room, board, sports activities, recreational activities, 
hobbies, games, arts or crafts or cultural activities. 
‘‘(5) GROSS PAYMENTS.—The term ‘gross pay-
ments’ means payments for taxable property or serv-
ices, including Federal taxes imposed by this title. 
‘‘(6) INTANGIBLE PROPERTY.— 
‘‘(A) IN GENERAL.—The term ‘intangible 
property’ includes copyrights, trademarks, pat-
ents, goodwill, financial instruments, securities, 
commercial paper, debts, notes and bonds, and 
other property deemed intangible at common 
law. The Secretary shall, by regulation resolve 
differences among the provisions of common 
law of the several States. 
‘‘(B) CERTAIN
TYPES
OF
PROPERTY.— 
Such term does not include tangible personal 
property (or rents or leaseholds of any term 
thereon), real property (or rents or leaseholds 
of any term thereon) and computer software. 
‘‘(7) PERSON.—The term ‘person’ means any 
natural person, and unless the context clearly does 
not allow it, any corporation, partnership, limited li-
ability company, trust, estate, government, agency, 
administration, organization, association, or other 
legal entity (foreign or domestic.) 
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‘‘(8) PRODUCE, PROVIDE, RENDER, OR
SELL 
TAXABLE PROPERTY OR SERVICES.— 
‘‘(A) IN GENERAL.—A taxable property or 
service is used to produce, provide, render, or 
sell a taxable property or service if such prop-
erty or service is purchased by a person en-
gaged in a trade or business for the purpose of 
employing or using such taxable property or 
service in the production, provision, rendering, 
or sale of other taxable property or services in 
the ordinary course of that trade or business. 
‘‘(B) 
RESEARCH, 
EXPERIMENTATION, 
TESTING, AND DEVELOPMENT.—Taxable prop-
erty or services used in a trade or business for 
the purpose of research, experimentation, test-
ing, and development shall be treated as used to 
produce, provide, render, or sell taxable prop-
erty or services. 
‘‘(C) 
INSURANCE
PAYMENTS.—Taxable 
property or services purchased by an insurer on 
behalf of an insured shall be treated as used to 
produce, provide, render, or sell taxable prop-
erty or services if the premium for the insur-
ance contract giving rise to the insurer’s obliga-
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tion was subject to tax pursuant to section 801 
(relating to financial intermediation services). 
‘‘(D) EDUCATION
AND
TRAINING.—Edu-
cation and training shall be treated as services 
used to produce, provide, render, or sell taxable 
property or services. 
‘‘(9) REGISTERED
SELLER.—The term ‘reg-
istered seller’ means a person registered pursuant to 
section 502. 
‘‘(10) SALES
TAX
ADMINISTERING
AUTHOR-
ITY.—The term ‘sales tax administering authority’ 
means— 
‘‘(A) the State agency designated to collect 
and administer the sales tax imposed by this 
subtitle, in an administering State, or 
‘‘(B) the Secretary, in a State that is nei-
ther— 
‘‘(i) an administering State, nor 
‘‘(ii) a State that has elected to have 
its sales tax administered by an admin-
istering State. 
‘‘(11) 
SECRETARY.—The 
term 
‘Secretary’ 
means the Secretary of the Treasury. 
‘‘(12) TAXABLE EMPLOYER.— 
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‘‘(A) IN GENERAL.—The term ‘taxable em-
ployer’ includes— 
‘‘(i) any household employing domes-
tic servants, and 
‘‘(ii) any government except for gov-
ernment enterprises (as defined in section 
704). 
‘‘(B) EXCEPTIONS.—The term ‘taxable 
employer’ does not include any employer which 
is— 
‘‘(i) engaged in a trade or business, 
‘‘(ii) a not-for-profit organization (as 
defined in section 706), or 
‘‘(iii) a government enterprise (as de-
fined in section 704). 
‘‘(C) CROSS REFERENCE.—For rules relat-
ing to collection and remittance of tax on wages 
by taxable employers, see section 103(b)(2). 
‘‘(13) TAX INCLUSIVE FAIR MARKET VALUE.— 
The term ‘tax inclusive fair market value’ means the 
fair market value of taxable property or services plus 
the tax imposed by this subtitle. 
‘‘(14) TAXABLE PROPERTY OR SERVICE.— 
‘‘(A) GENERAL RULE.—The term ‘taxable 
property or service’ means— 
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‘‘(i) any property (including leaseholds 
of any term or rents with respect to such 
property) but excluding— 
‘‘(I) intangible property, and 
‘‘(II) used property, and 
‘‘(ii) any service (including any finan-
cial intermediation services as determined 
by section 801). 
‘‘(B) SERVICE.—For purposes of subpara-
graph (A), the term ‘service’— 
‘‘(i) shall include any service per-
formed by an employee for which the em-
ployee is paid wages or a salary by a tax-
able employer, and 
‘‘(ii) shall not include any service per-
formed by an employee for which the em-
ployee is paid wages or a salary— 
‘‘(I) by an employer in the reg-
ular course of the employer’s trade or 
business, 
‘‘(II) by an employer that is a 
not-for-profit organization (as defined 
in section 706), 
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‘‘(III) by an employer that is a 
government enterprise (as defined in 
section 704), and 
‘‘(IV) by taxable employers to 
employees directly providing education 
and training. 
‘‘(15) UNITED
STATES.—The term ‘United 
States’, when used in the geographical sense, means 
each of the 50 states, the District of Columbia, and 
any commonwealth, territory, or possession of the 
United States. 
‘‘(16) USED PROPERTY.—The term ‘used prop-
erty’ means— 
‘‘(A) property on which the tax imposed by 
section 101 has been collected and for which no 
credit has been allowed under section 202, 203, 
or 205, or 
‘‘(B) property that was held other than for 
a business purpose (as defined in section 
102(b)) on December 31, 2008. 
‘‘(17) WAGES AND SALARY.—The terms ‘wage’ 
and ‘salary’ mean all compensation paid for employ-
ment service including cash compensation, employee 
benefits, disability insurance, or wage replacement 
insurance payments, unemployment compensation 
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insurance, workers’ compensation insurance, and the 
fair market value of any other consideration paid by 
an employer to an employee in consideration for em-
ployment services rendered. 
‘‘(b) CROSS REFERENCES.— 
‘‘(1) For the definition of business purposes, 
see section 102(b). 
‘‘(2) For the definition of insurance contract, 
see section 206(e). 
‘‘(3) For the definition of qualified family, see 
section 302. 
‘‘(4) For the definition of monthly poverty level, 
see section 303. 
‘‘(5) For the definition of large seller, see sec-
tion 501(e)(3). 
‘‘(6) For the definition of hobby activities, see 
section 701. 
‘‘(7) For the definition of gaming sponsor, see 
section 701(a). 
‘‘(8) For the definition of a chance, see section 
701(b). 
‘‘(9) For the definition of government enter-
prise, see section 704(b). 
‘‘(10) For the definition of mixed use property, 
see section 705. 
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‘‘(11) For the definition of qualified not-for- 
profit organization, see section 706. 
‘‘(12) For the definition of financial intermedi-
ation services, see section 801. 
‘‘CHAPTER 1—INTERPRETATION; 
DEFINITIONS; IMPOSITION OF TAX; ETC. 
‘‘Sec. 101. Imposition of sales tax. 
‘‘Sec. 102. Intermediate and export sales. 
‘‘Sec. 103. Rules relating to collection and remittance of tax. 
‘‘SEC. 101. IMPOSITION OF SALES TAX. 
‘‘(a) IN GENERAL.—There is hereby imposed a tax 
on the use or consumption in the United States of taxable 
property or services. 
‘‘(b) RATE.— 
‘‘(1) FOR 2009.—In the calendar year 2009, the 
rate of tax is 23 percent of the gross payments for 
the taxable property or service. 
‘‘(2) FOR YEARS AFTER 2009.—For years after 
the calendar year 2009, the rate of tax is the com-
bined Federal tax rate percentage (as defined in 
paragraph (3)) of the gross payments for the taxable 
property or service. 
‘‘(3) COMBINED FEDERAL TAX RATE PERCENT-
AGE.—The combined Federal tax rate percentage is 
the sum of— 
‘‘(A) the general revenue rate (as defined 
in paragraph (4), and 
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‘‘(B) the old-age, survivors and disability 
insurance rate, and 
‘‘(C) the hospital insurance rate. 
‘‘(4) GENERAL REVENUE RATE.—The general 
revenue rate shall be 14.91 percent. 
‘‘(c) COORDINATION WITH IMPORT DUTIES.—The 
tax imposed by this section is in addition to any import 
duties imposed by chapter 4 of title 19, United States 
Code. The Secretary shall provide by regulation that, to 
the maximum extent practicable, the tax imposed by this 
section on imported taxable property and services is col-
lected and administered in conjunction with any applicable 
import duties imposed by the United States. 
‘‘(d) LIABILITY FOR TAX.— 
‘‘(1) IN GENERAL.—The person using or con-
suming taxable property or services in the United 
States is liable for the tax imposed by this section, 
except as provided in paragraph (2) of this sub-
section. 
‘‘(2) EXCEPTION WHERE TAX PAID TO SELL-
ER.—A person using or consuming a taxable prop-
erty or service in the United States is not liable for 
the tax imposed by this section if the person pays 
the tax to a person selling the taxable property or 
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service and receives from such person a purchaser’s 
receipt within the meaning of section 510. 
‘‘SEC. 102. INTERMEDIATE AND EXPORT SALES. 
‘‘(a) IN GENERAL.—For purposes of this subtitle— 
‘‘(1) BUSINESS AND EXPORT PURPOSES.—No 
tax shall be imposed under section 101 on any tax-
able property or service purchased for— 
‘‘(A) a business purpose in a trade or busi-
ness, or 
‘‘(B) export from the United States for use 
or consumption outside the United States, if, 
the purchaser provided the seller with a reg-
istration certificate, and the seller was a whole-
sale seller. 
‘‘(2) INVESTMENT PURPOSE.—No tax shall be 
imposed under section 101 on any taxable property 
or service purchased for an investment purpose and 
held exclusively for an investment purpose. 
‘‘(3) STATE GOVERNMENT FUNCTIONS.—No tax 
shall be imposed under section 101 on State govern-
ment functions that do not constitute the final con-
sumption of property or services. 
‘‘(b) BUSINESS PURPOSES.—For purposes of this 
section, the term ‘purchased for a business purpose in a 
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trade or business’ means purchased by a person engaged 
in a trade or business and used in that trade or business— 
‘‘(1) for resale, 
‘‘(2) to produce, provide, render, or sell taxable 
property or services, or 
‘‘(3) in furtherance of other bona fide business 
purposes. 
‘‘(c) INVESTMENT PURPOSES.—For purposes of this 
section, the term ‘purchased for an investment purpose’ 
means property purchased exclusively for purposes of ap-
preciation or the production of income but not entailing 
more than minor personal efforts. 
‘‘SEC. 103. RULES RELATING TO COLLECTION AND REMIT-
TANCE OF TAX. 
‘‘(a) LIABILITY FOR COLLECTION AND REMITTANCE 
OF THE TAX.—Except as provided otherwise by this sec-
tion, any tax imposed by this subtitle shall be collected 
and remitted by the seller of taxable property or services 
(including financial intermediation services). 
‘‘(b) TAX TO BE REMITTED BY PURCHASER IN CER-
TAIN CIRCUMSTANCES.— 
‘‘(1) IN GENERAL.—In the case of taxable prop-
erty or services purchased outside of the United 
States and imported into the United States for use 
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or consumption in the United States, the purchaser 
shall remit the tax imposed by section 101. 
‘‘(2) CERTAIN WAGES OR SALARY.—In the case 
of wages or salary paid by a taxable employer which 
are taxable services, the employer shall remit the tax 
imposed by section 101. 
‘‘(c) CONVERSION OF BUSINESS OR EXPORT PROP-
ERTY OR SERVICES.—Property or services purchased for 
a business purpose in a trade or business or for export 
(sold untaxed pursuant to section 102(a)) that is subse-
quently converted to personal use shall be deemed pur-
chased at the time of conversion and shall be subject to 
the tax imposed by section 101 at the fair market value 
of the converted property as of the date of conversion. The 
tax shall be due as if the property had been sold at the 
fair market value during the month of conversion. The 
person using or consuming the converted property is liable 
for and shall remit the tax. 
‘‘(d) SELLER RELIEVED OF LIABILITY IN CERTAIN 
CASES.—In the case of any taxable property or service 
which is sold untaxed pursuant to section 102(a), the sell-
er shall be relieved of the duty to collect and remit the 
tax imposed under section 101 on such purchase if the 
seller— 
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‘‘(1) received in good faith, and retains on file 
for the period set forth in section 509, a copy of a 
registration certificate from the purchaser, and 
‘‘(2) did not, at the time of sale, have reason-
able cause to believe that the buyer was not reg-
istered pursuant to section 502. 
‘‘(e) PURCHASER LIABLE TO COLLECT AND REMIT 
IN CERTAIN CASES.—In the case of any taxable property 
or service which is sold untaxed pursuant to section 102, 
if the seller is relieved by reason of subsection (d) of the 
duty to collect and remit the tax imposed by section 101, 
then the duty to pay any tax due shall rest with the pur-
chaser. 
‘‘(f) BARTER TRANSACTIONS.—If gross payment for 
taxable property or services is made in other than money, 
then the person responsible for collecting and remitting 
the tax shall remit the tax to the sales tax administering 
authority in money as if gross payment had been made 
in money at the tax inclusive fair market value of the tax-
able property or services purchased. 
‘‘(g) INTERCOMPANY SALES.—Firms that make pur-
chases from affiliated firms that are untaxed pursuant to 
section 102, or make sales to affiliated firms that are 
untaxed pursuant to section 102, shall not need to comply 
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with the requirements of subsection (d) (relating to certifi-
cates) for said purchases or sales to remain untaxed. 
‘‘CHAPTER 2—CREDITS; REFUNDS 
‘‘Sec. 201. Credits and refunds. 
‘‘Sec. 202. Business use conversion credit. 
‘‘Sec. 203. Intermediate and export sales credit. 
‘‘Sec. 204. Administration credit. 
‘‘Sec. 205. Bad debt credit. 
‘‘Sec. 206. Insurance proceeds credit. 
‘‘Sec. 207. Refunds. 
‘‘SEC. 201. CREDITS AND REFUNDS. 
‘‘(a) IN GENERAL.—Each person shall be allowed a 
credit with respect to the taxes imposed by section 101 
for each month in an amount equal to the sum of— 
‘‘(1) such person’s business use conversion 
credit pursuant to section 202 for such month, 
‘‘(2) such person’s intermediate and export 
sales credit pursuant to section 203 for such month, 
‘‘(3) the administration credit pursuant to sec-
tion 204 for such month, 
‘‘(4) the bad debt credit pursuant to section 
205 for such month, 
‘‘(5) the insurance proceeds credit pursuant to 
section 206 for such month, 
‘‘(6) the transitional inventory credit pursuant 
to section 902, and 
‘‘(7) any amount paid in excess of the amount 
due. 
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‘‘(b) CREDITS NOT ADDITIVE.—Only one credit al-
lowed by chapter 2 may be taken with respect to any par-
ticular gross payment. 
‘‘SEC. 202. BUSINESS USE CONVERSION CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 201, a 
person’s business use conversion credit for any month is 
the aggregate of the amounts determined under subsection 
(b) with respect to taxable property and services— 
‘‘(1) on which tax was imposed by section 101 
(and actually paid), and 
‘‘(2) which commenced to be 95 percent or 
more used during such month for business purposes 
(within the meaning of section 102(b)). 
‘‘(b) AMOUNT OF CREDIT.—The amount determined 
under this paragraph with respect to any taxable property 
or service is the lesser of— 
‘‘(1) the product of— 
‘‘(A) the rate imposed by section 101, and 
‘‘(B) the quotient that is— 
‘‘(i) the fair market value of the prop-
erty or service when its use is converted, 
divided by 
‘‘(ii) the quantity that is 1 minus the 
tax rate imposed by section 101, or 
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‘‘(2) the amount of tax paid with respect to 
such taxable property or service, including the 
amount, if any, determined in accordance with sec-
tion 705 (relating to mixed use property). 
‘‘SEC. 203. INTERMEDIATE AND EXPORT SALES CREDIT. 
‘‘For purposes of section 201, a person’s intermediate 
and export sales credit is the amount of sales tax paid 
on the purchase of any taxable property or service pur-
chased for— 
‘‘(1) a business purpose in a trade or business 
(as defined in section 102(b)), or 
‘‘(2) export from the United States for use or 
consumption outside the United States. 
‘‘SEC. 204. ADMINISTRATION CREDIT. 
‘‘(a) IN GENERAL.—Every person filing a timely 
monthly report (with regard to extensions) in compliance 
with section 501 shall be entitled to a taxpayer adminis-
trative credit equal to the greater of— 
‘‘(1) $200, or 
‘‘(2) one-quarter of 1 percent of the tax remit-
ted. 
‘‘(b) LIMITATION.—The credit allowed under this sec-
tion shall not exceed 20 percent of the tax due to be remit-
ted prior to the application of any credit or credits per-
mitted by section 201. 
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‘‘SEC. 205. BAD DEBT CREDIT. 
‘‘(a) FINANCIAL INTERMEDIATION SERVICES.—Any 
person who has experienced a bad debt (other than unpaid 
invoices within the meaning of subsection (b)) shall be en-
titled to a credit equal to the product of— 
‘‘(1) the rate imposed by section 101, and 
‘‘(2) the quotient that is— 
‘‘(A) the amount of the bad debt (as de-
fined in section 802), divided by 
‘‘(B) the quantity that is 1 minus the rate 
imposed by section 101. 
‘‘(b) UNPAID INVOICES.—Any person electing the ac-
crual method pursuant to section 503 that has with re-
spect to a transaction— 
‘‘(1) invoiced the tax imposed by section 101, 
‘‘(2) remitted the invoiced tax, 
‘‘(3) actually delivered the taxable property or 
performed the taxable services invoiced, and 
‘‘(4) not been paid 180 days after date the in-
voice was due to be paid, 
shall be entitled to a credit equal to the amount of tax 
remitted and unpaid by the purchaser. 
‘‘(c) SUBSEQUENT PAYMENT.—Any payment made 
with respect to a transaction subsequent to a section 205 
credit being taken with respect to that transaction shall 
be subject to tax in the month the payment was received 
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as if a tax inclusive sale of taxable property and services 
in the amount of the payment had been made. 
‘‘(d) PARTIAL PAYMENTS.—Partial payments shall 
be treated as pro rata payments of the underlying obliga-
tion and shall be allocated proportionately— 
‘‘(1) for fully taxable payments, between pay-
ment for the taxable property and service and tax, 
and 
‘‘(2) for partially taxable payments, among pay-
ment for the taxable property and service, tax and 
other payment. 
‘‘(e) RELATED PARTIES.—The credit provided by this 
section shall not be available with respect to sales made 
to related parties. For purposes of this section, related 
party means affiliated firms and family members (as de-
fined in section 302(b)). 
‘‘SEC. 206. INSURANCE PROCEEDS CREDIT. 
‘‘(a) IN GENERAL.—A person receiving a payment 
from an insurer by virtue of an insurance contract shall 
be entitled to a credit in an amount determined by sub-
section (b), less any amount paid to the insured by the 
insurer pursuant to subsection (c), if the entire premium 
(except that portion allocable to the investment account 
of the underlying policy) for the insurance contract giving 
rise to the insurer’s obligation to make a payment to the 
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insured was subject to the tax imposed by section 101 and 
said tax was paid. 
‘‘(b) CREDIT AMOUNT.—The amount of the credit 
shall be the product of— 
‘‘(1) the rate imposed by section 101, and 
‘‘(2) the quotient that is— 
‘‘(A) the amount of the payment made by 
the insurer to the insured, divided by 
‘‘(B) the quantity that is 1 minus the rate 
imposed by section 101. 
‘‘(c) ADMINISTRATIVE OPTION.—The credit deter-
mined in accordance with subsection (b) shall be paid by 
the insurer to the insured and the insurer shall be entitled 
to the credit in lieu of the insured, except that the insurer 
may elect, in a form prescribed by the Secretary, to not 
pay the credit and require the insured to make application 
for the credit. In the event of such election, the insurer 
shall provide to the Secretary and the insured the name 
and tax identification number of the insurer and of the 
insured and indicate the proper amount of the credit. 
‘‘(d) COORDINATION WITH RESPECT
TO EXEMP-
TION.—If taxable property or services purchased by an in-
surer on behalf of an insured are purchased free of tax 
by virtue of section 2(a)(8)(C), then the credit provided 
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by this section shall not be available with respect to that 
purchase. 
‘‘(e) INSURANCE CONTRACT.—For purposes of sub-
section (a), the term insurance contract’ shall include a 
life insurance contract, a health insurance contract, a 
property and casualty loss insurance contract, a general 
liability insurance contract, a marine insurance contract, 
a fire insurance contract, an accident insurance contract, 
a disability insurance contract, a long-term care insurance 
contract, and an insurance contract that provides a com-
bination of these types of insurance. 
‘‘SEC. 207. REFUNDS. 
‘‘(a) REGISTERED SELLERS.—If a registered seller 
files a monthly tax report with an overpayment, then, 
upon application by the registered seller in a form pre-
scribed by the sales tax administering authority, the over-
payment shown on the report shall be refunded to the reg-
istered seller within 60 days of receipt of said application. 
In the absence of such application, the overpayment may 
be carried forward, without interest, by the person entitled 
to the credit. 
‘‘(b) OTHER PERSONS.—If a person other than a reg-
istered seller has an overpayment for any month, then, 
upon application by the person in a form prescribed by 
the sales tax administering authority, the credit balance 
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due shall be refunded to the person within 60 days of re-
ceipt of said application. 
‘‘(c) INTEREST.—No interest shall be paid on any 
balance due from the sales tax administering authority 
under this subsection for any month if such balance due 
is paid within 60 days after the application for refund is 
received. Balances due not paid within 60 days after the 
application for refund is received shall bear interest from 
the date of application. Interest shall be paid at the Fed-
eral short-term rate (as defined in section 512). 
‘‘(d) SUSPENSION
OF PERIOD TO PAY REFUND 
ONLY IF FEDERAL OR STATE COURT RULING.—The 60- 
day periods under subsections (a) and (b) shall be sus-
pended with respect to a purported overpayment (or por-
tion thereof) only during any period that there is in effect 
a preliminary, temporary, or final ruling from a Federal 
or State court that there is reasonable cause to believe 
that such overpayment may not actually be due. 
‘‘CHAPTER 3—FAMILY CONSUMPTION 
ALLOWANCE 
‘‘Sec. 301. Family consumption allowance. 
‘‘Sec. 302. Qualified family. 
‘‘Sec. 303. Monthly poverty level. 
‘‘Sec. 304. Rebate mechanism. 
‘‘Sec. 305. Change in family circumstances. 
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‘‘SEC. 301. FAMILY CONSUMPTION ALLOWANCE. 
‘‘Each qualified family shall be eligible to receive a 
sales tax rebate each month. The sales tax rebate shall 
be in an amount equal to the product of— 
‘‘(1) the rate of tax imposed by section 101, 
and 
‘‘(2) the monthly poverty level. 
‘‘SEC. 302. QUALIFIED FAMILY. 
‘‘(a) GENERAL RULE.—For purposes of this chapter, 
the term ‘qualified family’ shall mean 1 or more family 
members sharing a common residence. All family members 
sharing a common residence shall be considered as part 
of 1 qualified family. 
‘‘(b) FAMILY SIZE DETERMINATION.— 
‘‘(1) IN GENERAL.—To determine the size of a 
qualified family for purposes of this chapter, family 
members shall mean— 
‘‘(A) an individual, 
‘‘(B) the individual’s spouse, 
‘‘(C) all lineal ancestors and descendants 
of said individual (and such individual’s 
spouse), 
‘‘(D) all legally adopted children of such 
individual (and such individual’s spouse), and 
‘‘(E) all children under legal guardianship 
of such individual (or such individual’s spouse). 
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‘‘(2) 
IDENTIFICATION
REQUIREMENTS.—In 
order for a person to be counted as a member of the 
family for purposes of determining the size of the 
qualified family, such person must— 
‘‘(A) have a bona fide Social Security num-
ber; and 
‘‘(B) be a lawful resident of the United 
States. 
‘‘(c) CHILDREN LIVING AWAY FROM HOME.— 
‘‘(1) STUDENTS LIVING AWAY FROM HOME.— 
Any person who was a registered student during not 
fewer than 5 months in a calendar year while living 
away from the common residence of a qualified fam-
ily but who receives over 50 percent of such person’s 
support during a calendar year from members of the 
qualified family shall be included as part of the fam-
ily unit whose members provided said support for 
purposes of this chapter. 
‘‘(2) CHILDREN OF DIVORCED OR SEPARATED 
PARENTS.—If a child’s parents are divorced or le-
gally separated, a child for purposes of this chapter 
shall be treated as part of the qualified family of the 
custodial parent. In cases of joint custody, the custo-
dial parent for purposes of this chapter shall be the 
parent that has custody of the child for more than 
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one-half of the time during a given calendar year. A 
parent entitled to be treated as the custodial parent 
pursuant to this paragraph may release this claim to 
the other parent if said release is in writing. 
‘‘(d) ANNUAL REGISTRATION.—In order to receive 
the family consumption allowance provided by section 301, 
a qualified family must register with the sales tax admin-
istering authority in a form prescribed by the Secretary. 
The annual registration form shall provide— 
‘‘(1) the name of each family member who 
shared the qualified family’s residence on the family 
determination date, 
‘‘(2) the Social Security number of each family 
member on the family determination date who 
shared the qualified family’s residence on the family 
determination date, 
‘‘(3) the family member or family members to 
whom the family consumption allowance should be 
paid, 
‘‘(4) a certification that all listed family mem-
bers are lawful residents of the United States, 
‘‘(5) a certification that all family members 
sharing the common residence are listed, 
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‘‘(6) a certification that no family members 
were incarcerated on the family determination date 
(within the meaning of subsection (l)), and 
‘‘(7) the address of the qualified family. 
Said registration shall be signed by all members of the 
qualified family that have attained the age of 21 years 
as of the date of filing. 
‘‘(e) REGISTRATION NOT MANDATORY.—Registra-
tion is not mandatory for any qualified family. 
‘‘(f) EFFECT
OF FAILURE TO PROVIDE ANNUAL 
REGISTRATION.—Any qualified family that fails to reg-
ister in accordance with this section within 30 days of the 
family determination date, shall cease receiving the 
monthly family consumption allowance in the month be-
ginning 90 days after the family determination date. 
‘‘(g) EFFECT OF CURING FAILURE TO PROVIDE AN-
NUAL REGISTRATION.—Any qualified family that failed to 
timely make its annual registration in accordance with this 
section but subsequently cures its failure to register, shall 
be entitled to up to 6 months of lapsed sales tax rebate 
payments. No interest on lapsed payment amount shall be 
paid. 
‘‘(h) EFFECTIVE
DATE
OF
ANNUAL
REGISTRA-
TIONS.—Annual registrations shall take effect for the 
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month beginning 90 days after the family registration 
date. 
‘‘(i) EFFECTIVE
DATE
OF
REVISED
REGISTRA-
TIONS.—A revised registration made pursuant to section 
305 shall take effect for the first month beginning 60 days 
after the revised registration was filed. The existing reg-
istration shall remain in effect until the effective date of 
the revised registration. 
‘‘(j) DETERMINATION
OF
REGISTRATION
FILING 
DATE.—An annual or revised registration shall be deemed 
filed when— 
‘‘(1) deposited in the United States mail, post-
age prepaid, to the address of the sales tax admin-
istering authority; 
‘‘(2) delivered and accepted at the offices of the 
sales tax administering authority; or 
‘‘(3) provided to a designated commercial pri-
vate courier service for delivery within 2 days to the 
sales tax administering authority at the address of 
the sales tax administering authority. 
‘‘(k) PROPOSED REGISTRATION TO BE PROVIDED.— 
30 or more days before the family registration date, the 
sales tax administering authority shall mail to the address 
shown on the most recent rebate registration or change 
of address notice filed pursuant to section 305(d) a pro-
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posed registration that may be simply signed by the appro-
priate family members if family circumstances have not 
changed. 
‘‘(l) INCARCERATED INDIVIDUALS.—An individual 
shall not be eligible under this chapter to be included as 
a member of any qualified family if that individual— 
‘‘(1) is incarcerated in a local, State, or Federal 
jail, prison, mental hospital, or other institution on 
the family determination date, and 
‘‘(2) is scheduled to be incarcerated for 6 
months or more in the 12-month period following 
the effective date of the annual registration or the 
revised registration of said qualified family. 
‘‘(m) FAMILY DETERMINATION DATE.—The family 
determination date is a date assigned to each family by 
the Secretary for purposes of determining qualified family 
size and other information necessary for the administra-
tion of this chapter. The Secretary shall promulgate regu-
lations regarding the issuance of family determination 
dates. In the absence of any regulations, the family deter-
mination date for all families shall be October 1. The Sec-
retary may assign family determination dates for adminis-
trative convenience. Permissible means of assigning family 
determination dates include a method based on the 
birthdates of family members. 
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‘‘(n) CROSS REFERENCE.—For penalty for filing 
false rebate claim, see section 505(i). 
‘‘SEC. 303. MONTHLY POVERTY LEVEL. 
‘‘(a) IN GENERAL.—The monthly poverty level for 
any particular month shall be one-twelfth of the ‘annual 
poverty level.’ For purposes of this section the ‘annual 
poverty level’ shall be the sum of— 
‘‘(1) the annual level determined by the Depart-
ment of Health and Human Services poverty guide-
lines required by sections 652 and 673(2) of the 
Omnibus Reconciliation Act of 1981 for a particular 
family size, and 
‘‘(2) in case of families that include a married 
couple, the ‘annual marriage penalty elimination 
amount’. 
‘‘(b) ANNUAL MARRIAGE PENALTY ELIMINATION 
AMOUNT.—The annual marriage penalty elimination 
amount shall be the amount that is— 
‘‘(1) the amount that is two times the annual 
level determined by the Department of Health and 
Human Services poverty guidelines required by sec-
tions 652 and 673(2) of the Omnibus Reconciliation 
Act of 1981 for a family of one, less 
‘‘(2) the annual level determined by the Depart-
ment of Health and Human Services poverty guide-
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lines required by sections 652 and 673(2) of the 
Omnibus Reconciliation Act of 1981 for a family of 
two. 
‘‘SEC. 304. REBATE MECHANISM. 
‘‘(a) GENERAL RULE.—The Social Security Adminis-
tration shall provide a monthly sales tax rebate to duly 
registered qualified families in an amount determined in 
accordance with section 301. 
‘‘(b) PERSONS RECEIVING REBATE.—The payments 
shall be made to the persons designated by the qualifying 
family in the annual or revised registration for each quali-
fied family in effect with respect to the month for which 
payment is being made. Payments may only be made to 
persons 18 years or older. If more than 1 person is des-
ignated in a registration to receive the rebate, then the 
rebate payment shall be divided evenly between or among 
those persons designated. 
‘‘(c) WHEN REBATES MAILED.—Rebates shall be 
mailed on or before the first business day of the month 
for which the rebate is being provided. 
‘‘(d) SMARTCARDS AND DIRECT ELECTRONIC DE-
POSIT PERMISSIBLE.—The Social Security Administration 
may provide rebates in the form of smartcards that carry 
cash balances in their memory for use in making pur-
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chases at retail establishments or by direct electronic de-
posit. 
‘‘SEC. 305. CHANGE IN FAMILY CIRCUMSTANCES. 
‘‘(a) GENERAL RULE.—In the absence of the filing 
of a revised registration in accordance with this chapter, 
the common residence of the qualified family, marital sta-
tus and number of persons in a qualified family on the 
family registration date shall govern determinations re-
quired to be made under this chapter for purposes of the 
following calendar year. 
‘‘(b) NO DOUBLE COUNTING.—In no event shall any 
person be considered part of more than 1 qualified family. 
‘‘(c) REVISED
REGISTRATION
PERMISSIBLE.—A 
qualified family may file a revised registration for pur-
poses of section 302(d) to reflect a change in family cir-
cumstances. A revised registration form shall provide— 
‘‘(1) the name of each family member who 
shared the qualified family’s residence on the filing 
date of the revised registration, 
‘‘(2) the Social Security number of each family 
member 2 years of age or older who shared the 
qualified family’s residence on the filing date of the 
revised registration, 
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‘‘(3) the family member or family members to 
whom the family consumption allowance should be 
paid, 
‘‘(4) a certification that all listed family mem-
bers are lawful residents of the United States, 
‘‘(5) a certification that all family members 
sharing the commoner residence are listed, 
‘‘(6) a certification that no family members 
were incarcerated on the family determination date 
(within the meaning of section 302(1)), and 
‘‘(7) the address of the qualified family. 
Said revised registration shall be signed by all members 
of the qualified family that have attained the age of 21 
years as of the filing date of the revised registration. 
‘‘(d) CHANGE OF ADDRESS.—A change of address for 
a qualified family may be filed with the sales tax admin-
istering authority at any time and shall not constitute a 
revised registration. 
‘‘(e) REVISED REGISTRATION NOT MANDATORY.— 
Revised registrations reflecting changes in family status 
are not mandatory. 
‘‘CHAPTER 4—FEDERAL AND STATE 
COOPERATIVE TAX ADMINISTRATION 
‘‘Sec. 401. Authority for States to collect tax. 
‘‘Sec. 402. Federal administrative support for States. 
‘‘Sec. 403. Federal-State tax conferences. 
‘‘Sec. 404. Federal administration in certain States. 
‘‘Sec. 405. Interstate allocation and destination determination. 
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‘‘Sec. 406. General administrative matters. 
‘‘Sec. 407. Jurisdiction. 
‘‘SEC. 401 AUTHORITY FOR STATES TO COLLECT TAX. 
‘‘(a) IN GENERAL.—The tax imposed by section 101 
on gross payments for the use or consumption of taxable 
property or services within a State shall be administered, 
collected, and remitted to the United States Treasury by 
such State if the State is an administering State. 
‘‘(b) ADMINISTERING STATE.—For purposes of this 
section, the term ‘administering State’ means any State— 
‘‘(1) which maintains a sales tax, and 
‘‘(2) which enters into a cooperative agreement 
with the Secretary containing reasonable provisions 
governing the administration by such State of the 
taxes imposed by the subtitle and the remittance to 
the United States in a timely manner of taxes col-
lected under this chapter. 
‘‘(c) COOPERATIVE AGREEMENTS.—The agreement 
under subsection (b)(2) shall include provisions for the ex-
peditious transfer of funds, contact officers, dispute reso-
lution, information exchange, confidentiality, taxpayer 
rights, and other matters of importance. The agreement 
shall not contain extraneous matters. 
‘‘(d) TIMELY REMITTANCE OF TAX.— 
‘‘(1) IN GENERAL.—Administering States shall 
remit and pay over taxes collected under this subtitle 
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on behalf of the United States (less the administra-
tion fee allowable under paragraph (2)) not later 
than 5 days after receipt. Interest at 150 percent of 
the Federal short-term rate shall be paid with re-
spect to amounts remitted after the due date. 
‘‘(2) ADMINISTRATION FEE.—An administering 
State may retain an administration fee equal to one- 
quarter of 1 percent of the amounts otherwise re-
quired to be remitted to the United States under 
this chapter by the administering State. 
‘‘(e) LIMITATION ON ADMINISTRATION OF TAX BY 
UNITED STATES.—The Secretary may administer the tax 
imposed by this subtitle in an administering State only 
if— 
‘‘(1)(A) such State has failed on a regular basis 
to timely remit to the United States taxes collected 
under this chapter on behalf of the United States, 
or 
‘‘(B) such State has on a regular basis other-
wise materially breached the agreement referred to 
in subsection (b)(2); 
‘‘(2) the State has failed to cure such alleged 
failures and breaches within a reasonable time; 
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‘‘(3) the Secretary provides such State with 
written notice of such alleged failures and breaches; 
and 
‘‘(4) a District Court of the United States with-
in such State, upon application of the Secretary, has 
rendered a decision— 
‘‘(A) making findings of fact that— 
‘‘(i) such State has failed on a regular 
basis to timely remit to the United States 
taxes collected under this chapter on behalf 
of the United States, or such State has on 
a 
regular 
basis 
otherwise 
materially 
breached the agreement referred to in sub-
section (b)(2); 
‘‘(ii) the Secretary has provided such 
State with written notice of such alleged 
failures and breaches; and 
‘‘(iii) the State has failed to cure such 
alleged failures and breaches within a rea-
sonable time; and 
‘‘(B) making a determination that it is in 
the best interest of the citizens of the United 
States that the administering State’s authority 
to administer the tax imposed by this subtitle 
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be revoked and said tax be administered di-
rectly by the Secretary. 
The order of the District Court revoking the author-
ity of an Administering State shall contain provi-
sions governing the orderly transfer of authority to 
the Secretary. 
‘‘(f) REINSTITUTION.—A State that has had its au-
thority revoked pursuant to subsection (e) shall not be an 
administering State for a period of not less than 5 years 
after the date of the order of revocation. For the first cal-
endar year commencing 8 years after the date of the order 
of revocation, the State shall be regarded without preju-
dice as eligible to become an administering State. 
