AB100: Bill Text

AB100,822,11 (2) If a lessor of tangible personal property has reimbursed the vendor for the sales tax on the sale of the property 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 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.

AB100,822,16 (3) If a purchaser of tangible personal property has reimbursed the vendor of the property for the sales tax on the sale and subsequently, before making any use of the property other than retention, demonstration, or display while holding it for sale or rental, makes a taxable sale of the property, the tax due on the taxable sale may be offset by the tax reimbursed.

AB100,822,24 (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 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.

AB100,823,4 (5) No reduction in the amount of tax payable by the retailer is allowable in the event property sold on credit is 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).

AB100,823,8 (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.

AB100,823,12 (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.

AB100,823,17 (8) A sale or purchase involving transfer of ownership of property 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.

AB100, s. 1644 Section 1644. 77.59 (2m) of the statutes is created to read:

AB100,823,21 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).

AB100, s. 1645 Section 1645. 77.59 (9) of the statutes is amended to read:

AB100,824,11 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 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.

AB100, s. 1646 Section 1646. 77.59 (9n) of the statutes is created to read:

AB100,824,16 77.59 (9n) No seller or certified service provider is liable for any deficiency or refund under this subchapter that is the result of the seller or certified service provider relying on erroneous information contained in a database maintained under s. 73.03 (61) (e) or (f).

AB100, s. 1647 Section 1647. 77.59 (9p) (b) of the statutes is created to read:

AB100,825,10 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, or tangible personal property, and if the customer believes that the amount of the tax assessed for the sale of the service or property 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, or commence any action, 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, or tangible personal property, unless the customer has exhausted his or her remedies under this paragraph.

AB100, s. 1648 Section 1648. 77.59 (9r) of the statutes is created to read:

AB100,825,17 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.

AB100, s. 1649 Section 1649. 77.60 (13) of the statutes is created to read:

AB100,825,24 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:

AB100,825,25 (a) An exemption certificate described under ss. 77.52 (13) and 77.53 (10).

AB100,826,1 (b) A direct pay permit under s. 77.52 (17m).

AB100,826,2 (c) A direct mail form, as defined in s. 77.522 (1) (a) 1.

AB100,826,3 (d) A multiple-points-of-use exemption form, as defined in s. 77.522 (1) (a) 2.

AB100, s. 1650 Section 1650. 77.61 (1) (b) of the statutes is amended to read:

AB100,826,9 77.61 (1) (b) In the case of a motor vehicle motor vehicles, boats, snowmobiles, mobile homes not exceeding 45 feet in length, 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.

AB100, s. 1651 Section 1651. 77.61 (1) (c) of the statutes is amended to read:

AB100,826,19 77.61 (1) (c) In the case of motor vehicles, boats, snowmobiles, mobile homes not exceeding 45 feet in length, 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 mobile home 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, mobile home not exceeding 45 feet in length, trailer, semitrailer, all-terrain vehicle or aircraft in this state.

AB100, s. 1652 Section 1652. 77.61 (2) of the statutes is renumbered 77.61 (2) (intro.) and amended to read:

AB100,826,22 77.61 (2) (intro.) In order to protect the revenue of the state:

AB100,827,11 (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.

AB100, s. 1653 Section 1653. 77.61 (2) (b) of the statutes is created to read:

AB100,828,2 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.

AB100, s. 1654 Section 1654. 77.61 (3) of the statutes is repealed.

AB100, s. 1655 Section 1655. 77.61 (3m) of the statutes is created to read:

AB100,828,14 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.

AB100, s. 1656 Section 1656. 77.61 (4) (c) of the statutes is amended to read:

AB100,829,2 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, 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.

AB100, s. 1657 Section 1657. 77.61 (5) (b) 12. of the statutes is created to read:

AB100,829,7 77.61 (5) (b) 12. The secretary of revenue and employees of that department for the purposes of preparing and maintaining the list of persons with unpaid tax obligations as described in s. 71.91 (8) so that the list of such persons is available for public inspection.

AB100, s. 1658 Section 1658. 77.61 (5m) of the statutes is created to read:

AB100,829,10 77.61 (5m) (a) In this subsection, "personally identifiable information" means any information that identifies a person.

AB100,829,15 (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 how it collects the information, how it uses the information, and under what circumstances it discloses the information.

AB100,829,24 (c) A certified service provider may retain personally identifiable information only to verify exemption claims, to investigate fraud, and to ensure its system's reliability. A certified service provider who retains an individual's personally identifiable information shall provide reasonable notice of such retention to the individual and shall provide the individual reasonable access to the information and an opportunity to correct inaccurate information. If any person, other than a state that is a signatory to the agreement, as defined in s. 77.65 (2) (a), requests access to an individual's personally identifiable information, the certified service provider shall make a reasonable and timely effort to notify the individual of the request.

AB100,830,3 (d) A certified service provider shall provide sufficient technical, physical, and administrative safeguards to protect personally identifiable information from unauthorized access and disclosure.

AB100, s. 1659 Section 1659. 77.61 (11) of the statutes is amended to read:

AB100,830,13 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 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 as required by 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.

AB100, s. 1660 Section 1660. 77.61 (16) of the statutes is created to read:

AB100,830,17 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.

AB100, s. 1661 Section 1661. 77.63 of the statutes is repealed and recreated to read:

AB100,830,22 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 pursuant to the agreement, as defined in s. 77.65 (2) (a):

AB100,830,23 (1) A certified service provider.

AB100,830,25 (2) A seller that uses a certified automated system, as defined in s. 77.524 (1) (am).

AB100,831,10 (3) A seller that sells tangible personal property 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 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 or taxable services.

AB100, s. 1662 Section 1662. 77.65 (2) (c) of the statutes is repealed.

AB100, s. 1663 Section 1663. 77.65 (2) (e) of the statutes is amended to read:

AB100,831,14 77.65 (2) (e) "Seller" means any person who sells, leases, or rents tangible personal property or services.

AB100, s. 1664 Section 1664. 77.67 of the statutes is created to read:

AB100,831,19 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:

AB100,831,23 (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).

AB100,832,3 (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) .... [revisor inserts date].

AB100,832,7 (c) The seller was not registered to collect and remit the taxes imposed under this subchapter and subch. V during the 365 consecutive days immediately before the effective date of this state's participation in the agreement under s. 77.65 (2) (a) .... [revisor inserts date].

AB100,832,12 (d) The seller has not received a notice of the commencement of an audit from the department or, if the seller has received a notice of the commencement of an audit from the department, the audit has not been resolved by any means, including any related administrative and judicial processes, at the time that the seller registers under par. (a).

AB100,832,14 (e) The seller has not committed or been involved in a fraud or an intentional misrepresentation of a material fact.

AB100,832,17 (f) The seller collects and remits the taxes imposed under this subchapter and subch. V on sales to purchasers in this state for at least 3 consecutive years after the date on which the seller registers under par. (a).

AB100,832,19 (2) Subsection (1) does not apply to taxes imposed under this subchapter and subch. V that are due from the seller for purchases made by the seller.

AB100, s. 1665 Section 1665. 77.70 of the statutes is amended to read:

AB100,833,6 77.70 Adoption by county ordinance. Any county desiring to impose county sales and use taxes under this subchapter may do so by the adoption of an ordinance, stating its purpose and referring to this subchapter. The county sales and use taxes may be imposed only for the purpose of directly reducing the property tax levy and only in their entirety as provided in this subchapter. That ordinance shall be effective on the first day of January, the first day of April, the first day of July or the first day of October. A certified copy of that ordinance shall be delivered to the secretary of revenue at least 120 days prior to its effective date. The repeal of any such ordinance shall be effective on December 31. A certified copy of a repeal ordinance shall be delivered to the secretary of revenue at least 60 120 days before the effective date of the repeal.

AB100, s. 1666 Section 1666. 77.705 of the statutes is amended to read:

AB100,833,14 77.705 Adoption by resolution; baseball park district. A local professional baseball park district created under subch. III of ch. 229, by resolution under s. 229.68 (15), may impose a sales tax and a use tax under this subchapter at a rate of no more than 0.1% of the gross receipts or sales price. Those taxes may be imposed only in their entirety. The resolution shall be effective on the first day of the first month January 1, April 1, July 1, or October 1 that begins at least 30 120 days after the adoption of the resolution.

AB100, s. 1667 Section 1667. 77.706 of the statutes is amended to read:

AB100,833,23 77.706 Adoption by resolution; football stadium district. A local professional football stadium district created under subch. IV of ch. 229, by resolution under s. 229.824 (15), may impose a sales tax and a use tax under this subchapter at a rate of 0.5% of the gross receipts or sales price. Those taxes may be imposed only in their entirety. The imposition of the taxes under this section shall be effective on the first day of the first month January 1, April 1, July 1, or October 1 that begins at least 30 120 days after the certification of the approval of the resolution by the electors in the district's jurisdiction under s. 229.824 (15).

AB100, s. 1668 Section 1668. 77.707 (1) of the statutes is amended to read:

AB100,834,8 77.707 (1) Retailers and the department of revenue may not collect a tax under s. 77.705 for any local professional baseball park district created under subch. III of ch. 229 after the last day of the calendar quarter during that is at least 120 days from the date on which the local professional baseball park district board makes a certification to the department of revenue under s. 229.685 (2), except that the department of revenue may collect from retailers taxes that accrued before the day after the last day of that calendar quarter and fees, interest and penalties that relate to those taxes.

