,i  #aaeth ,,congress  #ast ,session    
,h4 ,r4 #baic  ,,in ,,the ,,house ,,of  
,,representatives  ,april #bg1          
#bjag,mrs4 ,noem 7for herself1 ,mr4     
,womack1 ,mr4 ,chaffetz1 ,mr4 ,stivers1 
,mr4 ,barletta1 ,mr4 ,conyers1 ,ms4     
,speier1 ,ms4 ,del,bene1 ,mr4 ,welch1   
and ,mr4 ,cicilline7 introduced the     
following bill2 which was referred to   
the ,committee on the ,judiciary  ,a    
,,bill  ,to grant ,states authority to  
enforce ,state and local sales and use  
tax laws on remote transactions1 and for
 other purposes4  #a4 ,short title ,this
 ,act may be cited as the ,remote       
,transactions ,parity ,act of #bjag4    
#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 notwithstanding
 any other provision of law to require  
all remote sellers not qualifying for   
the small remote 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   
any changes to the ,streamlined ,sales  
and ,use ,tax ,agreement made after the 
date of enactment of this ,act1 are not 
in conflict with the minimum            
simplification requirements in          
subsection 7b77#b74 ,a ,state may       
exercise authority under this ,act on   
the #ast day of a month beginning #ahj  
days after the ,state publishes notice  
of the ,state's intent to exercise the  
authority under this ,act1 but no       
earlier than the date provided in       
section #c7;h74  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 remote sellers not   
qualifying for the small remote 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 only begin 
on the #ast day of a month and commence 
beginning no earlier than the first day 
of the calendar quarter that is at least
 #ahj days 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 and  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 except as 
provided in clause 7iii7 and section    
#c7;,i71 a single audit of a remote     
seller for all ,state and local taxing  
jurisdictions within that ,state2  7iii7
 unless there is reasonable suspicion   
that the remote seller has engaged in   
intentional misrepresentation1 if a     
remote seller utilizes a certified      
software provider as described in       
section #d7a71 the ,state requesting the
 audit shall1 at the option of the      
remote seller1 first contact the        
certified software provider who shall   
have the responsibility to provide the  
,state with complete records of         
transactions processed for the remote   
seller and who will represent the remote
 seller during the ,state's audit and be
 responsible for the audit findings     
except as provided in subparagraphs     
7,f71 7,g71 and 7,h7 7,nothing herein   

shall prevent the remote seller from    
contesting audit findings1 and the      
remote seller utilizing a certified     
software provider shall not be contacted
 by a ,state requesting an audit unless 
the remote seller either was reasonably 
suspected of intentional                
misrepresentation or has declined to    
have a certified software provider      
represent it during the audit472 and    
7iv7 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 remote sales in compliance  
with the sourcing definition set forth  
in section #d7aj74  7,d7 ,provide--  7i7
 a publicly available taxability and    
exemption table which can be downloaded 
in an easily usable format and accessed 
electronically which indicates the      
taxability of products and services     
along with any product and service      
exemptions from sales and use tax in the
 ,state1 and which is updated each      
calendar quarter for any changes to the 
products and services specified under   
paragraph 7#a77;,b72  7ii7 a rates and  
boundary database in an easily          
downloadable format and which is updated
 each calendar quarter for rate and     
boundary changes2  7iii7 free access to 
all of the national certified software  
providers that have been approved       
pursuant to section 7#c77;g7 and that   
can determine the proper sales and use  
tax in every ,state qualified under this
 ,act and that will--  7,i7 determine   

