Comparison with rules in adjacent states: Adjacent states have implemented the U.S. Supreme Court's decision in Wayfair through legislation and administrative policy. Minnesota had an existing 1989 law that became effective due to the Court's decision in Wayfair. North Dakota enacted an economic nexus law for remote sellers prior to the Wayfair decision. Michigan issued an administrative bulletin to address economic nexus standards consistent with the Wayfair decision. All three states required remote sellers to begin collecting tax on October 1, 2018. Iowa enacted legislation prior to the Wayfair decision, although the legislation effective date and remote seller required collection date was January 1, 2019.
Summary of factual data and analytical methodologies: Previously, an out-of-state retailer was not required to collect Wisconsin sales or use taxes unless the retailer had a physical presence in Wisconsin based on prior U.S. Supreme Court decisions (Quill Corp. v. North Dakota and National Bellas Hess, Inc. v. Department of Revenue of Ill.). Wayfair overruled these decisions. The department has created this proposed rule order to repeal s. Tax 11.97, which describes an obsolete nexus standard and lists nexus activities already found in the statutes. No other data was used in the preparation of this proposed rule order or this analysis. Analysis and supporting documents used to determine effect on small business: This rule order repeals s. Tax 11.97, which describes activities that requires out-of-state retailers to register and collect Wisconsin sales and use tax that is duplicative of current statutory language. Therefore, there is no effect on small business. Anticipated costs incurred by private sector: This proposed rule does not have anticipated costs on the private sector.
Effect on small business: This proposed rule does not have an effect on small businesses.
Agency contact person: Please contact Jen Chadwick at (608) 266-8253 or jennifer.chadwick@wisconsin.gov, if you have any questions regarding this proposed rule. Place where comments are to be submitted and deadline for submission: Comments may be submitted to the contact person shown below no later than June 24, 2019. A public hearing is not required pursuant to s. 227.16 (2) (b), Stats. Jen Chadwick
Department of Revenue
Mail Stop 6-40
2135 Rimrock Road
P.O. Box 8933
Madison, WI 53708-8933
SECTION 1. Tax 11.97 is repealed.
SECTION 2. Effective Date. This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s. 227.22 (2) (intro.), Stats.
DEPARTMENT OF REVENUE
Dated: By: ___________________________
Peter W. Barca
Secretary of Revenue
E:Rules/169 – Tax 11.97 Repeal – SS 016-19/Tax 11.97 Repeal Proposed Order
