SB40-SSA1,1148,4

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177.58 (6) For the purposes of the sales tax gross receipts, the sales price from
2rentals or leases of tangible personal property, items or property under s. 77.52 (1)
3(b) or (c), specified digital goods, or additional digital goods shall be reported and the
4tax paid in accordance with such rules as the department prescribes.

SB40-SSA1,1148,86 77.58 (6m) (a) The department may, in cases where it is satisfied that an undue
7hardship would otherwise result, permit the reporting of a sales price or purchase
8price on some basis other than the accrual basis.

SB40-SSA1,1148,129 (b) The entire sales price of credit transactions shall be reported in the period
10in which the sale is made without reduction in the amount of tax payable by the
11retailer by reason of the retailer's transfer at a discount of any open account, note,
12conditional sales contract, lease contract, or other evidence of indebtedness.

SB40-SSA1,1148,1514 77.58 (9) The department may require a filing fee for sales tax returns that are
15filed on paper.

SB40-SSA1,1148,2217 77.58 (9a) In addition to filing a return as provided in this section, a person
18described under s. 77.524 (3), (4), or (5) shall provide to the department any
19information that the department considers necessary for the administration of this
20subchapter, in the manner prescribed by the department, except that the
21department may not require that the person provide such information to the
22department more than once every 180 days.

SB40-SSA1,1149,8 2477.585 Return adjustments. (1) (a) In this subsection, "bad debt" means the
25portion of the sales price or purchase price that the seller has reported as taxable

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1under this subchapter and that the seller may claim as a deduction under section 166
2of the Internal Revenue Code. "Bad debt" does not include financing charges or
3interest, sales or use taxes imposed on the sales price or purchase price, uncollectible
4amounts on property, items or property under s. 77.52 (1) (b) or (c), specified digital
5goods, or additional digital goods that remain in the seller's possession until the full
6sales price or purchase price is paid, expenses incurred in attempting to collect any
7debt, debts sold or assigned to 3rd parties for collection, and repossessed property or
8items.

SB40-SSA1,1149,209 (b) A seller may claim as a deduction on a return under s. 77.58 the amount of
10any bad debt that the seller writes off as uncollectible in the seller's books and records
11and that is eligible to be deducted as a bad debt for federal income tax purposes,
12regardless of whether the seller is required to file a federal income tax return. A
13seller who claims a deduction under this paragraph shall claim the deduction on the
14return under s. 77.58 that is submitted for the period in which the seller writes off
15the amount of the deduction as uncollectible in the seller's books and records and in
16which such amount is eligible to be deducted as bad debt for federal income tax
17purposes. If the seller subsequently collects in whole or in part any bad debt for
18which a deduction is claimed under this paragraph, the seller shall include the
19amount collected in the return filed for the period in which the amount is collected
20and shall pay the tax with the return.

SB40-SSA1,1150,221 (c) For purposes of computing a bad debt deduction or reporting a payment
22received on a previously claimed bad debt, any payment made on a debt or on an
23account is applied first to the price of the property, items or property under s. 77.52
24(1) (b) or (c), specified digital goods, additional digital goods, or service sold, and the
25proportionate share of the sales tax on the property, items or property under s. 77.52

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1(1) (b) or (c), specified digital goods, additional digital goods, or service, and then to
2interest, service charges, and other charges related to the sale.

SB40-SSA1,1150,83 (d) A seller may obtain a refund of the tax collected on any bad debt amount
4deducted under par. (b) that exceeds the amount of the seller's taxable sales as
5provided under s. 77.59 (4), except that the period for making a claim as determined
6under s. 77.59 (4) begins on the date on which the return on which the bad debt could
7be claimed would have been required to be submitted to the department under s.
877.58.

SB40-SSA1,1150,149 (e) If a seller is using a certified service provider, the certified service provider
10may claim a bad debt deduction under this subsection on the seller's behalf if the
11seller has not claimed and will not claim the same deduction. A certified service
12provider who receives a bad debt deduction under this subsection shall credit that
13deduction to the seller and a certified service provider who receives a refund under
14this subsection shall submit that refund to the seller.

