AB317: Bill Text

AB317,3,4 (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).

AB317,3,16 (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.

AB317,3,21 (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.

AB317,4,2 (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 77.65 (2) (a), establishing a performance standard for the system is liable for the system's failure to meet the performance standard.

AB317, s. 2 Section 2. 77.65 of the statutes is created to read:

AB317,4,5 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."

AB317,4,6 (2) Definitions. In this section:

AB317,4,7 (a) "Agreement" means the streamlined sales and use tax agreement.

AB317,4,8 (b) "Department" means the department of revenue.

AB317,4,10 (c) "Person" means an individual, trust, estate, fiduciary, partnership, limited liability company, limited liability partnership, corporation, or any other legal entity.

AB317,4,11 (d) "Sales tax" means the tax imposed under ss. 77.52, 77.57, and 77.71 (1).

AB317,4,13 (e) "Seller" means any person who sells, leases, or rents personal property or services.

AB317,4,14 (f) "State" means any state of the United States and the District of Columbia.

AB317,4,15 (g) "Use tax" means the tax imposed under ss. 77.53 and 77.71 (2), (3), and (4).

AB317,5,2 (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.

AB317,5,5 (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:

AB317,5,6 (a) Limit the number of state sales and use tax rates.

AB317,5,8 (b) Limit the application of any maximums on the amount of state sales and use tax that is due on a transaction.

AB317,5,9 (c) Limit thresholds on the application of sales and use tax.

AB317,5,12 (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.

AB317,5,13 (e) Develop and adopt uniform definitions related to sales and use tax.

AB317,5,16 (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.

AB317,5,21 (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.

AB317,5,22 (h) Restrict variances between the state tax bases and local tax bases.

AB317,6,2 (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.

AB317,6,4 (j) Restrict the frequency of changes in any local sales and use tax rates and provide notice of any such changes.

AB317,6,6 (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.

AB317,6,8 (L) Provide monetary allowances to sellers and certified service providers as outlined in the agreement.

AB317,6,10 (m) Certify compliance with the agreement before entering into the agreement and maintain compliance with the agreement.

AB317,6,13 (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.

AB317,6,17 (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.

AB317,6,22 (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.

AB317,7,2 (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.

AB317,7,7 (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.

AB317,7,10 (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.

AB317,7,13 (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.

AB317,7,14 (End)