AB100, s. 1669 Section 1669. 77.707 (2) of the statutes is amended to read:

AB100,834,17 77.707 (2) Retailers and the department of revenue may not collect a tax under s. 77.706 for any local professional football stadium district created under subch. IV of ch. 229 after the last day of the calendar quarter during that is at least 120 days from the date on which the local professional football stadium district board makes all of the certifications to the department of revenue under s. 229.825 (3), except that the department of revenue may collect from retailers taxes that accrued before the day after the last day of that calendar quarter and fees, interest and penalties that relate to those taxes.

AB100, s. 1670 Section 1670. 77.71 (1) of the statutes is amended to read:

AB100,835,2 77.71 (1) For the privilege of selling, licensing, leasing or renting tangible personal property and for the privilege of selling, licensing, performing or furnishing services a sales tax is imposed upon retailers at the rate of 0.5% in the case of a county tax or at the rate under s. 77.705 or 77.706 in the case of a special district tax of the gross receipts sales price from the sale, licensing, lease or rental of tangible personal property, except property taxed under sub. (4), sold, licensed, leased or rented at retail in the county or special district or from selling, licensing, performing or furnishing services described under s. 77.52 (2) in the county or special district.

AB100, s. 1671 Section 1671. 77.71 (2) of the statutes is amended to read:

AB100,835,15 77.71 (2) An excise tax is imposed at the rate of 0.5% in the case of a county tax or at the rate under s. 77.705 or 77.706 in the case of a special district tax of the sales purchase price upon every person storing, using or otherwise consuming in the county or special district tangible personal property or services if the property or service is subject to the state use tax under s. 77.53, except that a receipt indicating that the tax under sub. (1), (3) or (4) has been paid relieves the buyer of liability for the tax under this subsection and except that if the buyer has paid a similar local tax in another state on a purchase of the same property or services that tax shall be credited against the tax under this subsection and except that for motor vehicles that are used for a purpose in addition to retention, demonstration or display while held for sale in the regular course of business by a dealer the tax under this subsection is imposed not on the sales purchase price but on the amount under s. 77.53 (1m).

AB100, s. 1672 Section 1672. 77.71 (3) of the statutes is amended to read:

AB100,836,2 77.71 (3) An excise tax is imposed upon a contractor engaged in construction activities within the county or special district, at the rate of 0.5% in the case of a county tax or at the rate under s. 77.705 or 77.706 in the case of a special district tax of the sales purchase price of tangible personal property that is used in constructing, altering, repairing or improving real property and that becomes a component part of real property in that county or special district, except that if the contractor has paid the sales tax of a county in the case of a county tax or of a special district in the case of a special district tax in this state on that property, or has paid a similar local sales tax in another state on a purchase of the same property, that tax shall be credited against the tax under this subsection.

AB100, s. 1673 Section 1673. 77.71 (4) of the statutes is amended to read:

AB100,836,13 77.71 (4) An excise tax is imposed at the rate of 0.5% in the case of a county tax or at the rate under s. 77.705 or 77.706 in the case of a special district tax of the sales purchase price upon every person storing, using or otherwise consuming a motor vehicle, boat, snowmobile, mobile home not exceeding 45 feet in length, trailer, semitrailer, all-terrain vehicle or aircraft, if that property must be registered or titled with this state and if that property is to be customarily kept in a county that has in effect an ordinance under s. 77.70 or in a special district that has in effect a resolution under s. 77.705 or 77.706, except that if the buyer has paid a similar local sales tax in another state on a purchase of the same property that tax shall be credited against the tax under this subsection.

AB100, s. 1674 Section 1674. 77.72 (title) of the statutes is repealed.

AB100, s. 1675 Section 1675. 77.72 (1) of the statutes is renumbered 77.72 and amended to read:

AB100,836,24 77.72 General rule for property . For the purposes of this subchapter, all retail sales of tangible personal property are completed at the time when, and the place where, the seller or the seller's agent transfers possession to the buyer or the buyer's agent. In this subsection, a common carrier or the U.S. postal service is the agent of the seller, regardless of any f.o.b. point and regardless of the method by which freight or postage is paid. Rentals and leases of property, except property under sub. (2), have a situs at the location of that property and taxable services occur as provided in s. 77.522.

AB100, s. 1676 Section 1676. 77.72 (2) and (3) of the statutes are repealed.

AB100, s. 1677 Section 1677. 77.73 (2) of the statutes is amended to read: