SB446: Bill Text

SB446,93,21 77.58 (6) For the purposes of the sales tax gross receipts, the sales price from rentals or leases of tangible personal property or items or property under s. 77.52 (1) (b) or (c) shall be reported and the tax paid in accordance with such rules as the department prescribes.

SB446, s. 263 Section 263. 77.58 (6m) of the statutes is created to read:

SB446,93,25 77.58 (6m) (a) The department may, in cases where it is satisfied that an undue hardship would otherwise result, permit the reporting of a sales price or purchase price on some basis other than the accrual basis.

SB446,94,4 (b) The entire sales price of credit transactions shall be reported in the period in which the sale is made without reduction in the amount of tax payable by the retailer by reason of the retailer's transfer at a discount of any open account, note, conditional sales contract, lease contract, or other evidence of indebtedness.

SB446, s. 264 Section 264. 77.58 (9a) of the statutes is created to read:

SB446,94,11 77.58 (9a) In addition to filing a return as provided in this section, a person described under s. 77.524 (3), (4), or (5) shall provide to the department any information that the department considers necessary for the administration of this subchapter, in the manner prescribed by the department, except that the department may not require that the person provide such information to the department more than once every 180 days.

SB446, s. 265 Section 265. 77.585 of the statutes is created to read:

SB446,94,21 77.585 Return adjustments. (1) (a) In this subsection, "bad debt" means the portion of the sales price or purchase price that the seller has reported as taxable under this subchapter and that the seller may claim as a deduction under section 166 of the Internal Revenue Code. "Bad debt" does not include financing charges or interest, sales or use taxes imposed on the sales price or purchase price, uncollectible amounts on property or items or property under s. 77.52 (1) (b) or (c) that remain in the seller's possession until the full sales price or purchase price is paid, expenses incurred in attempting to collect any debt, debts sold or assigned to 3rd parties for collection, and repossessed property.

SB446,95,8 (b) A seller may claim as a deduction on a return under s. 77.58 the amount of any bad debt that the seller writes off as uncollectible in the seller's books and records and that is eligible to be deducted as a bad debt for federal income tax purposes, regardless of whether the seller is required to file a federal income tax return. A seller who claims a deduction under this paragraph shall claim the deduction on the return under s. 77.58 that is submitted for the period in which the seller writes off the amount of the deduction as uncollectible in the seller's books and records and in which such amount is eligible to be deducted as bad debt for federal income tax purposes. If the seller subsequently collects in whole or in part any bad debt for which a deduction is claimed under this paragraph, the seller shall include the amount collected in the return filed for the period in which the amount is collected and shall pay the tax with the return.

SB446,95,14 (c) For purposes of computing a bad debt deduction or reporting a payment received on a previously claimed bad debt, any payment made on a debt or on an account is applied first to the price of the property, items or property under s. 77.52 (1) (b) or (c), or service sold, and the proportionate share of the sales tax on that property, items or property under s. 77.52 (1) (b) or (c), or service, and then to interest, service charges, and other charges related to the sale.

SB446,95,20 (d) A seller may obtain a refund of the tax collected on any bad debt amount deducted under par. (b) that exceeds the amount of the seller's taxable sales as provided under s. 77.59 (4), except that the period for making a claim as determined under s. 77.59 (4) begins on the date on which the return on which the bad debt could be claimed would have been required to be submitted to the department under s. 77.58.

SB446,96,2 (e) If a seller is using a certified service provider, the certified service provider may claim a bad debt deduction under this subsection on the seller's behalf if the seller has not claimed and will not claim the same deduction. A certified service provider who receives a bad debt deduction under this subsection shall credit that deduction to the seller and a certified service provider who receives a refund under this subsection shall submit that refund to the seller.

SB446,96,8 (f) If a bad debt relates to the retail sales of tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services that occurred in this state and in one or more other states, as determined under s. 77.522, the total amount of such bad debt shall be apportioned among the states in which the underlying sales occurred in a manner prescribed by the department to arrive at the amount of the deduction under par. (b).