SB40-SSA1,1150,2015 (f) If a bad debt relates to the retail sales of tangible personal property, items
16or property under s. 77.52 (1) (b) or (c), specified digital goods, additional digital
17goods, or taxable services that occurred in this state and in one or more other states,
18as determined under s. 77.522, the total amount of such bad debt shall be
19apportioned among the states in which the underlying sales occurred in a manner
20prescribed by the department to arrive at the amount of the deduction under par. (b).

SB40-SSA1,1151,2 21(2) If a lessor of tangible personal property, items or property under s. 77.52
22(1) (b) or (c), specified digital goods, or additional digital goods has reimbursed the
23vendor for the sales tax on the sale of the property, items, or goods by the vendor to
24the lessor, the tax due from the lessor on the rental receipts may be offset by a credit
25equal to the tax otherwise due on the rental receipts from the property, items, or

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1goods for the reporting period. The credit shall expire when the cumulative rental
2receipts equal the sales price upon which the vendor paid sales taxes to this state.

SB40-SSA1,1151,9 3(3) If a purchaser of tangible personal property, items or property under s.
477.52 (1) (b) or (c), specified digital goods, or additional digital goods has reimbursed
5the vendor of the property, items, or goods for the sales tax on the sale and
6subsequently, before making any use of the property, items, or goods other than
7retention, demonstration, or display while holding it for sale or rental, makes a
8taxable sale of the property, items, or goods, the tax due on the taxable sale may be
9offset by the tax reimbursed.

SB40-SSA1,1151,18 10(4) A seller may claim a deduction on any part of the sales price or purchase
11price that the seller refunds in cash or credit as a result of returned property, items
12or property under s. 77.52 (1) (b) or (c), specified digital goods, or additional digital
13goods or adjustments in the sales price or purchase price after the sale has been
14completed, if the seller has included the refunded price in a prior return made by the
15seller and has paid the tax on such price, and if the seller has returned to the
16purchaser in cash or in credit all tax previously paid by the purchaser on the amount
17of the refund at the time of the purchase. A deduction under this subsection shall
18be claimed on the return for the period in which the refund is paid.

SB40-SSA1,1151,23 19(5) No reduction in the amount of tax payable by the retailer is allowable in the
20event property, items or property under s. 77.52 (1) (b) or (c), specified digital goods,
21or additional digital goods sold on credit are repossessed except where the entire
22consideration paid by the purchaser is refunded to the purchaser or where a credit
23for a worthless account is allowable under sub. (1).

SB40-SSA1,1152,2 24(6) A purchaser who is subject to the use tax on the storage, use, or other
25consumption of fuel may claim a deduction from the purchase price that is subject

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1to the use tax for fuel taxes refunded by this state or the United States to the
2purchaser that is included in the purchase price of the fuel.

SB40-SSA1,1152,6 3(7) For sales tax purposes, if a retailer establishes to the department's
4satisfaction that the sales tax has been added to the total amount of the sales price
5and has not been absorbed by the retailer, the total amount of the sales price shall
6be the amount received exclusive of the sales tax imposed.

SB40-SSA1,1152,13 7(8) A sale or purchase involving transfer of ownership of property, items or
8property under s. 77.52 (1) (b) or (c), specified digital goods, or additional digital
9goods is completed at the time when possession is transferred by the seller or the
10seller's agent to the purchaser or the purchaser's agent, except that for purposes of
11sub. (1) a common carrier or the U.S. postal service shall be considered the agent of
12the seller, regardless of any f.o.b. point and regardless of the method by which freight
13or postage is paid.

SB40-SSA1,1152,1715 77.59 (2m) The department may audit, or may authorize others to audit, sellers
16and certified service providers who are registered with the department pursuant to
17the agreement, as defined in s. 77.65 (2) (a).

SB40-SSA1,1153,1319 77.59 (5m) A seller who receives a refund under sub. (4) (a) or (b) of taxes that
20the seller has collected from buyers, who collects amounts as taxes erroneously from
21buyers, but who does not remit such amounts to the state, or who is entitled to a
22refund under sub. (4) (a) or (b) that is offset under sub. (5), shall submit the taxes and
23related interest to the buyers from whom the taxes were collected, or to the
24department if the seller cannot locate the buyers, within 90 days after the date of the
25refund, after the date of the offset, or after discovering that the seller has collected

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1taxes erroneously from the buyers. If the seller does not submit the taxes and related
2interest to the department or the buyers within that period, the seller shall submit
3to the department any part of a refund or taxes that the seller does not submit to a
4buyer or to the department along with a penalty of 25% of the amount not submitted
5or, in the case of fraud, a penalty equal to the amount not submitted. A person who
6collects amounts as taxes erroneously from buyers for a real property construction
7activity or nontaxable service may reduce the taxes and interest that he or she is
8required to submit to the buyer or to the department under this subsection for that
9activity or service by the amount of tax and interest subsequently due and paid on
10the sale of or the storage, use, or other consumption of tangible personal property,
11items or property under s. 77.52 (1) (b) or (c), specified digital goods, or additional
12digital goods that is are used by the person in that activity or service and transferred
13to the buyer.

SB40-SSA1,1154,215 77.59 (7) If the department believes that the collection of any tax imposed by
16this subchapter will be jeopardized by delay, it shall notify the person determined to
17owe the tax of its intention to proceed under s. 71.91 (5) for collection of the amount
18determined to be owing, including penalties and interest. Such notice shall be by
19certified or registered mail or by personal service and the warrant of the department
20shall not issue if the person, within 10 days after such notice furnishes a bond in such
21amount not exceeding double the amount determined to be owing and with such
22sureties as the department approves, conditioned upon the payment of so much of
23the taxes, interest, and penalties as shall finally be determined to be due. Nothing
24in this subsection shall affect the review of determinations of tax as provided in this
25subchapter and any amounts collected under this subsection shall be deposited with

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1the secretary of administration department and disbursed after final determination
2of the taxes as are amounts deposited under ss. 71.89 (1) and 71.90 (2).

SB40-SSA1,1154,184 77.59 (9) If any person fails to file a return, the department shall make an
5estimate of the amount of the gross receipts sales price of the person person's sales,
6or, as the case may be, of the amount of the total sales purchase price of tangible
7personal property, items or property under s. 77.52 (1) (b) or (c), specified digital
8goods, additional digital goods, or taxable service sold or purchased by the person,
9the sale by or the storage, use, or other consumption of which in this state is subject
10to sales or use tax. The estimate shall be made for the period in respect to which the
11person failed to make a return and shall be based upon any information which is in
12the department's possession or may come into its possession. Upon the basis of this
13estimate the department shall compute and determine the amount required to be
14paid to the state, adding to the sum thus arrived at a penalty equal to 25% thereof.
15One or more such determinations may be made for one or for more than one period.
16When a business is discontinued a determination may be made at any time
17thereafter, within the periods specified in sub. (3), as to liability arising out of that
18business.

SB40-SSA1,1154,2320 77.59 (9n) (a) Notwithstanding s. 73.03 (47), no seller or certified service
21provider is liable for tax, interest, or penalties imposed on a transaction under this
22subchapter in the circumstances covered under sections 306, 328, and 502 of the
23agreement, as defined in s. 77.65 (2) (a).

SB40-SSA1,1155,3

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1(b) A purchaser is not liable for the tax, interest, or penalties imposed on a
2transaction under this subchapter in the circumstances covered by section 331 of the
3agreement, as defined in s. 77.65 (2) (a).

SB40-SSA1,1155,245 77.59 (9p) (b) If a customer purchases a service that is not subject to 4 USC 116
6to 126, as amended by P.L. 106-252, or tangible personal property, items or property
7under s. 77.52 (1) (b) or (c), specified digital goods, or additional digital goods, and
8if the customer believes that the amount of the tax assessed for the sale of the service,
9property, items, or goods under this subchapter is erroneous, the customer may
10request that the seller correct the alleged error by sending a written notice to the
11seller. The notice shall include a description of the alleged error and any other
12information that the seller reasonably requires to process the request. Within 60
13days from the date that a seller receives a request under this paragraph, the seller
14shall review its records to determine the validity of the customer's claim. If the
15review indicates that there is no error as alleged, the seller shall explain the findings
16of the review in writing to the customer. If the review indicates that there is an error
17as alleged, the seller shall correct the error and shall refund the amount of any tax
18collected erroneously, along with the related interest, as a result of the error from the
19customer, consistent with s. 77.59 (4). A customer may take no other action against
20the seller, or commence any action against the seller, to correct an alleged error in
21the amount of the tax assessed under this subchapter on a service that is not subject
22to 4 USC 116 to 126, as amended by P.L. 106-252, or tangible personal property, items
23or property under s. 77.52 (1) (b) or (c), specified digital goods, or additional digital
24goods unless the customer has exhausted his or her remedies under this paragraph.

