchasers shall be liable for a penalty equal to the greater of #a1jjj or #ej percent of the tax not remitted4 7#b7 ,criminal penalty ,each person who willfully fails to remit taxes imposed by this subtitle and collected from purchasers may be fined an amount up to the amount determined in accordance with paragraph 7#a7 or imprisoned for a period of not more than #b years or both4 7e7 ,reckless or ,willful ,failure ,to ,pay ,tax ,each person who is required to and recklessly or willfully fails to pay taxes imposed by this subtitle shall be liable for a penalty equal to the greater of #ejj or #bj percent of the tax not paid4 7f7 ,penalty for ,late ,filing 7#a7 ,in general ,in the case of a failure by any person who is required to and fails to file a report required by section #eja on or before the due date 7determined with regard to any extension7 for such report1 such person shall pay a penalty for each month or fraction thereof that said report is late equal to the greater of-- 7,a7 #ej1 or 7,b7 #j4e percent of the gross payments required to be shown on the report4 7#b7 ,increased penalty on returns filed after written inquiry ,the amount of the penalty under paragraph 7#a7 shall be doubled with respect to any report filed after a written inquiry with respect to such report is received by the taxpayer from the sales tax administering authority4 7#c7 ,limitation ,the penalty imposed under this subsection shall not exceed #ab percent4 7#d7 ,exceptions 7,a7 ,reasonable cause ,no penalty shall be imposed under this subsection with respect to any failure if it is shown that such failure is due to reasonable cause4 7,b7 ,other waiver authority ,in addition to penalties not imposed by reason of subparagraph 7,a71 the sales tax administering authority1 on application1 shall waive the penalty imposed by paragraph 7#a7 once per registered person per #bd-month period4 ,the preceding sentence shall not apply to a penalty determined under paragraph 7#b74 7g7 ,penalty for ,willfully or ,recklessly ,accepting a ,false ,intermediate or ,export ,sales ,certificate ,a person who willingly or recklessly accepts a false intermediate or export sales certificate shall pay a penalty equal to #bj percent of the tax not collected by reason of said acceptance4 7h7 ,penalty for ,late ,remittance of ,taxes 7#a7 ,in general ,a person who is required to timely remit taxes imposed by this subtitle and remits taxes more than #a month after such taxes are due shall pay a penalty equal to #a percent per month 7or fraction thereof7 from the due date4 7#b7 ,limitation ,the penalty imposed under this subsection shall not exceed #bd percent4 7#c7 ,exceptions for reasonable cause ,no penalty shall be imposed under paragraph 7#a7 with respect to any late remittance if it is shown that such late remittance is due to reasonable cause4 7i7 ,penalty for ,filing ,false ,rebate ,claim 7#a7 ,civil penalty2 fraud ,a person who willingly or recklessly files a false claim for a family consumption allowance rebate 7within the meaning of chapter #c7 shall-- 7,a7 pay a penalty equal to the greater of #ejj or #ej percent of the claimed annual rebate amount not actually due1 and 7,b7 repay any rebates received as a result of the false rebate claim 7together with interest74 7#b7 ,criminal penalty ,a person who willingly files a false claim for a family consumption allowance rebate 7within the meaning of chapter #c7 may be fined an amount up to the amount determined in accordance with paragraph 7#a7 or imprisoned for a period not more than #a year or both4 7j7 ,penalty for ,bad ,check ,if any check or money order in payment of any amount receivable under this subtitle is not duly paid1 in addition to other penalties provided by law1 the person who tendered such check shall pay a penalty equal to the greater of-- 7#a7 #be1 or 7#b7 two percent of the amount of such check4 7k7 ,penalty for ,failure ,to ,maintain a ,separate ,segregated ,account ,any person required to maintain a separate segregated account pursuant to section #eja7;e7 that fails to maintain such a separate segregated account shall pay a penalty of #a1jjj4 7l7 ,penalty for ,failure ,to ,deposit ,collected ,taxes in a ,separate ,segregated ,account ,any person required to deposit collected taxes into a separate segregated account maintained pursuant to section #eja7;e7 that fails to timely deposit said taxes into the separate segregated account shall pay a penalty equal to #a percent of the amount required to be deposited4 ,the penalty imposed by the previous sentence shall be tripled unless said taxes have been deposited in the separate segregated account or remitted to the sales tax administering authority within #af days of the date said deposit was due4 7m7 ,joint and ,several ,liability for ,tax ,matters ,person and ,responsible ,officers ,the tax matters person 7designated pursuant to section #ejb7;c77 and responsible officers or partners of a firm shall be jointly and severally liable for the tax imposed by this subtitle and penalties imposed by this subtitle4 7n7 ,right of ,contribution ,if more than #a person is liable with respect to any tax or penalty imposed by this subtitle1 each person who paid such tax or penalty shall be entitled to recover from other persons who are liable for such tax or penalty an amount equal to the excess of the amount paid by such person over such person's proportionate share of the tax or penalty4 7o7 ,civil ,penalties and ,criminal ,fines ,not ,exclusive 7#a7 ,civil penalty ,the fact that a civil penalty has been imposed shall not prevent the imposition of a criminal fine4 7#b7 ,criminal fine ,the fact that a criminal fine has been imposed shall not prevent the imposition of a civil penalty4 7p7 ,confidentiality ,any person who violates the requirements relating to confidentiality of tax information 7as provided in section #fje7;e77 may be fined up to #aj1jjj or imprisoned for a period of not more than #a year1 or both4 7q7 ,cross ,reference ,for interest due on late payments1 see section #ffja4 #eje4 ,burden of persuasion and burden of production ,in all disputes concerning taxes imposed by this subtitle1 the person engaged in a dispute with the sales tax administering authority or the ,secretary1 as the case may be1 shall have the burden of production of documents and records but the sales tax administering authority or the ,secretary shall have the burden of persuasion4 ,in all disputes concerning an exemption claimed by a purchaser1 if the seller has on file an intermediate sale or export sale certificate from the purchaser and did not have reasonable cause to believe that the certificate was improperly provided by the purchaser with respect to such purchase 7within the meaning of section #ajc71 then the burden of production of documents and records relating to that exemption shall rest with the purchaser and not with the seller4 #ejf4 ,attorneys' and accountancy fees ,in all disputes concerning taxes imposed by this subtitle1 the person engaged in a dispute with the sales tax administering authority or the ,secretary1 as the case may be1 shall be entitled to reasonable attorneys' fees1 accountancy fees1 and other reasonable professional fees incurred in direct relation to the dispute unless the sales tax administering authority or the ,secretary establishes that its position was substantially justified4 #ejg4 ,summons1 examinations1 audits1 etc 7a7 ,summons ,persons are subject to administrative summons by the sales tax administering authority for records1 documents1 and testimony required by the sales tax administering authority to accurately determine liability for tax under this subtitle4 ,a summons shall be served by the sales tax administering authority by an attested copy delivered in hand to the person to whom it is directed or left at his last known address4 ,the summons shall describe with reasonable certainty what is sought4 7b7 ,examinations and ,audits ,the sales tax administering authority has the authority to conduct at a reasonable time and place examinations and audits of persons who are or may be liable to collect and remit tax imposed by this subtitle and to examine the books1 papers1 records1 or other data of such persons which may be relevant or material to the determination of tax due4 7c7 ,limitation on ,authority in ,case of ,referral ,no administrative summons may be issued by the sales tax administering authority and no action be commenced to enforce an administrative summons with respect to any person if a ,justice ,department referral or referral to a ,state ,attorney ,general's ,office is in effect with respect to such person relating to a tax imposed by this subtitle4 ,such referral is in effect with respect to any person if the sales tax administering authority or the ,secretary has recommended to the ,justice ,department or a ,state ,attorney ,general's ,office a grand jury investigation of such person or a criminal prosecution of such person that contemplates criminal sanctions under this title4 ,a referral shall be terminated when-- 7#a7 the ,justice ,department or a ,state ,attorney ,general's ,office notifies the sales tax administering authority or the ,secretary that he will not-- 7,a7 prosecute such person for any offense connected with the internal revenue laws1 7,b7 authorize a grand jury investigation of such person with respect to such offense1 or 7,c7 continue such a grand jury investigation1 or 7#b7 a final disposition has been made of any criminal proceeding connected with the internal revenue laws1 or conforming ,state sales tax1 against such person4 #ejh4 ,records ,any person liable to remit taxes pursuant to this subtitle shall keep records 7including a record of all section #eji receipts provided1 complete records of intermediate and export sales1 including purchaser's intermediate and export sales certificates and tax number and the net of tax amount of purchase7 sufficient to determine the amounts reported1 collected1 and remitted for a period of #f years after the latter of the filing of the report for which the records formed the basis or when the report was due to be filed4 ,any purchaser who purchased taxable property or services but did not pay tax by reason of asserting an intermediate and export sales exemption shall keep records sufficient to determine whether said exemption was valid for a period of #g years after the purchase of taxable property or services4 #eji4 ,tax to be separately stated and charged 7a7 ,in ,general ,for each purchase of taxable property or services for which a tax is imposed by section #aja1 the seller shall charge the tax imposed by section #aja separately from the purchase4 ,for purchase of taxable property or services for which a tax is imposed by section #aja1 the seller shall provide to the purchaser a receipt for each transaction that includes-- 7#a7 the property or services price exclusive of tax2 7#b7 the amount of tax paid2 7#c7 the property or service price inclusive of tax2 7#d7 the tax rate 7the amount of tax paid 7per paragraph 7#b77 divided by the property or service price inclusive of tax 7per paragraph 7#c772 7#e7 the date that the good or service was sold2 7#f7 the name of the vendor2 and 7#g7 the vendor registration number4 7b7 ,vending ,machine ,exception ,the requirements of subsection 7a7 shall be inapplicable in the case of sales by vending machines4 ,vending machines for purposes of this subsection are machines-- 7#a7 that dispense taxable property in exchange for coins or currency2 and 7#b7 that sell no single item exceeding #aj per unit in price4 7c7 ,financial ,intermediation ,services ,exception ,the requirements of subsection 7a7 shall be inapplicable in the case of sales financial intermediation service4 ,receipts shall be issued when the tax is imposed 7in accordance with section #hjc 7relating to timing of tax on financial intermediation services774 #eaj4 ,coordination with title #aa ,no addition to tax shall be made under section #ejd with respect to a period during which a case is pending under title #aa1 ,united ,states ,code-- 7#a7 if such tax was incurred by the estate and the failure occurred pursuant to an order of the court finding probable insufficiency of funds of the estate to pay administrative expenses2 or 7#b7 if-- 7,a7 such tax was incurred by the debtor before the earlier of the order for relief or 7in the involuntary case7 the appointment of a trustee2 and 7,b7 the petition was filed before the due date prescribed by law 7including extensions7 for filing a return of such tax1 or the date for making the addition to tax occurs on or after the date the petition was filed4 #eaa4 ,applicable interest rate 7a7 ,in ,general 7#a7 ,federal short-term rate ,in the case of a debt instrument1 investment1 financing lease1 or account with a term of not over #c years1 the applicable interest rate is the ,federal short-term rate4 7#b7 ,federal mid-term rate ,in the case of a debt instrument1 investment1 financing lease1 or account with a term of over #c years but not over #i years1 the applicable interest rate is the ,federal mid-term rate4 7#c7 ,federal long-term rate ,in the case of a debt instrument1 investment1 financing lease1 or account with a term of over #i years1 the applicable interest rate is the ,federal long-term rate4 7b7 ,federal ,short-,term ,rate ,the ,federal short-term rate shall be the rate determined by the ,secretary based on the average market yield 7selected by the ,secretary and ending in the calendar month in which the determination is made during any one month7 on outstanding marketable obligations of the ,united ,states with remaining periods to maturity of #c years or fewer4 7c7 ,federal ,mid-,term ,rate ,the ,federal mid-term rate shall be the rate determined by the ,secretary based on the average market yield 7selected by the ,secretary and ending in the calendar month in which the determination is made during any #a month7 on outstanding marketable obligations of the ,united ,states with remaining periods to maturity of more than #c years and not over #i years4 7d7 ,federal ,long-,term ,rate ,the ,federal long-term rate shall be the rate determined by the ,secretary based on the average market yield 7selected by the ,secretary and ending in the calendar month in which the determination is made during any #a month7 on outstanding marketable obligations of the ,united ,states with remaining periods to maturity of over #i years4 7e7 ,determination of ,rates ,during each calendar month1 the ,secretary shall determine the ,federal short-term rate1 the ,federal mid-term rate and the ,federal long-term rate which shall apply during the following calendar month4 #f ,,collections2 ,,appeals2 ,,taxpayer ,,rights ,sec4 #fja4 ,collections4 ,sec4 #fjb4 ,power to levy1 etc4 ,sec4 #fjc4 ,problem resolution offices4 ,sec4 #fjd4 ,appeals4 ,sec4 #fje4 ,taxpayer rights4 ,sec4 #fjf4 ,installment agreements compromises4 #fja4 ,collections ,the sales tax administering authority shall collect the taxes imposed by this subtitle1 except as provided in section #djd 7relating to ,federal administration in certain ,states74 #fjb4 ,power to levy1 etc 7a7 ,in ,general ,the sales tax administering authority may levy and seize property1 garnish wages or salary and file liens to collect amounts due under this subtitle1 pursuant to enforcement of-- 7#a7 a judgment duly rendered by a court of law2 7#b7 an amount due if the taxpayer has failed to exercise his appeals rights under section #fjd2 or 7#c7 an amount due if the appeals process determined that an amount remained due and the taxpayer has failed to timely petition the ,tax ,court for relief4 7b7 ,exemption ,from ,levy1 ,seizure1 and ,garnishments ,there shall be exempt from levy1 seizure1 and garnishment or penalty in connection with any tax imposed by this subtitle-- 7#a7 wearing apparel1 school books1 fuel1 provisions1 furniture1 personal effects1 tools of a trade or profession1 livestock in a household up to an aggregate value of #ae1jjj2 and 7#b7 monthly money income equal to #aej percent of the monthly poverty level 7as defined in section #cjc74 7c7 ,liens ,to ,be ,timely ,released ,subject to such reasonable regulations as the ,secretary may provide1 any lien imposed with respect to a tax imposed by this title shall be released not later than #cj days after-- 7#a7 the liability was satisfied or became unenforceable2 or 7#b7 a bond was accepted as security4 #fjc4 ,problem ,resolution ,offices 7a7 ,problem ,resolution ,office ,to ,be ,established ,each sales tax administering authority shall establish an independent ,problem ,resolution ,office and appoint an adequate number of problem resolution officers4 ,the head of the problem resolution office must be appointed by1 and serve at the pleasure of either the ,state ,governor 7in the case of an administering ,state7 or the ,president of the ,united ,states4 7b7 ,authority of ,problem ,resolution ,officers ,problem resolution officers shall have the authority to investigate complaints and issue a ,taxpayer ,assistance ,order to administratively enjoin any collection activity if1 in the opinion of the problem resolution officer1 said collection activity is reasonably likely to not be in compliance with law or to prevent hardship 7other than by reason of having to pay taxes lawfully due74 ,problem resolution officers shall also have the authority to issue ,taxpayer ,assistance ,orders releasing or returning property that has been levied upon or seized1 ordering that a lien be released and that garnished wages be returned4 ,a ,taxpayer ,assistance ,order may only be rescinded or modified by the problem resolution officer that issued it1 by the highest official in the relevant sales tax administering authority or by its general counsel upon a finding that the collection activity is justified by clear and convincing evidence4 ,the authority to reverse this ,taxpayer ,assistance ,order may not be delegated4 7c7 ,form of ,request for ,taxpayer ,assistance ,order ,the ,secretary shall establish a form and procedure to aid persons requesting the assistance of the ,problem ,resolution ,office and to aid the ,problem ,resolution ,office in understanding the needs of the person seeking assistance4 ,the use of this form1 however1 shall not be a prerequisite to a problem resolution officer taking action1 including issuing a ,taxpayer ,assistance ,order4 7d7 ,content of ,taxpayer ,assistance ,order ,a ,taxpayer ,assistance ,order shall contain the name of the problem resolution officer1 any provision relating to the running of any applicable period of limitation1 the name of the person that the ,taxpayer ,assistance ,order assists1 the government office 7or employee or officer of said government office7 to whom it is directed and the action or cessation of action that the ,taxpayer ,assistance ,order requires of said government officer 7or employee or officer of said government office74 ,the ,taxpayer ,assistance ,order need not contain findings of fact or its legal basis2 however1 the problem resolution officer must provide findings of fact and the legal basis for the issuance of the ,taxpayer ,assistance ,order to the sales tax administering authority upon the request of an officer of said authority within #b weeks of the receipt of such request4 7e7 ,independence ,protected ,problem resolution officers shall not be disciplined or adversely affected for the issuance of administrative injunctions unless a pattern of issuing injunctions that are manifestly unreasonable is proven in an administrative hearing by a preponderance of the evidence4 7f7 ,other ,rights ,not ,limited ,nothing in this section shall limit the authority of the sales tax administering authority1 the registered person or other person from pursuing any legal remedy in any court with jurisdiction over the dispute at issue4 7g7 ,limitations ,the running of any applicable period of limitation shall be suspended for a period of #h weeks following the issuance of a ,taxpayer ,assistance ,order or1 if specified1 for a longer period set forth in the ,taxpayer ,assistance ,order provided the suspension does not exceed #f months4 #fjd4 ,appeals 7a7 ,administrative ,appeals ,the sales tax administering authority shall establish an administrative appeals process wherein the registered person or other person in disagreement with a decision of the sales tax administering authority asserting liability for tax is provided a full and fair hearing in connection with any disputes said person has with the sales tax administering authority4 7b7 ,timing of ,administrative ,appeals ,said administrative appeal must be made within #fj days of receiving a final notice of amount due pursuant to section #fje7;d7 unless leave for an extension is granted by the appeals officer in a form prescribed by the ,secretary4 ,leave shall be granted to avoid hardship4 #fje4 ,taxpayer rights 7a7 ,rights ,to ,be ,disclosed ,the sales tax administering authority shall provide to any person against whom it has-- 7#a7 commenced an audit or investigation2 7#b7 issued a final notice of amount due2 7#c7 filed an administrative lien1 levy1 or garnishment2 7#d7 commenced other collection action2 7#e7 commenced an action for civil penalties2 or 7#f7 any other legal action1 a document setting forth in plain ,english the rights of the person4 ,the document shall explain the administrative appeals process1 the authority of the ,problem ,resolution ,office 7established pursuant to section #fjc7 and how to contact that ,office1 the burden of production and persuasion that the person and the sales tax administering authority bear 7pursuant to section #eje71 the right of the person to professional fees 7pursuant to section #ejf71 the right to record interviews and such other rights as the person may possess under this subtitle4 ,said document will also set forth the procedures for entering into an installment agreement4 7b7 ,right to ,professional ,assistance ,in all dealings with the sales tax administering authority1 a person shall have the right to assistance1 at their own expense1 of one or more professional advisors4 7c7 ,right ,to ,record ,interviews ,any person who is interviewed by an agent of the sales tax administering authority shall have the right to video or audio tape the interview at the person's own expense4 7d7 ,right to ,final ,notice of ,amount ,due ,no collection or enforcement action will be commenced against a person until #cj days after they have been provided with a final notice of amount due under this subtitle by the sales tax administering authority4 ,the final notice of amount due shall set forth the amount of tax due 7along with any interest and penalties due7 and the factual and legal basis for such amounts being due with sufficient specificity that such basis can be understood by a reasonable person who is not a tax professional reading the notice4 ,the final notice shall be sent by certified mail1 return receipt requested1 to-- 7#a7 the address last provided by a registered seller2 or 7#b7 the best available address to a person who is not a registered seller4 7e7 ,confidentiality of ,tax ,information 7#a7 ,in general ,all reports and report information 7related to any internal revenue law7 shall be confidential and except as authorized by this title-- 7,a7 no officer or employee 7including former officers and employees7 of the ,united ,states2 7,b7 no officer or employee 7including former officers and employees7 of any ,state or local agency who has had access to returns or return information2 and 7,c7 no other person who has had access to returns or return information2 shall disclose any report or report information obtained by him in any manner in connection with his service as such officer or employee or otherwise4 7#b7 ,designees ,the sales tax administering authority may1 subject to such requirements as the ,secretary may impose1 disclose the report and report information of a person to that person or persons as that person may designate to receive said information or return4 7#c7 ,other sales tax administering authorities ,a sales tax administering authority may impose1 disclose the report and report information to another sales tax administering authority4 7#d7 ,incompetency ,a sales tax administering authority may1 subject to such requirements as the ,secretary may impose1 disclose the report and report information to the committee1 trustee1 or guardian of a person who is incompetent4 7#e7 ,deceased persons ,a sales tax administering authority may1 subject to such requirements as the ,secretary may impose1 disclose the report and report information to the decedent's-- 7,a7 administrator1 executor1 estate trustee1 or 7,b7 heir at law1 next of kin1 or beneficiary under a will who has a material interest that will be affected by the information4 7#f7 ,bankruptcy ,a sales tax administering authority may1 subject to such requirements as the ,secretary may impose1 disclose the report and report information to a person's trustee in bankruptcy4 7#g7 ,congress ,upon written request from the ,chairman of the ,committee on ,ways and ,means1 the ,chairman of the ,committee on ,finance of the ,senate1 or the ,chairman or ,chief of ,staff of the ,joint ,committee on ,taxation1 a sales tax administering authority shall disclose the report and report information1 except that any report or report information that can be associated with or otherwise identify a particular person shall be furnished to such committee only when sitting in closed executive session unless such person otherwise consents in writing to such disclosure4 7#h7 ,waiver of privacy rights ,a person may waive confidentiality rights provided by this section4 ,such waiver must be in writing4 7#i7 ,internal use ,disclosure of the report or report information by officers or employees of a sales tax administering authority to other officers or employees of a sales tax administering authority in the ordinary course of tax administration activities shall not constitute unlawful disclosure of the report or report information4 7#aj7 ,statistical use ,upon request in writing by the ,secretary of ,commerce1 the ,secretary shall furnish such reports and report information to officers and employees of the ,department of ,commerce as the ,secretary may prescribe by regulation for the purposes of1 and only to the extent necessary in1 the structuring of censuses and national economic accounts and conducting related statistical activities authorized by law4 7#aa7 ,department of the treasury ,returns and return information shall be open for inspection by officers and employees of the ,department of the ,treasury whose official duties require such inspection or disclosure for the purpose of1 and only to the extent necessary for1 preparing economic or financial forecasts1 projections1 analyses1 or estimates4 ,such inspection or disclosure shall be permitted only upon written request that sets forth the reasons why such inspection or disclosure is necessary and is signed by the head of the bureau or office of the ,department of the ,treasury requesting the inspection or disclosure4 #fjf4 ,installment agreements2 compromises ,the sales tax administering authority is authorized to enter into written agreements with any person under which the person is allowed to satisfy liability for payment of any tax under this subtitle 7and penalties and interest relating thereto7 in installment payments if the sales tax administering authority determines that such agreement will facilitate the collection of such liability4 ,the agreement shall remain in effect for the term of the agreement unless the information that the person provided to the sales tax administering authority was materially inaccurate or incomplete4 ,the sales tax administering authority may compromise any amounts alleged to be due4 #g ,special rules ,sec4 #gja4 ,hobby activities4 ,sec4 #gjb4 ,gaming activities4 ,sec4 #gjc4 ,government purchases4 ,sec4 #gjd4 ,government enterprises4 ,sec4 #gje4 ,mixed use property4 ,sec4 #gjf4 ,not-for-profit organizations4 #gja4 ,hobby activities 7a7 ,hobby ,activities ,neither the exemption afforded by section #ajb for intermediate sales nor the credits available pursuant to section #bjb or #bjc shall be available for any taxable property or service purchased for use in an activity if that activity is not engaged in for-profit4 7b7 ,status ,deemed ,if the activity has received gross payments for the sale of taxable property or services that exceed the sum of-- 7#a7 taxable property and services purchased2 7#b7 wages and salary paid2 and 7#c7 taxes 7of any type7 paid1 in two or more of the most recent #c calendar years during which it operated then the business activity shall be conclusively deemed to be engaged in for profit4 #gjb4 ,gaming activities 7a7 ,registration ,any person selling one or more chances is a gaming sponsor and shall register1 in a form prescribed by the ,secretary1 with the sales tax administering authority as a gaming sponsor4 7b7 ,chance ,defined ,for purposes of this section1 the term chance means a lottery ticket1 a raffle ticket1 chips1 other tokens1 a bet or bets placed1 a wager or wagers placed1 or any similar device where the purchase of the right gives rise to an obligation by the gaming sponsor to pay upon the occurrence of-- 7#a7 a random or unpredictable event2 or 7#b7 an event over which neither the gaming sponsor nor the person purchasing the chance has control over the outcome4 7c7 ,chances ,not ,taxable ,property or ,service ,notwithstanding any other provision in this subtitle1 a chance is not taxable property or services for purposes of section #aja4 7d7 ,tax on ,gaming ,services ,imposed ,a #bc-percent tax is hereby imposed on the taxable gaming services of a gaming sponsor4 ,this tax shall be paid and remitted by the gaming sponsor4 ,the tax shall be remitted by the #aeth day of each month with respect to taxable gaming services during the previous calendar month4 7e7 ,taxable ,gaming ,services ,defined ,for purposes of this section1 the term taxable gaming services means-- 7#a7 gross receipts of the gaming sponsor from the sale of chances1 minus 7#b7 the sum of-- 7,a7 total gaming payoffs to chance purchasers 7or their designees72 and 7,b7 gaming specific taxes 7other than the tax imposed by this section7 imposed by the ,federal1 ,state1 or local government4 #gjc4 ,government purchases 7a7 ,government ,purchases 7#a7 ,purchases by the federal government ,purchases by the ,federal ,government of taxable property and services shall be subject to the tax imposed by section #aja4 7#b7 ,purchase by state governments and their political subdivisions ,purchases by ,state governments and their political subdivisions of taxable property and services shall be subject to the tax imposed by section #aja4 7b7 ,cross ,references ,for purchases by government enterprises see section #gjd4 #gjd4 ,government enterprises 7a7 ,government ,enterprises ,to ,collect and ,remit ,taxes on ,sales ,nothing in this subtitle shall be construed to exempt any ,federal1 ,state1 or local governmental unit or political subdivision 7whether or not the ,state is an administering ,state7 operating a government enterprise from collecting and remitting tax imposed by this subtitle on any sale of taxable property or services4 ,government enterprises shall comply with all duties imposed by this subtitle and shall be liable for penalties and subject to enforcement action in the same manner as private persons that are not government enterprises4 7b7 ,government ,enterprise ,any entity owned or operated by a ,federal1 ,state1 or local governmental unit or political subdivision that receives gross payments from private persons is a government enterprise1 except that a government-owned entity shall not become a government enterprise for purposes of this section unless in any quarter it has revenues from selling taxable property or services that exceed #b1ejj4 7c7 ,government ,enterprises ,intermediate ,sales 7#a7 ,in general ,government enterprises shall not be subject to tax on purchases that would not be subject to tax pursuant to section #ajb7;b7 if the government enterprise were a private enterprise4 7#b7 ,exception ,government enterprises may not use the exemption afforded by section #ajb7;b7 to serve as a conduit for tax-free purchases by government units that would otherwise be subject to taxation on purchases pursuant to section #gjc4 ,transfers of taxable property or services purchased exempt from tax from a government enterprise to such government unit shall be taxable4 7d7 ,separate ,books of ,account ,any government enterprise must maintain books of account1 separate from the nonenterprise government accounts1 maintained in accordance with generally accepted accounting principles4 7e7 ,trade or ,business ,a government enterprise shall be treated as a trade or business for purposes of this subtitle4 7f7 ,enterprise ,subsidies ,constitute ,taxable ,purchase ,a transfer of funds to a government enterprise by a government entity without full consideration shall constitute a taxable government purchase with the meaning of section #gjc to the extent that the transfer of funds exceeds the fair market value of the consideration4 #gje4 ,mixed use property 7a7 ,mixed ,use ,property or ,service 7#a7 ,mixed use property or service defined ,for purposes of this section1 the term mixed use property or service is a taxable property or taxable service used for both taxable use or consumption and for a purpose that would not be subject to tax pursuant to section #ajb7;a77#a74 7#b7 ,taxable threshold ,mixed use property or service shall be subject to tax notwithstanding section #ajb7;a77#a7 unless such property or service is used more than #ie percent for purposes that would give rise to an exemption pursuant to section #ajb7;a77#a7 during each calendar year 7or portions thereof7 it is owned4 7#c7 ,mixed use property or services credit ,a person registered pursuant to section #ejb is entitled to a business use conversion credit 7pursuant to section #bjb7 equal to the product of-- 7,a7 the mixed use property amount2 and 7,b7 the business use ratio2 and 7,c7 the rate of tax imposed by section #aja4 7#d7 ,mixed use property amount ,the mixed use property amount for each month 7or fraction thereof7 in which the property was owned shall be-- 7,a7 one-three-hundred-sixtieth of the gross payments for real property for #cfj months or until the property is sold2 7,b7 one-eighty-fourth of the gross payments for tangible personal property for #hd months or until the property is sold2 7,c7 one-sixtieth of the gross payments for vehicles for #fj months or until the property is sold2 or 7,d7 for other types of taxable property or services1 a reasonable amount or in accordance with regulations prescribed by the ,secretary4 7#e7 ,business use ratio ,for purposes of this section1 the term business use ratio means the ratio of business use to total use for a particular calendar month 7or portion thereof if the property was owned for only part of said calendar month74 ,for vehicles1 the business use ratio will be the ratio of business purpose miles to total miles in a particular calendar month4 ,for real property1 the business use ratio is the ratio of floor space used primarily for business purposes to total floor space in a particular calendar month4 ,for tangible personal property 7except for vehicles71 the business use ratio is the ratio of total time used for business purposes to total time used in a particular calendar year4 ,for other property or services1 the business ratio shall be calculated using a reasonable method4 ,reasonable records must be maintained to support a person's business use of the mixed use property or service4 7b7 ,timing of ,business ,use ,conversion ,credit ,arising ,out of ,ownership of ,mixed ,use ,property ,a person entitled to a credit pursuant to subsection 7a77#c7 arising out of the ownership of mixed use property must account for the mixed use on a calendar year basis1 and may file for the credit with respect to mixed use property in any month following the calendar year giving rise to the credit4 7c7 ,cross ,reference ,for business use conversion credit1 see section #bjb4 #gjf4 ,not-for-,profit organizations 7a7 ,not-for-,profit ,organizations ,dues1 contributions1 and similar payments to qualified not-for-profit organizations shall not be considered gross payments for taxable property or services for purposes of this subtitle4 7b7 ,definition ,for purposes of this section1 the term qualified not-for-profit organization means a not-for-profit organization organized and operated exclusively-- 7#a7 for religious1 charitable1 scientific1 testing for public safety1 literary1 or educational purposes2 7#b7 as civic leagues or social welfare organizations2 7#c7 as labor1 agricultural1 or horticultural organizations2 7#d7 as chambers of commerce1 business leagues1 or trade associations2 or 7#e7 as fraternal beneficiary societies1 orders1 or associations2 no part of the net earnings of which inures to the benefit of any private shareholder or individual4 7c7 ,qualification ,certificates ,upon application in a form prescribed by the ,secretary1 the sales tax administering authority shall provide qualification certificates to qualified not-for-profit organizations4 7d7 ,taxable ,transactions ,if a qualified not-for-profit organization provides taxable property or services in connection with contributions1 dues1 or similar payments to the organization1 then it shall be required to treat the provision of said taxable property or services as a purchase taxable pursuant to this subtitle at the fair market value of said taxable property or services4 7e7 ,exemptions ,taxable property and services purchased by a qualified not-for-profit organization shall be eligible for the exemptions provided in section #ajb4 #h ,financial ,intermediation ,services ,sec4 #hja4 ,determination of financial intermediation services amount4 ,sec4 #hjb4 ,bad debts4 ,sec4 #hjc4 ,timing of tax on financial intermediation services4 ,sec4 #hjd4 ,financing leases4 ,sec4 #hje4 ,basic interest rate4 ,sec4 #hjf4 ,foreign financial intermediation services4 #hja4 ,determination of financial intermediation services amount 7a7 ,financial ,intermediation ,services ,for purposes of this subtitle-- 7#a7 ,in general ,the term financial intermediation services means the sum of-- 7,a7 explicitly charged fees for financial intermediation services1 and 7,b7 implicitly charged fees for financial intermediation services4 7#b7 ,explicitly charged fees for financial intermediation services ,the term explicitly charged fees for financial intermediation services includes-- 7,a7 brokerage fees2 7,b7 explicitly stated banking1 loan origination1 processing1 documentation1 credit check fees1 or other similar fees2 7,c7 safe-deposit box fees2 7,d7 insurance premiums1 to the extent such premiums are not allocable to the investment account of the underlying insurance policy2 7,e7 trustees' fees2 and 7,f7 other financial services fees 7including mutual fund management1 sales1 and exit fees74 7#c7 ,implicitly charged fees for financial intermediation services 7,a7 ,in general ,the term implicitly charged fees for financial intermediation services includes the gross imputed amount in relation to any underlying interest-bearing investment1 account1 or debt4 7,b7 ,gross imputed amount ,for purposes of subparagraph 7,a71 the term gross imputed amount means-- 7i7 with respect to any underlying interest-bearing investment or account1 the product of-- 7,i7 the excess 7if any7 of the basic interest rate 7as defined in section #hje7 over the rate paid on such investment2 and 7,,ii7 the amount of the investment or account2 and 7ii7 with respect to any underlying interest-bearing debt1 the product of-- 7,i7 the excess 7if any7 of the rate paid on such debt over the basic interest rate 7as defined in section #hje72 and 7,,ii7 the amount of the debt4 7b7 ,seller of ,financial ,intermediation ,services ,for purposes of section #ajc7;a71 the seller of financial intermediation services shall be-- 7#a7 in the case of explicitly charged fees for financial intermediation services1 the seller shall be the person who receives the gross payments for the charged financial intermediation services2 7#b7 in the case of implicitly charged fees for financial intermediation services with respect to any underlying interest-bearing investment or account1 the person making the interest payments on the interest-bearing investment or account2 and 7#c7 in the case of implicitly charged fees for financial intermediation services with respect to any interest-bearing debt1 the person receiving the interest payments on the interest-bearing debt4 #hjb4 ,bad debts 7a7 ,in ,general ,for purposes of section #bje7;a71 a bad debt shall be a business debt that becomes wholly or partially worthless to the payee4 7b7 ,business ,loan ,for purposes of subsection 7a71 a business loan or debt is a bona fide loan or debt made for a business purpose that both parties intended be repaid4 7c7 ,determination of ,worthlessness 7#a7 ,in general ,no loan or debt shall be considered wholly or partially worthless unless it has been in arrears for #ahj days or more1 except that if a debt is discharged wholly or partially in bankruptcy before #ahj days has elapsed1 then it shall be deemed wholly or partially worthless on the date of discharge4 7#b7 ,determination by holder ,a loan or debt that has been in arrears for #ahj days or more may be deemed wholly or partially worthless by the holder unless a payment schedule has been entered into between the debtor and the lender4 7d7 ,cross ,reference ,see section #bje7;c7 for tax on subsequent payments4 #hjc4 ,timing of tax on financial intermediation services ,the tax on financial intermediation services provided by section #hja with respect to an underlying investment account or debt shall be imposed and collected with the same frequency that statements are rendered by the financial institution in connection with the investment account or debt but not less frequently than quarterly4 #hjd4 ,financing leases 7a7 ,definition ,for purposes of this section1 the term financing lease means any lease under which the lessee has the right to acquire the property for #ej percent or less of its fair market value at the end of the lease term4 7b7 ,general ,rule ,financing leases shall be taxed in the method set forth in this section4 7c7 ,determination of ,principal and ,interest ,components of ,financing ,lease ,the ,secretary shall promulgate rules for disaggregating the principal and interest components of a financing lease4 ,the principal amount shall be determined to the extent possible by examination of the contemporaneous sales price or prices of property the same or similar as the leased property4 7d7 ,alternative ,method ,in the event that contemporaneous sales prices or property the same or similar as the leased property are not available1 the principal and interest components of a financing lease shall be disaggregated using the applicable interest rate 7as defined in section #eaa7 plus #d percent4 7e7 ,principal ,component ,the principal component of the financing lease shall be subject to tax as if a purchase in the amount of the principal component had been made on the day on which said lease was executed4 7f7 ,interest ,component ,the financial intermediation services amount with respect to the interest component of the financing lease shall be subject to tax under this subtitle4 7g7 ,coordination ,if the principal component and financial intermediation services amount with respect to the interest component of a lease have been taxed pursuant to this section1 then the gross lease or rental payments shall not be subject to additional tax4 #hje4 ,basic interest rate ,for purposes of this chapter1 the basic interest rate with respect to a debt instrument1 investment1 financing lease1 or account shall be the applicable interest rate 7as determined in section #eaa74 ,for debt instruments1 investments1 or accounts of contractually fixed interest1 the applicable interest rate of the month of issuance shall apply4 ,for debt instruments1 investments1 or accounts of variable interest rates and which have no reference interest rate1 the applicable interest shall be the ,federal short-term interest rate for each month4 ,for debt instruments1 investments1 or accounts of variable interest rates and which have a reference interest rate1 the applicable interest shall be the applicable interest rate for the reference interest rate for each month4 #hjf4 ,foreign financial intermediation services 7a7 ,special ,rules ,relating to ,international ,financial ,intermediation ,services ,financial intermediation services shall be deemed as used or consumed within the ,united ,states if the person 7or any related party as defined in section #bje7;e77 purchasing the services is a resident of the ,united ,states4 7b7 ,designation of ,tax ,representative ,any person that provides financial intermediation services to ,united ,states residents must1 as a condition of lawfully providing such services1 designate1 in a form prescribed by the ,secretary1 a tax representative for purposes of this subtitle4 ,the tax representative shall be responsible for ensuring that the taxes imposed by this subtitle are collected and remitted and shall be jointly and severally liable for collecting and remitting these taxes4 ,the ,secretary may require reasonable bond of the tax representative4 ,the ,secretary or a sales tax administering authority may bring an action seeking a temporary restraining order1 an injunction1 or such other order as may be appropriate to enforce this section4 7c7 ,cross ,references ,for definition of person1 see section #ija4 #i ,additional matters ,sec4 #ija4 ,additional matters4 ,sec4 #ijb4 ,transition matters4 ,sec4 #ijc4 ,wages to be reported to ,social ,security ,administration4 ,sec4 #ijd4 ,trust ,fund revenue4 ,sec4 #ije4 ,withholding of tax on nonresident aliens and foreign corporations4 #ija4 ,additional matters 7a7 ,intangible ,property ,antiavoidance ,rule ,notwithstanding section #b7;a77#ad77;a77i71 the sale of a copyright or trademark shall be treated as the sale of taxable services 7within the meaning of section #aja7;a77 if the substance of the sales of copyright or trademark constituted the sale of the services that produced the copyrighted material or the trademark4 7b7 ,de ,minimis ,payments ,up to #djj of gross payments per calendar year shall be exempt from the tax imposed by section #aja if-- 7#a7 made by a person not in connection with a trade or business at any time during such calendar year prior to making said gross payments1 and 7#b7 made to purchase any taxable property or service which is imported into the ,united ,states by such person for use or consumption by such person in the ,united ,states4 7c7 ,de ,minimis ,sales ,up to #a1bjj per calendar year of gross payments shall be exempt from the tax imposed by section #aja if received-- 7#a7 by a person not in connection with a trade or business during such calendar year prior to the receipt of said gross payments2 and 7#b7 in connection with a casual or isolated sale4 7d7 ,de ,minimis ,sale of ,financial ,intermediation ,services ,up to #aj1jjj per calendar year of gross payments received by a person from the sale of financial intermediation services 7as determined in accordance with section #hja7 shall be exempt from the tax imposed by section #aja4 ,the exemption provided by this subsection is in addition to other exemptions afforded by this chapter4 ,the exemption provided by this subsection shall not be available to large sellers 7as defined in section #eja7;e77#c774 7e7 ,proxy ,buying ,taxable ,if a registered person provides taxable property or services to a person either as a gift1 prize1 reward1 or as remuneration for employment1 and such taxable property or services were not previously subject to tax pursuant to section #aja1 then the provision of such taxable property or services by