---
kind: "section"
citation: "4 U.S.C. § 120"
title: "4"
title_heading: "Flag and Seal, Seat of Government, and the States"
number: "120"
heading: "Procedure if no electronic database provided"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/4/120"
units:
  - "Chapter 4 — The States"
---

# §120. Procedure if no electronic database provided

- (a) **Safe Harbor.—** If neither a [State](/usc/4/110.md?p=d) nor [designated database provider](/usc/4/124.md?p=3) provides an electronic database under [section 119](/usc/4/119.md), a [home service provider](/usc/4/124.md?p=5) shall be held harmless from any tax, charge, or fee liability in such [State](/usc/4/110.md?p=d) that otherwise would be due solely as a result of an assignment of a street address to an incorrect [taxing jurisdiction](/usc/4/124.md?p=12) if, subject to [section 121](/usc/4/121.md), the [home service provider](/usc/4/124.md?p=5) employs an [enhanced zip code](/usc/4/124.md?p=4) to assign each street address to a specific [taxing jurisdiction](/usc/4/124.md?p=12) for each level of [taxing jurisdiction](/usc/4/124.md?p=12) and exercises due diligence at each level of [taxing jurisdiction](/usc/4/124.md?p=12) to ensure that each such street address is assigned to the correct [taxing jurisdiction](/usc/4/124.md?p=12). If an [enhanced zip code](/usc/4/124.md?p=4) overlaps boundaries of [taxing jurisdictions](/usc/4/124.md?p=12) of the same level, the [home service provider](/usc/4/124.md?p=5) must designate one specific jurisdiction within such [enhanced zip code](/usc/4/124.md?p=4) for use in taxing the activity for such [enhanced zip code](/usc/4/124.md?p=4) for each level of [taxing jurisdiction](/usc/4/124.md?p=12). Any [enhanced zip code](/usc/4/124.md?p=4) assignment changed in accordance with [section 121](/usc/4/121.md) is deemed to be in compliance with this section. For purposes of this section, there is a rebuttable presumption that a [home service provider](/usc/4/124.md?p=5) has exercised due diligence if such [home service provider](/usc/4/124.md?p=5) demonstrates that it has—
  - (1) expended reasonable resources to implement and maintain an appropriately detailed electronic database of street address assignments to [taxing jurisdictions](/usc/4/124.md?p=12);
  - (2) implemented and maintained reasonable internal controls to promptly correct misassignments of street addresses to [taxing jurisdictions](/usc/4/124.md?p=12); 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)](#a) applies to a [home service provider](/usc/4/124.md?p=5) that is in compliance with the requirements of [subsection (a)](#a), with respect to a [State](/usc/4/110.md?p=d) for which an electronic database is not provided under [section 119](/usc/4/119.md) until the later of—
  - (1) 18 months after the nationwide standard numeric code described in [section 119(a)](/usc/4/119.md?p=a) has been approved by the Federation of Tax Administrators and the Multistate Tax Commission; or
  - (2) 6 months after such [State](/usc/4/110.md?p=d) or a [designated database provider](/usc/4/124.md?p=3) in such [State](/usc/4/110.md?p=d) provides such database as prescribed in [section 119(a)](/usc/4/119.md?p=a).

## Source credit

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

## Notes

### Statutory Notes and Related Subsidiaries

### 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.