AB317,2,2 277.524 Seller and 3rd-party liability. (1) In this subsection:
AB317,2,73 (a) "Certified automated system" means software that is certified jointly by the
4states that are signatories to the agreement, as defined in s. 77.65 (2) (a), and that
5is used to calculate the sales tax and use tax imposed under this subchapter and
6subch. V on a transaction by each appropriate jurisdiction, to determine the amount
7of tax to remit to the appropriate state, and to maintain a record of the transaction.
AB317,2,118 (b) "Certified service provider" means an agent that is certified jointly by the
9states that are signatories to the agreement, as defined in s. 77.65 (2) (a), and that
10performs all of a seller's sales tax and use tax functions related to the seller's retail
AB317,2,1212 (c) "Seller" has the meaning given in s. 77.65 (2) (e).
1(2) A certified service provider is the agent of the seller with whom the certified
2service provider has contracted and is liable for the sales and use taxes that are due
3the state on all sales transactions that the provider processes for a seller, except as
4provided in sub. (3).
AB317,3,16 5(3) A seller that contracts with a certified service provider is not liable for sales
6and use taxes that are due the state on transactions that the provider processed,
7unless the seller has misrepresented the type of items that the seller sells or has
8committed fraud. The seller is subject to an audit on transactions that the certified
9service provider processed only if there is probable cause to believe that the seller has
10committed fraud or made a material misrepresentation. The seller is subject to an
11audit on transactions that the certified service provider does not process. The states
12that are signatories to the agreement, as defined in s. 77.65 (2) (a), may jointly check
13the seller's business system and review the seller's business procedures to determine
14if the certified service provider's system is functioning properly and to determine the
15extent to which the seller's transactions are being processed by the certified service
AB317,3,21 17(4) A person that provides a certified automated system is responsible for the
18system's proper functioning and is liable to this state for tax underpayments that are
19attributable to errors in the system's functioning. A seller that uses a certified
20automated system is responsible and liable to this state for reporting and remitting
21sales and use tax.
AB317,4,2 22(5) A seller that has a proprietary system for determining the amount of tax
23that is due on transactions and that has signed an agreement with the states that
24are signatories to the agreement as defined in 77.65 (2) (a), establishing a

1performance standard for the system is liable for the system's failure to meet the
2performance standard.
AB317, s. 2 3Section 2. 77.65 of the statutes is created to read:
AB317,4,5 477.65 Uniform sales and use tax administration. (1) Short title. This
5section shall be known as the "Uniform Sales and Use Tax Administration Act."
AB317,4,6 6(2) Definitions. In this section:
AB317,4,77 (a) "Agreement" means the streamlined sales and use tax agreement.
AB317,4,88 (b) "Department" means the department of revenue.
AB317,4,109 (c) "Person" means an individual, trust, estate, fiduciary, partnership, limited
10liability company, limited liability partnership, corporation, or any other legal entity.
AB317,4,1111 (d) "Sales tax" means the tax imposed under ss. 77.52, 77.57, and 77.71 (1).
AB317,4,1312 (e) "Seller" means any person who sells, leases, or rents personal property or
AB317,4,1414 (f) "State" means any state of the United States and the District of Columbia.
AB317,4,1515 (g) "Use tax" means the tax imposed under ss. 77.53 and 77.71 (2), (3), and (4).
AB317,5,2 16(3) Department authority. The department may enter into the agreement to
17simplify and modernize sales tax and use tax administration in order to
18substantially reduce the tax compliance burden for all sellers and for all types of
19commerce. The department may act jointly with other states that are signatories to
20the agreement to establish standards for the certification of a certified service
21provider and certified automated system and to establish performance standards for
22multistate sellers. The department may promulgate rules to administer this section,
23may procure jointly with other states that are signatories to the agreement goods and
24services in furtherance of the agreement, and may take other actions reasonably
25required to implement this section. The secretary of revenue or the secretary's

1designee may represent this state before the states that are signatories to the
AB317,5,5 3(4) Agreement requirements. The department may not enter into the
4agreement unless the agreement requires that a state that is a signatory to the
5agreement do all of the following:
AB317,5,66 (a) Limit the number of state sales and use tax rates.
AB317,5,87 (b) Limit the application of any maximums on the amount of state sales and
8use tax that is due on a transaction.
AB317,5,99 (c) Limit thresholds on the application of sales and use tax.
AB317,5,1210 (d) Establish uniform standards for the sourcing of transactions to the
11appropriate taxing jurisdictions, for administering exempt sales, and for sales and
12use tax returns and remittances.
AB317,5,1313 (e) Develop and adopt uniform definitions related to sales and use tax.
AB317,5,1614 (f) Provide, with all states that are signatories to the agreement, a central
15electronic registration system that allows a seller to register to collect and remit sales
16and use taxes for all states that are signatories to the agreement.
AB317,5,2117 (g) Provide that the state shall not use a seller's registration with the central
18electronic registration system under par. (f), and the subsequent collection and
19remittance of sales and use taxes in the states that are signatories to the agreement,
20to determine whether the seller has sufficient connection with the state for the
21purpose of imposing any tax.
AB317,5,2222 (h) Restrict variances between the state tax bases and local tax bases.
AB317,6,223 (i) Administer all sales and use taxes imposed by local jurisdictions within the
24state so that sellers who collect and remit such taxes are not required to register with,

1or submit returns or taxes to, local jurisdictions and are not subject to audits by local
AB317,6,43 (j) Restrict the frequency of changes in any local sales and use tax rates and
4provide notice of any such changes.
AB317,6,65 (k) Establish effective dates for the application of local jurisdictional boundary
6changes to local sales and use tax rates and provide notice of any such changes.
AB317,6,87 (L) Provide monetary allowances to sellers and certified service providers as
8outlined in the agreement.
AB317,6,109 (m) Certify compliance with the agreement before entering into the agreement
10and maintain compliance with the agreement.
AB317,6,1311 (n) Adopt a uniform policy, with the states that are signatories to the
12agreement, for certified service providers that protects a consumer's privacy and
13maintains tax information confidentiality.
AB317,6,1714 (o) Appoint, with the states that are signatories to the agreement, an advisory
15council to consult with in administering the agreement. The advisory council shall
16consist of private sector representatives and representatives from states that are not
17signatories to the agreement.
AB317,6,22 18(5) Cooperating states. The agreement entered into under this section is an
19accord among cooperating states to further their governmental functions and
20provides a mechanism among the cooperating states to establish and maintain a
21cooperative, simplified system for the application and administration of sales and
22use taxes that are imposed by each state that is a signatory to the agreement.
AB317,7,2 23(6) Limited binding and beneficial effect. (a) The agreement entered into
24under this section binds, and inures to the benefit of, only the states that are

1signatories to the agreement. Any benefit that a person may receive from the
2agreement is established by this state's law and not by the terms of the agreement.
AB317,7,73 (b) No person shall have any cause of action or defense under the agreement
4or because of the department entering into the agreement. No person may challenge
5any action or inaction by any department, agency, other instrumentality of this state,
6or any political subdivision of this state on the ground that the action or inaction is
7inconsistent with the agreement.
AB317,7,108 (c) No law of this state, or the application of such law, may be declared invalid
9on the ground that the law, or the application of such law, is inconsistent with the
AB317,7,13 11(7) Relationship to state law. No provision of the agreement in whole or in part
12invalidates or amends any law of this state and the state becoming a signatory to the
13agreement shall not amend or modify any law of this state.
AB317,7,1414 (End)