December 7, 2017 - Introduced by Representatives Loudenbeck, Brandtjen, E.
Brooks
, Kooyenga, Mursau, Rohrkaste, Steffen and Vorpagel, cosponsored
by Senators Feyen and Nass. Referred to Committee on Ways and Means.
AB735,2,2 1An Act to amend 71.03 (2) (i) 3., 71.03 (4) (b), 71.54 (4), 71.65 (1) (a) 2., 71.65 (2)
2(a), 71.71 (1) (a) 2., 71.71 (2), 71.715 (1) (a) 2., 71.715 (2), 71.74 (11), 71.74 (14),
371.80 (2), 71.80 (12) (a) 2., 71.80 (12) (b) 2., 71.80 (12) (c) 2. a., 71.80 (16) (b),
471.91 (6) (c) 2., 71.91 (6) (f) 1., 71.91 (7) (b), 71.91 (7) (h), 73.0301 (2) (b) 1. b.,
573.0302 (2), 73.09 (4) (c), 73.09 (5), 73.09 (6), 73.13 (2) (c), 77.51 (11d), 77.52 (11),
677.52 (18) (bm), 77.59 (3), 77.59 (7), 77.9961 (3), 78.65 (1), 139.096, 139.77 (3),
7139.77 (4), 177.24 (2), 812.04 (2), 812.05 (1), 812.05 (2), 812.13 (1) and 812.39
8(1); and to create 73.03 (73) and 77.59 (5r) of the statutes; relating to: creating
9a penalty applicable to a seller that continues to collect sales tax erroneously
10on a product after receiving two or more written notices that the product is not
11taxable; certification of property assessors; use of social security numbers on
12certain tax documents; electronic delivery of notices by the Department of

1Revenue; and the responsibility for fees and disbursements in garnishment
2actions.
Analysis by the Legislative Reference Bureau
This bill makes various changes to laws administered by the Department of
Revenue and to laws governing the responsibility for fees in garnishment actions.
Continued collection of sales tax on nontaxable products after notice
The bill provides that a seller that continues to collect sales tax erroneously on
a product after receiving two or more written notices from DOR indicating that the
product is not taxable is entitled to an adjustment or a refund of the tax collected only
if the seller returns the tax and related interest to the buyers from whom the seller
collected the tax or to DOR if the buyers cannot be located. A seller who fails to
submit the tax and interest within 90 days after the date of the adjustment or refund
is subject to a penalty equal to 25 percent of the tax and interest or, in the case of
fraud, a penalty equal to the tax and interest. The penalty provided in the bill is the
same as the penalty under current law for other instances when a seller claims an
adjustment or a refund of sales tax but fails to submit the tax and interest to the
buyer or to DOR.
Certification of property assessors
Under current law, DOR is responsible for certifying property assessors for
purposes of property tax assessments. The current fee for a person to apply for an
examination or for renewal of the person's certification is $20. The bill provides that
DOR may determine the amount of the examination and recertification fees.
Under current law, DOR may grant a temporary certification, in accordance
with rules promulgated by DOR, that is valid until the results of the next
certification examination are issued, but not for more than 100 days. The bill
provides that a temporary certification is valid for 90 days.
Use of social security numbers on certain tax documents
Under current law, an employer must annually furnish a written statement to
each employee that provides the employee with certain information, including the
employee's social security number, the total amount of wages paid to the employee,
and the total amount deducted and withheld from the employee's wages, if any.
Under current law, the employer must provide a copy of that statement to DOR.
The bill provides that DOR may require that the written statement provided
to an employee include a number other than the employee's social security number.
However, the bill specifies that the copy provided to DOR still must contain the
employee's social security number.
Electronic delivery of notices
The bill authorizes a taxpayer to opt in to receive electronically all applicable
notices from DOR, instead of through personal service or hard copy mail delivery.

Disbursements and fees in a garnishment
The bill permits the state or a political subdivision of the state that is a plaintiff
(creditor) in a garnishment action, other than an action for the garnishment of
earnings, to recover all necessary fees and disbursements related to the garnishment
action from the debtor. Under current law, a creditor must pay a filing fee of $20, a
fee of $3 to the garnishee (person who is indebted to the debtor of the creditor), and
certain other costs, including service of process of the summons and complaint,
related to commencing the garnishment action. Under current law, the amount the
creditor may recover for fees and disbursements from the debtor is capped at $40.