‘‘(g) THIRD
STATE
ADMINISTRATION
PERMIS-
SIBLE.—It shall be permissible for a State to contract with 
an administering State to administer the State’s sales tax 
for an agreed fee. In this case, the agreement con-
templated by subsection (c) shall have both the State and 
the Federal Government as parties. 
‘‘(h) INVESTIGATIONS AND AUDITS.—Administering 
States shall not conduct investigations or audits at facili-
ties in other administering States in connection with the 
tax imposed by section 101 or conforming State sales tax 
but shall instead cooperate with other administering 
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States using the mechanisms established by section 402, 
by compact or by other agreement. 
‘‘SEC. 
402. 
FEDERAL 
ADMINISTRATIVE 
SUPPORT 
FOR 
STATES. 
‘‘(a) IN GENERAL.—The Secretary shall administer 
a program to facilitate information sharing among States. 
‘‘(b) STATE COMPACTS.—The Secretary shall facili-
tate, and may be a party to a compact among States for 
purposes of facilitating the taxation of interstate pur-
chases and for other purposes that may facilitate imple-
mentation of this subtitle. 
‘‘(c) AGREEMENT WITH CONFORMING STATES.—The 
Secretary is authorized to enter into and shall enter into 
an agreement among conforming States enabling con-
forming States to collect conforming State sales tax on 
sales made by sellers without a particular conforming 
State to a destination within that particular conforming 
State. 
‘‘(d) SECRETARY’S AUTHORITY.—The Secretary shall 
have the authority to promulgate regulations, to provide 
guidelines, to assist States in administering the national 
sales tax, to provide for uniformity in the administration 
of the tax and to provide guidance to the public. 
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‘‘SEC. 403. FEDERAL-STATE TAX CONFERENCES. 
‘‘Not less than once annually, the Secretary shall host 
a conference with the sales tax administrators from the 
various administering States to evaluate the state of the 
national sales tax system, to address issues of mutual con-
cern and to develop and consider legislative, regulatory, 
and administrative proposals to improve the tax system. 
‘‘SEC. 404. FEDERAL ADMINISTRATION IN CERTAIN STATES. 
‘‘The Secretary shall administer the tax imposed by 
this subtitle in any State or other United States jurisdic-
tion that— 
‘‘(1) is not an administering State, or 
‘‘(2) elected to have another State administer 
its tax in accordance with section 401(g). 
‘‘SEC. 405. INTERSTATE ALLOCATION AND DESTINATION 
DETERMINATION. 
‘‘(a) DESTINATION GENERALLY.—The tax imposed 
by this subtitle is a destination principle tax. This section 
shall govern for purposes of determining— 
‘‘(1) whether the destination of taxable property 
and services is within or without the United States, 
and 
‘‘(2) which State or territory within the United 
States is the destination of taxable property and 
services. 
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‘‘(b) TANGIBLE PERSONAL PROPERTY.—Except as 
provided in subsection (f) (relating to certain leases), the 
destination of tangible personal property shall be the State 
or territory in which the property was first delivered to 
the purchaser (including agents and authorized represent-
atives). 
‘‘(c) REAL PROPERTY.—The destination of real prop-
erty, or rents or leaseholds on real property, shall be the 
State or territory in which the real property is located. 
‘‘(d) OTHER PROPERTY.—The destination of any 
other taxable property shall be the residence of the pur-
chaser. 
‘‘(e) SERVICES.— 
‘‘(1) GENERAL RULE.—The destination of serv-
ices shall be the State or territory in which the use 
or consumption of the services occurred. Allocation 
of service invoices relating to more than 1 jurisdic-
tion shall be on the basis of time or another method 
determined by regulation. 
‘‘(2) TELECOMMUNICATIONS
SERVICES.—The 
destination of telecommunications services shall be 
the residence of the purchaser. Telecommunications 
services include telephone, telegraph, beeper, radio, 
cable television, satellite, and computer on-line or 
network services. 
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‘‘(3) DOMESTIC TRANSPORTATION SERVICES.— 
For transportation services where all of the final 
destinations are within the United States, the des-
tination of transportation services shall be the final 
destination of the trip (in the case of round or mul-
tiple trip fares, the services amount shall be equally 
allocated among each final destination). 
‘‘(4) INTERNATIONAL TRANSPORTATION SERV-
ICES.—For transportation services where the final 
destination or origin of the trip is without the 
United States, the service amount shall be deemed 
50 percent attributable to the United States destina-
tion or origin. 
‘‘(5) ELECTRICAL SERVICE.—The destination of 
electrical services shall be the residence of the pur-
chaser. 
‘‘(f) FINANCIAL INTERMEDIATION SERVICES.—The 
destination of financial intermediation services shall be the 
residence of the purchaser. 
‘‘(g) RENTS PAID FOR THE LEASE OF TANGIBLE 
PROPERTY.— 
‘‘(1) GENERAL RULE.—Except as provided in 
paragraph (2), the destination of rents paid for the 
lease of tangible property and leaseholds on such 
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property shall be where the property is located while 
in use. 
‘‘(2) 
LAND
VEHICLES; 
AIRCRAFT, 
WATER 
CRAFT.—The destination of rental and lease pay-
ments on land vehicles, aircraft and water craft shall 
be— 
‘‘(A) in the case of rentals and leases of a 
term of 1 month or less, the location where the 
land vehicle, aircraft, or water craft was origi-
nally delivered to the renter or lessee; and 
‘‘(B) in the case of rentals and leases of a 
term greater than 1 month, the residence of the 
renter or lessee. 
‘‘(h) ALLOCATION RULES.—For purposes of allo-
cating revenue— 
‘‘(1) between or among administering States 
from taxes imposed by this subtitle or from State 
sales taxes administered by third-party admin-
istering States, or 
‘‘(2) between or among States imposing con-
forming State sales taxes, 
the revenue shall be allocated to those States that are the 
destination of the taxable property or service. 
‘‘(i) FEDERAL OFFICE OF REVENUE ALLOCATION.— 
The Secretary shall establish an Office of Revenue Alloca-
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tion to arbitrate any claims or disputes among admin-
istering States as to the destination of taxable property 
and services for purposes of allocating revenue between or 
among the States from taxes imposed by this subtitle. The 
determination of the Administrator of the Office of Rev-
enue Allocation shall be subject to judicial review in any 
Federal court with competent jurisdiction. The standard 
of review shall be abuse of discretion. 
‘‘SEC. 406. GENERAL ADMINISTRATIVE MATTERS. 
‘‘(a) IN GENERAL.—The Secretary and each sales tax 
administering authority may employ such persons as may 
be necessary for the administration of this subtitle and 
may delegate to employees the authority to conduct inter-
views, hearings, prescribe rules, promulgate regulations, 
and perform such other duties as are required by this sub-
title. 
‘‘(b) RESOLUTION OF ANY INCONSISTENT RULES 
AND REGULATIONS.—In the event that the Secretary and 
any sales tax administering authority have issued incon-
sistent rules or regulations, any lawful rule or regulation 
issued by the Secretary shall govern. 
‘‘(c) ADEQUATE NOTICE TO BE PROVIDED.—Except 
in the case of an emergency declared by the Secretary (and 
not his designee), no rule or regulation issued by the Sec-
retary with respect to any internal revenue law shall take 
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effect before 90 days have elapsed after its publication in 
the Federal Register. Upon issuance, the Secretary shall 
provide copies of all rules or regulations issued under this 
title to each sales tax administering authority. 
‘‘(d) NO RULES, RULINGS, OR REGULATIONS WITH 
RETROACTIVE EFFECT.—No rule, ruling, or regulation 
issued or promulgated by the Secretary relating to any in-
ternal revenue law or by a sales tax administering author-
ity shall apply to a period prior to its publication in the 
Federal Register (or State equivalent) except that a regu-
lation may take retroactive effect to prevent abuse. 
‘‘(e) REVIEW OF IMPACT OF REGULATIONS, RULES, 
AND RULINGS ON SMALL BUSINESS.— 
‘‘(1) SUBMISSION TO SMALL BUSINESS ADMIN-
ISTRATION.—After publication of any proposed or 
temporary regulation by the Secretary relating to in-
ternal revenue laws, the Secretary shall submit such 
regulation to the Chief Counsel for Advocacy of the 
Small Business Administration for comment on the 
impact of such regulation on small businesses. Not 
later than the date 30 days after the date of such 
submission, the Chief Counsel for Advocacy of the 
Small Business Administration shall submit com-
ments on such regulation to the Secretary. 
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‘‘(2) CONSIDERATION OF COMMENTS.—In pre-
scribing any final regulation which supersedes a pro-
posed or temporary regulation which had been sub-
mitted under this subsection to the Chief Counsel 
for Advocacy of the Small Business Administration, 
the Secretary shall— 
‘‘(A) consider the comments of the Chief 
Counsel for Advocacy of the Small Business 
Administration on such proposed or temporary 
regulation, and 
‘‘(B) in promulgating such final regulation, 
include a narrative that describes the response 
to such comments. 
‘‘(3) SUBMISSION OF CERTAIN FINAL REGULA-
TION.—In the case of promulgation by the Secretary 
of any final regulations (other than a temporary reg-
ulation) which do not supersede a proposed regula-
tion, the requirements of paragraphs (1) and (2) 
shall apply, except that the submission under para-
graph (1) shall be made at least 30 days before the 
date of such promulgation, and the consideration 
and discussion required under paragraph (2) shall 
be made in connection with the promulgation of such 
final regulation. 