SB446,96,15 (2) If a lessor of tangible personal property or items or property under s. 77.52 (1) (b) or (c) has reimbursed the vendor for the sales tax on the sale of the property or items by the vendor to the lessor, the tax due from the lessor on the rental receipts may be offset by a credit equal to the tax otherwise due on the rental receipts from the property or items for the reporting period. The credit shall expire when the cumulative rental receipts equal the sales price upon which the vendor paid sales taxes to this state.

SB446,96,21 (3) If a purchaser of tangible personal property or items or property under s. 77.52 (1) (b) or (c) has reimbursed the vendor of the property or items for the sales tax on the sale and subsequently, before making any use of the property or items other than retention, demonstration, or display while holding it for sale or rental, makes a taxable sale of the property or items, the tax due on the taxable sale may be offset by the tax reimbursed.

SB446,97,5 (4) A seller may claim a deduction on any part of the sales price or purchase price that the seller refunds in cash or credit as a result of returned property or items or property under s. 77.52 (1) (b) or (c) or adjustments in the sales price or purchase price after the sale has been completed, if the seller has included the refunded price in a prior return made by the seller and has paid the tax on such price, and if the seller has returned to the purchaser in cash or in credit all tax previously paid by the purchaser on the amount of the refund at the time of the purchase. A deduction under this subsection shall be claimed on the return for the period in which the refund is paid.

SB446,97,9 (5) No reduction in the amount of tax payable by the retailer is allowable in the event property or items or property under s. 77.52 (1) (b) or (c) sold on credit are repossessed except where the entire consideration paid by the purchaser is refunded to the purchaser or where a credit for a worthless account is allowable under sub. (1).

SB446,97,13 (6) A purchaser who is subject to the use tax on the storage, use, or other consumption of fuel may claim a deduction from the purchase price that is subject to the use tax for fuel taxes refunded by this state or the United States to the purchaser that is included in the purchase price of the fuel.

SB446,97,17 (7) For sales tax purposes, if a retailer establishes to the department's satisfaction that the sales tax has been added to the total amount of the sales price and has not been absorbed by the retailer, the total amount of the sales price shall be the amount received exclusive of the sales tax imposed.

SB446,97,23 (8) A sale or purchase involving transfer of ownership of property or items or property under s. 77.52 (1) (b) or (c) is completed at the time when possession is transferred by the seller or the seller's agent to the purchaser or the purchaser's agent, except that for purposes of sub. (1) a common carrier or the U.S. postal service shall be considered the agent of the seller, regardless of any f.o.b. point and regardless of the method by which freight or postage is paid.

SB446, s. 266 Section 266. 77.59 (2m) of the statutes is created to read:

SB446,98,3 77.59 (2m) The department may audit, or may authorize others to audit, sellers and certified service providers who are registered with the department pursuant to the agreement, as defined in s. 77.65 (2) (a).

SB446, s. 267 Section 267. 77.59 (5m) of the statutes is amended to read:

SB446,98,23 77.59 (5m) A seller who receives a refund under sub. (4) (a) or (b) of taxes that the seller has collected from buyers, who collects amounts as taxes erroneously from buyers, but who does not remit such amounts to the state, or who is entitled to a refund under sub. (4) (a) or (b) that is offset under sub. (5), shall submit the taxes and related interest to the buyers from whom the taxes were collected, or to the department if the seller cannot locate the buyers, within 90 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 submit to the department any part of a refund or taxes that the seller does not submit to a buyer or to the department along with a penalty of 25% of the amount not submitted or, in the case of fraud, a penalty equal to the amount not submitted. A person who collects amounts as taxes erroneously from buyers for a real property construction activity or nontaxable service may reduce the taxes and interest that he or she is required to submit to the buyer or to the department under this subsection for that activity or service by the amount of tax and interest subsequently due and paid on the sale of or the storage, use, or other consumption of tangible personal property or items or property under s. 77.52 (1) (b) or (c) that is are used by the person in that activity or service and transferred to the buyer.

