LRB-4859/1
KRP&TKK:ahe/jld/emw
2017 - 2018 LEGISLATURE
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.
AB735,5,43
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.
AB735,5,137
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: