(1) IN
GENERAL.—In any action for review 
under this section, the court shall set aside the ac-
tions, findings, and conclusions of the Governing 
Board found to be arbitrary, capricious, an abuse of 
discretion, or otherwise not in accordance with law. 
(2) REMAND.—If the court sets aside any ac-
tion, finding, or conclusion of the Governing Board 
under paragraph (1), the court shall remand the 
case to the Governing Board for further action con-
sistent with the decision of the court. 
(e) JURISDICTION.— 
(1) GENERALLY.—Chapter 91 of title 28, 
United States Code, is amended by adding at the 
end the following: 
‘‘SEC. 1510. JURISDICTION REGARDING THE STREAMLINED 
SALES AND USE TAX AGREEMENT. 
‘‘The United States Court of Federal Claims shall 
have exclusive jurisdiction over actions for judicial review 
of determinations of the Governing Board of the Stream-
lined Sales and Use Tax Agreement under the terms and 
conditions provided in section 5 of the Sales Tax Fairness 
and Simplification Act.’’. 
(2) CONFORMING AMENDMENT TO TABLE OF 
SECTIONS.—The table of sections at the beginning 
of chapter 91 of title 28, United States Code, is 
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amended by adding at the end the following new 
item: 
‘‘1510. Jurisdiction regarding the streamlined sales and use tax agreement.’’. 
SEC. 6. MINIMUM SIMPLIFICATION REQUIREMENTS. 
(a) IN GENERAL.—The minimum simplification re-
quirements for the Agreement, which shall relate to the 
conduct of Member States under the Agreement and to 
the administration and supervision of such conduct, are 
as follows: 
(1) A centralized, one-stop, multistate registra-
tion system that a seller may elect to use to register 
with the Member States, provided a seller may also 
elect to register directly with a Member State, and 
further provided that privacy and confidentiality 
controls shall be placed on the multistate registra-
tion system so that it may not be used for any pur-
pose other than the administration of sales and use 
taxes. Furthermore, no taxing authority within a 
Member State or a Member State that has with-
drawn or been expelled from the Agreement may use 
registration with the centralized registration system 
for the purpose of, or as a factor in determining, 
whether a seller has a nexus with that Member State 
for any tax at any time. 
(2) Uniform definitions of products and prod-
uct-based exemptions from which a Member State 
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may choose its individual tax base, provided, how-
ever, that all local jurisdictions in that Member 
State shall have a common tax base identical to the 
State tax base of that Member State. A Member 
State may enact other product-based exemptions 
without restriction if the Agreement does not have 
a definition for the product or for a term that in-
cludes the product. A Member State shall relax the 
good faith requirement for acceptance of exemption 
certificates in accordance with section 317 of the 
Agreement, as amended through the date of enact-
ment of this Act. 
(3) Uniform rules for sourcing and attributing 
transactions to particular taxing jurisdictions. 
(4) Uniform procedures for the certification of 
service providers and software on which a seller may 
elect to rely in order to determine Member State 
sales and use tax rates and taxability. 
(5) Uniform rules for bad debts and rounding. 
(6) Uniform requirements for tax returns and 
remittances. 
(7) Consistent electronic filing and remittance 
methods. 
(8) Single, State-level administration of all 
Member State and local sales and use taxes, includ-
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ing a requirement for a State-level filing of tax re-
turns in each Member State. 
(9) A single sales and use tax rate per taxing 
jurisdiction, except that a State may impose a single 
additional rate, which may be zero, on food, food in-
gredients, and drugs, provided that this limitation 
does not apply to the items identified in section 308 
C of the Agreement, as amended through the date 
of enactment of this Act. 
(10) A Member State shall eliminate caps and 
thresholds on the application of sales and use tax 
rates and exemptions based on value, provided that 
this limitation does not apply to the items identified 
in section 308 C of the Agreement, as amended 
through the date of enactment of this Act. 
(11) A provision requiring each Member State 
to complete a taxability matrix, as adopted by the 
Governing Board. The matrix shall include informa-
tion regarding terms defined by the Agreement in 
the Library of Definitions. The matrix shall also in-
clude, pursuant to the requirements of the Gov-
erning Board, information on use, entity, and prod-
uct based exemptions. 
(12) A provision requiring that each Member 
State relieves a seller or service provider from liabil-
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ity to that Member State and local jurisdiction for 
collection of the incorrect amount of sales or use tax, 
and relieves the purchaser from penalties stemming 
from such liability, provided that collection of the 
improper amount is the result of relying on informa-
tion provided by that Member State regarding tax 
rates, boundaries, or taxing jurisdiction assignments, 
or in the taxability matrix regarding terms defined 
by the Agreement in the Library of Definitions. 
(13) Audit procedures for sellers, including an 
option under which a seller not qualifying for the 
small business exception in section 4(d) may request, 
by notifying the Governing Board, to be subject to 
a single audit on behalf of all Member States for 
sales and use taxes (other than use taxes on goods 
and services purchased for the consumption of the 
seller). The Governing Board, in its discretion, shall 
authorize such a single audit. 
(14) As of the day that authority to require col-
lection commences under section 4, each Member 
State shall provide reasonable compensation for ex-
penses incurred by a seller directly in administering, 
collecting, and remitting sales and use taxes (other 
than use taxes on goods and services purchased for 
the consumption of the seller) to that Member State. 
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Such compensation may vary in each Member State 
depending on the complexity of the sales and use tax 
laws in that Member State and may vary by the 
characteristics of sellers in order to reflect dif-
ferences in collection costs. Such compensation may 
be provided to a seller or a third party service pro-
vider whom a seller has contracted with to perform 
all the sales and use tax responsibilities of a seller. 
(15) Appropriate protections for consumer pri-
vacy. 
(16) Governance procedures and mechanisms to 
ensure timely, consistent, and uniform implementa-
tion and adherence to the principles of the stream-
lined system and the terms of the Agreement. 
(17) Each Member State shall apply the sim-
plification requirements of the Agreement to taxes 
on telecommunications services, except as provided 
herein. This requirement is applicable to Member 
States as of July 1, 2010, except that sales and use 
taxes on telecommunications services shall be subject 
to the Agreement and the authority granted to the 
Member States when the requirements of section 
4(a) are met. On or after July 1, 2010, for those 
Member States which meet the requirements of this 
paragraph, the authority granted such Member 
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(19) Uniform rules and procedures to address 
refunds and credits for sales taxes relating to cus-
tomer returns, restocking fees, discounts and cou-
pons, and rules to address allocations of shipping 
and handling and discounts applied to multiple item 
and multiple seller orders. 
(b) REQUIREMENT TO PROVIDE SIMPLIFIED TAX 
SYSTEMS.— 
(1) IN
GENERAL.—The requirements of this 
section are intended to ensure that each Member 
State provides and maintains the necessary sim-
plifications to its sales and use tax system to war-
rant the collection authority granted to it in section 
4. 
(2) REDUCTION
OF
ADMINISTRATIVE
BUR-
DENS.—The requirements of this section should be 
construed— 
(A) to require each Member State to sub-
stantially reduce the administrative burdens as-
sociated with sales and use taxes; and 
(B) as allowing each Member State to ex-
ercise flexibility in how these requirements are 
satisfied. 
(3) EXCEPTION.—In instances where exceptions 
to the requirements of this section can be exercised 
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in a manner that does not materially increase the 
administrative burden on a seller obligated to collect 
or pay the taxes, such exceptions are permissible. 
SEC. 7. LIMITATION. 
(a) IN GENERAL.—-Nothing in this Act shall be con-
strued as— 
(1) subjecting a seller to franchise taxes, in-
come taxes, or licensing requirements of a Member 
State or political subdivision thereof; or 
(2) affecting the application of such taxes or re-
quirements or enlarging or reducing the authority of 
any Member State to impose such taxes or require-
ments. 
