2005 California Revenue and Taxation Code Sections 6025-6031 CHAPTER 1.5. STREAMLINED SALES TAX PROJECT

6025.  This chapter shall be known as and referred to as the
"Streamlined Sales Tax Project."
6026.  For purposes of this act:
   (a) "Agreement" means the Streamlined Sales and Use Tax Agreement.
   (b) "Board" means the board of governance, as defined in this act,
or the board's designee.
   (c) "Certified automated system" means software certified jointly
by the states that are signatories to the agreement to calculate the
tax imposed by each jurisdiction on a transaction, determine the
amount of tax to remit to the appropriate state, and maintain a
record of the transaction.
   (d) "Certified service provider" means an agent certified jointly
by the states that are signatories to the agreement to perform all of
the seller's sales tax functions.
   (e) "Person" means an individual, trust, estate, fiduciary,
partnership, limited liability company, limited liability
partnership, corporation, or any other legal entity.
   (f) "Sales tax" means the tax levied by Chapter 2 (commencing with
Section 6051) of Part 1 of Division 2 of the Revenue and Taxation
Code.
   (g) "Purchaser" means a person to whom a sale of tangible personal
property is made or to whom a service is provided.
   (h) "Seller" means any person making sales, leases, or rentals of
personal property of services.
   (i) "Sourcing" means determining the tax situs of a transaction.
   (j) "State" means any state of the United States and the District
of Columbia.
   (k) "Signatory state" means a state that has entered into the
agreement.
   (l) "Use tax" means the tax levied by Chapter 3 (commencing with
Section 6201) of Part 1 of Division 2 of the Revenue and Taxation
Code.
6027.  (a) There is created in state government a Board of
Governance consisting of two Members of the Senate chosen by the
Senate Committee on Rules, one of whom shall belong to the majority
party and one of whom shall belong to the minority party, two Members
of the Assembly chosen by the Speaker of the Assembly, one of whom
shall belong to the majority party and one of whom shall belong to
the minority party, one member of the State Board of Equalization,
one member of the Franchise Tax Board, and one member of the Governor'
s Department of Finance.
   (b) The board may represent this state in all meetings, limited
only to those states that are also authorized by statute to enter
into the agreement.  The board shall vote on behalf of this state and
shall represent the position of this state in all matters relating
to the adoption of or amendments to the agreement.
   (c) The board shall report quarterly to the Assembly and Senate
Revenue and Taxation Committees on the board's progress in
negotiating the agreement and shall recommend to the committees the
state statutes required to be added, amended, or otherwise modified
for purposes of substantially complying with the agreement.
6028.  The state's decision to join the Streamlined Sales Tax
Project shall not invalidate, amend, or otherwise modify, in whole or
in part, any provision of the law of this state.  Implementation of
any provision of the agreement in this state, whether adopted before,
at, or after this state's adoption of the agreement, shall be
exclusively done by a separate act or acts of the Legislature.
6029.  The board may not enter into the agreement unless the
agreement requires each state to abide by the following requirements:
   (a) The agreement shall set restrictions to limit over time the
number of state rates.
   (b) The agreement shall 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) The agreement shall 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) The agreement shall provide that registration with the central
registration system and the collection of sales and use taxes in the
signatory states does not by itself determine whether the seller has
nexus with a state for any tax.
   (e) The agreement shall 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 taxes 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 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) The agreement shall outline any monetary allowances that are
to be provided by the states to sellers or certified service
providers.  The agreement shall 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 or state and local
governments under various levels of complexity.
   (g) The agreement shall 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) The agreement shall 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) The agreement shall provide for the appointment of an advisory
council of private sector representatives and an advisory council of
nonmember state representatives to consult with in the
administration of the agreement.
6030.  The agreement 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.
6031.  (a) The agreement shall bind and inure only to the benefit of
this state and the other member states.  No person, other than a
member state, is an intended beneficiary of the agreement.  Any
benefit to a person other than a state is established by the law of
this state and the other member states and not by the terms of the
agreement.
   (b) Consistent with subdivision (a), no person shall have any
cause of action or defense under the agreement or by virtue of this
state's decision to join the Streamlined Sales Tax Project.  No
person may challenge, in any action brought under any provision of
law, 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.
   (c) No law of this state, 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.