the registered person shall be deemed the conversion of such taxable property or services to personal use subject to tax pursuant to section #ajc7;c7 at the tax inclusive fair market value of such taxable property or services4 7f7 ,substance ,over ,form ,the substance of a transaction will prevail over its form if the transaction has no bona fide economic purpose and is designed to evade tax imposed by this subtitle4 7g7 ,certain ,employee ,discounts ,taxable 7#a7 ,employee discount ,for purposes of this subsection1 the term employee discount means an employer's offer of taxable property or services for sale to its employees or their families 7within the meaning of section #cjb7;b77 for less than the offer of such taxable property or services to the general public4 7#b7 ,employee discount amount ,for purposes of this subsection1 the employee discount amount is the amount by which taxable property or services are sold pursuant to an employee discount below the amount for which such taxable property or services would have been sold to the general public4 7#c7 ,taxable amount ,if the employee discount amount exceeds #bj percent of the price that the taxable property or services would have been sold to the general public1 then the sale of such taxable property or services by the employer shall be deemed the conversion of such taxable property or services to personal use and tax shall be imposed on the taxable employee discount amount4 ,the taxable employee discount amount shall be-- 7,a7 the employee discount amount1 minus 7,b7 #bj percent of the amount for which said taxable property or services would have been sold to the general public4 7h7 ,saturday1 ,sunday1 or ,legal ,holiday ,when the last day prescribed for performing any act required by this subtitle falls on a ,saturday1 ,sunday1 or legal holiday 7in the jurisdiction where the return is to be filed71 the performance of such act shall be considered timely if it is performed on the next day which is not a ,saturday1 ,sunday1 or legal holiday 7in the jurisdiction where the return is to be filed74 #ijb4 ,transition matters 7a7 ,inventory 7#a7 ,qualified inventory ,inventory held by a trade or business on the close of business on ,december #ca1 #bjad1 shall be qualified inventory if it is sold-- 7,a7 before ,december #ca1 #bjae2 7,b7 by a registered person2 and 7,c7 subject to the tax imposed by section #aja4 7#b7 ,costs ,for purposes of this section1 qualified inventory shall have the cost that it had for ,federal income tax purposes for the trade or business as of ,december #ca1 #bjad 7including any amounts capitalized by reason of section #bfc;,a of the ,internal ,revenue ,code of #aihf as in effect on ,december #ca1 #bjad74 7#c7 ,transitional inventory credit ,the trade or business which held the qualified inventory on the close of business on ,december #ca1 #bjad1 shall be entitled to a transitional inventory credit equal to the cost of the qualified inventory 7determined in accordance with paragraph 7#b77 times the rate of tax imposed by section #aja4 7#d7 ,timing of credit ,the credit provided under paragraph 7#c7 shall be allowed with respect to the month when the inventory is sold subject to the tax imposed by this subtitle4 ,said credit shall be reported as an intermediate and export sales credit and the person claiming said credit shall attach supporting schedules in the form that the ,secretary may prescribe4 7b7 ,work-in-,process ,for purposes of this section1 inventory shall include work-in-process4 7c7 ,qualified ,inventory ,held by ,businesses ,not ,selling ,said ,qualified ,inventory at ,retail 7#a7 ,in general ,qualified inventory held by businesses that sells said qualified inventory not subject to tax pursuant to section #ajb7;a7 shall be eligible for the transitional inventory credit only if that business 7or a business that has successor rights pursuant to paragraph 7#b77 receives certification in a form satisfactory to the ,secretary that the qualified inventory was subsequently sold subject to the tax imposed by this subtitle4 7#b7 ,transitional inventory credit right may be sold ,the business entitled to the transitional inventory credit may sell the right to receive said transitional inventory credit to the purchaser of the qualified inventory that gave rise to the credit entitlement4 ,any purchaser of such qualified inventory 7or property or services into which the qualified inventory has been incorporated7 may sell the right to said transitional inventory credit to a subsequent purchaser of said qualified inventory 7or property or services into which the qualified inventory has been incorporated74 #ijc4 ,wages to be reported to ,social ,security ,administration 7a7 ,in ,general ,employers shall submit such information to the ,social ,security ,administration as is required by the ,social ,security ,administration to calculate ,social ,security benefits under title ,,ii of the ,social ,security ,act1 including wages paid1 in a form prescribed by the ,secretary4 ,a copy of the employer submission to the ,social ,security ,administration relating to each employee shall be provided to each employee by the employer4 7b7 ,wages ,for purposes of this section1 the term wages means all cash remuneration for employment 7including tips to an employee by third parties provided that the employer or employee maintains records documenting such tips7 including self-employment income2 except that such term shall not include-- 7#a7 any insurance benefits received 7including death benefits72 7#b7 pension or annuity benefits received2 7#c7 tips received by an employee over #e1jjj per year2 and 7#d7 benefits received under a government entitlement program 7including ,social ,security benefits and unemployment compensation benefits74 7c7 ,self-,employment ,income ,for purposes of subsection 7b71 the term self-employment income means gross payments received for taxable property or services minus the sum of-- 7#a7 gross payments made for taxable property or services 7without regard to whether tax was paid pursuant to section #aja on such taxable property or services71 and 7#b7 wages paid by the self-employed person to employees of the self-employed person4 #ijd4 ,trust ,fund revenue 7a7 ,secretary ,to ,make ,allocation of ,sales ,tax ,revenue ,the ,secretary shall allocate the revenue received by virtue of the tax imposed by section #aja in accordance with this section4 ,the revenue shall be allocated among-- 7#a7 the general revenue1 7#b7 the old-age and survivors insurance trust fund1 7#c7 the disability insurance trust fund1 7#d7 the hospital insurance trust fund1 and 7#e7 the ,federal supplementary medical insurance trust fund4 7b7 ,general ,rule 7#a7 ,general revenue ,the proportion of total revenue allocated to the general revenue shall be the same proportion as the rate in section #aja7;b77#d7 bears to the combined ,federal tax rate percentage 7as defined in section #aja7;b77#c774 7#b7 ,the amount of revenue allocated to the old-age and survivors insurance and disability insurance trust funds shall be the same proportion as the old-age1 survivors and disability insurance rate 7as defined in subsection 7d77 bears to the combined ,federal tax rate percentage 7as defined in section #aja7;b77#c774 7#c7 ,the amount of revenue allocated to the hospital insurance and ,federal supplementary medical insurance trust funds shall be the same proportion as the hospital insurance rate 7as defined in subsection 7e77 bears to the combined ,federal tax rate percentage 7as defined in section #aja7;b77#c774 7c7 ,calendar ,year #bjae ,notwithstanding subsection 7b71 the revenue allocation pursuant to subsection 7a7 for calendar year #bjae shall be as follows3 7#a7 #fd4hc percent of total revenue to general revenue1 7#b7 #bg4dc percent of total revenue to the old-age and survivors insurance and disability insurance trust funds1 and 7#c7 #g4gd percent of total revenue to the hospital insurance and ,federal supplementary medical insurance trust funds4 7d7 ,old-,age1 ,survivors and ,disability ,insurance ,rate ,the old-age1 survivors and disability insurance rate shall be determined by the ,social ,security ,administration4 ,the old-age1 survivors and disability insurance rate shall be that sales tax rate which is necessary to raise the same amount of revenue that would have been raised by imposing a #ab4d percent tax on the ,social ,security wage base 7including self-employment income7 as determined in accordance with chapter #ba of the ,internal ,revenue ,code most recently in effect prior to the enactment of this ,act4 ,the rate shall be determined using actuarially sound methodology and announced at least #f months prior to the beginning of the ,calendar year for which it applies4 7e7 ,hospital ,insurance ,rate ,the hospital insurance rate shall be determined by the ,social ,security ,administration4 ,the hospital insurance rate shall be that sales tax rate which is necessary to raise the same amount of revenue that would have been raised by imposing a #b4i percent tax on the ,medicare wage base 7including self-employment income7 as determined in accordance with chapter #ba of the ,internal ,revenue ,code most recently in effect prior to the enactment of this ,act4 ,the rate shall be determined using actuarially sound methodology and announced at least #f months prior to the beginning of the calendar year for which it applies4 7f7 ,assistance ,the ,secretary shall provide such technical assistance as the ,social ,security ,administration shall require to determine the old-age1 survivors and disability insurance rate and the hospital insurance