SEC. 5. INTERSTATE SALES AND USE TAX COMPACT.
(a) AUTHORIZATION AND CONSENT.—States are au-
thorized to enter into an Interstate Sales and Use Tax
Compact, and Congress hereby consents to such a com-
pact. The Compact shall provide that member States agree
to adopt a uniform, streamlined sales and use tax system
consistent with section 4(a).
(b) EXPIRATION.—The authorization and consent in
subsection (a) shall automatically expire if the Compact
has not been formed before January 1, 2004.
SEC. 6. AUTHORIZATION TO SIMPLIFY STATE USE TAX
RATES THROUGH AVERAGING.
Notwithstanding any other provision of law, any
State levying a sales tax is authorized to administer a sin-
gle uniform statewide use tax rate relating to all remote
sales on which it assesses a use tax, provided that for each
calendar year in which such statewide rate is applicable,
if such rate had been assessed during the second calendar
year prior to such year on all such sales on which a sales
tax was assessed by such State or its local jurisdictions,
the total taxes assessed on such sales would not have ex-
ceeded the total taxes actually assessed on such sales dur-
ing such year.
SEC. 7. AUTHORIZATION TO REQUIRE COLLECTION OF USE
TAXES.
(a) GRANT OF AUTHORITY.—Subject to the limita-
tions in subsection (b), any member State that has adopt-
ed and participates in the streamlined system prescribed
by the Compact is authorized, notwithstanding any other
provision of law, to require all sellers not qualifying for
the de minimis exception specified in such system to col-
lect and remit use taxes on remote sales in such State.
(b) CONDITIONS.—The authority in subsection (a)
shall be of no effect unless all of the following conditions
are met:
(1) The streamlined system prescribed by the
Compact has been submitted to the President of the
United States prior to January 31, 2004, with the
approval of at least 20 member States.
(2) The President has submitted a report to the
Congress certifying that the streamlined system pre-
scribed by the Compact satisfies the requirements of
section 4(a).
(3) 90 days have passed from the date of the
submission of the report to Congress under para-
graph (2), and no joint resolution disapproving the
system has been enacted pursuant to the procedures
in subsection (c).
(c) PROCEDURE FOR JOINT RESOLUTION OF DIS-
APPROVAL.—A joint resolution disapproving the stream-
lined system prescribed by the Compact may be enacted
no later than 90 days from the date of the submission
of the report to Congress under subsection (b)(2). Such
submission and such 90-day period shall be governed by
the provision of section 2194 of title 19, United States
Code. Consideration of such joint resolution shall be pur-
suant to the expedited procedures prescribed in section
2192 of title 19, United States Code, with the following
modifications:
(1) Sections 2192(b) and 2192(f)(1)(a)(i) shall
be inapplicable.
(2) Section 2192(a) shall be inapplicable, and
shall for purposes of this section be replaced by the
following:
‘‘(a) CONTENTS OF RESOLUTION.—For purposes of
this section, the term ‘resolution’ means only a joint reso-
lution of the 2 Houses of the Congress, the matter after
the resolving clause of which is as follows: ‘That the Con-
gress does not approve of the determination of the Presi-
dent under section 7(b)(2) of the Fair and Equitable
Interstate Tax Compact Simplification Act of 2000 trans-
mitted on ll.’, the blank space being filled with the ap-
propriate date.’’.
(3) Section 2192(f)(3) shall be applicable in the
case of a veto message with respect to any joint res-
olution under this section.
SEC. 8. LIMITATIONS.
(a) NO EFFECT ON NEXUS.—No obligation imposed
by virtue of authority granted in section 7(a) shall be con-
sidered in determining whether a seller has a nexus with
any State for any tax purpose.
(b) NO
EFFECT
ON
LICENSING, REGULATION,
ETC.—Nothing in this Act shall be construed to permit
a State to license or regulate any person, to require any
person to qualify to transact intrastate business, or to sub-
ject any person to State taxes not related to the sales of
tangible personal property.
SEC. 9. DEFINITIONS.
For purposes of this Act—
(1) the term ‘‘State’’ means 1 of the 50 States
of the United States and the District of Columbia;
(2) the term ‘‘the Compact’’ means the Inter-
state Sales and Use Tax Compact authorized by sec-
tion 5;
(3) the term ‘‘goods or services’’ includes any
tangible or intangible personal property and services;
(4) the term ‘‘member State’’ means a State
that has joined the Compact;
(5) the term ‘‘remote sale’’ means a sale in
interstate commerce of goods or services attributed,
under the rules of section 4(a)(3) of this Act, to a
particular taxing jurisdiction which jurisdiction
could not, except for the authority granted by this
Act, require the seller of such goods or services to
collect and remit sales or use taxes on such sale;
(6) a remote sale ‘‘in’’ a particular taxing juris-
diction means a remote sale of goods or services at-
tributed, under the rules of section 4(a)(3) of this
Act, to a particular taxing jurisdiction;
(7) the term ‘‘seller’’ means a seller of goods or
services; and
(8) the term ‘‘uniform’’ refers to interstate uni-
formity.
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