HB0259 - Uniform Sales & Use Tax Administration Act.

 

2001

State of Wyoming

01LSO-0579.E1 ENGROSSED

 

 

 

HOUSE BILL NO.  HB0259

 

 

Uniform Sales & Use Tax Administration Act.

 

Sponsored by:  Representative(s) Hines and Nagel and
Senator(s) Devin, Mockler and Peck

 

 

A BILL

 

for

 

 1  AN ACT relating to taxation and revenue; providing for the
 2  Uniform Sales and Use Tax Administration Act as specified;
 3  providing authorization to enter into an agreement for the
 4  administration and enforcement of sales and use tax
 5  collections as specified; amending and conforming
 6  definitions; and providing for effective dates.

 7 

 8  Be It Enacted by the Legislature of the State of Wyoming:

 9 

10         Section 1.  W.S. 39-15-401 through 39-15-408 are
11  created to read:

12 

13                         ARTICLE 4

14         UNIFORM SALES AND USE TAX ADMINISTRATION ACT

15 

16         39-15-401.  Title.

 

Page  1

 

 

 

 1 

 2  This act shall be known and may be cited as the "Uniform
 3  Sales and Use Tax Administration Act."

 4 

 5         39-15-402.  Definitions.

 6 

 7         (a)  As used in this article:

 8 

 9              (i)  "Agreement" means the streamlined sales and
10  use tax agreement;

11 

12              (ii)  "Certified automated system" means software
13  certified jointly by the states that are signatories to the
14  agreement to calculate the tax imposed by each jurisdiction
15  on a transaction, determine the amount of tax to remit to
16  the appropriate state and maintain a record of the
17  transaction;

18 

19              (iii)  "Certified service provider" means an
20  agent certified jointly by the states that are signatories
21  to the agreement to perform all of the seller's sales tax
22  functions;

23 

 

Page  2

 

 

 1              (iv)  "Department" means the department of
 2  revenue;

 3 

 4              (v)  "Director" means the director of the
 5  department of revenue;

 6 

 7              (vi)  "Person" means an individual, trust,
 8  estate, fiduciary, partnership, limited liability company,
 9  limited liability partnership, corporation or any other
10  legal entity;

11 

12              (vii)  "Sales tax" means the tax levied under
13  W.S. 39-15-101 through 39-15-311;

14 

15              (viii)  "Seller" means any person making sales,
16  leases, or rentals of personal property or services;

17 

18              (ix)  "State" means any state of the United
19  States and includes the District of Columbia;

20 

21              (x)  "Use tax" means the tax levied under W.S.
22  39-16-101 through 39-16-311.

23 

24         39-15-403.  Authority to enter agreement.

 

Page  3

 

 

 

 1 

 2         (a)  The department of revenue is authorized and
 3  directed to enter into the streamlined sales and use tax
 4  agreement with one (1) or more states to simplify and
 5  modernize sales and use tax administration in order to
 6  substantially reduce the burden of tax compliance for all
 7  sellers and for all types of commerce. In furtherance of
 8  the agreement, the department is authorized to act jointly
 9  with other states that are members of the agreement to
10  establish standards for certification of a certified
11  service provider and certified automated system and
12  establish performance standards for multistate sellers.

13 

14         (b)  The department of revenue is further authorized
15  to take other actions reasonably required to implement the
16  provisions set forth in this article. Other actions
17  authorized by this section include, but are not limited to,
18  the adoption of rules and regulations and the joint
19  procurement, with other member states, of goods and
20  services in furtherance of the cooperative agreement.

21 

22         (c)  The director of the department or the director's
23  designee is authorized to represent this state before the
24  other states that are signatories to the agreement.

 

Page  4

 

 

 

 1 

 2         39-15-404.  Relationship to state law.

 3 

 4  No provision of the agreement authorized by this article in
 5  whole or part shall invalidate or amend any provision of
 6  the law of this state. Adoption of the agreement by this
 7  state shall not amend or modify any law of this state.
 8  Implementation of any condition of the agreement in this
 9  state, whether adopted before, at or after membership of
10  this state in the agreement, shall be by action of the
11  legislature.

12 

13         39-15-405.  Agreement requirements.

14 

15         (a)  The department of revenue shall not enter into
16  the streamlined sales and use tax agreement unless the
17  agreement requires that as a condition of participation
18  each state shall abide by the following requirements:

19 

20              (i)  Uniform state rate. The agreement shall set
21  restrictions to achieve over time more uniform state rates
22  through the following:

23 

24                   (A)  Limiting the number of state rates;

 

Page  5

 

 

 

 1 

 2                   (B)  Limiting the application of maximums on
 3  the amount of state tax that is due on a transaction;

 4 

 5                   (C)  Limiting the application of thresholds
 6  on the application of state tax.

 7 

 8              (ii)  Uniform standards. The agreement shall
 9  establish uniform standards for the following:

10 

11                   (A)  The sourcing of transactions to taxing
12  jurisdictions;

13 

14                   (B)  The administration of exempt sales;

15 

16                   (C)  The allowances a seller can take for
17  bad debts;

18 

19                   (D)  Sales and use tax returns and
20  remittances.

21 

22              (iii)  Uniform definitions. The agreement shall
23  require states to develop and adopt uniform definitions of
24  sales and use tax terms. The definitions shall enable a

Page  6

 

 

 

 1  state to preserve its ability to make policy choices not
 2  inconsistent with the uniform definitions;

 3 

 4              (iv)  Central registration. The agreement shall
 5  provide a central, electronic registration system that
 6  allows a seller to register to collect and remit sales and
 7  use taxes for all signatory states;

 8 

 9              (v)  No nexus attribution. The agreement shall
10  provide that registration with the central registration
11  system and the collection of sales and use taxes in the
12  signatory states will not be used as a factor in
13  determining whether the seller has nexus with a state for
14  any tax;

15 

16              (vi)  Local sales and use taxes.  The agreement
17  shall provide for reduction of the burdens of complying
18  with local sales and use taxes through the following:

19 

20                   (A)  Restricting and eliminating variances
21  between the state and local tax bases;

22 

23                   (B)  Requiring states to administer any
24  sales and use taxes levied by local jurisdictions within

Page  7

 

 

 

 1  the state so that sellers collecting and remitting the
 2  taxes will not have to register or file returns with, remit
 3  funds to, or be subject to independent audits from local
 4  taxing jurisdictions;

 5 

 6                   (C)  Restricting the frequency of changes in
 7  the local sales and use tax rates and setting effective
 8  dates for the application of local jurisdictional boundary
 9  changes to local sales and use taxes;

10 

11                   (D)  Providing notice of changes in local
12  sales and use tax rates and of changes in the boundaries of
13  local taxing jurisdictions.

14 

15              (vii)  Monetary allowances. The agreement shall
16  outline any monetary allowances that are to be provided by
17  the states to sellers or certified service providers;

18 

19              (viii)  State compliance. The agreement shall
20  require each state to certify compliance with the terms of
21  the agreement prior to joining and to maintain compliance,
22  under the laws of the member state, with all provisions of
23  the agreement while a member;

24 

 

Page  8

 

 

 

 1              (ix)  Consumer privacy. The agreement shall
 2  require each state to adopt a uniform policy for certified
 3  service providers that protects the privacy of consumers
 4  and maintains the confidentiality of tax information;

 5 

 6              (x)  Advisory councils. The agreement shall
 7  provide for the appointment of an advisory council of
 8  private sector representatives and an advisory council of
 9  nonmember state representatives to consult with in the
10  administration of the agreement.

11 

12         39-15-406.  Cooperating sovereigns.

13 

14  The agreement authorized by this article is an accord among
15  individual cooperating sovereigns in furtherance of their
16  governmental functions. The agreement provides a mechanism
17  among the member states to establish and maintain a
18  cooperative, simplified system for the application and
19  administration of sales and use taxes under the duly
20  adopted law of each member state.

21 

22         39-15-407.  Limited binding and beneficial effect.

23 

 

Page  9

 

 

 

 1         (a)  The agreement authorized by this act shall bind
 2  and inure only to the benefit of this state and the other
 3  member states. No person, other than a member state, is an
 4  intended beneficiary of the agreement. Any benefit to a
 5  person other than a state is established by the law of this
 6  state and the other member states and not by the terms of
 7  the agreement.

 8 

 9         (b)  Consistent with subsection (a) of this section,
10  no person shall have any cause of action or defense under
11  the agreement or by virtue of this state's approval of the
12  agreement. No person may challenge, in any action brought
13  under any provision of law, any action or inaction by any
14  department, agency or other instrumentality of this state,
15  or any political subdivision of this state on the ground
16  that the action or inaction is inconsistent with the
17  agreement.

18 

19         (c)  No law of this state, or the application thereof,
20  shall be declared invalid as to any person or circumstance
21  on the ground that the provision or application is
22  inconsistent with the agreement.

23 

24         39-15-408.  Seller and third party liability.

 

Page 10

 

 

 

 1 

 2         (a)  A certified service provider shall be deemed the
 3  agent of a seller, with whom the certified service provider
 4  has contracted, for the collection and remittance of sales
 5  and use taxes. As the seller's agent, the certified service
 6  provider shall be liable for any sales and use tax due each
 7  member state on all sales transactions it processes for the
 8  seller except as set out in this section.

 9 

10         (b)  A seller that contracts with a certified service
11  provider shall not be liable to the state for sales or use
12  tax due on any transaction processed by the certified
13  service provider unless the seller misrepresented the type
14  of items it sells or committed fraud. In the absence of
15  probable cause to believe that the seller has committed
16  fraud or made a material misrepresentation, the seller
17  shall not be subject to any audit on the transaction
18  processed by the certified service provider. A seller shall
19  be subject to audit for any transaction not processed by
20  the certified service provider. The member states acting
21  jointly may perform a system check of the seller and review
22  the seller's procedures to determine if the certified
23  service provider's system is functioning properly and the

Page 11

 

 

 

 1  extent to which the seller's transactions are being
 2  processed by the certified service provider.

 3 

 4         (c)  A person that provides a certified automated
 5  system is responsible for the proper functioning of that
 6  system and is liable to the state for underpayments of tax
 7  attributable to errors in the functioning of the certified
 8  automated system. A seller that uses a certified automated
 9  system shall remain responsible and is liable to the state
10  for reporting and remitting tax.

11 

12         (d)  A seller that has a proprietary system for
13  determining the amount of tax due on a transaction and has
14  signed an agreement establishing a performance standard for
15  that system is liable for the failure of the system to meet
16  the performance standard.

17 

18         Section 2.  W.S. 39-15-101(a)(vi), (viii) and by
19  creating a new paragraph (xvii), 39-15-104 by creating a
20  new subsection (f), 39-15-105(a) by creating a new
21  paragraph (ix), 39-15-106(a), 39-15-207, 39-16-101(a) by
22  creating a new paragraph (xii), 39-16-104 by creating a new
23  subsection (e), 39-16-105(a) by creating a new paragraph
24  (ix), 39-16-106(a) and 39-16-207 are amended to read:

 

Page 12

 

 

 

 1 

 2         39-15-101.  Definitions.

 3 

 4         (a)  As used in this article:

 5 

 6              (vi)  "Retail sale" means the sale of tangible
 7  personal property to a person for use and not for
 8  subsequent resale any sale, lease or rental for any purpose
 9  other than for resale, sublease or subrent;

10 

11              (viii)  "Sales price": means the consideration
12  paid by the purchaser of tangible personal property
13  excluding the actual trade-in value allowed on tangible
14  personal property and manufacturer rebates for motor
15  vehicles exchanged at the time of transaction, admissions
16  or services which are subject to taxation as provided by
17  this article and excluding any taxes imposed by the federal
18  government or this article;

19 

20                   (A)  Shall apply to the measure subject to
21  sales tax and means the total amount or consideration,
22  including cash, credit, property and services for which
23  personal property or services are sold, leased or rented,

Page 13

 

 

 

 1  valued in money, whether received in money or otherwise,
 2  without any deduction for the following:

 3 

 4                         (I)  The seller's cost of property
 5  sold;

 6 

 7                         (II)  The cost of materials used, labor
 8  or service cost, interest, losses, all costs of
 9  transportation to the seller and any other expense of the
10  seller;

11 

12                         (III)  Charges by the seller for any
13  services necessary to complete the sale other than delivery
14  and installation charges;

15 

16                         (IV)  Delivery charges;

17 

18                         (V)  Installation charges;

19 

20                         (VI)  The value of exempt personal
21  property given to the purchaser where taxable and exempt
22  personal property have been bundled together and sold by
23  the seller as a single product or piece of merchandise.

24 

 

Page 14

 

 

 

 1                   (B)  Shall not include:

 2 

 3                         (I)  Discounts, including cash, terms
 4  or coupons which are not reimbursed by a third party, which
 5  are allowed by a seller and taken by a purchaser on a sale;

 6 

 7                         (II)  Interest, financing and carrying
 8  charges from credit extended on the sale of personal
 9  property or services, if the amount is separate stated on
10  the invoice, bill of sale or similar document given to the
11  purchaser; and

12 

13                         (III)  Any tax legally imposed directly
14  on the consumer which is separately stated on the invoice,
15  bill of sale or similar document given to the purchaser.

16 

17              (xvii)  "Delivery charge" means a charge by the
18  seller for preparation and delivery to a location
19  designated by the purchaser of personal property or
20  services including, but not limited to, transportation,
21  shipping, handling, postage, crating and packing.

22 

23         39-15-104.  Taxation rate.

24 

 

Page 15

 

 

 

 1         (f)  The tax rate imposed upon a transaction subject
 2  to the Uniform Sales and Use Tax Administration Act shall
 3  be consistent with the uniform sourcing rule provided in
 4  the streamlined sales and use tax agreement adopted
 5  pursuant to that act, W.S. 39-15-401 et seq. and shall be
 6  consistent with state law.

 7 

 8         39-15-105.  Exemptions.

 9 

10         (a)  The following sales or leases are exempt from the
11  excise tax imposed by this article:

12 

13              (ix)  For the purpose of avoiding application of
14  the sales tax more than once on the same article of
15  tangible property for the same taxpayer:

16 

17                   (A)  The trade-in value of tangible personal
18  property shall be excluded from the sales price of new
19  tangible personal property when trade-in and purchase occur
20  in one (1) transaction.

21 

22         39-15-106.  Licenses; permits.

23 

 

Page 16

 

 

 

 1         (a)  Every vendor shall obtain from the department a
 2  sales tax license to conduct business in the state. Any
 3  out-of-state vendor not otherwise subject to this article
 4  may voluntarily apply for a license from the department and
 5  if licensed, shall collect and remit the state sales tax
 6  imposed by W.S. 39-15-103. The license shall be granted
 7  only upon application stating the name and address of the
 8  applicant, the character of the business in which the
 9  applicant proposes to engage, the location of the proposed
10  business and other information as the department may
11  require. Effective July 1, 1997, a license fee of sixty
12  dollars ($60.00) shall be required from each new vendor,
13  except for any remote vendor who has no requirement to
14  register in this state, and who is using one (1) of the
15  technology models pursuant to W.S. 39-15-401, et seq.
16  Failure of a vendor to timely file any return may result in
17  forfeiture of the license granted under this section. The
18  department shall charge sixty dollars ($60.00) for
19  reinstatement of any forfeited license.

20 

21         39-15-207.  Compliance; collection procedures.

22 

23         (a)  Returns, reports and preservation of records.
24  There are no specific applicable provisions for compliance

Page 17

 

 

 

 1  and collection procedures returns, reports and preservation
 2  of records for this article.

 3 

 4         (b)  Payment. There are no specific applicable
 5  provisions for payment for this article.

 6 

 7         (c)  Timelines. Local tax rates and boundary changes
 8  for purposes of this article shall be effective on the
 9  first day of a calendar quarter after sixty (60) days
10  notice has been given to a vendor. In the case of a vendor
11  selling from a printed catalog, the new tax rate shall take
12  effect on the first day of the calendar quarter following
13  one hundred twenty (120) days notice provided to the
14  vendor.

15 

16         39-16-101.  Definitions.

17 

18         (a)  As used in this article:

19 

20              (xii)  "Purchase price" means "sales price" as
21  defined under W.S. 39-15-101.

22 

23         39-16-104.  Taxation rate.

24 

 

Page 18

 

 

 

 1         (e)  The tax rate imposed upon a transaction subject
 2  to the Uniform Sales and Use Tax Administration Act shall
 3  be consistent with the uniform sourcing rule provided in
 4  the streamlined sales and use tax agreement adopted
 5  pursuant to that act, W.S. 39-15-401 et seq. and shall be
 6  consistent with state law.

 7 

 8         39-16-105.  Exemptions.

 9 

10         (a)  The following purchases or leases are exempt from
11  the excise tax imposed by this article:

12 

13         (ix)  For the purpose of avoiding application of
14  the use tax more than once on the same article of tangible
15  property for the same taxpayer:

16 

17              (A)  The trade-in value of tangible personal
18  property shall be excluded from the sales price of new
19  tangible personal property when trade-in and purchase occur
20  in one (1) transaction.

21 

22         39-16-106.  Licenses; permits.

23 

 

Page 19

 

 

 

 1         (a)  Every vendor shall register with the department
 2  of revenue, giving the name and address of all agents
 3  operating in the state and the location of all places of
 4  business together with other information as required by the
 5  department. Effective July 1, 1997, a license fee of sixty
 6  dollars ($60.00) shall be required from each new vendor,
 7  except for any remote vendor who has no requirement to
 8  register in this state, and who is using one (1) of the
 9  technology models pursuant to W.S. 39-15-401, et seq.
10  Failure of a vendor to timely file any return may result in
11  forfeiture of the license granted under this section. The
12  department shall charge sixty dollars ($60.00) for
13  reinstatement of any forfeited license. Any out-of-state
14  vendor not otherwise subject to this article may
15  voluntarily register with the department and if registered,
16  shall collect and remit the state use tax imposed by W.S.
17  39-16-104.

18 

19         39-16-207.  Compliance; collection procedures.

20 

21         (a)  Returns, reports and preservation of records.
22  There are no specific applicable provisions for compliance
23  and collection procedures returns, reports and preservation
24  of records for this article.

 

Page 20

 

 

 

 1 

 2         (b)  Payment. There are no specific applicable
 3  provisions for payment for this article.

 4 

 5         (c)  Timelines. Local tax rates and boundary changes
 6  for purposes of this article shall be effective on the
 7  first day of a calendar quarter after sixty (60) days
 8  notice has been given to a vendor. In the case of a vendor
 9  selling from a printed catalog, the new tax rate shall take
10  effect on the first day of the calendar quarter following
11  one hundred twenty (120) days notice provided to the
12  vendor.

13 

14         Section 3.  W.S. 39-15-109(d)(ii) is repealed.

15 

16         Section 4.  The Wyoming legislature finds that this
17  state should enter into an agreement with one (1) or more
18  other states to simplify and modernize sales and use tax
19  administration in order to substantially reduce the burden
20  of tax compliance for all sellers and for all types of
21  commerce.

22 

 

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 1         Section 5.

 2 

 3         (a)  Sections 1 and 4 of this act are effective
 4  immediately upon completion of all acts necessary for a
 5  bill to become law as provided by Article 4, Section 8 of
 6  the Wyoming Constitution.

 7 

 8         (b)  The balance of this act is effective July 1,
 9  2002.

10 

11                         (END)

 

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