AB251: Bill Text

AB251,7,13 77.51 (13) (q) A marketplace provider who facilitates, on behalf of a marketplace seller, sales that are sourced to this state as provided under s. 77.522 of tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services.

AB251,19 Section 19 . 77.51 (13b) of the statutes is repealed.

AB251,20 Section 20 . 77.51 (14) (n) 7. of the statutes is created to read:

AB251,7,17 77.51 (14) (n) 7. Whether the seller sells on the seller's own behalf or on behalf of another person.

AB251,21 Section 21 . 77.51 (17) (g) of the statutes is created to read:

AB251,7,20 77.51 (17) (g) Whether the seller sells on the seller's own behalf or on behalf of another person.

AB251,22 Section 22 . 77.52 (3m) of the statutes is created to read:

AB251,8,2 77.52 (3m) (a) Except as provided in par. (b), a marketplace provider is liable for the tax imposed under this section on the entire sales price charged to the purchaser, including any amount charged by the marketplace provider for facilitating the sale, from the sale, license, lease or rental of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services under sub. (2).

AB251,8,18 (b) A marketplace provider whose only activities are facilitating sales of services on behalf of marketplace sellers operating under a shared hotel, motel, or restaurant brand name, may submit an application to the department to request a waiver from collecting and remitting tax on sales facilitated on behalf of marketplace sellers. The application shall include the name and address of all marketplace sellers selling or furnishing such services in this state, the marketplace seller's sales or use tax permit number obtained under sub. (7) or 77.53 (9), and any other information the department requires. The department may grant the waiver if it is satisfied that the tax due under this chapter is collected and remitted by the marketplace sellers. A marketplace provider that is granted the waiver must, within 60 days from a written request by the department, provide the name and address of all marketplace sellers selling or furnishing such services in this state, the marketplace seller's sales or use tax permit number obtained under sub. (7) or 77.53 (9), and any other information the department requires. In this paragraph, “ hotel” and “motel” have the meaning given in sub. (2) (a) 1. and “restaurant” has the meaning given in s. 97.01 (14g).

AB251,23 Section 23 . 77.52 (14) (c) of the statutes is created to read:

AB251,8,22 77.52 (14) (c) A marketplace provider shall obtain and maintain each exemption certificate from a purchaser claiming an exemption for a sale facilitated by the marketplace provider on behalf of a marketplace seller.

AB251,24 Section 24 . 77.523 of the statutes is created to read:

AB251,9,2 77.523 Liability of marketplace providers, retailers, and marketplace sellers. (1) A marketplace provider shall collect and remit tax on a sale facilitated on behalf of a marketplace seller, unless the marketplace provider has been granted a waiver under s. 77.52 (3m) (b).

AB251,9,7 (2) A marketplace provider who collects and remits tax on a sale under sub. (1) shall notify the marketplace seller that the marketplace provider is collecting and remitting the tax. Upon notification, only the marketplace provider may be audited and held liable for tax on the sale. If notification is not provided, the marketplace provider and marketplace seller may be audited and held liable for tax on the sale.

AB251,9,11 (3) Upon examination by the department and subject to the limitations in sub. (5), a marketplace provider is relieved of liability under this subchapter for the failure to collect and remit tax on a sale if the marketplace provider can show all of the following to the department's satisfaction:

AB251,9,12 (a) The sale was made solely on behalf of a marketplace seller.

AB251,9,13 (b) The marketplace provider notified the marketplace seller under sub. (2).

AB251,9,14 (c) The retail sale was properly sourced to this state under s. 77.522.

AB251,9,20 (4) A marketplace provider is relieved of liability under this section for failure to collect and remit the correct amount of tax to the extent that the marketplace provider demonstrates to the satisfaction of the department that the error is due to insufficient or incorrect information given to the marketplace provider by the marketplace seller, except that this subsection does not apply if the marketplace provider and the marketplace seller are related entities, as defined in s. 71.01 (9am).

AB251,9,22 (5) The relief from liability under subs. (3) and (4) may not exceed the following amounts:

AB251,9,23 (a) For 2019, 5 percent of the tax due for that year.

AB251,9,24 (b) For 2020, 5 percent of the tax due for that year.

AB251,9,25 (c) For 2021, 3 percent of the tax due for that year.

AB251,10,1 (d) For 2022, and for each year thereafter, 0 percent of the tax due for that year.

AB251,10,4 (6) Nothing in this section affects the obligations of a purchaser to remit use tax on a transaction for which the retailer or marketplace provider and marketplace seller did not collect and remit the tax.

AB251,10,10 (7) No person may bring a class action against a marketplace provider in any court of this state on behalf of consumers arising from or in any way related to an overpayment of sales or use tax collected on sales facilitated by the marketplace provider, regardless of whether that claim is characterized as a claim for a refund. This subsection does not affect a person's ability to claim a refund as provided under s. 77.59.

AB251,25 Section 25 . 77.585 (1g) of the statutes is created to read:

AB251,10,17 77.585 (1g) A marketplace provider who collects and remits tax on behalf of a marketplace seller under s. 77.523 may claim a bad debt deduction under this subsection if either the marketplace provider or marketplace seller may claim a deduction under section 166 of the Internal Revenue Code for the sales transaction. A marketplace seller may not claim a deduction under this subsection for the same transaction.

AB251,26 Section 26 . 77.585 (11) of the statutes is created to read:

AB251,10,21 77.585 (11) A marketplace seller may claim as a deduction on a return under s. 77.58 the amount of the sales price for which the marketplace seller received notification under s. 77.523 (2).

AB251,27 Section 27 . 77.982 (2) of the statutes is amended to read:

AB251,11,3 77.982 (2) Sections 77.51 (1f), (3pf), (9p), (12m), (13), (14), (14g), (15a), and (15b), and (17), 77.52 (1b), (3), (5), (13), (14), and (18) to (23), 77.522, 77.523, 77.54 (51) and (52), 77.58 (1) to (5), (6m), and (7), 77.585, 77.59, 77.60, 77.61 (2), (3m), (5), (6), (8), (9), (12) to (15), and (19m), and 77.62, as they apply to the taxes under subch. III, apply to the tax under this subchapter. Section 77.73, as it applies to the taxes under subch. V, applies to the tax under this subchapter.

AB251,28 Section 28 . 77.991 (2) of the statutes is amended to read:

AB251,11,11 77.991 (2) Sections 77.51 (12m), (13), (14), (14g), (15a), and (15b), and (17), 77.52 (1b), (3), (5), (13), (14), (18), and (19), 77.522, 77.523, 77.58 (1) to (5), (6m), and (7), 77.585, 77.59, 77.60, 77.61 (2), (3m), (5), (6), (8), (9), (12) to (15), and (19m), and 77.62, as they apply to the taxes under subch. III, apply to the tax under this subchapter. Section 77.73, as it applies to the taxes under subch. V, applies to the tax under this subchapter. The renter shall collect the tax under this subchapter from the person to whom the passenger car is rented.

AB251,29 Section 29 . 77.9951 (2) of the statutes is amended to read:

AB251,11,18 77.9951 (2) Sections 77.51 (3r), (12m), (13), (14), (14g), (15a), and (15b), and (17), 77.52 (1b), (3), (5), (13), (14), (18), and (19), 77.522, 77.523, 77.58 (1) to (5), (6m), and (7), 77.585, 77.59, 77.60, 77.61 (2), (3m), (5), (6), (8), (9), (12) to (15), and (19m), and 77.62, as they apply to the taxes under subch. III, apply to the fee under this subchapter. The renter shall collect the fee under this subchapter from the person to whom the vehicle is rented.

AB251,30 Section 30 . Effective date.

AB251,11,24 (1) Sales tax collection by marketplace providers. This treatment of ss. 66.0615 (1m) (f) 2. and (g), 77.51 (7i), (7j), (11d), (13) (intro.), (a), (c), (p) 7., and (q), (13b), (14) (n) 7., and (17) (g), 77.52 (3m) and (14) (c), 77.523, 77.585 (1g) and (11), 77.982 (2), 77.991 (2), and 77.9951 (2) takes effect on the first day of the calendar quarter that is at least 3 months after publication.

AB251,11,25 (End)