AB634: Bill Text

This bill requires a seller who receives any refund of sales or use taxes, or who collects sales or use taxes erroneously, to submit such a refund or taxes to the buyer, or to DOR if the buyer cannot be located, within 60 days after receiving a refund or after discovering that the seller has collected taxes erroneously. Any portion of a refund or taxes not submitted to the buyer, or to DOR if the buyer cannot be located, within that 60 days must be submitted to DOR, along with a penalty.

Other taxation

Under current law, a taxpayer may round dollar amounts on an income or franchise tax return to the nearest whole dollar. This bill permits DOR to require a taxpayer round dollar amounts to the nearest whole dollar on an income or franchise tax return. This bill also permits DOR to require that a taxpayer round dollar amounts to the nearest whole dollar on tax returns or tax reports related to sales and use taxes, estate taxes, fuel taxes, cigarette and tobacco product taxes, alcohol taxes, food and beverage taxes, premier resort area taxes, rental car fees and dry cleaning fees.

This bill allows DOR to accept payment for taxes, costs, penalties and interest from a taxpayer by use of a credit card and allows DOR to impose a credit card service charge on such payments.

This bill will be referred to the joint survey committee on tax exemptions for a detailed analysis, which will be printed as an appendix to this bill.

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:

AB634, s. 1 Section 1. 20.566 (1) (hd) of the statutes is created to read:

AB634,4,6 20.566 (1) (hd) Credit card payment service charge. From moneys received from credit card payment service charges collected under s. 71.80 (21) (c), a sum sufficient to pay the costs incurred by the department of revenue to provide for the payment of taxes by credit card, including the cost of contracting services under s. 71.80 (21) (d).

AB634, s. 2 Section 2. 50.14 (4) of the statutes is amended to read:

AB634,4,10 50.14 (4) Sections 77.59 (1) to (5) (5m), (6) (intro.), (a) and (c) and (7) to (10), 77.60 (1) to (7), (9) and (10), 77.61 (9) and (12) to (14) and 77.62, as they apply to the taxes under subch. III of ch. 77, apply to the assessment under this section.

AB634, s. 3 Section 3. 71.10 (6) (a) of the statutes is amended to read:

AB634,4,18 71.10 (6) (a) Joint returns. Persons filing a joint return are jointly and severally liable for the tax, interest, penalties, fees, additions to tax and additional assessments under this chapter applicable to the return. A Except as provided in par. (e), a person shall be relieved of liability in regard to a joint return in the manner specified in section 6013 (e) 6015 (a) to (d) and (f) of the internal revenue code, notwithstanding the amount or percentage of the understatement Internal Revenue Code.

AB634, s. 4 Section 4. 71.10 (6) (b) of the statutes is amended to read:

AB634,5,6 71.10 (6) (b) Separate returns. A Except as provided in par. (e), a spouse filing a separate return may be relieved of liability for the tax, interest, penalties, fees, additions to tax and additional assessments under this chapter with regard to unreported marital property income in the manner specified in section 66 (c) of the internal revenue code Internal Revenue Code. The department may not apply ch. 766 in assessing a taxpayer with respect to marital property income the taxpayer did not report if that taxpayer failed to notify the taxpayer's spouse about the amount and nature of the income before the due date, including extensions, for filing the return for the taxable year in which the income was derived. The department shall include all of that marital property income in the gross income of the taxpayer and exclude all of that marital property income from the gross income of the taxpayer's spouse.

AB634, s. 5 Section 5. 71.10 (6) (e) of the statutes is created to read:

AB634,5,12 71.10 (6) (e) Application for relief. A person who seeks relief from liability under par. (a) or (b) shall apply for relief with the department, on a form prescribed by the department, within 2 years after the date on which the department first begins collection activities after the effective date of this paragraph .... [revisor inserts date].

AB634, s. 6 Section 6. 71.10 (6m) (a) of the statutes is amended to read:

AB634,6,2 71.10 (6m) (a) A Except as provided in par. (c), a formerly married or remarried person filing a return for a period during which the person was married may be relieved of liability for the tax, interest, penalties, fees, additions to tax and additional assessments under this chapter for unreported marital property income from that period as if the person were a spouse under section 66 (c) of the internal revenue code Internal Revenue Code. The department may not apply ch. 766 in assessing the former spouse of the person with respect to marital property income that the former spouse did not report if that former spouse failed to notify the person about the amount and nature of the income before the due date, including extensions, for filing the return for the taxable year during which the income was derived. The department shall include all of that marital property income in the gross income of the former spouse and exclude all of that marital property income from the gross income of the person.

AB634, s. 7 Section 7. 71.10 (6m) (c) of the statutes is created to read:

AB634,6,5 71.10 (6m) (c) A person who seeks relief from liability under par. (a) shall apply for relief with the department as provided under sub. (6) (e).

AB634, s. 8 Section 8. 71.65 (5) (a) 1. of the statutes is amended to read:

AB634,6,8 71.65 (5) (a) 1. Thirty days for filing a wage statement under sub. (1) or an annual withholding report under sub. (3) (a) or (d).

AB634, s. 9 Section 9. 71.80 (19) (a) (title) of the statutes is repealed.

AB634, s. 10 Section 10. 71.80 (19) (a) of the statutes is renumbered 71.80 (19) and amended to read:

AB634,6,17 71.80 (19) Whole dollar amounts. With At the request of the department, with respect to any amount required to be shown on a form prescribed for any return, statement or other document required by this chapter, if the amount of such item is other than a whole dollar amount the fractional part of a dollar shall be disregarded unless it amounts to 50 cents or more, in which case the amount (determined without regard to the fractional part of a dollar) shall be increased to the next whole dollar.

AB634, s. 11 Section 11. 71.80 (19) (b) of the statutes is repealed.

AB634, s. 12 Section 12. 71.80 (19) (c) of the statutes is repealed.

AB634, s. 13 Section 13. 71.80 (21) of the statutes is created to read:

AB634,6,22 71.80 (21) Credit card payments. (a) In this subsection, "taxes" has the meaning given in s. 71.91 (6) (a) 4.

AB634,6,24 (b) The department may accept payment by credit card of taxes that are required to be paid to the department under this chapter.

AB634,7,6 (c) If the department permits the payment of taxes by credit card under par. (b), the department shall impose a credit card service charge on that payment. The credit card service charge shall be in addition to the taxes that are being paid by credit card and shall be an amount that is no greater than necessary to pay the costs to the department for providing payment by credit card, including the cost of any services for which the department contracts under par. (d).

AB634,7,8 (d) The department may contract for services relating to credit card payments under this section.

AB634, s. 14 Section 14. 72.30 (1m) of the statutes is created to read:

AB634,7,11 72.30 (1m) Whole dollar amounts. Section 71.80 (19), as it applies to a tax return filed under ch. 71, applies to a tax return filed under sub. (1).

AB634, s. 15 Section 15. 73.01 (4) (a) of the statutes is amended to read:

AB634,8,3 73.01 (4) (a) Subject to the provisions for judicial review contained in s. 73.015, the commission shall be the final authority for the hearing and determination of all questions of law and fact arising under sub. (5) and s. 72.86 (4), 1985 stats., and ss. 70.11 (21), 70.38 (4) (a), 70.397, 70.64 and 70.995 (8), s. 76.38 (12) (a), 1993 stats., ss. 76.39 (4) (c), 76.48 (6), 76.91, 77.26 (3), 77.59 (5m) and (6) (b), 78.01, 78.22, 78.40, 78.555, 139.02, 139.03, 139.06, 139.31, 139.315, 139.33, 139.76 and 139.78, subch. XIV of ch. 71 and subch. VII of ch. 77. Whenever with respect to a pending appeal there is filed with the commission a stipulation signed by the department of revenue and the adverse party, under s. 73.03 (25), agreeing to an affirmance, modification or reversal of the department's position with respect to some or all of the issues raised in the appeal, the commission shall enter an order affirming or modifying in whole or in part, or canceling the assessment appealed from, or allowing in whole or in part or denying the petitioner's refund claim, as the case may be, pursuant to and in accordance with the stipulation filed. No responsibility shall devolve upon the commission, respecting the signing of an order of dismissal as to any pending appeal settled by the department without the approval of the commission.