SB40-SSA1,1156,6

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177.59 (9r) With regard to a purchaser's request for a refund under this section,
2a seller is presumed to have reasonable business practices if the seller uses a certified
3service provider, a certified automated system, as defined in s. 77.524 (1) (am), or a
4proprietary system certified by the department to collect the taxes imposed under
5this subchapter and if the seller has remitted to the department all taxes collected
6under this subchapter, less any deductions, credits, or allowances.

SB40-SSA1,1156,138 77.60 (13) A person who uses any of the following documents in a manner that
9is prohibited by or inconsistent with this subchapter, or provides incorrect
10information to a seller or certified service provider related to the use of such
11documents or regarding an exemption to the taxes imposed under this subchapter,
12shall pay a penalty of $250 for each invoice or bill of sale related to the prohibited or
13inconsistent use or incorrect information:

SB40-SSA1,1156,1414 (a) An exemption certificate described under ss. 77.52 (13) and 77.53 (10).

SB40-SSA1,1156,1515 (b) A direct pay permit under s. 77.52 (17m).

SB40-SSA1,1156,1616 (c) A direct mail form, as defined in s. 77.522 (1) (a) 1.

SB40-SSA1,1156,2218 77.61 (1) (b) In the case of a motor vehicle motor vehicles, boats, snowmobiles,
19mobile homes not exceeding 45 feet in length, trailers, semitrailers, all-terrain
20vehicles, or aircraft purchased from a licensed Wisconsin motor vehicle dealer
21retailer, the registrant shall present proof that the tax has been paid to such dealer
22retailer.

SB40-SSA1,1157,724 77.61 (1) (c) In the case of motor vehicles, boats, snowmobiles, mobile homes
25not exceeding 45 feet in length, trailers, semitrailers, all-terrain vehicles or aircraft

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1registered or titled, or required to be registered or titled, in this state purchased from
2persons who are not Wisconsin boat, trailer or semitrailer dealers, licensed
3Wisconsin aircraft, motor vehicle or mobile home dealers or registered Wisconsin
4snowmobile or all-terrain vehicle dealers retailers, the purchaser shall file a sales
5tax return and pay the tax prior to registering or titling the motor vehicle, boat,
6snowmobile, mobile home not exceeding 45 feet in length, trailer, semitrailer,
7all-terrain vehicle or aircraft in this state.

SB40-SSA1,1157,1010 77.61 (2) (intro.) In order to protect the revenue of the state:

SB40-SSA1,1157,24 11(a) Except as provided in par. (b), the department may require any person who
12is or will be liable to it for the tax imposed by this subchapter to place with it, before
13or after a permit is issued, the security, not in excess of $15,000, that the department
14determines. In determining the amount of security to require under this subsection,
15the department may consider the person's payment of other taxes administered by
16the department and any other relevant facts. If any taxpayer fails or refuses to place
17that security, the department may refuse or revoke the permit. If any taxpayer is
18delinquent in the payment of the taxes imposed by this subchapter, the department
19may, upon 10 days' notice, recover the taxes, interest, costs and penalties from the
20security placed with the department by the taxpayer in the following order: costs,
21penalties, delinquent interest, delinquent tax. No interest may be paid or allowed
22by the state to any person for the deposit of security. Any security deposited under
23this subsection shall be returned to the taxpayer if the taxpayer has, for 24
24consecutive months, complied with all the requirements of this subchapter.