SB446, s. 268 Section 268. 77.59 (9) of the statutes is amended to read:

SB446,99,14 77.59 (9) If any person fails to file a return, the department shall make an estimate of the amount of the gross receipts sales price of the person person's sales, or, as the case may be, of the amount of the total sales purchase price of tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable service sold or purchased by the person, the sale by or the storage, use, or other consumption of which in this state is subject to sales or use tax. The estimate shall be made for the period in respect to which the person failed to make a return and shall be based upon any information which is in the department's possession or may come into its possession. Upon the basis of this estimate the department shall compute and determine the amount required to be paid to the state, adding to the sum thus arrived at a penalty equal to 25% thereof. One or more such determinations may be made for one or for more than one period. When a business is discontinued a determination may be made at any time thereafter, within the periods specified in sub. (3), as to liability arising out of that business.

SB446, s. 269 Section 269. 77.59 (9n) of the statutes is created to read:

SB446,99,19 77.59 (9n) (a) Notwithstanding s. 73.03 (47), no seller or certified service provider is liable for tax, interest, or penalties imposed on a transaction under this subchapter in the circumstances covered under sections 306, 328, and 502 of the agreement, as defined in s. 77.65 (2) (a).

SB446,99,22 (b) A purchaser is not liable for the tax, interest, or penalties imposed on a transaction under this subchapter in the circumstances covered by section 331 of the agreement, as defined in s. 77.65 (2) (a).

SB446, s. 270 Section 270. 77.59 (9p) (b) of the statutes is created to read:

SB446,99,25 77.59 (9p) (b) If a customer purchases a service that is not subject to 4 USC 116 to 126, as amended by P.L. 106-252, tangible personal property, or items or property under s. 77.52 (1) (b) or (c), and if the customer believes that the amount of the tax assessed for the sale of the service, property, or items, under this subchapter is erroneous, the customer may request that the seller correct the alleged error by sending a written notice to the seller. The notice shall include a description of the alleged error and any other information that the seller reasonably requires to process the request. Within 60 days from the date that a seller receives a request under this paragraph, the seller shall review its records to determine the validity of the customer's claim. If the review indicates that there is no error as alleged, the seller shall explain the findings of the review in writing to the customer. If the review indicates that there is an error as alleged, the seller shall correct the error and shall refund the amount of any tax collected erroneously, along with the related interest, as a result of the error from the customer, consistent with s. 77.59 (4). A customer may take no other action against the seller, or commence any action against the seller, to correct an alleged error in the amount of the tax assessed under this subchapter on a service that is not subject to 4 USC 116 to 126, as amended by P.L. 106-252, tangible personal property, or items or property under s. 77.52 (1) (b) or (c) unless the customer has exhausted his or her remedies under this paragraph.

SB446, s. 271 Section 271. 77.59 (9r) of the statutes is created to read:

SB446,100,24 77.59 (9r) With regard to a purchaser's request for a refund under this section, a seller is presumed to have reasonable business practices if the seller uses a certified service provider, a certified automated system, as defined in s. 77.524 (1) (am), or a proprietary system certified by the department to collect the taxes imposed under this subchapter and if the seller has remitted to the department all taxes collected under this subchapter, less any deductions, credits, or allowances.

SB446, s. 272 Section 272. 77.60 (13) of the statutes is created to read:

SB446,101,6 77.60 (13) A person who uses any of the following documents in a manner that is prohibited by or inconsistent with this subchapter, or provides incorrect information to a seller or certified service provider related to the use of such documents or regarding an exemption to the taxes imposed under this subchapter, shall pay a penalty of $250 for each invoice or bill of sale related to the prohibited or inconsistent use or incorrect information:

SB446,101,7 (a) An exemption certificate described under ss. 77.52 (13) and 77.53 (10).

SB446,101,8 (b) A direct pay permit under s. 77.52 (17m).

SB446,101,9 (c) A direct mail form, as defined in s. 77.522 (1) (a) 1.

SB446, s. 273 Section 273. 77.61 (1) (b) of the statutes is amended to read:

SB446,101,15 77.61 (1) (b) In the case of a motor vehicle motor vehicles, boats, snowmobiles, recreational vehicles, as defined in s. 340.01 (48r), trailers, semitrailers, all-terrain vehicles, or aircraft purchased from a licensed Wisconsin motor vehicle dealer retailer, the registrant shall present proof that the tax has been paid to such dealer retailer.

SB446, s. 274 Section 274. 77.61 (1) (c) of the statutes, as affected by 2007 Wisconsin Act 11, is amended to read:

SB446,102,2 77.61 (1) (c) In the case of motor vehicles, boats, snowmobiles, recreational vehicles, as defined in s. 340.01 (48r), trailers, semitrailers, all-terrain vehicles, or aircraft registered or titled, or required to be registered or titled, in this state purchased from persons who are not Wisconsin boat, trailer, or semitrailer dealers, licensed Wisconsin aircraft, motor vehicle, or recreational vehicle, as defined in s. 340.01 (48r), dealers or registered Wisconsin snowmobile or all-terrain vehicle dealers retailers, the purchaser shall file a sales tax return and pay the tax prior to registering or titling the motor vehicle, boat, snowmobile, recreational vehicle, as defined in s. 340.01 (48r), semitrailer, all-terrain vehicle, or aircraft in this state.

SB446, s. 275 Section 275. 77.61 (2) of the statutes is renumbered 77.61 (2) (intro.) and amended to read:

SB446,102,5 77.61 (2) (intro.) In order to protect the revenue of the state:

SB446,102,19 (a) Except as provided in par. (b), the department may require any person who is or will be liable to it for the tax imposed by this subchapter to place with it, before or after a permit is issued, the security, not in excess of $15,000, that the department determines. In determining the amount of security to require under this subsection, the department may consider the person's payment of other taxes administered by the department and any other relevant facts. If any taxpayer fails or refuses to place that security, the department may refuse or revoke the permit. If any taxpayer is delinquent in the payment of the taxes imposed by this subchapter, the department may, upon 10 days' notice, recover the taxes, interest, costs and penalties from the security placed with the department by the taxpayer in the following order: costs, penalties, delinquent interest, delinquent tax. No interest may be paid or allowed by the state to any person for the deposit of security. Any security deposited under this subsection shall be returned to the taxpayer if the taxpayer has, for 24 consecutive months, complied with all the requirements of this subchapter.

SB446, s. 276 Section 276. 77.61 (2) (b) of the statutes is created to read:

SB446,103,10 77.61 (2) (b) A certified service provider who has contracted with a seller, and filed an application, to collect and remit sales and use taxes imposed under this subchapter on behalf of the seller shall submit a surety bond to the department to guarantee the payment of sales and use taxes, including any penalty and interest on such payment. The department shall approve the form and contents of a bond submitted under this paragraph and shall determine the amount of such bond. The surety bond shall be submitted to the department within 60 days after the date on which the department notifies the certified service provider that the certified service provider is registered to collect sales and use taxes imposed under this subchapter. If the department determines, with regards to any one certified service provider, that no bond is necessary to protect the tax revenues of this state, the secretary of revenue or the secretary's designee may waive the requirements under this paragraph with regard to that certified service provider. Any bond submitted under this paragraph shall remain in force until the secretary of revenue or the secretary's designee releases the liability under the bond.

SB446, s. 277 Section 277. 77.61 (3) of the statutes is repealed.

SB446, s. 278 Section 278. 77.61 (3m) of the statutes is created to read:

SB446,103,22 77.61 (3m) A retailer shall use a straight mathematical computation to determine the amount of the tax that the retailer may collect from the retailer's customers. The retailer shall calculate the tax amount by combining the applicable tax rates under this subchapter and subch. V and multiplying the combined tax rate by the sales price or purchase price of each item or invoice, as appropriate. The retailer shall calculate the tax amount to the 3rd decimal place, disregard tax amounts of less than 0.5 cent, and consider tax amounts of at least 0.5 cent but less than 1 cent to be an additional cent. The use of a straight mathematical computation, as provided in this subsection, shall not relieve the retailer from liability for payment of the full amount of the tax levied under this subchapter.

SB446, s. 279 Section 279. 77.61 (4) (a) of the statutes is amended to read:

SB446,104,8 77.61 (4) (a) Every seller and retailer and every person storing, using or otherwise consuming in this state tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services purchased from a retailer shall keep such records, receipts, invoices, and other pertinent papers and records, including machine-readable records, in such form as the department requires. The department may, after giving notice, require any person to keep whatever records are needed for the department to compute the sales or use taxes the person should pay. Thereafter, the department shall add to any taxes assessed on the basis of information not contained in the records required a penalty of 25% of the amount of the tax so assessed in addition to all other penalties under this chapter.

SB446, s. 280 Section 280. 77.61 (4) (c) of the statutes is amended to read:

SB446,104,20 77.61 (4) (c) For reporting the sales tax and collecting and reporting the use tax imposed on the retailer under s. 77.53 (3) and the accounting connected with it, retailers, not including certified service providers that receive compensation under s. 73.03 (61) (h), may deduct 0.5% of those taxes payable or $10 for that reporting period required under s. 77.58 (1), whichever is greater, but not more than the amount of the sales taxes or use taxes that is payable under ss. 77.52 (1) and 77.53 (3) for that reporting period required under s. 77.58 (1), as administration expenses if the payment of the taxes is not delinquent. For purposes of calculating the retailer's discount under this paragraph, the taxes on retail sales reported by retailers under subch. V, including taxes collected and remitted as required under s. 77.785, shall be included if the payment of those taxes is not delinquent.

SB446, s. 281 Section 281. 77.61 (5m) of the statutes is created to read:

SB446,104,23 77.61 (5m) (a) In this subsection, "personally identifiable information" means any information that identifies a person.

SB446,105,5 (b) A certified service provider may use personally identifiable information as necessary only for the administration of its system to perform a seller's sales and use tax functions and shall provide consumers clear and conspicuous notice of its practice regarding such information, including what information it collects, how it collects the information, how it uses the information, how long, if at all, it retains the information, and under what circumstances it discloses the information to states participating in the agreement, as defined in 77.65 (2) (a).

SB446,105,8 (c) A certified service provider may collect, use, and retain personally identifiable information only to verify exemption claims, to investigate fraud, and to ensure its system's reliability.

SB446,105,11 (d) A certified service provider shall provide sufficient technical, physical, and administrative safeguards to protect personally identifiable information from unauthorized access and disclosure.

SB446,105,14 (e) For purposes of this subchapter, the state shall provide to consumers public notice of the state's practices related to collecting, using, and retaining personally identifiable information.

SB446,105,18 (f) The state shall not retain personally identifiable information obtained for purposes of administering this subchapter unless the state is otherwise required to retain the information by law or as provided under the agreement, as defined in s. 77.65 (2) (a).

SB446,105,21 (g) For purposes of this subchapter, the state shall provide an individual reasonable access to that individual's personally identifiable information and the right to correct any inaccurately recorded information.

SB446,106,2 (h) If any person, other than another state that is a signatory to the agreement, as defined in s. 77.65 (2) (a), or a person authorized under state law to access the information, requests access to an individual's personally identifiable information, the state shall make a reasonable and timely effort to notify the individual of the request.

SB446, s. 282 Section 282 . 77.61 (11) of the statutes, as affected by 2007 Wisconsin Act .... (this act), is amended to read:

SB446,106,13 77.61 (11) Any city, village or town clerk or other official whose duty it is to issue licenses or permits to engage in a business involving the sale at retail of tangible personal property or items or property under s. 77.52 (1) (b) or (c) subject to tax under this subchapter, or the furnishing of services so subject to tax, shall, before issuing such license or permit, require proof that the person to whom such license or permit is to be issued is the holder of a seller's permit or is registered to collect, report, and remit use tax under this subchapter or has been informed by an employee of the department that the department will issue a seller's permit to that person or register that person to collect, report, and remit use tax.

SB446, s. 283 Section 283. 77.61 (16) of the statutes is created to read:

SB446,106,17 77.61 (16) Any person who remits taxes and files returns under this subchapter may designate an agent, as defined in s. 77.524 (1) (ag), to remit such taxes and file such returns with the department in a manner prescribed by the department.

