2001 Wisconsin Act 16

(a) "Certified automated system" means software that is certified jointly by the states that are signatories to the agreement, as defined in s. 77.65 (2) (a), and that is used to calculate the sales tax and use tax imposed under this subchapter and subch. V on a transaction by each appropriate jurisdiction, to determine the amount 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 states that are signatories to the agreement, as defined in s. 77.65 (2) (a), and that performs all of a seller's sales tax and use tax functions related to the seller's retail sales.

(c) "Seller" has the meaning given in s. 77.65 (2) (e).

(2) A certified service provider is the agent of the seller with whom the certified service provider has contracted and is liable for the sales and use taxes that are due the state on all sales transactions that the provider processes for a seller, except as provided in sub. (3).

(3) A seller that contracts with a certified service provider is not liable for sales and use taxes that are due the state on transactions that the provider processed, unless the seller has misrepresented the type of items that the seller sells or has committed fraud. The seller is subject to an audit on transactions that the certified service provider processed only if there is probable cause to believe that the seller has committed fraud or made a material misrepresentation. The seller is subject to an audit on transactions that the certified service provider does not process. The states that are signatories to the agreement, as defined in s. 77.65 (2) (a), may jointly check the seller's business system and review the seller's business procedures to determine if the certified service provider's system is functioning properly and to determine the extent to which the seller's transactions are being processed by the certified service provider.

(4) A person that provides a certified automated system is responsible for the system's proper functioning and is liable to this state for tax underpayments that are attributable to errors in the system's functioning. A seller that uses a certified automated system is responsible and liable to this state for reporting and remitting sales and use tax.

(5) A seller that has a proprietary system for determining the amount of tax that is due on transactions and that has signed an agreement with the states that are signatories to the agreement, as defined in s. 77.65 (2) (a), establishing a performance standard for the system is liable for the system's failure to meet the performance standard.

16,2246 Section 2246. 77.54 (9a) (a) of the statutes is amended to read:

77.54 (9a) (a) This state or any agency thereof and, the University of Wisconsin Hospitals and Clinics Authority, and the Fox River Navigational System Authority.

16,2246m Section 2246m. 77.54 (45) of the statutes is amended to read:

77.54 (45) The gross receipts from the sale of and the use or other consumption of a onetime license or similar right to purchase admission to professional football games at a football stadium, as defined in s. 229.821 (6), that is granted by a municipality; a local professional football stadium district; or a professional football team or related party, as defined in s. 229.821 (12); if the person who buys the license or right is entitled, at the time the license or right is transferred to the person, to purchase admission to at least 3 professional football games in this state during one football season. The exemption under this subsection does not apply to a license or right that is sold after December 31, 2003.

16,2246n Section 2246n. 77.54 (46) of the statutes is created to read:

77.54 (46) The gross receipts from the sale of and the storage, use, or other consumption of the U.S. flag or the state flag. This subsection does not apply to a representation of the U.S. flag or the state flag.

16,2246nm Section 2246nm. 77.54 (47) of the statutes is created to read:

77.54 (47) The gross receipts from the sale of and the storage, use, or other consumption of water park water slides, including support structures, attachments, and parts for water park water slides, but excluding underground piping, foundations, and wholly or partially underground pools that are additions or improvements to real property and excluding water slides; and support structures, attachments, and parts for water slides; located at residential facilities, including personal residences, apartments, long-time care facilities, and state institutions.

16,2246p Section 2246p. 77.65 of the statutes is created to read:

77.65 Uniform sales and use tax administration. (1) Short title. This section shall be known as the "Uniform Sales and Use Tax Administration Act."

(2) Definitions. 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 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 services.

(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).

(3) Department authority. The department may enter into the agreement to simplify and modernize sales tax and use tax administration in order to substantially reduce the tax compliance burden for all sellers and for all types of commerce. The department may act jointly with other states that are signatories to the agreement to establish standards for the certification of a certified service provider and certified automated system and to establish performance standards for multistate sellers. The department may promulgate rules to administer this section, may procure jointly with other states that are signatories to the agreement goods and services in furtherance of the agreement, and may take other actions reasonably 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 agreement.

(4) Agreement requirements. The department may not enter into the agreement unless the agreement requires that a state that is a signatory to the 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 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 appropriate taxing jurisdictions, for administering exempt sales, and for sales and 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 electronic registration system that allows a seller to register to collect and remit sales 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 electronic registration system under par. (f), and the subsequent collection and remittance of sales and use taxes in the states that are signatories to the agreement, to determine whether the seller has sufficient connection with the state for the 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 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 jurisdictions.

(j) Restrict the frequency of changes in any local sales and use tax rates and provide notice of any such changes.

(k) Establish effective dates for the application of local jurisdictional boundary 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 outlined in the agreement.

(m) Certify compliance with the agreement before entering into the agreement and maintain compliance with the agreement.

(n) Adopt a uniform policy, with the states that are signatories to the agreement, for certified service providers that protects a consumer's privacy and maintains tax information confidentiality.

(o) Appoint, with the states that are signatories to the agreement, an advisory council to consult with in administering the agreement. The advisory council shall consist of private sector representatives and representatives from states that are not signatories to the agreement.

(5) Cooperating states. The agreement entered into under this section is an accord among cooperating states to further their governmental functions and provides a mechanism among the cooperating states to establish and maintain a cooperative, simplified system for the application and administration of sales and use taxes that are imposed by each state that is a signatory to the agreement.

(6) Limited binding and beneficial effect. (a) The agreement entered into 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 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 or because of the department entering into the agreement. No person may challenge any action or inaction by any department, agency, other instrumentality of this state, or any political subdivision of this state on the ground that the action or inaction is inconsistent with the agreement.

(c) No law of this state, or the application of such law, may be declared invalid on the ground that the law, or the application of such law, is inconsistent with the agreement.

(7) Relationship to state law. No provision of the agreement in whole or in part invalidates or amends any law of this state and the state becoming a signatory to the agreement shall not amend or modify any law of this state.

16,2247b Section 2247b. 77.76 (3) of the statutes is amended to read:

77.76 (3) From the appropriation under s. 20.835 (4) (g) the department shall distribute 98.25% of the county taxes reported for each enacting county, minus the county portion of the retailers' discounts, to the county and shall indicate the taxes reported by each taxpayer, no later than the end of the 3rd month 75 days following the end last day of the calendar quarter in which such amounts were reported. In this subsection, the "county portion of the retailers' discount" is the amount determined by multiplying the total retailers' discount by a fraction the numerator of which is the gross county sales and use taxes payable and the denominator of which is the sum of the gross state and county sales and use taxes payable. The county taxes distributed shall be increased or decreased to reflect subsequent refunds, audit adjustments and all other adjustments of the county taxes previously distributed. Interest paid on refunds of county sales and use taxes shall be paid from the appropriation under s. 20.835 (4) (g) at the rate paid by this state under s. 77.60 (1) (a). The county may retain the amount it receives or it may distribute all or a portion of the amount it receives to the towns, villages, cities and school districts in the county. Any county receiving a report under this subsection is subject to the duties of confidentiality to which the department of revenue is subject under s. 77.61 (5).

16,2247c Section 2247c. 77.81 (1) of the statutes is amended to read:

77.81 (1) "Department" means the department of natural resources forestry.

16,2247d Section 2247d. 77.82 (1) (a) 2. of the statutes is amended to read:

77.82 (1) (a) 2. At least 80% 65% of the parcel must be producing or capable of producing a minimum of 20 cubic feet of merchantable timber per acre per year.

16,2247h Section 2247h. 77.82 (1) (b) 1. of the statutes is amended to read:

77.82 (1) (b) 1. A parcel of which more than 20% 35% consists of land that is unsuitable for producing merchantable timber, including water, marsh, muskeg, bog, rock outcrops, or sand dunes, farmland, roadway or railroad and utility rights-of-way.