the correct sales and use tax rate based
 on sourcing rules in section #d7aj7 and
 calculate the sales and use tax due at 
the time of sale2  7,,ii7 generate and  
file sales and use tax returns          
electronically2  7,,iii7 remit the sales
 and use taxes to ,states               
electronically2  7,,iv7 report all      
transactions processed to the remote    
seller2  7,v7 respond to sales and use  
tax audit requests by ,states for remote
 sellers2 and  7,,vi7 provide safeguards
 and protection of consumer privacy in  
any data stored by the certified        
software provider2 and  7iv7            
certification procedures for persons to 
be approved as certified software       
providers4  ,such free access shall     
include installation1 setup and         
maintenance of the automated system into
 the remote seller's system4 ,for       
purposes of clause 7iii71 the software  
provided by national 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 provider unless the 
error or omission is the result of      
misleading1 incomplete1 or inaccurate   
information provided to the certified   
software provider by the remote seller4 
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 misleading1 incomplete1
 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 or certified by the   
,state4  7,h7 ,provide remote sellers   
and certified software providers with   
#ij-;days notice of rate and boundary   
changes and any changes to the products 
and services specified under paragraph  
7#a77;,b7 by the ,state or any locality 
in the ,state and update the information
 described in clauses 7i7 and 7ii7 of   
subparagraph 7,d7 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  7,i7 
,provide the following1 but only if the 
law of a ,state allows a person1 other  
than the ,state itself1 to pursue a     
cause of action against a seller for    
under-collected or over-collected sales 

or use tax3  7i7 ,that a person1 other  
than the ,state itself1 may not pursue  
any cause of action against a remote    
seller for under-collected or           
over-collected sales or use tax unless  
the remote seller has received written  
notice from the person that the remote  
seller has over-collected or            
under-collected sales and use tax1 the  
notice contains information sufficient  
to determine the validity of the refund 
request or asserted under-collection1   
and the remote seller has not1 within   
#fj days of receipt of the notice1      
refunded affected customers the amount  
of the over-collected sales and use tax 
or paid the under-collected amount of   
sales and use tax to the ,state4 ,no    
penalties may be imposed during the     
#fj-;day period in excess of the        
penalties that would otherwise be       
imposed by the ,state had no notice been
 provided pursuant to this paragraph4   
7ii7 ,that a notice of over-collection  
from a person is only valid if received 

within the applicable statute of        
limitations for filing refunds for sales
 and use tax1 and that a notice of      
under-collection from a person is only  
valid if received within the applicable 
statute of limitations for assessing    
underpayments of sales and use tax4     
7iii7 ,that a person1 other than the    
,state itself1 may not pursue any cause 
of action against a certified software  
provider for its activities conducted   
for a remote seller described in clause 
7i7 unless the remote seller provides a 
copy of the written notice to the       
certified software provider within a    
reasonable time for the certified       
software provider to be able to assist  
the remote seller in making the payments
 within the timeframe described in      
clause 7i74  7iv7 ,that a person1 other 
than the ,state itself1 may pursue a    
cause of action against a remote seller 
for under-collected or over-collected   
sales or use tax if the remote seller   
knew or should have known that it had   

under-collected or over-collected and   
did not1 within #fj days of its         
determination1 refund affected customers
 the amount of the over-collected sales 
and use tax or pay the amount of        
under-collected sales and use tax to the
 ,state4  7,j7 ,accepts registrations at
 no charge to certified software        
provider or remote seller from a central
 online registration system that allows 
a remote seller to register to collect  
and remit sales and use taxes in all    
,states that have exercised authority   
under this ,act4  7,k7 ,relieve remote  
sellers and certified software          
providers1 except in cases of fraud1    
from liability for tax1 penalty1 and    
interest on transactions if the         
purchaser provides to the remote seller 
the necessary documentation to claim an 
exemption within #ij days of the sale4  
7c7 ,small ,remote ,seller ,phase-,in   
7#a7 ,collection authorized ,a ,state is
 authorized to require the collection of
 sales and use taxes by a remote seller 

