Chapter 64K of the General Laws, as appearing in the 2002 Official Edition, is hereby amended by inserting at the end thereof, the following chapter:

CHAPTER 64 L

Section 1.This chapter shall be known as the “Simplified Sales and Use Tax

Administration Act”.

Section 2. As used in this chapter the following words shall have the following meanings:

“Agreement”, the Streamlined Sales and Use Tax Agreement.

“Certified automated system”, software certified jointly by the states that are signatories to the Agreement to calculate the tax impose by each jurisdiction on a transaction, determine the amount of tax to remit to the appropriate state, and maintain a record of the transaction.

“Certified service provider”, an agent certified jointly by the states that are signatories to the Agreement to perform all of the seller’s sales tax functions.

“Person”, an individual, trust, estate, fiduciary, partnership, limited liability company, limited liability partnership, corporation, or any other legal entity.

“Sales tax”, the tax levied under chapter sixty-four H.

“Seller”, any person making sales, leases, or rentals of personal property or services.

“State”, any state of the United States and the District of Columbia.

“Use tax”, the tax levied under chapter sixty-four I.

“Vendor”, shall have the same meaning as in section one of chapter sixty-four H.

Section 3. The commonwealth finds that a simplified sales and use tax system will reduce and over time eliminate the burden and cost for vendors to collect this state’s sales and use tax. The commonwealth further finds that this state should participate in multi-state discussions to review or amend the terms of the agreement to simplify and

modernize sales and use tax administration in order to substantially reduce the burden of tax compliance for all sellers and all types of commerce.

Section 4. For the purpose of reviewing or amending the agreement embodying the simplification requirements as contained in section 7, the commonwealth shall enter into multi-state discussions. For purposes of such discussions, the commonwealth shall be represented by no more than four delegates, two of which shall be appointed by the governor, one of whom shall represent the department of revenue and one of whom shall represent the retailers association of Massachusetts, and one of whom shall be appointed by the president of the senate, and one of whom shall be appointed by the speaker of the house of representatives.

Section 5. The department of revenue shall enter into the Streamlined Sales and Use Tax Agreement with one or more states to simplify and modernize the administration of the sales and use tax in order to substantially reduce the burden of tax compliance for all sellers and for all types of commerce. In furtherance of the agreement, the department of revenue may act jointly with other states that are members of the agreement to establish standards for certification of a certified service provider and certified automated system and establish performance standards for multi-state sellers. The department of revenue may take other actions reasonably required to implement the provisions set forth in this chapter or to otherwise substantially reduce the administrative burdens associated with sales and use tax compliance. Other actions authorized by this section include, but are not limited to, the adoption of rules and regulations and the joint procurement, with other member states of goods and services in furtherance of the cooperative agreement. The department of revenue or the department of revenue’s designee may represent the commonwealth before the other states that are signatories to the agreement.

Section 6. No provision of the agreement authorized by this chapter in whole or in part invalidates or amends any provision of laws of the commonwealth.  Adoption of the agreement by the commonwealth does not amend or modify any other law. Implementation of any condition of the agreement in this state, whether adopted before, at, or after membership of this state in the agreement, must be by the action of the commonwealth.

Section 7. The department of revenue shall not enter into the Streamlined Sales and Use Tax Agreement unless the agreement requires each state to abide by the following requirements:

(a) Simplified State Rate. The agreement must set restrictions to limit over time the number of state rates.

(b) Uniform Standards. The agreement must establish uniform standards for the following:

(1) The sourcing of transactions to taxing jurisdictions.

(2) The administration of exempt sales.

(3) Sales and use tax returns and remittances.

(c) Central Registration. The agreement must provide a central, electronic registration system that allows a seller to register to collect and remit sales and use taxes for all signatory states.

(d) No Nexus Attribution. The agreement must provide that registration with the central registration system and the collection of sales and use taxes in the signatory states will not be used as a factor in determining whether the seller has nexus with a state for any tax.

(e) Local Sales and Use Taxes. The agreement must provide for reduction of the burdens of complying with local sales and use taxes through the

following:

(1) Restricting variances between the state and local tax bases.

(2) Requiring states to administer any sales and use taxes levied by local jurisdictions within the state so that sellers collecting and remitting these taxes will not have to register or file returns with, remit funds to, or be subject to independent audits from local taxing jurisdictions.

(3) Restricting the frequency of changes in the local sales and use tax rates and setting effective dates for the application of local jurisdictional boundary changes to local sales and use taxes.

(4) Providing notice of changes in local sales and use tax rates and of changes in the boundaries of local taxing jurisdictions.

(f) Monetary Allowances. The agreement must outline any monetary allowances that are to be provided by the states to sellers or certified service providers. The agreement must allow for a joint public and private sector study of the compliance cost on sellers and certified service providers to collect sales and use taxes for state and local governments under various levels of complexity to be completed July 1, 2002.

(g) State Compliance. The agreement must require each state to certify compliance with the terms of the agreement prior to joining and to maintain

compliance, under the laws of the member state, with all provisions of the agreement while a member.

(h) Consumer Privacy. The agreement must require each state to adopt a uniform policy for Certified Service Providers that protects the privacy of

consumers and maintains the confidentiality of tax information.

(i) Advisory Councils. The agreement must provide for the appointment of an advisory council of private sector representatives and an advisory

council of non-member state representatives to consult with in the administration of the agreement.

Section 8. The agreement authorized by this chapter is an accord among individual cooperating sovereigns in furtherance of their governmental functions. The agreement provides a mechanism among the member states to establish and maintain a cooperative, simplified system for the application and administration of sales and use taxes under the duly adopted law of each member state.

Section 9. No provision of the agreement authorized by this chapter in whole or part invalidates or amends any provision of the laws of the commonwealth. Adoption of the agreement by the commonwealth does not amend or modify any law of the commonwealth.  Implementation of any condition of the agreement in the commonwealth, whether adopted before, at, or after membership of the commonwealth in the agreement, must be by the action of the commonwealth.

Section 10. The agreement binds and inures only to the benefit of the commonwealth and the other member states. No person is an intended beneficiary of the agreement.

Section 11. Any benefit to a person is established by the law of the commonwealth and the other member states and not by the terms of the agreement. No law of the commonwealth, or the application thereof, may be declared invalid as to any person or circumstance on the ground that the provision or application is inconsistent with the agreement. No person shall have any cause of action or defense under the agreement or by virtue of the commonwealth’s approval of the agreement. No person may challenge, in any action brought under any provision of 1aw, any action or inaction by any department, agency, or other instrumentality of this state, or any political subdivision of this state on the ground that the action or inaction is inconsistent with the agreement.