16,2247p Section 2247p. 77.82 (1) (b) 1g. of the statutes is created to read:

77.82 (1) (b) 1g. A parcel of which more than 20% consists of land that is farmland, roadway, or a railroad or utility right-of-way or that is not capable of producing merchantable timber because the production would affect the land's natural resources including land that contains sensitive soil, as determined by the department, endangered species as defined in s. 29.604 (2) (a), threatened species, as defined in s. 29.604 (2) (b), or an archeological site, or land that lacks sound forestry regeneration options, as determined by the department.

16,2247pg Section 2247pg. 77.82 (2) (intro.) of the statutes is amended to read:

77.82 (2) Petition. (intro.) Any owner of land may petition the department to designate any eligible parcel of land as managed forest land. A petition may include any number of eligible parcels under the same ownership in a single municipality. Each petition shall be submitted on a form provided by the department and shall be accompanied by a nonrefundable $10 application fee unless a different amount of the fee is established by the department by rule at an amount equal to the average expense to the department of recording an order issued under this subchapter. The fee shall be deposited in the conservation forestry fund and credited to the appropriation under s. 20.370 (1) (cr) 20.375 (2) (qr). Each petition shall include all of the following:

16,2247q Section 2247q. 77.82 (4) of the statutes is amended to read:

77.82 (4) Additions to managed forest land. An owner may petition the department to designate as managed forest land an additional parcel of land in the same municipality if the additional parcel is at least 3 acres in size and is contiguous to any of the owner's designated land. The petition shall be accompanied by a nonrefundable $10 application fee unless a different amount of the fee is established in the same manner as the fee under sub. (2). The fee shall be deposited in the conservation forestry fund and credited to the appropriation under s. 20.370 (1) (cr) 20.375 (2) (qr). The petition shall be submitted on a department form and shall contain any additional information required by the department.

16,2247r Section 2247r. 77.82 (4m) (bn) of the statutes is amended to read:

77.82 (4m) (bn) A petition under this subsection shall be accompanied by a nonrefundable $100 application fee which shall be deposited in the conservation forestry fund and credited to the appropriation under s. 20.370 (1) (cr) 20.375 (2) (qr).

16,2247t Section 2247t. 77.82 (7) (a) 3. of the statutes is amended to read:

77.82 (7) (a) 3. That a stand of merchantable timber will be developed on at least 80% 65% of the land within a reasonable period of time.

16,2247tg Section 2247tg. 77.84 (3) (b) of the statutes is amended to read:

77.84 (3) (b) Immediately after receiving the certification of the county clerk that a tax deed has been taken, the department shall issue an order withdrawing the land as managed forest land. The notice requirement under s. 77.88 (1) does not apply to the department's action under this paragraph. The department shall notify the county treasurer of the amount of the withdrawal tax, as determined under s. 77.88 (5), and the amount of the tax shall be payable to the department under s. 75.36 (3) if the property is sold by the county. The amount shall be credited to the conservation forestry fund.

16,2247tj Section 2247tj. 77.85 of the statutes is amended to read:

77.85 State contribution. The department shall pay before June 30 annually the municipal treasurer, from the appropriation under s. 20.370 (5) (bv) 20.375 (2) (vm), 20 cents for each acre of land in the municipality that is designated as managed forest land under this subchapter.

16,2247tk Section 2247tk. 77.87 (3) of the statutes is amended to read:

77.87 (3) Payment. A tax assessed under sub. (1) or (2) is due and payable to the department on the last day of the month following the date the certificate is mailed to the owner. The department shall collect interest at the rate of 12% per year on any tax that is paid later than the due date. Amounts received shall be credited to the conservation forestry fund.

16,2247tm Section 2247tm. 77.88 (2) (d) of the statutes is amended to read:

77.88 (2) (d) Within 10 days after a transfer of ownership, the former owner shall, on a form provided by the department, file with the department a report of the transfer signed by the former owner and the transferee. The report shall be accompanied by a $20 fee which shall be deposited in the conservation forestry fund and credited to the appropriation under s. 20.370 (1) (cr) 20.375 (2) (qr). The department shall immediately notify each person entitled to notice under s. 77.82 (8).

