Wisconsin Legislature: SB446: Bill Text

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2007 - 2008 LEGISLATURE

2007 Senate BILL 446

February 4, 2008 - Introduced by Senators Jauch, Lehman, Plale, Erpenbach and
Schultz, cosponsored by Representatives Turner, Soletski, Sinicki,
Sheridan and Zepnick. Referred to Committee on Tax Fairness and Family
Prosperity.

SB446,3,17 1An Act to repeal 46.513, 77.51 (4), 77.51 (14) (d), 77.51 (14) (i), 77.51 (14) (k),
277.51 (14) (L), 77.51 (14r), 77.51 (15), 77.52 (2) (a) 5. b., 77.52 (3m), 77.52 (3n),
377.52 (6), 77.52 (14) (a) 2., 77.523 (title), 77.53 (4), 77.54 (14g), 77.54 (14s), 77.54
4(20), 77.54 (20m), 77.54 (22), 77.54 (40), 77.61 (3), 77.65 (2) (c), 77.72 (title),
577.72 (2) and (3) and 77.77 (2); to renumber 77.51 (6m), 77.51 (14) (g), 77.524
6(1) (a) and 77.54 (48) (b); to renumber and amend 77.51 (1), 77.52 (1), 77.523,
777.524 (1) (b), 77.53 (9m), 77.53 (11), 77.54 (48) (a), 77.61 (2), 77.72 (1) and 77.77
8(1); to consolidate, renumber and amend 77.52 (14) (a) (intro.) and 1. and
9(b); to amend 66.0615 (1m) (f) 2., 70.111 (23), 71.07 (5e) (b), 71.07 (5e) (c) 1.,
1071.07 (5e) (c) 3., 71.28 (5e) (b), 71.28 (5e) (c) 1., 71.28 (5e) (c) 3., 71.47 (5e) (b),
1171.47 (5e) (c) 1., 71.47 (5e) (c) 3., 73.03 (50) (d), 76.07 (4g) (b) 8., 77.51 (5), 77.51
12(9) (a), 77.51 (9) (am), 77.51 (10), 77.51 (12) (b), 77.51 (13) (a), 77.51 (13) (b),
1377.51 (13) (c), 77.51 (13) (d), 77.51 (13) (e), 77.51 (13) (f), 77.51 (13) (k), 77.51 (13)
14(m), 77.51 (13) (n), 77.51 (13) (o), 77.51 (13g) (intro.), 77.51 (13r), 77.51 (14)

1(intro.), 77.51 (14) (a), 77.51 (14) (b), 77.51 (14) (c), 77.51 (14) (h), 77.51 (14) (j),
277.51 (14g) (a), 77.51 (14g) (b), 77.51 (14g) (bm), 77.51 (14g) (c), 77.51 (14g) (cm),
377.51 (14g) (d), 77.51 (14g) (e), 77.51 (14g) (em), 77.51 (14g) (f), 77.51 (14g) (g),
477.51 (14g) (h), 77.51 (17) (intro.), 77.51 (18), 77.51 (20), 77.51 (21), 77.51 (21m),
577.51 (22) (a), 77.51 (22) (b), 77.52 (2) (intro.), 77.52 (2) (a) 5m., 77.52 (2) (a) 10.,
677.52 (2m) (a), 77.52 (2m) (b), 77.52 (4), 77.52 (7), 77.52 (12), 77.52 (13), 77.52
7(15), 77.52 (16), 77.52 (19), 77.525, 77.53 (1), 77.53 (2), 77.53 (3), 77.53 (9), 77.53
8(10), 77.53 (12), 77.53 (14), 77.53 (15), 77.53 (16), 77.53 (17), 77.53 (17m), 77.53
9(17r) (a), 77.53 (18), 77.54 (1), 77.54 (2), 77.54 (2m), 77.54 (3) (a), 77.54 (3m)
10(intro.), 77.54 (4), 77.54 (5) (intro.), 77.54 (6) (intro.), 77.54 (7m), 77.54 (8), 77.54
11(9), 77.54 (9a) (intro.), 77.54 (10), 77.54 (11), 77.54 (12), 77.54 (13), 77.54 (14)
12(intro.), 77.54 (14) (a), 77.54 (14) (b), 77.54 (14) (f) (intro.), 77.54 (15), 77.54 (16),
1377.54 (17), 77.54 (18), 77.54 (21), 77.54 (23m), 77.54 (25), 77.54 (25m), 77.54
14(26), 77.54 (26m), 77.54 (27), 77.54 (28), 77.54 (29), 77.54 (30) (a) (intro.), 77.54
15(30) (c), 77.54 (31), 77.54 (32), 77.54 (33), 77.54 (35), 77.54 (36), 77.54 (37), 77.54
16(38), 77.54 (39), 77.54 (41), 77.54 (42), 77.54 (43), 77.54 (44), 77.54 (45), 77.54
17(46), 77.54 (46m), 77.54 (47) (intro.), 77.54 (47) (b) 1., 77.54 (47) (b) 2., 77.54 (49),
1877.54 (54), 77.54 (56), 77.55 (1) (intro.), 77.55 (2), 77.55 (2m), 77.55 (3), 77.56
19(1), 77.57, 77.58 (3) (a), 77.58 (3) (b), 77.58 (6), 77.59 (5m), 77.59 (9), 77.61 (1)
20(b), 77.61 (1) (c), 77.61 (4) (a), 77.61 (4) (c), 77.61 (11), 77.65 (2) (a), 77.65 (2) (e),
2177.65 (2) (f), 77.66, 77.70, 77.705, 77.706, 77.707 (1), 77.707 (2), 77.71 (1), 77.71
22(2), 77.71 (3), 77.71 (4), 77.73 (2), 77.75, 77.785 (1), 77.785 (2), 77.98, 77.981,
2377.99, 77.991 (2), 77.994 (1) (intro.), 77.9941 (4), 77.995 (2), 77.996 (6), 86.195
24(3) (b) 3., 218.0171 (2) (cq), 229.68 (15) and 229.824 (15); to repeal and
25recreate 77.51 (7), 77.51 (12) (a), 77.51 (17m), 77.52 (1b), 77.52 (2) (a) 5. a.,

