than use taxes on goods and services purchased for 
the consumption of the seller) to that Member State. 
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) A uniform rule to establish a small seller 
exception to a requirement to collect authorized by 
this Act. 
(18) Uniform rules and procedures for sales tax 
holidays. 
(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 
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and handling and discounts applied to multiple item 
and multiple seller orders. 
(b) APPLICATION OF MINIMUM SIMPLIFICATION RE-
QUIREMENTS
TO TAXES
ON COMMUNICATIONS SERV-
ICES.—Each Member State shall apply the minimum sim-
plification requirements of subsection (a) to sales and use 
taxes on communications services. 
(c) 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-
plification to its sales and use tax system to warrant 
the collection authority granted to such Member 
State 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. 
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(3) EXCEPTION.—In instances where exceptions 
to the requirements of this section can be exercised 
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. 
(d) NO REQUIREMENT TO EXEMPT FROM OR IM-
POSE TAX.—Nothing in this Act or the Agreement shall 
require any Member State or any local taxing jurisdiction 
to exempt, or to impose a tax on any product, or to adopt 
any particular type of tax, or to impose the same rate of 
tax as any other taxing jurisdiction. 
SEC. 8. 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 
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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; 
(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. 9. 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 3 
judges convened pursuant to the provisions of section 
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 3 judges in an action 
under subsection (a) holding this Act, or any provi-
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sion thereof, unconstitutional shall be reviewable as 
a matter of right by direct appeal to the United 
States Supreme 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. 
SEC. 10. DEFINITIONS. 
For the purposes of this Act the following definitions 
apply: 
(1) GOVERNING BOARD.—The term ‘‘Governing 
Board’’ means the governing board established by 
the Streamlined Sales and Use Tax Agreement. 
(2) 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 in effect on the date of the enact-
ment of this Act; 
(B) does not include associate members 
under the Agreement; and 
(C) includes any federally recognized In-
dian Tribe that is accorded Member State sta-
tus under the Agreement pursuant to section 5. 
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