SB40-SSA1,1158,15

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177.61 (2) (b) A certified service provider who has contracted with a seller, and
2filed an application, to collect and remit sales and use taxes imposed under this
3subchapter on behalf of the seller shall submit a surety bond to the department to
4guarantee the payment of sales and use taxes, including any penalty and interest on
5such payment. The department shall approve the form and contents of a bond
6submitted under this paragraph and shall determine the amount of such bond. The
7surety bond shall be submitted to the department within 60 days after the date on
8which the department notifies the certified service provider that the certified service
9provider is registered to collect sales and use taxes imposed under this subchapter.
10If the department determines, with regards to any one certified service provider, that
11no bond is necessary to protect the tax revenues of this state, the secretary of revenue
12or the secretary's designee may waive the requirements under this paragraph with
13regard to that certified service provider. Any bond submitted under this paragraph
14shall remain in force until the secretary of revenue or the secretary's designee
15releases the liability under the bond.

SB40-SSA1,1159,218 77.61 (3m) A retailer shall use a straight mathematical computation to
19determine the amount of the tax that the retailer may collect from the retailer's
20customers. The retailer shall calculate the tax amount by combining the applicable
21tax rates under this subchapter and subch. V and multiplying the combined tax rate
22by the sales price or purchase price of each item or invoice, as appropriate. The
23retailer shall calculate the tax amount to the 3rd decimal place, disregard tax
24amounts of less than 0.5 cent, and consider tax amounts of at least 0.5 cent but less
25than 1 cent to be an additional cent. The use of a straight mathematical computation,

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1as provided in this subsection, shall not relieve the retailer from liability for payment
2of the full amount of the tax levied under this subchapter.

SB40-SSA1,1159,144 77.61 (4) (a) Every seller and retailer and every person storing, using or
5otherwise consuming in this state tangible personal property, items or property
6under s. 77.52 (1) (b) or (c), specified digital goods, additional digital goods, or taxable
7services purchased from a retailer shall keep such records, receipts, invoices, and
8other pertinent papers and records, including machine-readable records, in such
9form as the department requires. The department may, after giving notice, require
10any person to keep whatever records are needed for the department to compute the
11sales or use taxes the person should pay. Thereafter, the department shall add to any
12taxes assessed on the basis of information not contained in the records required a
13penalty of 25% of the amount of the tax so assessed in addition to all other penalties
14under this chapter.

SB40-SSA1,1160,216 77.61 (4) (c) For reporting the sales tax and collecting and reporting the use tax
17imposed on the retailer under s. 77.53 (3) and the accounting connected with it,
18retailers, not including certified service providers that receive compensation under
19s. 73.03 (61) (h), may deduct 0.5% of those taxes payable or $10 for that reporting
20period required under s. 77.58 (1), whichever is greater, but not more than the
21amount of the sales taxes or use taxes that is payable under ss. 77.52 (1) and 77.53
22(3) for that reporting period required under s. 77.58 (1), as administration expenses
23if the payment of the taxes is not delinquent. For purposes of calculating the
24retailer's discount under this paragraph, the taxes on retail sales reported by

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1retailers under subch. V, including taxes collected and remitted as required under
2s. 77.785, shall be included if the payment of those taxes is not delinquent.

SB40-SSA1,1160,64 77.61 (5) (b) 11. The department of workforce development children and
5families or a county child support agency under s. 59.53 (5) in response to a request
6under s. 49.22 (2m).

SB40-SSA1,1160,98 77.61 (5m) (a) In this subsection, "personally identifiable information" means
9any information that identifies a person.

SB40-SSA1,1160,1610 (b) A certified service provider may use personally identifiable information as
11necessary only for the administration of its system to perform a seller's sales and use
12tax functions and shall provide consumers clear and conspicuous notice of its practice
13regarding such information, including what information it collects, how it collects
14the information, how it uses the information, how long, if at all, it retains the
15information, and under what circumstances it discloses the information to states
16participating in the agreement, as defined in 77.65 (2) (a).

SB40-SSA1,1160,1917 (c) A certified service provider may collect, use, and retain personally
18identifiable information only to verify exemption claims, to investigate fraud, and to
19ensure its system's reliability.

SB40-SSA1,1160,2220 (d) A certified service provider shall provide sufficient technical, physical, and
21administrative safeguards to protect personally identifiable information from
22unauthorized access and disclosure.

