The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB317, s. 1
77.524 of the statutes is created to read:
277.524 Seller and 3rd-party liability. (1)
In this subsection:
(a) "Certified automated system" means software that is certified jointly by the 4
states that are signatories to the agreement, as defined in s. 77.65 (2) (a), and that 5
is used to calculate the sales tax and use tax imposed under this subchapter and 6
subch. V on a transaction by each appropriate jurisdiction, to determine the amount 7
of tax to remit to the appropriate state, and to maintain a record of the transaction.
(b) "Certified service provider" means an agent that is certified jointly by the 9
states that are signatories to the agreement, as defined in s. 77.65 (2) (a), and that 10
performs all of a seller's sales tax and use tax functions related to the seller's retail 11
(c) "Seller" has the meaning given in s. 77.65 (2) (e).
A certified service provider is the agent of the seller with whom the certified 2
service provider has contracted and is liable for the sales and use taxes that are due 3
the state on all sales transactions that the provider processes for a seller, except as 4
provided in sub. (3).
A seller that contracts with a certified service provider is not liable for sales 6
and use taxes that are due the state on transactions that the provider processed, 7
unless the seller has misrepresented the type of items that the seller sells or has 8
committed fraud. The seller is subject to an audit on transactions that the certified 9
service provider processed only if there is probable cause to believe that the seller has 10
committed fraud or made a material misrepresentation. The seller is subject to an 11
audit on transactions that the certified service provider does not process. The states 12
that are signatories to the agreement, as defined in s. 77.65 (2) (a), may jointly check 13
the seller's business system and review the seller's business procedures to determine 14
if the certified service provider's system is functioning properly and to determine the 15
extent to which the seller's transactions are being processed by the certified service 16
A person that provides a certified automated system is responsible for the 18
system's proper functioning and is liable to this state for tax underpayments that are 19
attributable to errors in the system's functioning. A seller that uses a certified 20
automated system is responsible and liable to this state for reporting and remitting 21
sales and use tax.
A seller that has a proprietary system for determining the amount of tax 23
that is due on transactions and that has signed an agreement with the states that 24
are signatories to the agreement as defined in 77.65 (2) (a), establishing a
performance standard for the system is liable for the system's failure to meet the 2
AB317, s. 2
77.65 of the statutes is created to read:
477.65 Uniform sales and use tax administration. (1)
section shall be known as the "Uniform Sales and Use Tax Administration Act."
In this section:
(a) "Agreement" means the streamlined sales and use tax agreement.
(b) "Department" means the department of revenue.
(c) "Person" means an individual, trust, estate, fiduciary, partnership, limited 10
liability company, limited liability partnership, corporation, or any other legal entity.
(d) "Sales tax" means the tax imposed under ss. 77.52, 77.57, and 77.71 (1).
(e) "Seller" means any person who sells, leases, or rents personal property or 13
(f) "State" means any state of the United States and the District of Columbia.
(g) "Use tax" means the tax imposed under ss. 77.53 and 77.71 (2), (3), and (4).
16(3) Department authority.
The department may enter into the agreement to 17
simplify and modernize sales tax and use tax administration in order to 18
substantially reduce the tax compliance burden for all sellers and for all types of 19
commerce. The department may act jointly with other states that are signatories to 20
the agreement to establish standards for the certification of a certified service 21
provider and certified automated system and to establish performance standards for 22
multistate sellers. The department may promulgate rules to administer this section, 23
may procure jointly with other states that are signatories to the agreement goods and 24
services in furtherance of the agreement, and may take other actions reasonably 25
required to implement this section. The secretary of revenue or the secretary's
designee may represent this state before the states that are signatories to the 2
3(4) Agreement requirements.
The department may not enter into the 4
agreement unless the agreement requires that a state that is a signatory to the 5
agreement do all of the following:
(a) Limit the number of state sales and use tax rates.
(b) Limit the application of any maximums on the amount of state sales and 8
use tax that is due on a transaction.
(c) Limit thresholds on the application of sales and use tax.
(d) Establish uniform standards for the sourcing of transactions to the 11
appropriate taxing jurisdictions, for administering exempt sales, and for sales and 12
use tax returns and remittances.
(e) Develop and adopt uniform definitions related to sales and use tax.
(f) Provide, with all states that are signatories to the agreement, a central 15
electronic registration system that allows a seller to register to collect and remit sales 16
and use taxes for all states that are signatories to the agreement.
(g) Provide that the state shall not use a seller's registration with the central 18
electronic registration system under par. (f), and the subsequent collection and 19
remittance of sales and use taxes in the states that are signatories to the agreement, 20
to determine whether the seller has sufficient connection with the state for the 21
purpose of imposing any tax.
(h) Restrict variances between the state tax bases and local tax bases.
(i) Administer all sales and use taxes imposed by local jurisdictions within the 24
state so that sellers who collect and remit such taxes are not required to register with,
or submit returns or taxes to, local jurisdictions and are not subject to audits by local 2
(j) Restrict the frequency of changes in any local sales and use tax rates and 4
provide notice of any such changes.
(k) Establish effective dates for the application of local jurisdictional boundary 6
changes to local sales and use tax rates and provide notice of any such changes.
(L) Provide monetary allowances to sellers and certified service providers as 8
outlined in the agreement.
(m) Certify compliance with the agreement before entering into the agreement 10
and maintain compliance with the agreement.
(n) Adopt a uniform policy, with the states that are signatories to the 12
agreement, for certified service providers that protects a consumer's privacy and 13
maintains tax information confidentiality.
(o) Appoint, with the states that are signatories to the agreement, an advisory 15
council to consult with in administering the agreement. The advisory council shall 16
consist of private sector representatives and representatives from states that are not 17
signatories to the agreement.
18(5) Cooperating states.
The agreement entered into under this section is an 19
accord among cooperating states to further their governmental functions and 20
provides a mechanism among the cooperating states to establish and maintain a 21
cooperative, simplified system for the application and administration of sales and 22
use taxes that are imposed by each state that is a signatory to the agreement.
23(6) Limited binding and beneficial effect.
(a) The agreement entered into 24
under this section binds, and inures to the benefit of, only the states that are
signatories to the agreement. Any benefit that a person may receive from the 2
agreement is established by this state's law and not by the terms of the agreement.
(b) No person shall have any cause of action or defense under the agreement 4
or because of the department entering into the agreement. No person may challenge 5
any action or inaction by any department, agency, other instrumentality of this state, 6
or any political subdivision of this state on the ground that the action or inaction is 7
inconsistent with the agreement.
(c) No law of this state, or the application of such law, may be declared invalid 9
on the ground that the law, or the application of such law, is inconsistent with the 10
11(7) Relationship to state law.
No provision of the agreement in whole or in part 12
invalidates or amends any law of this state and the state becoming a signatory to the 13
agreement shall not amend or modify any law of this state.