Section 144.637

Title X TAXATION AND REVENUE

Chapter 144

Effective - 01 Jan 2023, see footnote   

  144.637.  Boundary change database for taxing jurisdictions, requirements — immunity from liability, when. — 1.  The director of revenue shall provide and maintain a database that describes boundary changes for all taxing jurisdictions and the effective dates of such changes for the use of vendors collecting the tax imposed under sections 144.600 to 144.746.

  2.  For the identification of counties and cities, codes corresponding to the rates shall be provided according to Federal Information Processing Standards (FIPS) as developed by the National Institute of Standards and Technology.  For the identification of all other jurisdictions, codes corresponding to the rates shall be in a format determined by the director.

  3.  The director shall provide and maintain address-based boundary database records for assigning taxing jurisdictions and associated rates.  The database records shall be in the same approved format as the database described under subsection 1 of this section and shall meet the requirements developed under the federal Mobile Telecommunications Sourcing Act, 4 U.S.C. Section 119(a).  If a vendor is unable to determine the applicable rate and jurisdiction using an address-based database record after exercising due diligence, the vendor may apply the nine-digit zip code designation applicable to a purchase.  If a nine-digit zip code designation is not available for a street address or if a vendor is unable to determine the nine-digit zip code designation applicable to a purchase after exercising due diligence to determine the designation, the vendor may apply the rate for the five-digit zip code area.  The lowest combined tax rate imposed in the zip code area shall apply if the area includes more than one tax rate in any level of taxing jurisdiction.  For the purposes of this section, there shall be a rebuttable presumption that a vendor has exercised due diligence if the vendor has attempted to determine the tax rate and jurisdiction by utilizing software approved by the director and makes the assignment from the address and zip code information applicable to the purchase.  If the director certifies an address-based database provided by a third party, a vendor may use such database in place of the database records provided for in this subsection.

  4.  The electronic databases provided for in subsections 1 and 3 of this section shall be in downloadable format as determined by the director.  The databases may be directly provided by the director or provided by a third party as designated by the director.  The databases shall be provided at no cost to the user of the database.

  5.  The provisions of subsection 3 of this section shall not apply if the purchased product is received by the purchaser at the business location of the vendor.

  6.  No vendor shall be liable for reliance upon erroneous data provided by the director on tax rates, boundaries, or taxing jurisdiction assignments.

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(L. 2021 S.B. 153 & 97)

Effective 1-01-23, see § 144.1021