SB446, s. 284 Section 284. 77.61 (17) of the statutes is created to read:

SB446,106,24 77.61 (17) With regard to services subject to the tax under s. 77.52 (2) or the lease, rental, or license of tangible personal property and property and items specified under s. 77.52 (1) (b) and (c), an increase in the tax rate applies to the first billing period beginning on or after the rate increase's effective date and a decrease in the tax rate applies to bills that are rendered on or after the rate decrease's effective date.

SB446, s. 285 Section 285. 77.63 of the statutes is repealed and recreated to read:

SB446,107,5 77.63 Collection compensation. The following persons may retain a portion of sales and use taxes collected on retail sales under this subchapter and subch. V in an amount determined by the department and by contracts that the department enters into jointly with other states as a member state of the streamlined sales tax governing board pursuant to the agreement, as defined in s. 77.65 (2) (a):

SB446,107,6 (1) A certified service provider.

SB446,107,8 (2) A seller that uses a certified automated system, as defined in s. 77.524 (1) (am).

SB446,107,19 (3) A seller that sells tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services in at least 5 states that are signatories to the agreement, as defined in s. 77.65 (2) (a); that has total annual sales revenue of at least $500,000,000; that has a proprietary system that calculates the amount of tax owed to each taxing jurisdiction in which the seller sells tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services; and that has entered into a performance agreement with the states that are signatories to the agreement, as defined in s. 77.65 (2) (a). For purposes of this subsection, "seller" includes an affiliated group of sellers using the same proprietary system to calculate the amount of tax owed in each taxing jurisdiction in which the sellers sell tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services.

SB446, s. 286 Section 286. 77.65 (2) (a) of the statutes is amended to read:

SB446,107,22 77.65 (2) (a) "Agreement" means the streamlined sales and use tax agreement, including amendments to the agreement.

SB446, s. 287 Section 287. 77.65 (2) (c) of the statutes is repealed.

SB446, s. 288 Section 288. 77.65 (2) (e) of the statutes is amended to read:

SB446,108,2 77.65 (2) (e) "Seller" means any person who sells, leases, or rents tangible personal property, items or property under s. 77.52 (1) (b) or (c), or services.

SB446, s. 289 Section 289. 77.65 (2) (f) of the statutes is amended to read:

SB446,108,5 77.65 (2) (f) "State" means any state of the United States and, the District of Columbia, and the Commonwealth of Puerto Rico.

SB446, s. 290 Section 290. 77.65 (4) (fm) of the statutes is created to read:

SB446,108,11 77.65 (4) (fm) Provide that a seller who registers with the central electronic registration system under par. (f) may cancel the registration at any time, as provided under uniform procedures adopted by the governing board of the states that are signatories to the agreement, but is required to remit any Wisconsin taxes collected pursuant to the agreement to the department.

SB446, s. 291 Section 291. 77.66 of the statutes is amended to read:

SB446,108,19 77.66 Certification for collection of sales and use tax. The secretary of revenue shall determine and periodically certify to the secretary of administration the names of persons, and affiliates, as defined in s. 16.70 (1b), of persons, who make sales of tangible personal property, items or property under s. 77.52 (1) (b) and (c), and taxable services that are subject to the taxes imposed under this subchapter but who are not registered to collect and remit such taxes to the department or, if registered, do not collect and remit such taxes.

SB446, s. 292 Section 292. 77.67 of the statutes is created to read:

SB446,108,24 77.67 Amnesty for new registrants. (1) A seller is not liable for uncollected and unpaid taxes, including penalties and interest, imposed under this subchapter and subch. V on sales made to purchasers in this state before the seller registers under par. (a), if all of the following apply:

SB446,109,4 (a) The seller registers with the department, in a manner that the department prescribes, to collect and remit the taxes imposed under this subchapter and subch. V on sales to purchasers in this state in accordance with the agreement, as defined in s. 77.65 (2) (a).

SB446,109,7 (b) The seller registers under par. (a) no later than 365 days after the effective date of this state's participation in the agreement under s. 77.65 (2) (a), as determined by the department.