rate4 7g7 ,further ,allocations 7#a7 ,old-age1 survivors and disability insurance ,the ,secretary shall allocate revenue received because of the old-age1 survivors and disability insurance rate to the old-age and survivors insurance trust fund and the disability insurance trust fund in accordance with law or1 in the absence of other statutory provision1 in the same proportion that the old-age and survivors insurance trust fund receipts bore to the sum of the old-age and survivors insurance trust fund receipts and the disability insurance trust fund receipts in calendar year #bjad 7taking into account only receipts pursuant to chapter #ba of the ,internal ,revenue ,code74 7#b7 ,hospital insurance ,the ,secretary shall allocate revenue received because of the hospital insurance rate to the hospital insurance trust fund and the ,federal supplementary medical insurance trust fund in accordance with law or1 in the absence of other statutory provision1 in the same proportion that hospital insurance trust fund receipts bore to the sum of the hospital insurance trust fund receipts and ,federal supplementary medical insurance trust fund receipts in calendar year #bjad 7taking into account only receipts pursuant to chapter #ba of the ,internal ,revenue ,code74 #ije4 ,withholding of tax on nonresident aliens and foreign corporations 7a7 ,in ,general ,all persons1 in whatever capacity acting 7including lessees or mortgagors or real or personal property1 fiduciaries1 employers1 and all officers and employees of the ,united ,states7 having control1 receipt1 custody1 disposal1 or payment of any income to the extent such income constitutes gross income from sources within the ,united ,states of any nonresident alien individual1 foreign partnership1 or foreign corporation shall deduct and withhold from that income a tax equal to #bc percent thereof4 7b7 ,exception ,no tax shall be required to be deducted from interest on portfolio debt investments4 7c7 ,treaty ,countries ,in the case of payments to nonresident alien individuals1 foreign partnerships1 or foreign corporations that have a residence in 7or the nationality of a country7 that has entered into a tax treaty with the ,united ,states1 then the rate of withholding tax prescribed by the treaty shall govern4 4 #bjb4 ,conforming and technical amendments 7a7 ,repeals ,the following provisions of the ,internal ,revenue ,code of #aihf are repealed3 7#a7 ,subchapter ,a of chapter #fa of subtitle ,d 7as redesignated by section #ajd7 7relating to information and returns74 7#b7 ,sections #fajc through #faaf of subchapter ,b of chapter #fa of subtitle ,d 7as so redesignated74 7#c7 ,section #faeg 7relating to unemployment taxes74 7#d7 ,section #fafc 7relating to estate taxes74 7#e7 ,section #fafd 7relating to corporate taxes74 7#f7 ,section #faff 7relating to estate taxes74 7#g7 ,section #fafg 7relating to foreign expropriation losses74 7#h7 ,sections #fbja1 #fbje1 and #fbjg 7relating to assessments74 7#i7 ,subchapter ,c of chapter #fc of subtitle ,d 7as so redesignated7 7relating to tax treatment of partnership items74 7#aj7 ,section #fcje 7relating to collections of certain liabilities74 7#aa7 ,sections #fcad1 #fcae1 #fcaf1 and #fcag 7relating to payments of repealed taxes74 7#ab7 ,sections #fcbd1 #fcbd;,a1 and #fcbd;,b 7relating to liens for estate and gift taxes74 7#ac7 ,section #fcdd 7relating to cross references74 7#ad7 ,section #fdaa 7relating to carrybacks74 7#ae7 ,section #fdac 7relating to employment taxes74 7#af7 ,section #fdad 7relating to withheld income taxes74 7#ag7 ,section #fdbb 7relating to cross references74 7#ah7 ,section #fdbe 7relating to overpayment of corporate estimated taxes74 7#ai7 ,section #fejd 7relating to cross references74 7#bj7 ,section #ffeb 7relating to failure to file certain information returns74 7#ba7 ,sections #ffed and #ffee 7relating to failure to payment estimated income tax74 7#bb7 ,section #fffb 7relating to penalties74 7#bc7 ,sections #ffgg through #fgaa 7relating to income tax related penalties74 7#bd7 ,part ,,ii of subchapter ,b of chapter #fh 7relating to certain information returns74 7#be7 ,part ,i of subchapter ,a of chapter #gj 7relating to termination of taxable year74 7#bf7 ,section #fhfd 7relating to certain carrybacks74 7#bg7 ,section #gajc 7relating to cross references74 7#bh7 ,section #gbjd 7relating to withholding statements74 7#bi7 ,section #gbaa 7relating certain statements74 7#cj7 ,section #gbca 7relating to failure to obtain certain licenses74 7#ca7 ,section #gbgj 7relating to insurance policies74 7#cb7 ,section #gdjd 7relating to estate taxes74 7#cc7 ,section #gdjd 7relating to income tax preparers74 7#cd7 ,section #gdjh 7relating to income tax shelters74 7#ce7 ,section #gdji 7relating to #eja7;c77#c7 organizations74 7#cf7 ,section #gdbg 7relating to income tax preparers74 7#cg7 ,section #gdbh 7relating to #eja7;c77#c7 organizations74 7#ch7 ,section #gdgf 7relating to declaratory judgments relating to retirement plans74 7#ci7 ,section #gdgh 7relating to declaratory judgments relating to certain tax-exempt obligations74 7#dj7 ,section #gejh 7relating to postponing time for certain actions required by the income1 estate1 and gift tax74 7#da7 ,section #geji 7relating to ,postal ,service payroll taxes74 7#db7 ,section #geab 7relating to payroll taxes74 7#dc7 ,section #geag 7relating to estate and gift tax evaluation74 7#dd7 ,section #geah 7relating to ,merchant ,marine tax incentives74 7#de7 ,section #geai 7relating to taxable years74 7#df7 ,section #gebj 7relating to insurance and annuity valuation tables74 7#dg7 ,section #gebc 7relating to reporting ,federal income and outlays on ,form #ajdjs74 7#dh7 ,section #gfaa 7relating to church income tax exemptions and church unrelated business income tax inquiries74 7#di7 ,section #gfed 7relating to possessions' income taxes74 7#ej7 ,section #gfee 7relating to cross references74 7#ea7 ,section #ggja7;a77#af74 7#eb7 ,section #ggja7;a77#ai74 7#ec7 ,section #ggja7;a77#bj74 7#ed7 ,paragraphs 7#cb7 through 7#ch7 of section #ggja7;a74 7#ee7 ,paragraphs 7#da7 through 7#df7 of section #ggja7;a74 7#ef7 ,section #ggja7;b74 7#eg7 ,subsections 7e7 through 7m7 of section #ggja4 7#eh7 ,section #ggjb 7relating to life insurance contracts74 7#ei7 ,section #ggjb;,a 7relating to modified endowment contracts74 7#fj7 ,section #ggjb;,b 7relating to long-term care insurance74 7#fa7 ,section #ggjc 7relating to the determination of marital status74 7#fb7 ,section #ggjd 7relating to publicly traded partnerships74 7#fc7 ,section #ghje4 7#fd7 ,section #ghea4 7#fe7 ,section #ghgb4 7#ff7 ,section #ghgc4 7b7 ,other ,conforming and ,technical ,amendments 7#a7 ,section #faea is amended by striking subsection 7b7 and by redesignating subsection 7c7 as subsection 7b74 7#b7 ,section #fafa is amended to read as follows3 #fafa4 ,extension of time for paying tax ,the ,secretary1 except as otherwise provided in this title1 may extend the time for payment of the amount of the tax shown or required to be shown on any return1 report1 or declaration required under authority of this title for a reasonable period not to exceed #f months 7#ab months in the case of a taxpayer who is abroad74 4 7#c7 ,section #fbaa7;a7 is amended-- 7,a7 by striking income1 estate and gift taxes imposed by subtitles ,a and ,b and1 7,b7 by striking subtitle ,a or ,b1 or1 and 7,c7 by striking 1 as defined in subsection 7b77#b71 in paragraph 7#b74 7#d7 ,section #fbaa7;b7 is amended to read as follows3 7b7 ,rebate ,defined ,for purposes of subsection 7a77#b71 the term rebate means so much of an abatement1 credit1 refund1 or other payment1 as was made on the ground that the tax imposed by chapter #da1 #db1 #dc1 or #dd was less than the excess of the amount specified in subsection 7a77#a7 over the rebates previously made4 4 7#e7 ,section #fbab7;b7 is amended to read as follows3 7b7 ,address for ,notice of ,deficiency ,in the absence of notice to the ,secretary under section #fijc of the existence of a fiduciary relationship1 notice of a deficiency in respect of a tax imposed by chapter #db1 #dc1 or #dd if mailed to the taxpayer at his last known address1 shall be sufficient for purposes of such chapter and this chapter even if such taxpayer is deceased1 or is under a legal disability1 or1 in the case of a corporation has terminated its existence4 4 7#f7 ,section #fcjb7;b7 is amended by striking #ba14 7#g7 ,section #fcjb is amended by striking subsections 7g7 and 7i7 and by redesignating subsection 7h7 as subsection 7g74 7#h7 ,section #fcbe is amended by striking subsection 7c7 and by redesignating subsections 7d7 through 7h7 as subsections 7c7 through 7g71 respectively4 7#i7 ,section #fdjb7;d7 is amended by striking paragraph 7#c74 7#aj7 ,section #fdjb is amended by striking subsection 7j7 and by redesignating subsection 7k7 as subsection 7j74 7#aa7 ,section #feja7;b7 is amended-- 7,a7 by striking except tax imposed by chapter #c1 #ba1 or #bd1 in paragraph 7#a71 and 7,b7 by striking paragraph 7#b7 and by redesignation paragraphs 7#c7 and 7#d7 as paragraphs 7#b7 and 7#c71 respectively4 7#ab7 ,section #feja7;c7 is amended by striking paragraphs 7#e7 through 7#i74 7#ac7 ,section #feja7;e7 is amended by striking subsection 7c7-- and all that follows through subtitle ,d in paragraph 7#c7 and inserting subsection 7c71 in the case of a return of a tax imposed under a provision of subtitle ,b4 7#ad7 ,section #feja is amended by striking subsection 7f7 through 7k7 and subsections 7m7 and 7n7 and by redesignating subsection 7#a7 as subsection 7f74 7#ae7 ,section #fejc7;a7 is amended-- 7,a7 by striking paragraph 7#b71 7,b7 by striking ,deficiency4-- and all that follows through ,the running and inserting ,deficiency4--,the running1 and 7,c7 by striking income1 estate1 gift and4 7#af7 ,section #fejc is amended by striking subsections 7e71 7f71 7i71 and 7k7 and by redesignating subsections 7g71 7h71 and 7j7 as subsections 7e71 7f71 and 7g71 respectively4 7#ag7 ,section #feaa is amended by striking subsections 7d7 and 7g7 and by redesignating subsections 7f7 and 7h7 as subsections 7d7 and 7e71 respectively4 7#ah7 ,section #feab7;b77#a7 is amended by striking of income tax for the same taxable year1 of gift tax for the same calendar year or calendar quarter1 of estate tax in respect of the taxable estate of the same decedent or4 7#ai7 ,section #feac is amended-- 7,a7 by striking 7a7 ,early ,return or ,advance ,payment of ,tax4--1 7,b7 by striking subsections 7b7 and 7e74 7#bj7 ,chapter #fg is amended by striking subchapters ,a through ,d and inserting the following3 #ffja4 ,interest on overpayments and underpayment 7a7 ,underpayments ,if any amount of tax imposed by this title is not paid on or before the last date prescribed for payment1 interest on such amount at the ,federal short-term rate 7as defined in section #eaa7;b77 shall be paid from such last date to the date paid4 7b7 ,overpayments ,interest shall be allowed and paid upon any overpayment in respect of any internal revenue tax at the ,federal short-term rate 7as defined in section #eaa7;b77 from #fj days after the date of the overpayment until the date the overpayment is refunded4 4 7#ba7 ,section #ffea7;a77#a7 is amended by striking subchapter ,a of chapter #fa 7other than part ,,iii thereof14 7#bb7 ,section #ffef is amended by striking subsection 7c7 and by redesignating subsection 7d7 as subsection 7c74 7#bc7 ,section #fffc is amended by striking subsection 7c74 7#bd7 ,section #fffd7;c7 is amended-- 7,a7 by striking ,exception4-- and all that follows through ,no penalty and inserting ,exception4--,no penalty1 and 7,b7 by striking paragraphs 7#b7 and 7#c74 7#be7 ,chapter #gb is amended by striking all matter preceding section #gjaa4 7#bf7 ,section #gdbb is amended by striking subsections 7h7 and 7i7 and by redesignating subsections 7j7 and 7k7 as subsections 7h7 and 7i71 respectively4 7#bg7 ,section #gdea is amended to read as follows3 #gdea4 ,fee for filing petition ,the ,tax ,court is authorized to impose a fee in an amount not in excess of #fj to be fixed by the ,tax ,court for the filing of any petition for the redetermination of a deficiency4 4 7#bh7 ,section #gded is amended by striking subsection 7b7 and by redesignating subsection 7c7 as subsection 7b74 7#bi7 ,section #gdfc7;a7 is amended-- 7,a7 by striking paragraphs 7#b7 and 7#c71 7,b7 by redesignating paragraph 7#d7 as paragraph 7#b71 and 7,c7 by striking ,d in paragraph 7#b7 7as so redesignated7 and inserting ,b4 7#cj7 ,section #gdfc7;c7 is amended by striking sections #fbad7;a7 and and inserting section4 7#ca7 ,section #gdfc7;c7 is amended by striking 1 to the extent that the procedures described in subchapter ,b of chapter #fc apply4 7#cb7 ,section #gdha is amended by striking subsection 7d74 7#cc7 ,section #gfjh is amended by striking subtitle ,e each place it appears and inserting subtitle ,c4 7#cd7 ,section #gfea is amended by striking paragraph 7#e74 7#ce7 ,section #ggja7;a77#bi7 is amended by striking #aihf and inserting #bjac4 7#cf7 ,section #ghji7;c7 is amended by striking paragraphs 7#a7 and 7#d7 and by redesignating paragraphs 7#b7 and 7#c7 as paragraphs 7#a7 and 7#b71 respectively4 7#cg7 ,section #ghga7;a7 is amended by striking paragraphs 7#a7 and 7#c7 through 7#f7 and by redesignating paragraphs 7#b7 and 7#g7 as paragraphs 7#a7 and 7#b71 respectively4 7#ch7 ,section #ghga is amended by striking subsection 7c7 and by redesignating subsections 7d7 and 7e7 as subsections 7c7 and 7d71 respectively4 7#ci7 ,section #hjba is amended by striking subsection 7a7 and by redesignating subsections 7b7 through 7f7 as subsections 7a7 through 7e71 respectively4 7#dj7 ,section #hjbb7;a77#b77;,a7 is amended by striking 1 particularly the income tax4 7#da7 ,section #hjbc is amended by striking ,internal ,revenue ,service each place it appears and inserting ,department of the ,treasury4 7#db7 ,section #ieja7;b77#b7 is amended by striking subparagraph 7,c74 7#dc7 ,section #igjb7;a7 is amended by striking paragraph 7#d74 7#dd7 ,section #igje7;a7 is amended by striking paragraph 7#d7 and by redesignating paragraph 7#e7 as paragraph 7#d74 7#de7 ,section #igjf7;d77#b77;,a7 is amended by striking #fajc and inserting #fje7;e74 7#df7 ,section #igjg is amended by striking subsection 7f74 7#dg7 ,section #igab7;d7 is amended by striking paragraph 7#e7 and by redesignating paragraph 7#f7 as paragraph 7#e74 7#dh7 ,section #ihjc7;a7 is amended by striking 7as defined in section #dad7;f774 ,,iii ,other ,matters #cja4 ,phase-out of administration of repealed ,federal taxes 7a7 ,appropriations ,appropriations for any expenses of the ,internal ,revenue ,service including processing tax returns for years prior to the repeal of the taxes repealed by title ,i of this ,act1 revenue accounting1 management1 transfer of payroll and wage data to the ,social ,security ,administration for years after fiscal year #bjag shall not be authorized4 7b7 ,records ,federal records related to the administration of taxes repealed by title ,i of this ,act shall be destroyed by the end of fiscal year #bjag1 except that any records necessary to calculate ,social ,security benefits shall be retained by the ,social ,security ,administration and any records necessary to support ongoing litigation with respect to taxes owed or refunds due shall be retained until final disposition of such litigation4 7c7 ,conforming ,amendments ,section #ghjb is amended-- 7#a7 by striking subsections 7a7 and 7b7 and by redesignating subsections 7c7 and 7d7 as subsections 7a7 and 7b71 7#b7 by striking ,internal ,revenue ,service each place it appears and inserting ,department of the ,treasury1 and 7#c7 by striking ,commissioner or ,commissioner of ,internal ,revenue each place they appear and inserting ,secretary4 7d7 ,effective ,date ,the amendments made by subsection 7c7 shall take effect on ,january #a1 #bjag4 #cjb4 ,administration of other ,federal taxes 7a7 ,in ,general ,section #ghja 7relating to the authority of the ,department of the ,treasury7 is amended by adding at the end the following3 7d7 ,excise ,tax ,bureau ,there shall be in the ,department of the ,treasury an ,excise ,tax ,bureau to administer those excise taxes not administered by the ,bureau of ,alcohol1 ,tobacco and ,firearms4 7e7 ,sales ,tax ,bureau ,there shall be in the ,department of the ,treasury a ,sales ,tax ,bureau to administer the national sales tax in those ,states where it is required pursuant to section #djd1 and to discharge other ,federal duties and powers relating to the national sales tax 7including those required by sections #djb1 #djc1 and #dje74 ,the ,office of ,revenue ,allocation shall be within the ,sales ,tax ,bureau4 4 7b7 ,assistant ,general ,counsels ,section #ghja7;b77#b7 is amended to read as follows3 7#b7 ,assistant general counsels ,the ,secretary of the ,treasury may appoint1 without regard to the provisions of the civil service laws1 and fix the duties of not more than #e assistant general counsels4 4 #cjc4 ,sales tax inclusive ,social ,security benefits indexation ,subparagraph 7,d7 of section #bae7;i77#a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;i77#a77 7relating to cost-of-living increases in ,social ,security benefits7 is amended to read as follows3 7,d7 7i7 the term ,,cpi increase percentage1 with respect to a base quarter or cost-of-living quarter in any calendar year1 means the percentage 7rounded to the nearest one-tenth of #a percent7 by which the ,consumer ,price ,index for that quarter 7as prepared by the ,department of ,labor7 exceeds such index for the most recent prior calendar quarter which was a base quarter under subparagraph 7,a77ii7 or1 if later1 the most recent cost-of-living computation quarter under subparagraph 7,b72 7ii7 if the ,consumer ,price ,index 7as so prepared7 does not include the national sales tax paid1 then the term ,,cpi increase percentage1 with respect to a base quarter or cost-of-living quarter in any calendar year1 means the percentage 7rounded to the nearest one-tenth of #a percent7 by which the product of-- 7,i7 the ,consumer ,price ,index for that quarter 7as so prepared71 and 7,,ii7 the national sales tax factor1 exceeds such index for the most recent prior calendar quarter which was a base quarter under subparagraph 7,a77ii7 or1 if later1 the most recent cost of living computation quarter under subparagraph 7,b72 and 7iii7 the national sales tax factor is equal to one plus the quotient that is-- 7,i7 the sales tax rate imposed by section #aja of the ,internal ,revenue ,code of #bjac1 divided by 7,,ii7 the quantity that is one minus such sales tax rate4 4 ,,iv ,sunset of ,sales ,tax if ,sixteenth ,amendment not ,repealed #dja4 ,elimination of sales tax if ,sixteenth ,amendment not repealed ,if the ,sixteenth ,amendment to the ,constitution of the ,united ,states is not repealed before the end of the #g-year period beginning on the date of the enactment of this ,act1 then all provisions of1 and amendments made by1 this ,act shall not apply to any use or consumption in any year beginning after ,december #ca of the calendar year in which or with which such period ends1 except that the ,sales ,tax ,bureau of the ,department of the ,treasury shall not be terminated until #f months after such ,december #ca4