177.52 (2n), 77.53 (1b), 77.63, 77.982 (2), 77.9951 (2) and 77.9972 (2); and to
2create 20.566 (1) (ho), 73.03 (28e), 73.03 (50b), 73.03 (61), 77.51 (1b), 77.51
3(1ba), 77.51 (1f), 77.51 (1fm), 77.51 (1n), 77.51 (1p), 77.51 (1r), 77.51 (2k), 77.51
4(2m), 77.51 (3c), 77.51 (3n), 77.51 (3pd), 77.51 (3pe), 77.51 (3pf), 77.51 (3pj),
577.51 (3pm), 77.51 (3pn), 77.51 (3po), 77.51 (3rm), 77.51 (3t), 77.51 (5d), 77.51
6(5n), 77.51 (5r), 77.51 (7g), 77.51 (7k), 77.51 (7m), 77.51 (8m), 77.51 (9p), 77.51
7(9s), 77.51 (10d), 77.51 (10f), 77.51 (10m), 77.51 (10n), 77.51 (10r), 77.51 (10s),
877.51 (11d), 77.51 (11m), 77.51 (12m), 77.51 (12p), 77.51 (13g) (c), 77.51 (13rm),
977.51 (13rn), 77.51 (15a), 77.51 (15b), 77.51 (17w), 77.51 (21n), 77.51 (21p),
1077.51 (21q), 77.51 (22) (bm), 77.51 (24), 77.51 (25), 77.51 (26), 77.52 (1) (b), 77.52
11(1) (c), 77.52 (2) (a) 5. am., 77.52 (2) (a) 5. c., 77.52 (2) (a) 13m., 77.52 (7b), 77.52
12(14) (am), 77.52 (20), 77.52 (21), 77.52 (22), 77.52 (23), 77.522, 77.524 (1) (ag),
1377.53 (9m) (b), 77.53 (9m) (c), 77.53 (11) (b), 77.54 (20n), 77.54 (20r), 77.54 (22b),
1477.54 (51), 77.54 (52), 77.58 (6m), 77.58 (9a), 77.585, 77.59 (2m), 77.59 (9n),
1577.59 (9p) (b), 77.59 (9r), 77.60 (13), 77.61 (2) (b), 77.61 (3m), 77.61 (5m), 77.61
16(16), 77.61 (17), 77.65 (4) (fm), 77.67, 77.73 (3) and 77.77 (1) (b) of the statutes;
17relating to: the streamlined sales and use tax agreement.

Analysis by the Legislative Reference Bureau

This bill adopts the substantive provisions of the streamlined sales and use tax
agreement (agreement) for purposes of administering and collecting state, county,
and stadium district sales and use taxes. The agreement is intended to modernize
sales and use tax administration for the states that enter into the agreement and to
encourage out-of-state retailers to collect the state, county, and stadium district
sales and use taxes voluntarily. Under current federal law, generally, an
out-of-state retailer who sells tangible personal property or services to customers
in this state is not required to collect the sales tax or use tax imposed on such sales,
if the retailer has no physical presence in this state. See Quill v. North Dakota, 504
U.S. 298; 112 S.Ct. 1904 (1992).

This bill will be referred to the Joint Survey Committee on Tax Exemptions for
a detailed analysis, which will be printed as an appendix to this bill.

For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:

SB446, s. 1 1Section 1. 20.566 (1) (ho) of the statutes is created to read:

SB446,4,52 20.566 (1) (ho) Collections under multistate streamlined sales tax project. From
3moneys collected under the multistate streamlined sales tax project as provided
4under s. 73.03 (28e), a sum sufficient to pay the dues necessary to participate in the
5governing board of the multistate streamlined sales tax project.

SB446, s. 2 6Section 2. 46.513 of the statutes is repealed.

SB446, s. 3 7Section 3. 66.0615 (1m) (f) 2. of the statutes is amended to read:

SB446,4,128 66.0615 (1m) (f) 2. Sections 77.51 (12m), (14) (c), (f) and (j) and, (14g), (15a),
9and (15b), 77.52 (3), (4), (6) and (13), (14), (18), and (19), 77.522, 77.58 (1) to (5) , (6m),
10and (7), 77.585, 77.59, 77.60, 77.61 (2), (3m), (5), (8), (9), and (12) to (14) (15), and
1177.62, as they apply to the taxes under subch. III of ch. 77, apply to the tax described
12under subd. 1.

SB446, s. 4 13Section 4. 70.111 (23) of the statutes is amended to read:

SB446,4,1914 70.111 (23) Vending machines. All machines that automatically dispense soda
15water beverages, as defined in s. 97.29 (1) (i), and items included as a food or beverage
16under s. 77.54 (20) (a) and (b) food and food ingredient, as defined in s. 77.51 (3t),
17upon the deposit in the machines of specified coins or currency, or insertion of a credit
18card, in payment for the soda water beverages, food or beverages food and food
19ingredient, as defined in s. 77.51 (3t).

SB446, s. 5 20Section 5. 71.07 (5e) (b) of the statutes is amended to read:

SB446,5,8

171.07 (5e) (b) Filing claims. Subject to the limitations provided in this
2subsection and subject to 2005 Wisconsin Act 479, section 17, beginning in the first
3taxable year following the taxable year in which the claimant claims an exemption
4a deduction under s. 77.54 (48) 77.585 (9), a claimant may claim as a credit against
5the taxes imposed under ss. 71.02 and 71.08, up to the amount of those taxes, in each
6taxable year for 2 years, the amount certified by the department of commerce that
7resulted from the claimant claimed as an exemption claiming a deduction under s.
877.54 (48) 77.585 (9).

SB446, s. 6 9Section 6. 71.07 (5e) (c) 1. of the statutes is amended to read:

SB446,5,1110 71.07 (5e) (c) 1. No credit may be allowed under this subsection unless the
11claimant satisfies the requirements under s. 77.54 (48) 77.585 (9).

SB446, s. 7 12Section 7. 71.07 (5e) (c) 3. of the statutes is amended to read:

SB446,5,1613 71.07 (5e) (c) 3. The total amount of the credits and exemptions the sales and
14use tax resulting from the deductions claimed under s. 77.585 (9) that may be claimed
15by all claimants under this subsection and ss. 71.28 (5e), 71.47 (5e), and 77.54 (48)
1677.585 (9) is $7,500,000, as determined by the department of commerce.

SB446, s. 8 17Section 8. 71.28 (5e) (b) of the statutes is amended to read:

SB446,5,2518 71.28 (5e) (b) Filing claims. Subject to the limitations provided in this
19subsection and subject to 2005 Wisconsin Act 479, section 17, beginning in the first
20taxable year following the taxable year in which the claimant claims an exemption
21a deduction under s. 77.54 (48) 77.585 (9), a claimant may claim as a credit against
22the taxes imposed under s. 71.23, up to the amount of those taxes, in each taxable
23year for 2 years, the amount certified by the department of commerce that resulted
24from the claimant claimed as an exemption claiming a deduction under s. 77.54 (48)
2577.585 (9).

SB446, s. 9

1Section 9. 71.28 (5e) (c) 1. of the statutes is amended to read:

SB446,6,32 71.28 (5e) (c) 1. No credit may be allowed under this subsection unless the
3claimant satisfies the requirements under s. 77.54 (48) 77.585 (9).

SB446, s. 10 4Section 10. 71.28 (5e) (c) 3. of the statutes is amended to read:

SB446,6,85 71.28 (5e) (c) 3. The total amount of the credits and exemptions the sales and
6use tax resulting from the deductions claimed under s. 77.585 (9) that may be claimed
7by all claimants under this subsection and ss. 71.07 (5e), 71.47 (5e), and 77.54 (48)
877.585 (9) is $7,500,000, as determined by the department of commerce.

