KRS § 139.789 — KY Code / Title XI / Chapter 139 / Section 139.789
139.789 Requirements for entering into agreement
Status: in_force

139.789 Requirements for entering into agreement.

The department shall not enter into the SSUTA agreement unless the SSUTA agreement

requires each state to abide by the following requirements:

(1) The SSUTA agreement shall set restrictions to achieve more uniform state rates

through the following:

(a) Limiting the number of state rates;

(b) Limiting the application of maximums on the amount of state tax that is due

on a transaction; and

(c) Limiting the application of thresholds on the application of state tax.

(2) The SSUTA agreement shall establish uniform standards for 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; and

(d) Sales and use tax returns and remittances.

(3) The SSUTA agreement shall require states to develop and adopt uniform definitions

of sales and use tax terms. The definitions shall enable a state to preserve its ability

to make policy choices not inconsistent with the uniform definitions.

(4) The SSUTA agreement shall 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) The SSUTA agreement shall provide that registration with the central registration

system and the collection of sales and use taxes in the signatory state will not be

used as a factor in determining whether the seller has nexus with a state for any tax.

(6) The SSUTA agreement shall provide for a reduction of the burdens of complying

with local sales and use taxes through 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; and

(d) Providing notice of changes in local sales and use tax rates and of changes in

the boundaries of local taxing jurisdictions.

(7) The SSUTA agreement shall outline any monetary allowances that are to be

provided by the states to sellers or certified service providers.

(8) The SSUTA agreement shall require each state to certify compliance with the terms

of the agreement prior to joining and to maintain compliance under the laws of the

member state, with all provisions of the SSUTA agreement while a member.

(9) The SSUTA agreement shall 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.

(10) The SSUTA agreement shall provide for the appointment of an advisory council of

private sector representatives and an advisory council of non-member state

representatives to consult with in the administration of the SSUTA agreement.