Common use of REQUIREMENTS EACH STATE MUST ACCEPT TO PARTICIPATE Clause in Contracts

REQUIREMENTS EACH STATE MUST ACCEPT TO PARTICIPATE. 5 Section 301: STATE LEVEL ADMINISTRATION 6 Each member state shall provide state level administration of sales and use taxes. The state level 7 administration may be performed by a member state's Tax Commission, Department of Revenue, 8 or any other single entity designated by state law. Sellers are only required to register with, file 9 returns with, and remit funds to the state level authority. Each member state shall provide for 10 collection of any local taxes and distribution of them to the appropriate taxing jurisdictions. 11 Each member state shall conduct, or authorize others to conduct on its behalf, all audits of the 12 sellers registered under the Agreement for that state’s tax and the tax of its local jurisdictions, 13 and local jurisdictions shall not conduct independent sales or use tax audits of sellers registered 14 under the Agreement. 16 Section 302: STATE AND LOCAL TAX BASES 17 Through December 31, 2005, if a member state has local jurisdictions that levy a sales or use tax, 18 all local jurisdictions in the state shall have a common tax base. After December 31, 2005, the 19 tax base for local jurisdictions shall be identical to the state tax base unless otherwise prohibited 20 by federal law. This section does not apply to sales or use taxes levied on the retail sale or 21 transfer of motor vehicles, aircraft, watercraft, modular homes, manufactured homes, or mobile 22 homes.