Learn About the Law
Get help with your legal needs
FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.
Current as of January 01, 2023 | Updated by FindLaw Staff
The Secretary may not enter into the Agreement unless the Agreement requires each state to abide by the following requirements:
(1) Uniform state rate.--The Agreement must set restrictions to achieve more uniform state rates through the following:
a. Limiting the number of state rates.
b. Limiting maximums on the amount of state tax that is due on a transaction.
c. Limiting thresholds on the application of a state tax.
(2) Uniform standards.--The Agreement must establish uniform standards for all of the following:
a. The sourcing of transactions to taxing jurisdictions.
b. The administration of exempt sales.
c. The allowances a seller can take for bad debts.
d. Sales and use tax returns and remittances.
(3) Uniform definitions.--The Agreement must require states to develop and adopt uniform definitions of sales and use tax terms. The definitions must enable a state to preserve its ability to make policy choices not inconsistent with the uniform definitions.
(4) Central registration.--The Agreement must provide a central, electronic registration system that allows a seller to register to collect and remit sales and use taxes for all signatory states.
(5) No nexus attribution.--The Agreement must provide that registration with the central registration system and the collection of sales and use taxes in the signatory states will not be used as a factor in determining whether the seller has nexus with a state for any tax.
(6) Local sales and use taxes.--The Agreement must provide for reduction of the burdens of complying with local sales and use taxes through one or more of the following:
a. Restricting variances between the state and local tax bases.
b. Requiring states to administer any sales and use taxes levied by local jurisdictions within the state so that sellers collecting and remitting these taxes will not have to register or file returns with, remit funds to, or be subject to independent audits from local taxing jurisdictions.
c. Restricting the frequency of changes in the local sales and use tax rates and setting effective dates for the application of local jurisdictional boundary changes to local sales and use taxes.
d. Providing notice of changes in local sales and use tax rates and of changes in the boundaries of local taxing jurisdictions.
(7) Monetary allowances.--The Agreement must outline any monetary allowances that are to be provided by the states to sellers or certified service providers.
(8) State compliance.--The Agreement must require each state to certify compliance with the terms of the Agreement before becoming a member and to maintain compliance, under the laws of the member state, with all provisions of the Agreement while a member.
(9) Consumer privacy.--The Agreement must require each state to adopt a uniform policy for certified service providers that protects the privacy of consumers and maintains the confidentiality of tax information.
Cite this article: FindLaw.com - North Carolina General Statutes Chapter 105. Taxation § 105-164.42E. Agreement requirements - last updated January 01, 2023 | https://codes.findlaw.com/nc/chapter-105-taxation/nc-gen-st-sect-105-164-42e/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.
Get help with your legal needs
FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.
Search our directory by legal issue
Enter information in one or both fields (Required)