The bill also modifies current law to clarify that the $3 garnishment payment
fee imposed on a debtor in an action for the garnishment of earnings is not absorbed
by the creditor, but, instead, received by the garnishee (employer).
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB735,1 1Section 1. 71.03 (2) (i) 3. of the statutes is amended to read:
AB735,3,62 71.03 (2) (i) 3. There has been mailed sent to either spouse, with respect to that
3taxable year, a notice of adjustment under ss. 71.74 to 71.77 and the spouse, as to that
4notice, files a petition for redetermination under subch. XIV, except that, if both
5spouses request and the department consents, the election under par. (g) may be
6made.
AB735,2 7Section 2. 71.03 (4) (b) of the statutes is amended to read:
AB735,3,118 71.03 (4) (b) The department shall compute the tax on income reported by
9persons making the election under par. (a) shall be computed by the department of
10revenue
. After applying all known applicable credits, the department shall notify
11the taxpayer by mail of the amount of taxes due or the amount of taxes to be refunded.
AB735,3 12Section 3. 71.54 (4) of the statutes is amended to read:
AB735,4,313 71.54 (4) Department will compute credit. The claimant is not required to
14record on the claim the amount claimed. The department of revenue shall compute

1the
claim allowable to persons who do not record the amount shall be computed by
2the department, which
, and the department of revenue shall notify the claimant by
3mail
of the amount of the allowable claim.
AB735,4 4Section 4. 71.65 (1) (a) 2. of the statutes is amended to read:
AB735,4,65 71.65 (1) (a) 2. The name of such the employee, and his or her the employee's
6social security number, if any, or other number required by the department.
AB735,5 7Section 5. 71.65 (2) (a) of the statutes is amended to read:
AB735,4,138 71.65 (2) (a) Every person required to deduct and withhold from an employee
9under this subchapter shall furnish, in respect to remuneration paid by such the
10person to such the employee during the calendar year, on or before January 31 of the
11succeeding year, one copy of the statement under sub. (1), except that, if the
12statement includes a number other than the employee's social security number, the
13statement furnished shall include the employee's social security number
.
AB735,6 14Section 6. 71.71 (1) (a) 2. of the statutes is amended to read:
AB735,4,1615 71.71 (1) (a) 2. The name of such the employee, and his or her the employee's
16social security number, if any, or other number required by the department.
AB735,7 17Section 7. 71.71 (2) of the statutes is amended to read:
AB735,4,2418 71.71 (2) Statement employer must file. Every person required to deduct and
19withhold from an employee under subch. X shall file, in respect to remuneration paid
20by such the person to such the employee during the calendar year, on or before
21January 31 of the succeeding year, one copy of the statement referred to in under sub.
22(1), except that, if the statement includes a number other than the employee's social
23security number, the statement filed shall include the employee's social security
24number
.
AB735,8
1Section 8. 71.715 (1) (a) 2. of the statutes, as created by 2017 Wisconsin Act
259
, is amended to read:
AB735,5,43 71.715 (1) (a) 2. The name of the employee and the employee's social security
4number, if any, or other number required by the department.
AB735,9 5Section 9. 71.715 (2) of the statutes, as created by 2017 Wisconsin Act 59, is
6amended to read:
AB735,5,137 71.715 (2) Statement employer must file. Every employer required to furnish
8a statement under sub. (1) (a) shall file, with respect to the wages paid by the
9employer to an employee as described in sub. (1) during the calendar year, on or
10before January 31 of the succeeding year following the year in which the wages are
11paid
, one copy of the statement, except that, if the statement includes a number other
12than the employee's social security number, the statement filed shall include the
13employee's social security number
.
AB735,10 14Section 10. 71.74 (11) of the statutes is amended to read:
AB735,6,715 71.74 (11) Notice of additional assessment. The department shall notify the
16taxpayer in writing of any additional assessment by office audit or field
17investigation. That The department shall serve that notice shall be served as are
18circuit court summonses, or by registered mail, or by regular mail if the person
19assessed admits receipt or there is satisfactory evidence of receipt
provided in s.
2073.03 (73)
. In the case of joint returns, notice of additional assessment may be a joint
21notice, and service on one spouse is proper notice to both spouses. If the spouses have
22different addresses at the time the department serves the notice of additional
23assessment is served and if either spouse notifies the department of revenue in
24writing of those addresses, the department shall serve a duplicate of the original
25notice on the spouse who has the address other than the address to which the

1department sent the original notice was sent, if no request for a redetermination or
2a petition for review has been commenced or finalized. For the spouse who did not
3receive the original notice, redetermination and appeal rights begin upon the service
4of a duplicate notice. If the taxpayer is a corporation and the department is unable
5to serve that taxpayer personally or by mail as provided in s. 73.03 (73), the
6department may serve the notice by publishing a class 3 notice, under ch. 985, in the
7official state newspaper.
AB735,11 8Section 11. 71.74 (14) of the statutes is amended to read:
AB735,6,259 71.74 (14) Additional remedy to collect tax. The department may also
10proceed under s. 71.91 (5) for the collection of any additional assessment of income
11or franchise taxes or surtaxes, after notice thereof has been given under sub. (11) and
12before the same shall have become delinquent, when it the department has
13reasonable grounds to believe that the collection of such additional assessment will
14be jeopardized by delay. In such cases, the department shall give notice of the
15intention to so proceed shall be given by registered mail to the taxpayer as provided
16in s. 73.03 (73)
, and the warrant of the department shall not issue if the taxpayer
17within 10 days after such notice furnishes a bond in such amount, not exceeding
18double the amount of the tax, and with such sureties as the department shall
19approve, conditioned upon the payment of so much of the additional taxes as shall
20finally be determined to be due, together with interest thereon as provided by s. 71.82
21(1) (a). Nothing in this subsection shall affect affects the review of additional
22assessments provided by ss. 71.88 (1) (a) and (2) (a), 71.89 (2), 73.01, and 73.015, and
23any amounts collected under this subsection shall be deposited with the department
24and disbursed after final determination of the taxes as are amounts deposited under
25s. 71.90 (2).
AB735,12
1Section 12. 71.80 (2) of the statutes is amended to read:
AB735,7,42 71.80 (2) Notice to taxpayer by department. The department shall notify each
3taxpayer by mail of the amount of income or franchise taxes assessed against the
4taxpayer and of the date when the taxes become delinquent.
AB735,13 5Section 13. 71.80 (12) (a) 2. of the statutes is amended to read:
AB735,7,96 71.80 (12) (a) 2. A signification of the nonresident's agreement that any notice,
7order, pleading, or process described in subd. 1. that is so served shall be is of the
8same legal force and validity as if served on the nonresident personally, or on the
9nonresident's personal representative.
AB735,14 10Section 14. 71.80 (12) (b) 2. of the statutes is amended to read:
AB735,7,1411 71.80 (12) (b) 2. A signification of that the person's agreement that any notice,
12order, pleading, or process described in subd. 1. that is so served shall be is of the
13same legal force and validity as if served on that the person personally, or upon that
14on the person's personal representative.
AB735,15 15Section 15. 71.80 (12) (c) 2. a. of the statutes is amended to read:
AB735,7,1916 71.80 (12) (c) 2. a. Within 10 days of completion of service, notice of the service
17and a copy of the served notice, order, pleading, or process are sent by mail by the
18state department, officer, or agency making the service to the person, or that the
19person's personal representative, at that the person's last-known address.
AB735,16 20Section 16. 71.80 (16) (b) of the statutes is amended to read:
AB735,8,1521 71.80 (16) (b) A construction contractor required to file a surety bond under par.
22(a) may, in lieu of such requirement, but subject to approval by the department,
23deposit with the secretary of administration an amount of cash equal to the face of
24the bond that would otherwise be required. If an offer to deposit is made, the
25department shall issue a certificate to the secretary of administration authorizing

1said the secretary to accept payment of such moneys and to give his or her the
2secretary's
receipt therefor. A copy of such certificate shall be mailed sent to the
3contractor who shall, within the time fixed by the department, pay such amount to
4the secretary of administration. A copy of the receipt of the secretary of
5administration shall be filed with the department. Upon final determination by the
6department of such contractor's liability for state income or franchise taxes, required
7unemployment insurance contributions, sales and use taxes, and income taxes
8withheld from wages of employees, interest and penalties, by reason of such contract
9or contracts, the department shall certify to the secretary of administration the
10amount of taxes, penalties, and interest as finally determined, shall instruct the
11secretary of administration as to the proper distribution of such amount, and shall
12state the amount, if any, to be refunded to such contractor. The secretary of
13administration shall make the payments directed by such certificate within 30 days
14after receipt thereof. Amounts refunded to the contractor shall be are without
15interest.
AB735,17 16Section 17 . 71.91 (6) (c) 2. of the statutes is amended to read:
AB735,8,2417 71.91 (6) (c) 2. Levying upon a life insurance or endowment contract issued by
18a 3rd person, without necessity for the surrender of the contract document, is a
19demand by the department for payment of the amount under subd. 3. and for the
20exercise of the right of the person against whom the tax is assessed to an advance of
21that amount. The person who issued the contract shall pay over that amount within
2290 days after the service of the notice of the levy. That notice shall include a
23certification by the department that a copy of that notice has been mailed sent to the
24person against whom the tax is assessed at that person's last-known address.
AB735,18 25Section 18. 71.91 (6) (f) 1. of the statutes is amended to read:
AB735,9,11
171.91 (6) (f) 1. As soon as practicable after obtaining property, the department
2shall notify, in the manner prescribed by the department, the owner of any real or
3personal property, and, at the possessor's request, the possessor of any personal
4property, obtained by the department under this subsection. That The department
5may leave that
notice may be left at the person's usual place of residence or business.
6If the owner cannot be located or has no dwelling or place of business in this state,
7or if the property is obtained as a result of a continuous levy on commissions, wages,
8or salaries, the department may mail send a notice to the owner's last-known
9address. That notice shall specify the sum demanded and shall contain, in the case
10of personal property, an account of the property obtained and, in the case of real
11property, a description with reasonable certainty of the property seized.
AB735,19 12Section 19. 71.91 (7) (b) of the statutes is amended to read:
AB735,9,2513 71.91 (7) (b) The department of revenue may give notice to any employer
14deriving income having a taxable situs in this state (regardless of whether any such
15income is exempt from taxation) to the effect that an employee of such the employer
16is delinquent in a certain amount with respect to state taxes, including penalties,
17interest, and costs. Such notice may be served by mail or by delivery by an employee
18of the department of revenue.
Upon receipt of such the notice of delinquency, the
19employer shall withhold from compensation due, or to become due to the employee,
20the total amount shown by the notice. The department of revenue may direct the
21employer to withhold part of the amount due the employee each pay period, until the
22total amount as shown by the notice, plus interest, has been withheld. The employer
23may not withhold more than 25 percent of the compensation due any the employee
24for any one pay period, except that, if the employee leaves the employ of the employer
25or gives notice of his or her the employee's intention to do so, or is discharged for any

1reason, the employer shall withhold the entire amount otherwise payable to such the
2employee, or so much thereof as may be necessary to equal the unwithheld balance
3of the amount shown in the notice of delinquency, plus delinquent interest. In
4crediting amounts withheld against delinquent taxes of an employee, the
5department of revenue shall apply amounts withheld in the following order: costs,
6penalties, delinquent interest, delinquent tax. The “compensation due" any an
7employee for purposes of determining the 25 percent maximum withholding for any
8one pay period shall include all wages, salaries, and fees constituting income,
9including wages, salaries, income advances, or other consideration paid for future
10services, when paid to an employee, less amounts payable pursuant to a garnishment
11action with respect to which the employer was served prior to being served with the
12notice of delinquency and any amounts covered by any irrevocable and previously
13effective assignment of wages, of which amounts and the facts relating to such
14assignment the employer shall give notice to the department of revenue within 10
15days after service of the notice of delinquency.
AB735,20 16Section 20. 71.91 (7) (h) of the statutes is amended to read:
AB735,10,2317 71.91 (7) (h) The department of revenue may, by written notice served
18personally or by mail
, require any employer, as defined in s. 71.63 (3), to withhold
19from the compensation due or to become due to any entertainer or entertainment
20corporation the amount of any delinquent state taxes, including costs, penalties, and
21interest, shown by the notice. The employer shall send the money withheld to the
22department of revenue on or before the last day of the month after the month during
23which an amount was withheld.