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‘‘(f) SMALL BUSINESS REGULATORY SAFEGUARDS.— 
The Small Business Regulatory Enforcement Fairness Act 
(Public Law 104–121; 110 Stat. 857 (‘SBREFA’)) and 
the Regulatory Flexibility Act (5 U.S.C. 601–612 
(‘RFA’)) shall apply to regulations promulgated under this 
subtitle. 
‘‘SEC. 407. JURISDICTION. 
‘‘(a) STATE JURISDICTION.—A sales tax admin-
istering authority shall have jurisdiction over any gross 
payments made which have a destination (as determined 
in accordance with section 405) within the State of said 
sales tax administering authority. This grant of jurisdic-
tion is not exclusive of any other jurisdiction that such 
sales tax administering authority may have. 
‘‘(b) FEDERAL JURISDICTION.—The grant of juris-
diction in subsection (a) shall not be in derogation of Fed-
eral jurisdiction over the same matter. The Federal Gov-
ernment shall have the right to exercise preemptive juris-
diction over matters relating to the taxes imposed by this 
subtitle. 
‘‘CHAPTER 5—OTHER ADMINISTRATIVE 
PROVISIONS 
‘‘Sec. 501. Monthly reports and payments. 
‘‘Sec. 502. Registration. 
‘‘Sec. 503. Accounting. 
‘‘Sec. 504. Registration certificates. 
‘‘Sec. 505. Penalties. 
‘‘Sec. 506. Burden of persuasion and burden of production. 
‘‘Sec. 507. Attorneys’ and accountancy fees. 
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‘‘Sec. 508. Summons, examinations, audits, etc. 
‘‘Sec. 509. Records. 
‘‘Sec. 510. Tax to be separately stated and charged. 
‘‘Sec. 511. Coordination with title 11. 
‘‘Sec. 512. Applicable interest rate. 
‘‘SEC. 501. MONTHLY REPORTS AND PAYMENTS. 
‘‘(a) TAX REPORTS AND FILING DATES.— 
‘‘(1) IN GENERAL.—On or before the 15th day 
of each month, each person who is— 
‘‘(A) liable to collect and remit the tax im-
posed by this subtitle by reason of section 
103(a), or 
‘‘(B) liable to pay tax imposed by this sub-
title which is not collected pursuant to section 
103(a), 
shall submit to the appropriate sales tax admin-
istering authority (in a form prescribed by the Sec-
retary) a report relating to the previous calendar 
month. 
‘‘(2) CONTENTS OF REPORT.—The report re-
quired under paragraph (1) shall set forth— 
‘‘(A) the gross payments referred to in sec-
tion 101, 
‘‘(B) the tax collected under chapter 4 in 
connection with such payments, 
‘‘(C) the amount and type of any credit 
claimed, and 
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‘‘(D) other information reasonably required 
by the Secretary or the sales tax administering 
authority for the administration, collection, and 
remittance of the tax imposed by this subtitle. 
‘‘(b) TAX PAYMENTS DATE.— 
‘‘(1) GENERAL RULE.—The tax imposed by this 
subtitle during any calendar month is due and shall 
be paid to the appropriate sales tax administering 
authority on or before the 15th day of the suc-
ceeding month. Both Federal tax imposed by this 
subtitle and confirming State sales tax (if any) shall 
be paid in 1 aggregate payment. 
‘‘(2) CROSS
REFERENCE.—See subsection (e) 
relating to remitting of separate segregated funds 
for sellers that are not small sellers. 
‘‘(c) EXTENSIONS FOR FILING REPORTS.— 
‘‘(1) AUTOMATIC EXTENSIONS FOR NOT MORE 
THAN 30 DAYS.—On application, an extension of not 
more than 30 days to file reports under subsection 
(a) shall be automatically granted. 
‘‘(2) OTHER EXTENSIONS.—On application, ex-
tensions of 30 to 60 days to file such reports shall 
be liberally granted by the sales tax administering 
authority for reasonable cause. Extensions greater 
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than 60 days may be granted by the sales tax ad-
ministering authority to avoid hardship. 
‘‘(3) 
NO
EXTENSION
FOR
PAYMENT
OF 
TAXES.—Notwithstanding paragraphs (1) and (2), 
no extension shall be granted with respect to the 
time for paying or remitting the taxes under this 
subtitle. 
‘‘(d) TELEPHONE REPORTING OF VIOLATIONS.—The 
Secretary shall establish a system under which a violation 
of this subtitle can be brought to the attention of the sales 
tax administering authority for investigation through the 
use of a toll-free telephone number and otherwise. 
‘‘(e) SEPARATE SEGREGATED ACCOUNTS.— 
‘‘(1) IN GENERAL.—Any registered seller that 
is not a small seller shall deposit all sales taxes col-
lected pursuant to section 103 in a particular week 
in a separate segregated account maintained at a 
bank or other financial institution within 3 business 
days of the end of such week. Said registered seller 
shall also maintain in that account sufficient funds 
to meet the bank or financial institution minimum 
balance requirements, if any, and to pay account 
fees and costs. 
‘‘(2) SMALL
SELLER.—For purposes of this 
subsection, a small seller is any person that has not 
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collected $20,000 or more of the taxes imposed by 
this subtitle in any of the previous 12 months. 
‘‘(3) LARGE SELLERS.—Any seller that has col-
lected $100,000 or more of the taxes imposed by 
this subtitle in any of the previous 12 months is a 
large seller. A large seller shall remit to the sales tax 
administering authority the entire balance of depos-
ited taxes in its separate segregated account on the 
first business day following the end of the calendar 
week. The Secretary may by regulation require the 
electronic transfer of funds due from large sellers. 
‘‘(4) WEEK.—For purposes of this subsection, 
the term ‘week’ shall mean the 7-day period ending 
on a Friday. 
‘‘(f) DETERMINATION OF REPORT FILING DATE.— 
A report filed pursuant to subsection (a) shall be deemed 
filed when— 
‘‘(1) deposited in the United States mail, post-
age prepaid, addressed to the sales tax administering 
authority, 
‘‘(2) delivered and accepted at the offices of the 
sales tax administering authority, 
‘‘(3) provided to a designated commercial pri-
vate courier service for delivery within 2 days to the 
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sales tax administering authority at the address of 
the sales tax administering authority, or 
‘‘(4) by other means permitted by the Sec-
retary. 
‘‘(g) SECURITY
REQUIREMENTS.—A large seller 
(within the meaning of subsection (e)(3)) shall be required 
to provide security in an amount equal to the greater of 
$100,000 or one and one-half times the seller’s average 
monthly tax liability during the previous 6 calendar 
months. Security may be a cash bond, a bond from a sur-
ety company approved by the Secretary, a certificate of 
deposit, or a State or United States Treasury bond. A 
bond qualifying under this subsection must be a con-
tinuing instrument for each calendar year (or portion 
thereof) that the bond is in effect. The bond must remain 
in effect until the surety or sureties are released and dis-
charged. Failure to provide security in accordance with 
this section shall result in revocation of the seller’s section 
502 registration. If a person who has provided security 
pursuant to this subsection— 
‘‘(1) fails to pay an amount indicated in a final 
notice of amount due under this subtitle (within the 
meaning of section 605(d)), 
‘‘(2) no Taxpayer Assistance Order is in effect 
relating to the amount due, 
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‘‘(3) either the time for filing an appeal pursu-
ant to section 604 has passed or the appeal was de-
nied, and 
‘‘(4) the amount due is not being litigated in 
any judicial forum, 
then the security or part of the security, as the case may 
be, may be forfeited in favor of the Secretary to the extent 
of such tax due (plus interest if any). 
‘‘(h) REWARDS PROGRAM.—The Secretary is author-
ized to maintain a program of awards wherein individuals 
that assist the Secretary or sales tax administering au-
thorities in discovering or prosecuting tax fraud may be 
remunerated. 
‘‘(i) CROSS REFERENCE.—For interest due on taxes 
remitted late, see section 6601. 
‘‘SEC. 502. REGISTRATION. 
‘‘(a) IN GENERAL.—Any person liable to collect and 
remit taxes pursuant to section 103(a) who is engaged in 
a trade or business shall register as a seller with the sales 
tax administering authority administering the taxes im-
posed by this subtitle. 
‘‘(b) AFFILIATED FIRMS.—Affiliated firms shall be 
treated as 1 person for purposes of this section. Affiliated 
firms may elect, upon giving notice to the Secretary in 
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a form prescribed by the Secretary, to treat separate firms 
as separate persons for purposes of this subtitle. 
‘‘(c) DESIGNATION
OF TAX MATTERS PERSON.— 
Every person registered pursuant to subsection (a) shall 
designate a tax matters person who shall be an individual 
whom the sales tax administering authority may contact 
regarding tax matters. Each person registered must pro-
vide notice of a change in the identity of the tax matters 
person within 30 days of said change. 
‘‘(d) CERTIFICATES OF REGISTRATION.—The sales 
tax administering authority shall provide certificates of 
registration to registered sellers. 
‘‘(e) EFFECT OF FAILURE TO REGISTER.—Any per-
son that is required to register and who fails to do so is 
prohibited from selling taxable property or services. The 
Secretary or a sales tax administering authority may bring 
an action seeking a temporary restraining order, an in-
junction, or such other order as may be appropriate to 
enforce this section. 
‘‘SEC. 503. ACCOUNTING. 
‘‘(a) CASH METHOD TO BE USED GENERALLY.— 
Registered sellers and other persons shall report trans-
actions using the cash method of accounting unless an 
election to use the accrual method of accounting is made 
pursuant to subsection (b). 