SB40-SSA1,1160,2523 (e) For purposes of this subchapter, the state shall provide to consumers public
24notice of the state's practices related to collecting, using, and retaining personally
25identifiable information.

SB40-SSA1,1161,4

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1(f) The state shall not retain personally identifiable information obtained for
2purposes of administering this subchapter unless the state is otherwise required to
3retain the information by law or as provided under the agreement, as defined in s.
477.65 (2) (a).

SB40-SSA1,1161,75 (g) For purposes of this subchapter, the state shall provide an individual
6reasonable access to that individual's personally identifiable information and the
7right to correct any inaccurately recorded information.

SB40-SSA1,1161,128 (h) If any person, other than another state that is a signatory to the agreement,
9as defined in s. 77.65 (2) (a), or a person authorized under state law to access the
10information, requests access to an individual's personally identifiable information,
11the state shall make a reasonable and timely effort to notify the individual of the
12request.

SB40-SSA1,1161,2214 77.61 (11) Any city, village or town clerk or other official whose duty it is to issue
15licenses or permits to engage in a business involving the sale at retail of tangible
16personal property, items or property under s. 77.52 (1) (b) or (c), specified digital
17goods, or additional digital goods subject to tax under this subchapter, or the
18furnishing of services so subject to tax, shall, before issuing such license or permit,
19require proof that the person to whom such license or permit is to be issued is the
20holder of a seller's permit as required by this subchapter or has been informed by an
21employee of the department that the department will issue a seller's permit to that
22person.

SB40-SSA1,1162,3

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177.61 (16) Any person who remits taxes and files returns under this subchapter
2may designate an agent, as defined in s. 77.524 (1) (ag), to remit such taxes and file
3such returns with the department in a manner prescribed by the department.

SB40-SSA1,1162,105 77.61 (17) With regard to services subject to the tax under s. 77.52 (2) or the
6lease, rental, or license of tangible personal property and property and items
7specified under s. 77.52 (1) (b) to (d), an increase in the tax rate applies to the first
8billing period beginning on or after the rate increase's effective date and a decrease
9in the tax rate applies to bills that are rendered on or after the rate decrease's
10effective date.0

SB40-SSA1,1162,16 1277.63 Collection compensation. The following persons may retain a portion
13of sales and use taxes collected on retail sales under this subchapter and subch. V
14in an amount determined by the department and by contracts that the department
15enters into jointly with other states as a member state of the streamlined sales tax
16governing board pursuant to the agreement, as defined in s. 77.65 (2) (a):

SB40-SSA1,1162,17 17(1) A certified service provider.

SB40-SSA1,1162,19 18(2) A seller that uses a certified automated system, as defined in s. 77.524 (1)
19(am).

SB40-SSA1,1163,7 20(3) A seller that sells tangible personal property, items or property under s.
2177.52 (1) (b) or (c), specified digital goods, additional digital goods, or taxable services
22in at least 5 states that are signatories to the agreement, as defined in s. 77.65 (2)
23(a); that has total annual sales revenue of at least $500,000,000; that has a
24proprietary system that calculates the amount of tax owed to each taxing jurisdiction
25in which the seller sells tangible personal property, items or property under s. 77.52

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1(1) (b) or (c), specified digital goods, additional digital goods, or taxable services; and
2that has entered into a performance agreement with the states that are signatories
3to the agreement, as defined in s. 77.65 (2) (a). For purposes of this subsection,
4"seller" includes an affiliated group of sellers using the same proprietary system to
5calculate the amount of tax owed in each taxing jurisdiction in which the sellers sell
6tangible personal property, items or property under s. 77.52 (1) (b) or (c), specified
7digital goods, additional digital goods, or taxable services.

SB40-SSA1,1163,109 77.65 (2) (a) "Agreement" means the streamlined sales and use tax agreement,
10including amendments to the agreement.

SB40-SSA1,1163,1513 77.65 (2) (e) "Seller" means any person who sells, leases, or rents tangible
14personal property, items or property under s. 77.52 (1) (b) or (c), specified digital
15goods, additional digital goods, or services.

SB40-SSA1,1163,1817 77.65 (2) (f) "State" means any state of the United States and, the District of
18Columbia, and the Commonwealth of Puerto Rico.