(b) NO EFFECT ON NEXUS, ETC.— 
(1) IN
GENERAL.—No obligation imposed by 
virtue of the authority granted by section 4 shall be 
considered in determining whether a seller has a 
nexus with any Member State for any other tax pur-
pose. 
(2) PERMISSIBLE
MEMBER
STATE
AUTHOR-
ITY.—Except as provided in subsection (a), and in 
section 4, nothing in this Act permits or prohibits a 
Member State from— 
(A) licensing or regulating any person; 
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(B) requiring any person to qualify to 
transact intrastate business; 
(C) subjecting any person to State taxes 
not related to the sale of goods or services; or 
(D) exercising authority over matters of 
interstate commerce. 
SEC. 8. EXPEDITED JUDICIAL REVIEW. 
(a) THREE-JUDGE DISTRICT COURT HEARING.— 
Notwithstanding any other provision of law, any civil ac-
tion challenging the constitutionality of this Act, or any 
provision thereof, shall be heard by a district court of 
three judges convened pursuant to the provisions of sec-
tion 2284 of title 28, United States Code. 
(b) APPELLATE REVIEW.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of law, an interlocutory or final judgment, 
decree, or order of the court of three judges in an 
action under subsection (a) holding this Act, or any 
provision thereof, unconstitutional shall be review-
able as a matter of right by direct appeal to the Su-
preme Court. 
(2) 30-DAY
TIME
LIMIT.—Any appeal under 
paragraph (1) shall be filed not more than 30 days 
after the date of entry of such judgment, decree, or 
order. 
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SEC. 9. DEFINITIONS. 
For the purposes of this Act the following definitions 
apply: 
(1) AFFILIATE.—The term ‘‘affiliate’’ means 
any entity that controls, is controlled by, or is under 
common control with a seller. 
(2) GOVERNING BOARD.—The term ‘‘Governing 
Board’’ means the governing board established by 
the Streamlined Sales and Use Tax Agreement. 
(3) MEMBER
STATE.—The term ‘‘Member 
State’’— 
(A) means a Member State as that term is 
used under the Streamlined Sales and Use Tax 
Agreement as of the date of enactment of this 
Act; and 
(B) does not include associate members 
under the Agreement. 
(4) NATIONWIDE.—The term ‘‘nationwide’’ 
means throughout each of the several States and the 
District of Columbia, the Commonwealth of Puerto 
Rico, Guam, American Samoa, the Virgin Islands, 
the Northern Mariana Islands, and any other terri-
tory or possession of the United States. 
(5) NONDISCRETIONARY
DUTY
OF
THE
GOV-
ERNING
BOARD.—The phrase ‘‘nondiscretionary 
duty of the Governing Board’’ means any duty of 
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the Governing Board specified in the Agreement as 
a requirement for action by use of the term ‘‘shall’’, 
‘‘will’’, or ‘‘is required to’’. 
(6) PERSON.—The term ‘‘person’’ means an in-
dividual, trust, estate, fiduciary, partnership, cor-
poration, or any other legal entity, and includes a 
State or local government. 
(7) REMOTE SALE.—The term ‘‘remote sale’’ 
refers to a sale of goods or services attributed to a 
particular Member State with respect to which a 
seller does not have adequate physical presence to 
establish nexus under the law existing on the day be-
fore the date of enactment of this Act so as to allow 
such Member State to require, without regard to the 
authority granted by this Act, the seller to collect 
and remit sales or use taxes with respect to such 
sale. 
(8) REMOTE SELLER.—The term ‘‘remote sell-
er’’ means any seller who makes a remote sale. 
(9) STATE.—The term ‘‘State’’ means any 
State of the United States of America and includes 
the District of Columbia, Puerto Rico, and any other 
territory or possession of the United States. 
(10) STREAMLINED
SALES
AND
USE
TAX 
AGREEMENT.—The term ‘‘Streamlined Sales and 
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