Streamlined Sales and Use Tax Agreement (SSUTA) 502: Section 502 State review of certified software and liability relief

Each member state reviews software submitted for CAS certification to confirm it reflects the taxability of the product categories it includes, and certifies to the Governing Board its acceptance of those determinations. It must relieve CSPs and Model 2 sellers from liability for not collecting tax because they relied on that certification, and relieve CSPs in the same way Section 317 relieves sellers on exemptions. Relief does not cover an item or transaction the CSP or Model 2 seller classified into the wrong certified category, though it does cover individual items listed within an approved product definition. If a state finds an item misclassified it notifies the CSP or Model 2 seller, which has ten days from receiving notice to correct the classification before becoming liable. Product category means Library Part II and III terms, state-specific subcategories taxed differently, groups of like products outside them and their subcategories, but not individual products (unless taxed differently) or tangible personal property as a whole; certifying a category means confirming the taxability of products properly in it, based only on product-based law, the seller's or CSP's description, and no documentation demand.