Draft
Sales and Use Tax Collection Protection Act
Model Policy
{Title, enacting clause, etc.}
Section 1. {Introduction} A proposal to amend the laws of {insert state} to adjudicate constitutional nexus issues relating to sales and use tax.
Section 2. {Declaratory Judgment to Adjudicate Constitutional Nexus}
(A) Circuit courts shall have original jurisdiction over civil actions seeking declaratory judgment where:
(1) The party seeking declaratory relief is a business that
(a) is organized under the laws of {insert state} or a sole proprietorship owned by a {insert state} domiciliary, or
(b) has qualified to do business in {insert state}; and
(2) The responding party is a government official of another state, or political subdivision of another state, who asserts that the business in question is obliged to collect sales or use taxes for such state or political subdivision based upon conduct of the business that occurs wholly or partially within {insert state}.
(B) Any business meeting the requirements and facing the circumstances described in subsection A shall be entitled to declaratory relief on the issue of whether the requirement of another state, or political subdivision of another state, that the business collect and remit sales or use taxes to that state, or political subdivision, in the factual circumstances of the business’ operations giving rise to the demand, constitutes an undue burden on interstate commerce within the meaning of Article I, Section 8, Clause 3 of the United States Constitution.
Section 3. {Severability clause.}
Section 4. {Repealer clause.}
Section 5. {Effective date.}