AB634, s. 16 Section 16. 73.13 of the statutes is created to read:

AB634,8,5 73.13 Reducing nondelinquent taxes. (1) In this section:

AB634,8,6 (a) "Department" means the department of revenue.

AB634,8,8 (b) "Tax" means an amount that is owed to this state under s. 66.75 (1m) (f) 3. or ch. 71, 72, 76, 77, 78 or 139, and that is not delinquent.

AB634,8,15 (2) (a) A taxpayer may petition the department to reduce the taxpayer's taxes, including the costs, penalties and interest related to the taxpayer's taxes. The petition shall set forth a sworn statement of the taxpayer and shall be in a form that the department prescribes. The department may examine the taxpayer under oath about the petition and may require the taxpayer to provide the department with financial statements and any other information requested by the department that is related to the petition.

AB634,8,25 (b) If the department determines that the taxpayer is unable to pay the taxes, costs, penalties and interest in full, the department shall determine the amount that the taxpayer is able to pay and shall enter an order reducing the taxes in accordance with the department's determination. The order shall provide that the order is effective only if the reduced taxes are paid within 10 days from the date on which the order is issued. The department or its collection agents, upon receipt of the order, shall accept payment in accordance with the order. Upon payment of the reduced taxes, the department shall credit the unpaid portion of the principal amount of the taxes and record the unpaid amount of costs, penalties, and interest accrued to the date of the order.

AB634,9,19 (c) If within 3 years of the date of the order under par. (b) the department ascertains that the taxpayer has an income or owns property sufficient to enable the taxpayer to pay the unpaid portion of the principal amount of the taxes due, including the costs, penalties and interest recorded under par. (b), the department shall reopen the order under par. (b) and order the taxpayer to pay in full the unpaid portion of the principal amount of the taxes due, including the costs, penalties and interest recorded under par. (b). Before the entry of the order for payment, the department shall send a written notice to the taxpayer, by certified mail, advising the taxpayer of the department's intention to reopen the order under par. (b) and fixing a time and place for the appearance of the taxpayer, if the taxpayer desires a hearing. If the department determines that the taxpayer is able to pay the unpaid portion of the principal amount of the taxes due, including the costs, penalties and interest recorded under par. (b), the department shall enter the order for payment in full. The unpaid portion of the principal amount of the taxes due, including the costs, penalties and interest recorded under par. (b), shall be due and payable immediately upon entry of the order for payment in full and shall thereafter be subject to the interest under s. 71.82 (2), as that subsection applies to delinquent income and franchise taxes under s. 71.82, and to the delinquent account fee under s. 73.03 (33m).

AB634, s. 17 Section 17. 77.51 (20m) of the statutes is created to read:

AB634,9,21 77.51 (20m) "Taxable year" has the meaning given in s. 71.01 (12).

AB634, s. 18 Section 18. 77.51 (22m) of the statutes is created to read:

AB634,9,25 77.51 (22m) "Used exclusively" means used in a nontaxable manner for at least 95% of total use, the percentage to be determined as follows, unless a person receives written approval from the department of revenue to use an alternative method:

AB634,10,4 (a) For highway vehicles, including trailers and semitrailers, divide the number of miles that the item is driven or hauled in a nontaxable manner in the taxable year by the total number of miles that the item is driven or hauled in the same taxable year.

AB634,10,7 (b) For an item other than that described in par. (a), divide the number of hours that the item is used in a nontaxable manner in the taxable year by the total number of hours that the item is used in the same taxable year.

AB634, s. 19 Section 19. 77.54 (3) (b) 3. of the statutes is repealed.

AB634, s. 20 Section 20. 77.54 (5) (b) of the statutes is amended to read:

AB634,10,15 77.54 (5) (b) Motor trucks, truck tractors, road tractors, buses, trailers and semitrailers, and accessories, attachments, parts, supplies and materials therefor, that are sold to common or contract carriers who use such motor trucks, truck tractors, road tractors, buses, trailers and semitrailers and that are used exclusively as common or contract carriers, including the urban mass transportation of passengers as defined in s. 71.38.

AB634, s. 21 Section 21. 77.54 (5) (c) of the statutes is amended to read:

AB634,10,25 77.54 (5) (c) Motor vehicles which are not required to be licensed for highway use and which are used exclusively and directly used in conjunction with waste reduction or recycling activities which reduce the amount of solid waste generated, reuse solid waste, recycle solid waste, compost solid waste or recover energy from solid waste. For the purposes of this paragraph, "solid waste" means garbage, refuse, sludge or other materials or articles, whether these materials or articles are discarded or purchased, including solid, semisolid, liquid or contained gaseous materials or articles resulting from industrial, commercial, mining or agricultural operations or from domestic use or from public service activities.

AB634, s. 22 Section 22. 77.54 (6) (a) of the statutes is amended to read:

AB634,11,5 77.54 (6) (a) Machines and specific processing equipment and repair parts or replacements thereof, used exclusively and directly used by a manufacturer in manufacturing tangible personal property and safety attachments for those machines and equipment.

AB634, s. 23 Section 23. 77.54 (26m) of the statutes is amended to read:

AB634,11,18 77.54 (26m) The gross receipts from the sale of and the storage, use or other consumption of waste reduction or recycling machinery and equipment, including parts therefor, used exclusively and directly used for waste reduction or recycling activities which reduce the amount of solid waste generated, reuse solid waste, recycle solid waste, compost solid waste or recover energy from solid waste. The exemption applies even though an economically useful end product results from the use of the machinery and equipment. For the purposes of this subsection, "solid waste" means garbage, refuse, sludge or other materials or articles, whether these materials or articles are discarded or purchased, including solid, semisolid, liquid or contained gaseous materials or articles resulting from industrial, commercial, mining or agricultural operations or from domestic use or from public service activities.

AB634, s. 24 Section 24. 77.58 (3) (c) of the statutes is created to read:

AB634,11,21 77.58 (3) (c) Section 71.80 (19), as it applies to a tax return filed under ch. 71, applies to a tax return filed under this section.

AB634, s. 25 Section 25. 77.59 (4) (c) of the statutes is renumbered 77.59 (5m) and amended to read:

AB634,12,10 77.59 (5m) A seller who receives a refund under par. (a) or (b) of taxes that the seller has collected from buyers, who collects taxes erroneously from buyers, or who is entitled to a refund that is offset under sub. (5), shall return submit the taxes and related interest to the buyers from whom the taxes were collected. The, or to the department if the seller cannot locate the buyers, within 60 days after the date of the refund, after the date of the offset or after discovering that the seller has collected taxes erroneously from the buyers. If the seller does not submit the taxes and related interest to the department or the buyers within that period, the seller shall return submit to the department any part of a refund or taxes that the seller does not return submit to a buyer or to the department along with a penalty of 25% of the amount not returned or submitted or, in the case of fraud, a penalty equal to the amount not returned in the case of fraud submitted.

AB634, s. 26 Section 26. 77.59 (5) of the statutes is amended to read:

AB634,12,20 77.59 (5) The department may offset the amount of any refund for a period, together with interest on the refund, against deficiencies for another period, and against penalties and interest on the deficiencies, or against any amount of whatever kind, due and owing on the books of the department from the person claiming who is entitled to the refund. If the refund is to be paid to a buyer, the department may also set off amounts in the manner in which it sets off income tax and franchise tax refunds under s. 71.93 and may set off amounts for child support or maintenance or both in the manner in which it sets off income taxes under ss. 49.855 and 71.93 (3), (6) and (7).

AB634, s. 27 Section 27. 77.61 (3) of the statutes is amended to read:

AB634,13,3 77.61 (3) The department shall provide A retailer shall use either a bracket system to be used by retailers in collecting or a straight mathematical computation, under rules promulgated by the department, to determine the amount of the tax that the retailer may collect from their the retailer's customers, but the use of such brackets either a bracket system or a straight mathematical computation shall not relieve the retailer from liability for payment of the full amount of the tax levied by ss. 77.51 to 77.62.

AB634, s. 28 Section 28. 77.9941 (4) of the statutes is amended to read:

AB634,13,8 77.9941 (4) Sections 77.72 (1), (2) (a) and (3) (a), 77.73, 77.74, 77.75, 77.76 (1), (2) and (4), 77.77 (1) and (2), 77.785 (1) and 77.79, as they apply to the taxes under subch. V, apply to the tax under this subchapter. Section 77.58 (3) (c), as it applies to the taxes under subch. III, applies to the tax under this subchapter.

AB634, s. 29 Section 29. 77.9964 (2) of the statutes is amended to read:

AB634,13,15 77.9964 (2) Except as provided in s. 77.9961 (4), sections ss. 71.74 (1) to (3), (7) and (9), 71.75 (1), (2), (6), (7), (9) and (10), 71.77 (1) and (4) to (8), 71.78 (1) to (4) and (5) to (8), 71.80 (1) (a) and (b), (4) to (6), (8) to (12), (14), and (17) and (18) to (19), 71.82 (1) and (2) (a) and (b), 71.83 (1) (a) 1. and 2. and (b) 1., 2. and 6., (2) (a) 1. to 3. and (b) 1. to 3. and (3), 71.87, 71.88, 71.89, 71.90, 71.91 (1) (a), (2) and (4) to (6) and 71.93, as they apply to the taxes under ch. 71, apply to the fees under this subchapter.

AB634, s. 30 Section 30. 78.39 (5d) of the statutes is created to read:

AB634,13,17 78.39 (5d) "Pay" has the meaning given in s. 78.005 (13b).

AB634, s. 31 Section 31. 78.39 (5m) of the statutes is created to read:

AB634,13,19 78.39 (5m) "Sign" has the meaning given in s. 78.005 (13r).

AB634, s. 32 Section 32. 78.68 (10) of the statutes is amended to read:

AB634,13,25 78.68 (10) Except as provided in ss. 78.19, 78.20 (2) and 78.75 (1m) (b), s. 71.75 (2), (4) to (7) and (10), as it applies to the taxes under ch. 71, applies to the taxes under this chapter. Section 71.74 (13), as it applies to refunds of the taxes under ch. 71, applies to the refund of the taxes under this chapter and s. 71.80 (19), as it applies to tax returns filed under ch. 71, applies to returns filed under this chapter.

AB634, s. 33 Section 33. 139.11 (2r) of the statutes is created to read:

AB634,14,3 139.11 (2r) Whole dollar amounts. Section 71.80 (19), as it applies to a tax return filed under ch. 71, applies to a report filed under this subchapter.

AB634, s. 34 Section 34. 139.38 (2r) of the statutes is created to read:

AB634,14,6 139.38 (2r) Section 71.80 (19), as it applies to a tax return filed under ch. 71, applies to a report filed under this subchapter.

AB634, s. 35 Section 35. 139.75 (9m) of the statutes is created to read:

AB634,14,8 139.75 (9m) "Sign" has the meaning given in s. 139.01 (9m).

AB634, s. 36 Section 36. 139.82 (2r) of the statutes is created to read:

AB634,14,11 139.82 (2r) Section 71.80 (19), as it applies to a tax return filed under ch. 71, applies to a report filed under this subchapter.

AB634, s. 37 Section 37. Nonstatutory provisions.

AB634,14,21 (1) Refunds and taxes collected erroneously. Notwithstanding section 77.59 (5m) of the statutes, as affected by this act, a seller who is required to submit to a buyer a refund or a tax collected erroneously under section 77.59 (5m) of the statutes, as affected by this act, from sales that occurred after August 31, 1994, but before the effective date of this subsection shall submit that refund or tax to the buyer, or to the department of revenue if the seller cannot locate the buyer, within 60 days after the effective date of this subsection. A refund or tax that is not submitted to the buyer or to the department of revenue within that period is subject to the penalties imposed under section 77.59 (5m) of the statutes, as affected by this act.

AB634, s. 38 Section 38. Initial applicability.