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‘‘(b) ELECTION TO USE ACCRUAL METHOD.—A per-
son may elect with respect to a calender year to remit 
taxes and report transactions with respect to the month 
where a sale was invoiced and accrued. 
‘‘(c) CROSS REFERENCE.—See section 205 for rules 
relating to bad debts for sellers electing the accrual meth-
od 
‘‘SEC. 504. REGISTRATION CERTIFICATES. 
‘‘The sales tax administering authority shall issue 
certificates of registration to registered sellers and such 
other certificates as are necessary or may prove useful in 
the administration of the taxes imposed by this subtitle. 
‘‘SEC. 505. PENALTIES. 
‘‘(a) FAILURE TO REGISTER.—Each person who is 
required to register pursuant to section 502 but fails to 
do so prior to notification by the sales tax administering 
authority shall be liable for a penalty of $500. 
‘‘(b) RECKLESS OR WILLFUL FAILURE TO COLLECT 
TAX.— 
‘‘(1) CIVIL
PENALTY; FRAUD.—Each person 
who is required to and recklessly or willfully fails to 
collect taxes imposed by this subtitle shall be liable 
for a penalty equal to the greater of $500 or 20 per-
cent of tax not collected. 
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‘‘(2) CRIMINAL PENALTY.—Each person who is 
required to and willfully fails as part of a trade or 
business to collect taxes imposed by this subtitle 
may be fined an amount up to the amount deter-
mined in accordance with paragraph (1) or impris-
oned for a period of not more than 1 year or both. 
‘‘(c) RECKLESS OR WILLFUL ASSERTION OF INVALID 
EXEMPTION.— 
‘‘(1) CIVIL
PENALTY; FRAUD.—Each person 
who recklessly or willfully asserts an invalid inter-
mediate or export sales exemption from the taxes 
imposed by this subtitle shall be liable for a penalty 
equal to the greater of $500 or 20 percent of the tax 
not collected or remitted. 
‘‘(2) CRIMINAL
PENALTY.—Each person who 
willfully asserts an invalid intermediate or export 
sales exemption from the taxes imposed by this sub-
title may be fined an amount up to the amount de-
termined in accordance with paragraph (1) or im-
prisoned for a period of not more than 1 year or 
both. 
‘‘(d) RECKLESS OR WILLFUL FAILURE TO REMIT 
TAX COLLECTED.— 
‘‘(1) CIVIL
PENALTY; FRAUD.—Each person 
who is required to and recklessly or willfully fails to 
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remit taxes imposed by this subtitle and collected 
from purchasers shall be liable for a penalty equal 
to the greater of $1,000 or 50 percent of the tax not 
remitted. 
‘‘(2) CRIMINAL
PENALTY.—Each person who 
willfully fails to remit taxes imposed by this subtitle 
and collected from purchasers may be fined an 
amount up to the amount determined in accordance 
with paragraph (1) or imprisoned for a period of not 
more than 2 years or both. 
‘‘(e) RECKLESS
OR WILLFUL FAILURE TO PAY 
TAX.—Each person who is required to and recklessly or 
willfully fails to pay taxes imposed by this subtitle shall 
be liable for a penalty equal to the greater of $500 or 
20 percent of the tax not paid. 
‘‘(f) PENALTY FOR LATE FILING.— 
‘‘(1) IN GENERAL.—In the case of a failure by 
any person who is required to and fails to file a re-
port required by section 501 on or before the due 
date (determined with regard to any extension) for 
such report, such person shall pay a penalty for each 
month or fraction thereof that said report is late 
equal to the greater of— 
‘‘(A) $50, or 
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‘‘(B) 0.5 percent of the gross payments re-
quired to be shown on the report. 
‘‘(2) INCREASED PENALTY ON RETURNS FILED 
AFTER WRITTEN INQUIRY.—The amount of the pen-
alty under paragraph (1) shall be doubled with re-
spect to any report filed after a written inquiry with 
respect to such report is received by the taxpayer 
from the sales tax administering authority. 
‘‘(3) LIMITATION.—The penalty imposed under 
this subsection shall not exceed 12 percent. 
‘‘(4) EXCEPTIONS.— 
‘‘(A) REASONABLE
CAUSE.—No penalty 
shall be imposed under this subsection with re-
spect to any failure if it is shown that such fail-
ure is due to reasonable cause. 
‘‘(B) OTHER WAIVER AUTHORITY.—In ad-
dition to penalties not imposed by reason of 
subparagraph (A), the sales tax administering 
authority, on application, shall waive the pen-
alty imposed by paragraph (1) once per reg-
istered person per 24-month period. The pre-
ceding sentence shall not apply to a penalty de-
termined under paragraph (2). 
‘‘(g) PENALTY FOR WILLFULLY OR RECKLESSLY AC-
CEPTING A FALSE INTERMEDIATE OR EXPORT SALES 
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CERTIFICATE.—A person who willingly or recklessly ac-
cepts a false intermediate or export sales certificate shall 
pay a penalty equal to 20 percent of the tax not collected 
by reason of said acceptance. 
‘‘(h) PENALTY FOR LATE REMITTANCE OF TAXES.— 
‘‘(1) IN GENERAL.—A person who is required 
to timely remit taxes imposed by this subtitle and 
remits taxes more than 1 month after such taxes are 
due shall pay a penalty equal to 1 percent per month 
(or fraction thereof) from the due date. 
‘‘(2) LIMITATION.—The penalty imposed under 
this subsection shall not exceed 24 percent. 
‘‘(3) EXCEPTIONS FOR REASONABLE CAUSE.— 
No penalty shall be imposed under paragraph (1) 
with respect to any late remittance if it is shown 
that such late remittance is due to reasonable cause. 
‘‘(i) PENALTY FOR FILING FALSE REBATE CLAIM.— 
‘‘(1) CIVIL PENALTY; FRAUD.—A person who 
willingly or recklessly files a false claim for a family 
consumption allowance rebate (within the meaning 
of chapter 3) shall— 
‘‘(A) pay a penalty equal to the greater of 
$500 or 50 percent of the claimed annual re-
bate amount not actually due, and 
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‘‘(B) repay any rebates received as a result 
of the false rebate claim (together with inter-
est). 
‘‘(2) CRIMINAL PENALTY.—A person who will-
ingly files a false claim for a family consumption al-
lowance rebate (within the meaning of chapter 3) 
may be fined an amount up to the amount deter-
mined in accordance with paragraph (1) or impris-
oned for a period not more than 1 year or both. 
‘‘(j) PENALTY FOR BAD CHECK.—If any check or 
money order in payment of any amount receivable under 
this subtitle is not duly paid, in addition to other penalties 
provided by law, the person who tendered such check shall 
pay a penalty equal to the greater of— 
‘‘(1) $25, or 
‘‘(2) two percent of the amount of such check. 
‘‘(k) PENALTY FOR FAILURE TO MAINTAIN A SEPA-
RATE SEGREGATED ACCOUNT.—Any person required to 
maintain a separate segregated account pursuant to sec-
tion 501(e) that fails to maintain such a separate seg-
regated account shall pay a penalty of $1,000. 
‘‘(l) PENALTY
FOR FAILURE TO DEPOSIT COL-
LECTED
TAXES
IN
A
SEPARATE
SEGREGATED
AC-
COUNT.—Any person required to deposit collected taxes 
into a separate segregated account maintained pursuant 
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to section 501(e) that fails to timely deposit said taxes 
into the separate segregated account shall pay a penalty 
equal to 1 percent of the amount required to be deposited. 
The penalty imposed by the previous sentence shall be tri-
pled unless said taxes have been deposited in the separate 
segregated account or remitted to the sales tax admin-
istering authority within 16 days of the date said deposit 
was due. 
‘‘(m) JOINT AND SEVERAL LIABILITY FOR TAX MAT-
TERS PERSON AND RESPONSIBLE OFFICERS.—The tax 
matters person (designated pursuant to section 502(c)) 
and responsible officers or partners of a firm shall be 
jointly and severally liable for the tax imposed by this sub-
title and penalties imposed by this subtitle. 
‘‘(n) RIGHT OF CONTRIBUTION.—If more than 1 per-
son is liable with respect to any tax or penalty imposed 
by this subtitle, each person who paid such tax or penalty 
shall be entitled to recover from other persons who are 
liable for such tax or penalty an amount equal to the ex-
cess of the amount paid by such person over such person’s 
proportionate share of the tax or penalty. 
‘‘(o) CIVIL PENALTIES AND CRIMINAL FINES NOT 
EXCLUSIVE.— 
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‘‘(1) CIVIL
PENALTY.—The fact that a civil 
penalty has been imposed shall not prevent the im-
position of a criminal fine. 
‘‘(2) CRIMINAL FINE.—The fact that a criminal 
fine has been imposed shall not prevent the imposi-
tion of a civil penalty. 
‘‘(p) CONFIDENTIALITY.—Any person who violates 
the requirements relating to confidentiality of tax informa-
tion (as provided in section 605(e)) may be fined up to 
$10,000 or imprisoned for a period of not more than 1 
year, or both. 
‘‘(q) CROSS REFERENCE.—For interest due on late 
payments, see section 6601. 
‘‘SEC. 506. BURDEN OF PERSUASION AND BURDEN OF PRO-
DUCTION. 