under this ,act only as follows3  7,a7  
,for the #ast calendar year following   
the effective date1 if the remote       
seller-- 7i7 has gross annual receipts  
exceeding #aj1jjj1jjj in the calendar   
year preceding the date of enactment2 or
  7ii7 utilizes an electronic           
marketplace for the purpose of making   
products or services available for sale 
to the public4  7,b7 ,for the #b;d      
calendar year following the effective   
date1 if the remote seller-- 7i7 has    
gross annual receipts exceeding         
#e1jjj1jjj in the immediately preceding 
calendar year2 or  7ii7 utilizes an     
electronic marketplace for the purpose  
of making products or services available
 for sale to the public4  7,c7 ,for the 
#c;d calendar year following the        
effective date1 if the remote seller--  
7i7 has gross annual receipts exceeding 
#a1jjj1jjj in the immediately preceding 
calendar year2 or  7ii7 utilizes an     
electronic marketplace for the purpose  
of making products or services available

 for sale to the public4  7#b7          
,determination of threshold ,for        
purposes of determining whether the     
threshold in this paragraph 7#a7 is     
met-- 7,a7 the sales of all persons     
related within the meaning of           
subsections 7b7 and 7c7 of section #bfg1
 or section #gjg7;b77#a71 of the        
,internal ,revenue ,code of #aihf shall 
be aggregated2 or  7,b7 persons with one
 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 remote 
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 a sales and use tax 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 
7g7 ,certification requirements ,a      
,state may not exercise authority under 
this ,act unless the following          
requirements are satisfied3 7#a7 ,the   
,state provides certification procedures
 for persons to be approved as certified
 software providers4 ,a ,state may      
delegate the certification procedures so
 long as the ,state retains final       
approval over any certification         
decisions4  7#b7 ,the ,state 7or its    
delegate7 does not deny or revoke       
certification to a software provider    
without a reasonable basis1 or          
arbitrarily or capriciously4 ,a ,state  
must complete the certification review  
of the software provider no later than  
the first day of the calendar quarter   

that is at least #ahj days after the    
software provider requests certification
 by that ,state4  7#c7 ,the ,state has  
certified multiple national certified   
software providers1 and the             
certifications are in effect4 ,nothing  
in this ,act shall be construed to deny 
the ability of a remote seller to deploy
 and utilize a certified software       
provider of the seller's choice4  7#d7  
,the ,state provides compensation for   
certified software providers4 ,a ,state 
may delegate the authority to negotiate 
the compensation so long as the ,state  
retains final approval of the           
compensation rate7s74  7h7 ,limitation  
on initial collection of sales and use  
taxes from remote sales ,a ,state may   
not begin to exercise the authority     
under this title-- 7#a7 before the date 
that is #a year after the date of the   
enactment of this ,act2 and  7#b7 during
 the period beginning ,october #a and   
ending on ,december #ca of the first    
calendar year beginning after the date  

of the enactment of this ,act4  7i7     
,limitation on audits of remote sellers 
,a ,state exercising authority under    
this ,act-- 7#a7 may not audit a remote 
seller that--  7,a7 has registered in   
the ,state under section                
#b7;b77#b77;,j72 and  7,b7 has gross    
annual receipts of less than #e1jjj1jjj 
in the taxable year as aggregated in    
subsection 7c7 of section #b1  unless   
there is reasonable suspicion that such 
remote seller has engaged in intentional
 misrepresentation or fraud2 and  7#b7  
may not have audits of remote sellers   
conducted by persons whose compensation 
is contingent upon audit findings4  7j7 
,limitation on ,time ,period ,to ,assess
 ,remote ,sellers and ,certified        
,software ,providers ,a ,state may not  
hold a remote seller or certified       
software provider liable for the        
incorrect collection1 remittance1 or    
noncollection of sales and use taxes1   
including any penalties or interest1 if 
the liability is for a sales or use tax 