16,2247tn Section 2247tn. 77.88 (7) of the statutes is amended to read:

77.88 (7) Payment; delinquency. A tax under sub. (5) is due and payable to the department on the last day of the month following the effective date of the withdrawal order. Amounts received shall be credited to the conservation forestry fund. If the owner of the land fails to pay the tax, the department shall certify to the taxation district clerk the amount due. The taxation district clerk shall enter the delinquent amount on the property tax roll as a special charge.

16,2247tp Section 2247tp. 77.89 (1) of the statutes is amended to read:

77.89 (1) Payment to municipalities. By June 30 of each year, the department, from the appropriation under s. 20.370 (5) (bv) 20.375 (2) (vm), shall pay 50% of each payment received under s. 77.84 (3) (b), 77.87 (3) or 77.88 (7) to the treasurer of the municipality in which is located the land to which the payment applies.

16,2247tr Section 2247tr. 77.89 (3) of the statutes is amended to read:

77.89 (3) Conservation Forestry fund credit. The municipal treasurer shall pay all amounts received under s. 77.84 (2) (b) to the county treasurer, as provided under ss. 74.25 and 74.30. The county treasurer shall, by June 30 of each year, pay all amounts received under this subsection to the department. All amounts received by the department shall be credited to the conservation forestry fund and shall be reserved for land acquisition and resource management activities relating to the state forests.

16,2247tt Section 2247tt. 77.91 (4) of the statutes is amended to read:

77.91 (4) Expenses. Except as provided in sub. (5), the department's expenses for the administration of this subchapter shall be paid from the appropriation under s. 20.370 (1) (mu) 20.375 (2) (q).

16,2247tu Section 2247tu. 77.91 (5) of the statutes is amended to read:

77.91 (5) Recording. Each register of deeds who receives notice of an order under this subchapter shall record the action as provided under s. 59.43 (1). The department shall pay the register of deeds the fee specified under s. 59.43 (2) (ag) 1. from the appropriation under s. 20.370 (1) (cr) 20.375 (2) (qr). If the amount in the appropriation under s. 20.370 (1) (cr) 20.375 (2) (qr) in any fiscal year is insufficient to pay the full amount required under this subsection in that fiscal year, the department shall pay the balance from the appropriation under s. 20.370 (1) (mu) 20.375 (2) (q).

16,2248 Section 2248. 77.92 (4) of the statutes is amended to read:

77.92 (4) "Net business income", with respect to a partnership, means taxable income as calculated under section 703 of the Internal Revenue Code; plus the items of income and gain under section 702 of the Internal Revenue Code, including taxable state and municipal bond interest and excluding nontaxable interest income or dividend income from federal government obligations; minus the items of loss and deduction under section 702 of the Internal Revenue Code, except items that are not deductible under s. 71.21; plus guaranteed payments to partners under section 707 (c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), and (3g), and (3s); and plus or minus, as appropriate, transitional adjustments, depreciation differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain, loss, and deductions from farming. "Net business income", with respect to a natural person, estate, or trust, means profit from a trade or business for federal income tax purposes and includes net income derived as an employee as defined in section 3121 (d) (3) of the Internal Revenue Code.

16,2249 Section 2249. 77.94 (1) (b) of the statutes is amended to read:

77.94 (1) (b) On an entity under s. 77.93 (2) or, (3), or (5), except an entity that has less than $4,000,000 of gross receipts, an amount equal to the amount calculated by multiplying net business income as allocated or apportioned to this state by means of the methods under s. 71.04, for the taxable year of the entity by 0.2 %, up to a maximum of $9,800, or $25, whichever is greater.

16,2250 Section 2250. 77.94 (1) (c) of the statutes is repealed.

16,2251 Section 2251. 77.996 (2) (intro.) of the statutes is amended to read: