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§ 120. —  Procedure if no electronic database provided.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 4USC120]

 
       TITLE 4--FLAG AND SEAL, SEAT OF GOVERNMENT, AND THE STATES
 
                          CHAPTER 4--THE STATES
 
Sec. 120. Procedure if no electronic database provided

    (a) Safe Harbor.--If neither a State nor designated database 
provider provides an electronic database under section 119, a home 
service provider shall be held harmless from any tax, charge, or fee 
liability in such State that otherwise would be due solely as a result 
of an assignment of a street address to an incorrect taxing jurisdiction 
if, subject to section 121, the home service provider employs an 
enhanced zip code to assign each street address to a specific taxing 
jurisdiction for each level of taxing jurisdiction and exercises due 
diligence at each level of taxing jurisdiction to ensure that each such 
street address is assigned to the correct taxing jurisdiction. If an 
enhanced zip code overlaps boundaries of taxing jurisdictions of the 
same level, the home service provider must designate one specific 
jurisdiction within such enhanced zip code for use in taxing the 
activity for such enhanced zip code for each level of taxing 
jurisdiction. Any enhanced zip code assignment changed in accordance 
with section 121 is deemed to be in compliance with this section. For 
purposes of this section, there is a rebuttable presumption that a home 
service provider has exercised due diligence if such home service 
provider demonstrates that it has--
        (1) expended reasonable resources to implement and maintain an 
    appropriately detailed electronic database of street address 
    assignments to taxing jurisdictions;
        (2) implemented and maintained reasonable internal controls to 
    promptly correct misassignments of street addresses to taxing 
    jurisdictions; and
        (3) used all reasonably obtainable and usable data pertaining to 
    municipal annexations, incorporations, reorganizations and any other 
    changes in jurisdictional boundaries that materially affect the 
    accuracy of such database.

    (b) Termination of Safe Harbor.--Subsection (a) applies to a home 
service provider that is in compliance with the requirements of 
subsection (a), with respect to a State for which an electronic database 
is not provided under section 119 until the later of--
        (1) 18 months after the nationwide standard numeric code 
    described in section 119(a) has been approved by the Federation of 
    Tax Administrators and the Multistate Tax Commission; or
        (2) 6 months after such State or a designated database provider 
    in such State provides such database as prescribed in section 
    119(a).

(Added Pub. L. 106-252, Sec. 2(a), July 28, 2000, 114 Stat. 628.)


                Effective Date; Application of Amendment

    Section effective July 28, 2000, and applicable only to customer 
bills issued after the first day of the first month beginning more than 
2 years after July 28, 2000, see section 3 of Pub. L. 106-252, set out 
as a note under section 116 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 116, 117, 118, 121, 123, 
124, 125, 126 of this title.



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