Common use of Rate Adjustment Process Clause in Contracts

Rate Adjustment Process. The combined Taxes Due for all the Streamlined States that will result in a rate adjustment shall include only sales and use taxes generated from sales sourced in accordance with the sourcing rules in Article III of the SSUTA to a Streamlined State in which the Seller is a Volunteer Seller. As the amount of Taxes Due from each Volunteer Seller reaches a rate adjustment level, adjustments to compensation shall be made as soon as is practicable to avoid over compensation, but no later than the next tax remittance to the Streamlined States after the level has been reached. For example, if taxes are remitted monthly and the total amount of Taxes Due from a Volunteer Seller to all Streamlined States combined rises from $225,000 at the end of one month to $300,000 at the end of the following month, the Contractor shall receive eight percent (8%) of $25,000 ($2,000) and seven percent (7%) of $50,000 ($3,500) and the remainder ($69,500) shall be remitted to the Streamlined States for that month. Sales and use taxes on sales by that Seller sourced to the Streamlined States in which the Seller is not a Volunteer Seller shall be disregarded in determining when a rate adjustment level has been reached. When remitting taxes for a reporting period in which an adjustment has been made, the Contractor shall make its best efforts to adjust the compensation rate in a manner that fairly allocates the rate change among the Streamlined States. Unless the Contractor uses a method that consistently applies the rate change more precisely, the adjustment shall be applied proportionately among the Streamlined States regardless of which individual purchases were made before or after the adjustment level was reached during the period. In the example, unless the Contractor uses a method for a more accurate allocation, the Contractor would charge all Streamlined States eight percent (8%) on one third of the taxes owed to each of them and seven percent (7%) on two-thirds of the taxes owed to each of them for that month.

Rate Adjustment Process. The combined Taxes Due for all the Streamlined Member States, Contingent Member States and Associate Member States that will result in a rate adjustment shall include only sales and use taxes generated from sales sourced in accordance with the sourcing rules in Article III of the SSUTA to a Streamlined Member State, Contingent Member State or Associate Member State in which the Seller is a Volunteer Seller. As the amount of Taxes Due from each Volunteer Seller reaches a rate adjustment level, adjustments to compensation shall be made as soon as is practicable to avoid over compensation, but no later than the next tax remittance to the Streamlined Member States, Contingent Member States and Associate Member States after the level has been reached. For example, if taxes are remitted monthly and the total amount of Taxes Due from a Volunteer Seller to all Streamlined Member States, Contingent Member States and Associate Member States combined rises from $225,000 at the end of one month to $300,000 at the end of the following month, the Contractor shall receive eight percent (8%) of $25,000 ($2,000) and seven percent (7%) of $50,000 ($3,500) and the remainder ($69,500) shall be remitted to the Streamlined Member States, Contingent Member States and Associate Member States for that month. Sales and use taxes on sales by that Seller sourced to the Streamlined Member States, Contingent Member States or Associate Member States in which the Seller is not a Volunteer Seller shall be disregarded in determining when a rate adjustment level has been reached. When remitting taxes for a reporting period in which an adjustment has been made, the Contractor shall make its best efforts to adjust the compensation rate in a manner that fairly allocates the rate change among the Streamlined Member States, Contingent Member States and Associate Member States. Unless the Contractor uses a method that consistently applies the rate change more precisely, the adjustment shall be applied proportionately among the Streamlined Member States, Contingent Member States and Associate Member States regardless of which individual purchases were made before or after the adjustment level was reached during the period. In the example, unless the Contractor uses a method for a more accurate allocation, the Contractor would charge all Streamlined Member States, Contingent Member States and Associate Member States eight percent (8%) on one third of the taxes owed to each of them and seven percent (7%) on two-thirds of the taxes owed to each of them for that month.

Rate Adjustment Process. The combined Taxes Due for all the Streamlined Member States and Associate Member States that will result in a rate adjustment shall include only sales and use taxes generated from sales sourced in accordance with the sourcing rules in Article III of the SSUTA to a Streamlined Member State or Associate Member State in which the Seller is a Volunteer Seller. As the amount of Taxes Due from each Volunteer Seller reaches a rate adjustment level, adjustments to compensation shall be made as soon as is practicable to avoid over compensation, but no later than the next tax remittance to the Streamlined Member States and Associate Member States after the level has been reached. For example, if taxes are remitted monthly and the total amount of Taxes Due from a Volunteer Seller to all Streamlined Member States and Associate Member States combined rises from $225,000 at the end of one month to $300,000 at the end of the following month, the Contractor shall receive eight percent (8%) of $25,000 ($2,000) and seven percent (7%) of $50,000 ($3,500) and the remainder ($69,500) shall be remitted to the Streamlined Member States and Associate Member States for that month. Sales and use taxes on sales by that Seller sourced to the Streamlined Member States or Associate Member States in which the Seller is not a Volunteer Seller shall be disregarded in determining when a rate adjustment level has been reached. When remitting taxes for a reporting period in which an adjustment has been made, the Contractor shall make its best efforts to adjust the compensation rate in a manner that fairly allocates the rate change among the Streamlined Member States and Associate Member States. Unless the Contractor uses a method that consistently applies the rate change more precisely, the adjustment shall be applied proportionately among the Streamlined Member States and Associate Member States regardless of which individual purchases were made before or after the adjustment level was reached during the period. In the example, unless the Contractor uses a method for a more accurate allocation, the Contractor would charge all Streamlined Member States and Associate Member States eight percent (8%) on one third of the taxes owed to each of them and seven percent (7%) on two-two- thirds of the taxes owed to each of them for that month.