‘‘In all disputes concerning taxes imposed by this sub-
title, the person engaged in a dispute with the sales tax 
administering authority or the Secretary, as the case may 
be, shall have the burden of production of documents and 
records but the sales tax administering authority or the 
Secretary shall have the burden of persuasion. In all dis-
putes concerning an exemption claimed by a purchaser, 
if the seller has on file an intermediate sale or export sale 
certificate from the purchaser and did not have reasonable 
cause to believe that the certificate was improperly pro-
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vided by the purchaser with respect to such purchase 
(within the meaning of section 103), then the burden of 
production of documents and records relating to that ex-
emption shall rest with the purchaser and not with the 
seller. 
‘‘SEC. 507. ATTORNEYS’ AND ACCOUNTANCY FEES. 
‘‘In all disputes concerning taxes imposed by this sub-
title, the person engaged in a dispute with the sales tax 
administering authority or the Secretary, as the case may 
be, shall be entitled to reasonable attorneys’ fees, account-
ancy fees, and other reasonable professional fees incurred 
in direct relation to the dispute unless the sales tax admin-
istering authority or the Secretary establishes that its po-
sition was substantially justified. 
‘‘SEC. 508. SUMMONS, EXAMINATIONS, AUDITS, ETC. 
‘‘(a) SUMMONS.—Persons are subject to administra-
tive summons by the sales tax administering authority for 
records, documents, and testimony required by the sales 
tax administering authority to accurately determine liabil-
ity for tax under this subtitle. A summons shall be served 
by the sales tax administering authority by an attested 
copy delivered in hand to the person to whom it is directed 
or left at his last known address. The summons shall de-
scribe with reasonable certainty what is sought. 
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‘‘(b) EXAMINATIONS AND AUDITS.—The sales tax ad-
ministering authority has the authority to conduct at a 
reasonable time and place examinations and audits of per-
sons who are or may be liable to collect and remit tax 
imposed by this subtitle and to examine the books, papers, 
records, or other data of such persons which may be rel-
evant or material to the determination of tax due. 
‘‘(c) LIMITATION ON AUTHORITY IN CASE OF REFER-
RAL.—No administrative summons may be issued by the 
sales tax administering authority and no action be com-
menced to enforce an administrative summons with re-
spect to any person if a Justice Department referral or 
referral to a State Attorney General’s Office is in effect 
with respect to such person relating to a tax imposed by 
this subtitle. Such referral is in effect with respect to any 
person if the sales tax administering authority or the Sec-
retary has recommended to the Justice Department or a 
State Attorney General’s Office a grand jury investigation 
of such person or a criminal prosecution of such person 
that contemplates criminal sanctions under this title. A 
referral shall be terminated when— 
‘‘(1) the Justice Department or a State Attor-
ney General’s Office notifies the sales tax admin-
istering authority or the Secretary that he will not— 
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‘‘(A) prosecute such person for any offense 
connected with the internal revenue laws, 
‘‘(B) authorize a grand jury investigation 
of such person with respect to such offense, or 
‘‘(C) continue such a grand jury investiga-
tion, or 
‘‘(2) a final disposition has been made of any 
criminal proceeding connected with the internal rev-
enue laws, or conforming State sales tax, against 
such person. 
‘‘SEC. 509. RECORDS. 
‘‘Any person liable to remit taxes pursuant to this 
subtitle shall keep records (including a record of all section 
510 receipts provided, complete records of intermediate 
and export sales, including purchaser’s intermediate and 
export sales certificates and tax number and the net of 
tax amount of purchase) sufficient to determine the 
amounts reported, collected, and remitted for a period of 
6 years after the latter of the filing of the report for which 
the records formed the basis or when the report was due 
to be filed. Any purchaser who purchased taxable property 
or services but did not pay tax by reason of asserting an 
intermediate and export sales exemption shall keep records 
sufficient to determine whether said exemption was valid 
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for a period of 7 years after the purchase of taxable prop-
erty or services. 
‘‘SEC. 510. TAX TO BE SEPARATELY STATED AND CHARGED. 
‘‘(a) IN GENERAL.—For each purchase of taxable 
property or services for which a tax is imposed by section 
101, the seller shall charge the tax imposed by section 101 
separately from the purchase. For purchase of taxable 
property or services for which a tax is imposed by section 
101, the seller shall provide to the purchaser a receipt for 
each transaction that includes— 
‘‘(1) the property or services price exclusive of 
tax; 
‘‘(2) the amount of tax paid; 
‘‘(3) the property or service price inclusive of 
tax; 
‘‘(4) the tax rate (the amount of tax paid (per 
paragraph (2)) divided by the property or service 
price inclusive of tax (per paragraph (3)); 
‘‘(5) the date that the good or service was sold; 
‘‘(6) the name of the vendor; and 
‘‘(7) the vendor registration number. 
‘‘(b) VENDING MACHINE EXCEPTION.—The require-
ments of subsection (a) shall be inapplicable in the case 
of sales by vending machines. Vending machines for pur-
poses of this subsection are machines— 
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‘‘(1) that dispense taxable property in exchange 
for coins or currency; and 
‘‘(2) that sell no single item exceeding $10 per 
unit in price. 
‘‘(c) FINANCIAL INTERMEDIATION SERVICES EXCEP-
TION.—The requirements of subsection (a) shall be inap-
plicable in the case of sales financial intermediation serv-
ice. Receipts shall be issued when the tax is imposed (in 
accordance with section 803 (relating to timing of tax on 
financial intermediation services)). 
‘‘SEC. 511. COORDINATION WITH TITLE 11. 
‘‘No addition to tax shall be made under section 505 
with respect to a period during which a case is pending 
under title 11, United States Code— 
‘‘(1) if such tax was incurred by the estate and 
the failure occurred pursuant to an order of the 
court finding probable insufficiency of funds of the 
estate to pay administrative expenses; or 
‘‘(2) if— 
‘‘(A) such tax was incurred by the debtor 
before the earlier of the order for relief or (in 
the involuntary case) the appointment of a 
trustee; and 
‘‘(B) the petition was filed before the due 
date prescribed by law (including extensions) 
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for filing a return of such tax, or the date for 
making the addition to tax occurs on or after 
the date the petition was filed. 
‘‘SEC. 512. APPLICABLE INTEREST RATE. 
‘‘(a) IN GENERAL.— 
‘‘(1) FEDERAL
SHORT-TERM
RATE.—In the 
case of a debt instrument, investment, financing 
lease, or account with a term of not over 3 years, 
the applicable interest rate is the Federal short-term 
rate. 
‘‘(2) FEDERAL MID-TERM RATE.—In the case 
of a debt instrument, investment, financing lease, or 
account with a term of over 3 years but not over 9 
years, the applicable interest rate is the Federal 
mid-term rate. 
‘‘(3) FEDERAL LONG-TERM RATE.—In the case 
of a debt instrument, investment, financing lease, or 
account with a term of over 9 years, the applicable 
interest rate is the Federal long-term rate. 
‘‘(b) FEDERAL SHORT-TERM RATE.—The Federal 
short-term rate shall be the rate determined by the Sec-
retary based on the average market yield (selected by the 
Secretary and ending in the calendar month in which the 
determination is made during any one month) on out-
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standing marketable obligations of the United States with 
remaining periods to maturity of 3 years or fewer. 
‘‘(c) FEDERAL MID-TERM RATE.—The Federal mid- 
term rate shall be the rate determined by the Secretary 
based on the average market yield (selected by the Sec-
retary and ending in the calendar month in which the de-
termination is made during any 1 month) on outstanding 
marketable obligations of the United States with remain-
ing periods to maturity of more than 3 years and not over 
9 years. 
‘‘(d) FEDERAL LONG-TERM RATE.—The Federal 
long-term rate shall be the rate determined by the Sec-
retary based on the average market yield (selected by the 
Secretary and ending in the calendar month in which the 
determination is made during any 1 month) on out-
standing marketable obligations of the United States with 
remaining periods to maturity of over 9 years. 
‘‘(e) DETERMINATION OF RATES.—During each cal-
endar month, the Secretary shall determine the Federal 
short-term rate, the Federal mid-term rate and the Fed-
eral long-term rate which shall apply during the following 
calendar month. 
‘‘CHAPTER 6—COLLECTIONS; APPEALS; 
TAXPAYER RIGHTS 
‘‘Sec. 601. Collections. 
‘‘Sec. 602. Power to levy, etc. 
‘‘Sec. 603. Problem resolution offices. 
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‘‘Sec. 604. Appeals. 
‘‘Sec. 605. Taxpayer rights. 
‘‘Sec. 606. Installment agreements compromises. 
‘‘SEC. 601. COLLECTIONS. 
‘‘The sales tax administering authority shall collect 
the taxes imposed by this subtitle, except as provided in 
section 404 (relating to Federal administration in certain 
States). 
‘‘SEC. 602. POWER TO LEVY, ETC. 
‘‘(a) IN GENERAL.—The sales tax administering au-
thority may levy and seize property, garnish wages or sal-
ary and file liens to collect amounts due under this sub-
title, pursuant to enforcement of— 
‘‘(1) a judgment duly rendered by a court of 
law; 
‘‘(2) an amount due if the taxpayer has failed 
to exercise his appeals rights under section 604; or 
‘‘(3) an amount due if the appeals process de-
termined that an amount remained due and the tax-
payer has failed to timely petition the Tax Court for 
relief. 
‘‘(b) EXEMPTION FROM LEVY, SEIZURE, AND GAR-
NISHMENTS.—There shall be exempt from levy, seizure, 
and garnishment or penalty in connection with any tax 
imposed by this subtitle— 
‘‘(1) wearing apparel, school books, fuel, provi-
sions, furniture, personal effects, tools of a trade or 
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