assessed under the authority of this    
,act more than #c years after the later 
of the due date or the filing of the    
sales and use tax return applicable to  
the sales and use tax assessed4  7k7    
,remote seller compensation ,a ,state   
must provide remote sellers with        
compensation equaling no less than the  
amount1 if any1 the ,state provides to  
nonremote sellers within the ,state4    
#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 or access to software 
to remote sellers to facilitate ,state  
and local sales and use tax compliance2 
and  7,b7 is certified by a ,state or on
 a ,state's behalf to so provide such   
software4  7#b7 ,effective date ,the    
term effective date means the date that 
is #a year after the date of the        
enactment of this ,act4 ,however1 if the
 date that is #a year after the date of 
the enactment of this ,act falls during 

the period beginning ,october #a and    
ending on ,december #ca1 the effective  
date shall be ,january #a of the        
immediately following year4  7#c7       
,electronic marketplace ,the term       
electronic marketplace means a digital  
marketing platform where-- 7,a7 products
 or services are offered for sale by    
more than #a remote seller2 and  7,b7   
buyers may purchase such products or    
services through a common system of     
financial transaction processing4  7#d7 
,locality2 local ,the terms locality and
 local refer to any political           
subdivision of a ,state4  7#e7 ,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 or a member that is not a full   
member under the ,streamlined ,sales and
 ,use ,tax ,agreement4  7#f7 ,national  
certified software provider ,the term   

national certified software provider    
means a certified software provider that
 has been certified by all ,states that 
are certifying ,states4 ,a certifying   
,state is a ,state that has a generally 
applicable sales and use tax1 that has  
met the requirements set forth under    
section #c7;g77#a71 and that has not    
violated the requirements set forth in  
section #c7;g77#b74 ,once a certified   
software provider is a national         
certified software provider1 it shall   
not lose its status as such when a      
,state becomes a certifying ,state so   
long as the national certified software 
provider requested certification from   
the new certifying ,state within #cj    
days from the date that the ,state      
became a certifying ,state and the      
certifying ,state has not violated      
section #c7;g77#b74  7#g7 ,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#h7 ,remote sale    
,the term remote sale means a sale that 
originates in one ,state and is sourced 
to another ,state as provided in section
 #d7aj7 which the seller would not      
legally be required to pay1 collect1 or 
remit ,state or local sales and use     
taxes without the authority provided by 
this ,act4  7#i7 ,remote seller ,the    
term remote seller means a person that  
makes remote sales in the ,state without
 a physical presence4 ,for purposes of  
this paragraph1 a person has a physical 
presence in a ,state only if such       
person's business activities in the     
,state include any of the following     
during such person's taxable year3  7,a7
 ,being an individual physically in the 
,state1 or assigning one or more        
employees to be in the ,state4  7,b7    
,using the services of an agent         
7excluding an employee7 to establish or 
maintain the market in the ,state1 if   
such agent does not perform business    
services in the ,state for any other    

person during such taxable year4  7,c7  
,the leasing or owning of tangible      
personal property or of real property in
 the ,state4  ,for purposes of this     
paragraph1 the term physical presence'  
shall not include presence in a ,state  
for less than #ae days in a taxable year
 7or a greater number of days if        
provided by ,state law71 or presence in 
a ,state to conduct limited or transient
 business activity4  7#aj7 ,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 product or      
service 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 address1 including the  
customer's place of primary use 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 or place of
 primary use 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 ,the term received means taking   
possession of product or making first   
use of services4 ,a ,state granted      
authority under section #b7;a7 shall    
comply with the sourcing provisions of  
the ,streamlined ,sales and ,use ,tax   
,agreement4  7#aa7 ,state ,the term     
,state means any 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 or any 
territory or possession of the ,united  
,states4  7#ab7 ,streamlined sales and  
use tax agreement ,the term ,streamlined
 ,sales and ,use ,tax ,agreement means  

the multistate 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 ,act1 or the         
application of such provision to any    
person or circumstance1 is held to be   
unconstitutional1 then the remainder of 
this ,act1 and the application of the   
provisions of such to any person or     
circumstance1 shall not be affected     
thereby4