Slide 22 of 27
Notes:
The ACEC report was met by a good deal of opposition from the states, many of whom believe that the proposed definition of nexus is too restrictive and that the technology exists or can be created to minimize the burdens of collecting the use tax. The focus of these proposals is the Zero Burden System, which would be based on "real time" verification of credit and debit card transactions.
This would be carried out by a "trusted third party," paid by the states. When a transaction is processed, the TTP would tell the retailer the amount of the tax to charge on the sale. That amount would go to the TTP, which would then remit it to the jurisdiction to which the tax was attributable. The retailers would then be relieved of the responsibility for collecting the tax.
To work, the Zero Burden System will require far greater uniformity in the sales tax bases of the 45 states that levy the tax.