SB446, s. 11 9Section 11. 71.47 (5e) (b) of the statutes is amended to read:

SB446,6,1710 71.47 (5e) (b) Filing claims. Subject to the limitations provided in this
11subsection and subject to 2005 Wisconsin Act 479, section 17, beginning in the first
12taxable year following the taxable year in which the claimant claims an exemption
13a deduction under s. 77.54 (48) 77.585 (9), a claimant may claim as a credit against
14the taxes imposed under s. 71.43, up to the amount of those taxes, in each taxable
15year for 2 years, the amount certified by the department of commerce that resulted
16from the claimant claimed as an exemption claiming a deduction under s. 77.54 (48)
1777.585 (9).

SB446, s. 12 18Section 12. 71.47 (5e) (c) 1. of the statutes is amended to read:

SB446,6,2019 71.47 (5e) (c) 1. No credit may be allowed under this subsection unless the
20claimant satisfies the requirements under s. 77.54 (48) 77.585 (9).

SB446, s. 13 21Section 13. 71.47 (5e) (c) 3. of the statutes is amended to read:

SB446,6,2522 71.47 (5e) (c) 3. The total amount of the credits and exemptions the sales and
23use tax resulting from the deductions claimed under s. 77.585 (9) that may be claimed
24by all claimants under this subsection and ss. 71.07 (5e), 71.28 (5e), and 77.54 (48)
2577.585 (9) is $7,500,000, as determined by the department of commerce.

SB446, s. 14

1Section 14. 73.03 (28e) of the statutes is created to read:

SB446,7,92 73.03 (28e) To participate as a member state of the streamlined sales tax
3governing board which administers the agreement, as defined in s. 77.65 (2) (a), and
4includes having the governing board enter into contracts that are necessary to
5implement the agreement on behalf of the member states, and to allocate a portion
6of the amount collected under ch. 77 through the agreement to the appropriation
7under s. 20.566 (1) (ho) to pay the dues necessary to participate in the governing
8board. The department shall allocate the remainder of such collections to the general
9fund.

SB446, s. 15 10Section 15. 73.03 (50) (d) of the statutes is amended to read:

SB446,7,1811 73.03 (50) (d) In the case of a sole proprietor, signs the form or, in the case of
12other persons, has an individual who is authorized to act on behalf of the person sign
13the form, or, in the case of a single-owner entity that is disregarded as a separate
14entity under section 7701 of the Internal Revenue Code, the person is the owner. Any
15person who may register under this subsection may designate an agent, as defined
16in s. 77.524 (1) (ag), to register with the department under this subsection in the
17manner prescribed by the department. In this paragraph, "sign" has the meaning
18given in s. 77.51 (17r).

SB446, s. 16 19Section 16. 73.03 (50b) of the statutes is created to read:

SB446,7,2320 73.03 (50b) To waive the fee established under sub. (50) for applying for and
21renewing the business tax registration certificate, if the person who is applying for
22or renewing the certificate is not required for purposes of ch. 77 to hold such a
23certificate.

SB446, s. 17 24Section 17. 73.03 (61) of the statutes is created to read:

SB446,8,2

173.03 (61) To do all of the following related to the Uniform Sales and Use Tax
2Administration Act:

SB446,8,33 (a) Certify compliance with the agreement, as defined in s. 77.65 (2) (a).

SB446,8,64 (b) Pursuant to the agreement, as defined in s. 77.65 (2) (a), certify certified
5service providers, as defined in s. 77.51 (1g), and certified automated systems, as
6defined in s. 77.524 (1) (am).

SB446,8,187 (c) Consistent with the agreement, as defined in s. 77.65 (2) (a), establish
8performance standards and eligibility criteria for a seller that sells tangible personal
9property, items or property under s. 77.52 (1) (b) or (c), or taxable services in at least
105 states that are signatories to the agreement, as defined in s. 77.65 (2) (a); that has
11total annual sales revenue of at least $500,000,000; that has a proprietary system
12that calculates the amount of tax owed to each taxing jurisdiction in which the seller
13sells tangible personal property or taxable services; and that has entered into a
14performance agreement with the states that are signatories to the agreement, as
15defined in s. 77.65 (2) (a). For purposes of this paragraph, "seller" includes an
16affiliated group of sellers using the same proprietary system to calculate the amount
17of tax owed in each taxing jurisdiction in which the sellers sell tangible personal
18property or taxable services.

SB446,8,2219 (d) Issue a tax identification number to a person who claims an exemption
20under subch. III or V of ch. 77 and who is not required to register with the department
21for the purposes of subch. III or V of ch. 77 and establish procedures for the
22registration of such a person.

SB446,9,223 (e) Maintain a database that is accessible to sellers and certified service
24providers, as defined in s. 77.51 (1g), that indicates whether items defined in

1accordance with the Uniform Sales and Use Tax Administration Act are taxable or
2nontaxable.