AB735,21 24Section 21. 73.03 (73) of the statutes is created to read:
AB735,11,2
173.03 (73) (a) To serve notice in any of the following ways, unless otherwise
2provided by law:
AB735,11,33 1. By serving notice as a circuit court summons is served.
AB735,11,44 2. By certified or registered mail.
AB735,11,65 3. By regular mail, if the intended recipient admits receipt or there is
6satisfactory evidence of receipt.
AB735,11,97 4. By electronic transmission if, before the person receives the electronic
8transmission, the intended recipient consents to receiving such notices
9electronically.
AB735,11,1510 (b) Any notice transmitted by the department under par. (a) 4. is considered to
11be received by the intended recipient on the date that the department electronically
12transmits the information to the person or electronically notifies the person that the
13information is available to be accessed by the person. Department records of
14electronic transmission shall constitute appropriate and sufficient proof of delivery
15and be admissible in any action or proceeding.
AB735,11,1916 (c) For purposes of this subsection, if the intended recipient has appointed
17another person or entity to act on the intended recipient's behalf as its agent under
18a power of attorney, then service upon the agent constitutes service upon the
19intended recipient.
AB735,22 20Section 22. 73.0301 (2) (b) 1. b. of the statutes is amended to read:
AB735,12,1521 73.0301 (2) (b) 1. b. Mail Send a notice of suspension, revocation, or denial
22under subd. 1. a. to the license holder or applicant. The notice shall include a
23statement of the facts that warrant the suspension, revocation, or denial and a
24statement that the license holder or applicant may, within 30 days after the date on
25which the notice of denial, suspension, or revocation is mailed sent, file a written

1request with the department of revenue to have the certification of tax delinquency
2on which the suspension, revocation, or denial is based reviewed at a hearing under
3sub. (5) (a). With respect to a license granted by a credentialing board, the
4department of safety and professional services shall mail send a notice under this
5subd. 1. b. With respect to a license to practice law, the department of revenue shall
6mail send a notice under this subd. 1. b., and the notice shall indicate that the license
7holder or applicant may request a hearing under sub. (5) (a) and (am) and that the
8department of revenue shall submit a certificate of delinquency to suspend, revoke,
9or deny a license to practice law to the supreme court after the license holder or
10applicant has exhausted his or her remedies under sub. (5) (a) and (am) or has failed
11to make use of such remedies. A notice sent to a person who holds a license to practice
12law or who is an applicant for a license to practice law shall also indicate that the
13department of revenue may not submit a certificate of delinquency to the supreme
14court if the license holder or applicant pays the delinquent tax in full or enters into
15an agreement with the department of revenue to satisfy the delinquency.
AB735,23 16Section 23. 73.0302 (2) of the statutes is amended to read:
AB735,12,2417 73.0302 (2) If the department of revenue denies an application or revokes a
18certificate under sub. (1), the department shall mail send a notice of denial or
19revocation to the applicant or certificate holder. The notice shall include a statement
20of the facts that warrant the denial or revocation and a statement that the applicant
21or certificate holder may, within 30 days after the date on which the notice of denial
22or revocation is mailed sent, file a written request with the department to have the
23determination that he or she is liable for delinquent taxes reviewed at a hearing
24under s. 73.0301 (5) (a).
AB735,24 25Section 24. 73.09 (4) (c) of the statutes is amended to read:
AB735,13,7
173.09 (4) (c) Recertification is contingent upon submission of an application for
2renewal, at least 60 days before the expiration date of the current certificate,
3attesting to the completion of the requirements specified in par. (b). Persons A person
4applying for renewal on the basis of attendance at the meetings called by the
5department of revenue under s. 73.06 (1) and by meeting continuing education
6requirements shall submit a $20 recertification fee determined by the department
7of revenue
with their applications the person's application.
AB735,25 8Section 25. 73.09 (5) of the statutes is amended to read:
AB735,13,169 73.09 (5) Examinations. As provided in subs. (1) and (2), the department of
10revenue, assisted by the bureau of merit recruitment and selection in the department
11of administration,
shall prepare and administer examinations for each level of
12certification. Persons A person applying for an examination under this subsection
13shall submit a $20 an examination fee determined by the department of revenue
14with their the person's application. Certification The department of revenue shall
15be granted grant certification to each person who passes the examination for that
16level.
AB735,26 17Section 26. 73.09 (6) of the statutes is amended to read:
AB735,13,2418 73.09 (6) Temporary certification. As provided in subs. (1) and (2), the
19department of revenue shall promulgate rules for the temporary certification of the
20first level of certification and designate the functions that may be performed by such
21persons. An
those persons may perform. The department of revenue may grant an
22individual may be granted one a temporary certification, that is valid until the
23results of the next certification examination are issued, but not
for more than 100 90
24days.
AB735,27 25Section 27. 73.13 (2) (c) of the statutes is amended to read:
AB735,14,21
173.13 (2) (c) If within 3 years from either the date of the order under par. (b)
2or the date of the final payment according to a payment schedule as determined
3under par. (b), whichever is later, the department of revenue ascertains that the
4taxpayer has an income or owns property sufficient to enable the taxpayer to pay the
5unpaid portion of the principal amount of the taxes due, including the costs,
6penalties, and interest recorded under par. (b), the department shall reopen the order
7under par. (b) and order the taxpayer to pay in full the unpaid portion of the principal
8amount of the taxes due, including the costs, penalties, and interest recorded under
9par. (b). Before the entry of the order for payment, the department of revenue shall
10send a written notice to the taxpayer, by certified mail, advising the taxpayer of the
11department's intention to reopen the order under par. (b) and fixing a time and place
12for the appearance of the taxpayer, if the taxpayer desires a hearing. If the
13department of revenue determines that the taxpayer is able to pay the unpaid
14portion of the principal amount of the taxes due, including the costs, penalties, and
15interest recorded under par. (b), the department shall enter the order for payment
16in full. The unpaid portion of the principal amount of the taxes due, including the
17costs, penalties, and interest recorded under par. (b), shall be are due and payable
18immediately upon entry of the order for payment in full and shall thereafter be are
19subject to the interest under s. 71.82 (2), as that subsection applies to delinquent
20income and franchise taxes under s. 71.82, and to the delinquent account fee under
21s. 73.03 (33m).
AB735,28 22Section 28. 77.51 (11d) of the statutes is amended to read:
AB735,15,223 77.51 (11d) For purposes of subs. (1ag), (1f), (3pf), and (9p) and ss. 77.52 (20)
24and (21), 77.522, and 77.54 (51), (52), and (60), and 77.59 (5r), “product" includes

1tangible personal property, and items, property, and goods under s. 77.52 (1) (b), (c),
2and (d), and services.
AB735,29 3Section 29. 77.52 (11) of the statutes is amended to read:
AB735,15,254 77.52 (11) If any person fails to comply with any provision of this subchapter
5relating to the sales tax or any rule of the department relating to the sales tax
6adopted under this subchapter, is delinquent in respect to any tax imposed by the
7department or fails timely to file any return or report in respect to any tax under ch.
871, 72, 76, 77, 78, or 139 after having been requested to file that return or report, the
9department upon hearing, after giving the person 10 days' notice in writing
10specifying the time and place of hearing and requiring the person to show cause why
11the permit should not be revoked or suspended, may revoke or suspend any one or
12more of the permits held by the person. The department shall give to the person
13written notice of the suspension or revocation of any of the permits. The notices
14required in this subsection may be served personally or by mail in the manner
15prescribed for service of notice of a deficiency determination
as provided in s. 73.03
16(73)
. If the department suspends or revokes a permanent permit under this
17subsection, it the department may grant a temporary permit that is valid for one
18month and may then grant additional temporary permits if the person pays all
19amounts owed under this chapter for the month for which the previous temporary
20permit was issued. Persons who receive A person that receives a temporary permit
21waive waives the notice requirement under s. 77.61 (2). The department shall may
22not issue a new permanent permit after the revocation of a permit unless it the
23department
is satisfied that the former holder of the permit will comply with the
24provisions of this subchapter, the rules of the department relating to the sales tax,
25and the provisions relating to other taxes administered by the department.
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