,i #aacth ,,congress #ast ,session ,h4 ,r4 #fhd ,,in ,,the ,,house ,,of ,,representatives ,february #ad1 #bjac ,mr4 ,womack 7for himself1 ,ms4 ,speier1 ,mr4 ,conyers1 ,mr4 ,welch1 ,mrs4 ,noem1 ,mr4 ,griffin of ,arkansas1 ,mr4 ,poe of ,texas1 ,mr4 ,cohen1 ,ms4 ,chu1 ,mr4 ,amodei1 ,mr4 ,deutch1 ,mr4 ,diaz-,balart1 ,mr4 ,johnson of ,georgia1 ,mr4 ,ross1 ,ms4 ,del,bene1 ,mr4 ,schock1 ,ms4 ,linda ,t4 ,snchez of ,california1 ,mrs4 ,ellmers1 ,mr4 ,larson of ,connecticut1 ,mr4 ,barletta1 ,mr4 ,langevin1 ,mr4 ,crenshaw1 ,mr4 ,crawford1 ,mr4 ,dent1 ,ms4 ,pingree of ,maine1 ,mr4 ,young of ,indiana1 ,ms4 ,schwartz1 ,mr4 ,grimm1 ,mr4 ,ellison1 ,mr4 ,gibson1 ,ms4 ,tsongas1 ,mr4 ,conaway1 ,mr4 ,stivers1 ,ms4 ,norton1 ,mr4 ,capuano1 ,ms4 ,mc,collum1 and ,mr4 ,austin ,scott of ,georgia7 introduced the following bill2 which was referred to the ,committee on the ,judiciary ,a ,,bill ,to restore ,states' sovereign rights to enforce ,state and local sales and use tax laws1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,marketplace ,fairness ,act of #bjac4 #b4 ,authorization to require collection of sales and use taxes 7a7 ,streamlined sales and use tax agreement ,each ,member ,state under the ,streamlined ,sales and ,use ,tax ,agreement is authorized to require all sellers not qualifying for the small seller exception described in subsection 7c7 to collect and remit sales and use taxes with respect to remote sales sourced to that ,member ,state pursuant to the provisions of the ,streamlined ,sales and ,use ,tax ,agreement1 but only if the ,streamlined ,sales and ,use ,tax ,agreement includes the minimum simplification requirements in subsection 7b77#b74 ,a ,state may exercise authority under this ,act beginning #ij days after the ,state publishes notice of the ,state's intent to exercise the authority under this ,act1 but no earlier than the first day of the calendar quarter that is at least #ij days after the date of the enactment of this ,act4 7b7 ,alternative ,a ,state that is not a ,member ,state under the ,streamlined ,sales and ,use ,tax ,agreement is authorized notwithstanding any other provision of law to require all sellers not qualifying for the small seller exception described in subsection 7c7 to collect and remit sales and use taxes with respect to remote sales sourced to that ,state1 but only if the ,state adopts and implements the minimum simplification requirements in paragraph 7#b74 ,such authority shall commence beginning no earlier than the first day of the calendar quarter that is at least #f months after the date that the ,state-- 7#a7 enacts legislation to exercise the authority granted by this ,act-- 7,a7 specifying the tax or taxes to which such authority and the minimum simplification requirements in paragraph 7#b7 shall apply2 7,b7 specifying the products and services otherwise subject to the tax or taxes identified by the ,state under subparagraph 7,a7 to which the authority of this ,act shall not apply2 and 7#b7 implements each of the following minimum simplification requirements3 7,a7 ,provide-- 7i7 a single entity within the ,state responsible for all ,state and local sales and use tax administration1 return processing1 and audits for remote sales sourced to the ,state2 7ii7 a single audit of a remote seller for all ,state and local taxing jurisdictions within that ,state2 and 7iii7 a single sales and use tax return to be used by remote sellers to be filed with the single entity responsible for tax administration4 ,a ,state may not require a remote seller to file sales and use tax returns any more frequently than returns are required for nonremote sellers4 ,no local jurisdiction may require a remote seller to submit a sales and use tax return or to collect sales and use taxes other than as provided by this paragraph4 7,b7 ,provide a uniform sales and use tax base among the ,state and the local taxing jurisdictions within the ,state pursuant to paragraph 7#a74 7,c7 ,source all interstate sales in compliance with the sourcing definition set forth in section #d7g74 7,d7 ,provide-- 7i7 information indicating the taxability of products and services along with any product and service exemptions from sales and use tax in the ,state and a rates and boundary database2 7ii7 software free of charge for remote sellers that calculates sales and use taxes due on each transaction at the time the transaction is completed1 that files sales and use tax returns1 and that is updated to reflect rate changes as described in subparagraph 7,h72 and 7iii7 certification procedures for persons to be approved as certified software providers4 ,for purposes of clause 7iii71 the software provided by certified software providers shall be capable of calculating and filing sales and use taxes in all ,states qualified under this ,act4 7,e7 ,relieve remote sellers from liability to the ,state or locality for the incorrect collection1 remittance1 or noncollection of sales and use taxes1 including any penalties or interest1 if the liability is the result of an error or omission made by a certified software provider4 7,f7 ,relieve certified software providers from liability to the ,state or locality for the incorrect collection1 remittance1 or noncollection of sales and use taxes1 including any penalties or interest1 if the liability is the result of misleading or inaccurate information provided by a remote seller4 7,g7 ,relieve remote sellers and certified software providers from liability to the ,state or locality for incorrect collection1 remittance1 or noncollection of sales and use taxes1 including any penalties or interest1 if the liability is the result of incorrect information or software provided by the ,state4 7,h7 ,provide remote sellers and certified software providers with #ij days notice of a rate change by the ,state or any locality in the ,state and update the information described in subparagraph 7,d77i7 accordingly and relieve any remote seller or certified software provider from liability for collecting sales and use taxes at the immediately preceding effective rate during the #ij-;day notice period if the required notice is not provided4 7c7 ,small seller exception ,a ,state is authorized to require a remote seller to collect sales and use taxes under this ,act only if the remote seller has gross annual receipts in total remote sales in the ,united ,states in the preceding calendar year exceeding #a1jjj1jjj4 ,for purposes of determining whether the threshold in this subsection is met-- 7#a7 the sales of all persons related within the meaning of subsections 7b7 and 7c7 of section #bfg or section #gjg7;b77#a7 of the ,internal ,revenue ,code of #aihf shall be aggregated2 or 7#b7 persons with #a or more ownership relationships shall also be aggregated if such relationships were designed with a principal purpose of avoiding the application of these rules4 #c4 ,limitations 7a7 ,in general ,nothing in this ,act shall be construed as-- 7#a7 subjecting a seller or any other person to franchise1 income1 occupation1 or any other type of taxes1 other than sales and use taxes2 7#b7 affecting the application of such taxes2 or 7#c7 enlarging or reducing ,state authority to impose such taxes4 7b7 ,no effect on nexus ,this ,act shall not be construed to create any nexus between a person and a ,state or locality4 7c7 ,licensing and regulatory requirements ,nothing in this ,act shall be construed as permitting or prohibiting a ,state from-- 7#a7 licensing or regulating any person2 7#b7 requiring any person to qualify to transact intrastate business2 7#c7 subjecting any person to ,state or local taxes not related to the sale of goods or services2 or 7#d7 exercising authority over matters of interstate commerce4 7d7 ,no new taxes ,nothing in this ,act shall be construed as encouraging a ,state to impose sales and use taxes on any goods or services not subject to taxation prior to the date of the enactment of this ,act4 7e7 ,no effect on intrastate sales ,the provisions of this ,act shall apply only to remote sales and shall not apply to intrastate sales or intrastate sourcing rules4 ,states granted authority under section #b7;a7 shall comply with all intrastate provisions of the ,streamlined ,sales and ,use ,tax ,agreement4 7f7 ,no effect on ,mobile ,telecommunications ,sourcing ,act ,nothing in this ,act shall be construed as altering in any manner or preempting the ,mobile ,telecommunications ,sourcing ,act 7#d ,u4,s4,c4 #aaf-abf74 #d4 ,definitions and special rules ,in this ,act3 7#a7 ,certified software provider ,the term certified software provider means a person that-- 7,a7 provides software to remote sellers to facilitate ,state and local sales and use tax compliance pursuant to section #b7;b77#b77;,d72 and 7,b7 is certified by a ,state to so provide such software4 7#b7 ,locality2 local ,the terms locality and local refer to any political subdivision of a ,state4 7#c7 ,member ,state ,the term ,member ,state-- 7,a7 means a ,member ,state as that term is used under the ,streamlined ,sales and ,use ,tax ,agreement as in effect on the date of the enactment of this ,act2 and 7,b7 does not include any associate member under the ,streamlined ,sales and ,use ,tax ,agreement4 7#d7 ,person ,the term person means an individual1 trust1 estate1 fiduciary1 partnership1 corporation1 limited liability company1 or other legal entity1 and a ,state or local government4 7#e7 ,remote sale ,the term remote sale means a sale into a ,state in which the seller would not legally be required to pay1 collect1 or remit ,state or local sales and use taxes unless provided by this ,act4 7#f7 ,remote seller ,the term remote seller means a person that makes remote sales in the ,state4 7#g7 ,sourced ,for purposes of a ,state granted authority under section #b7;b71 the location to which a remote sale is sourced refers to the location where the item sold is received by the purchaser1 based on the location indicated by instructions for delivery that the purchaser furnishes to the seller4 ,when no delivery location is specified1 the remote sale is sourced to the customer's address that is either known to the seller or1 if not known1 obtained by the seller during the consummation of the transaction1 including the address of the customer's payment instrument if no other address is available4 ,if an address is unknown and a billing address cannot be obtained1 the remote sale is sourced to the address of the seller from which the remote sale was made4 ,a ,state granted authority under section #b7;a7 shall comply with the sourcing provisions of the ,streamlined ,sales and ,use ,tax ,agreement4 7#h7 ,state ,the term ,state means each of the several ,states1 the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 ,guam1 ,american ,samoa1 the ,united ,states ,virgin ,islands1 the ,commonwealth of the ,northern ,mariana ,islands1 and any other territory or possession of the ,united ,states4 7#i7 ,streamlined sales and use tax agreement ,the term ,streamlined ,sales and ,use ,tax ,agreement means the multi-,state agreement with that title adopted on ,november #ab1 #bjjb1 as in effect on the date of the enactment of this ,act and as further amended from time to time4 #e4 ,severability ,if any provision of this ,act or the application of such provision to any person or circumstance is held to be unconstitutional1 the remainder of this ,act and the application of the provisions of such to any person or circumstance shall not be affected thereby4 #f4 ,preemption ,except as otherwise provided in this ,act1 this ,act shall not be construed to preempt or limit any power exercised or to be exercised by a ,state or local jurisdiction under the law of such ,state or local jurisdiction or under any other ,federal law4