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• United States Code
• TITLE 4 - FLAG AND SEAL, SEAT OF GOVERNMENT, AND THE STATES
• CHAPTER 4 - THE STATES

      (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).