ORIGINAL HOUSE                                           

BILL   NO.  0259

 

ENROLLED ACT NO. 81,  HOUSE OF REPRESENTATIVES

 

FIFTY-SIXTH LEGISLATURE OF THE STATE OF WYOMING

2001 GENERAL SESSION

 

 

 

 

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

 

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

 

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

 

ARTICLE 4

UNIFORM SALES AND USE TAX ADMINISTRATION ACT

 

39-15-401.  Title.

 

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

 

39-15-402.  Definitions.

 

(a)  As used in this article:

 

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

 

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

 

Page  1

 

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

39-15-403.  Authority to enter agreement.

 

(a)  The department of revenue is authorized and
directed to enter into the streamlined sales and use tax
agreement with one (1) or more states to simplify and
modernize sales and use tax administration in order to
substantially reduce the burden of tax compliance for all
sellers and for all types of commerce. In furtherance of

 

Page  2

 

 

 

the agreement, the department is authorized to act jointly
with other states that are members of the agreement to
establish standards for certification of a certified
service provider and certified automated system and
establish performance standards for multistate sellers.

 

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

 

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

 

39-15-404.  Relationship to state law.

 

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

 

39-15-405.  Agreement requirements.

 

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

 

Page  3

 

 

 

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

 

(A)  Limiting the number of state rates;

 

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

 

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

 

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

 

(A)  The sourcing of transactions to taxing
jurisdictions;

 

(B)  The administration of exempt sales;

 

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

 

(D)  Sales and use tax returns and
remittances.

 

(iii)  Uniform definitions. The agreement shall
require states to develop and adopt uniform definitions of
sales and use tax terms. The definitions shall enable a
state to preserve its ability to make policy choices not
inconsistent with the uniform definitions;

 

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

 

Page  4

 

 

 

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

 

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

 

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

 

(B)  Requiring states to administer any
sales and use taxes levied by local jurisdictions within
the state so that sellers collecting and remitting the
taxes will not have to register or file returns with, remit
funds to, or be subject to independent audits from local
taxing jurisdictions;

 

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

 

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

 

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

 

Page  5

 

 

 

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

 

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

 

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

 

39-15-406.  Cooperating sovereigns.

 

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

 

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

 

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

 

Page  6

 

 

 

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

 

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

 

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

 

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

 

(b)  A seller that contracts with a certified service
provider shall not be liable to the state for sales or use
tax due on any transaction processed by the certified
service provider unless the seller misrepresented the type
of items it sells or committed fraud. In the absence of
probable cause to believe that the seller has committed
fraud or made a material misrepresentation, the seller
shall not be subject to any audit on the transaction
processed by the certified service provider. A seller shall
be subject to audit for any transaction not processed by

 

Page  7

 

 

 

the certified service provider. The member states acting
jointly may perform a system check of the seller and review
the seller's procedures to determine if the certified
service provider's system is functioning properly and the
extent to which the seller's transactions are being
processed by the certified service provider.

 

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

 

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

 

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

 

39-15-101.  Definitions.

 

(a)  As used in this article:

 

(vi)  "Retail sale" means the sale of tangible
personal property to a person for use and not for

 

Page  8

 

 

 

subsequent resale any sale, lease or rental for any purpose
other than for resale, sublease or subrent
;

 

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

 

(A)  Shall apply to the measure subject to
sales tax and means the total amount or consideration,
including cash, credit, property and services for which
personal property or services are sold, leased or rented,
valued in money, whether received in money or otherwise,
without any deduction for the following:

 

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

 

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

 

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

 

(IV)  Delivery charges;

 

(V)  Installation charges;

 

Page  9

 

 

 

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

 

(B)  Shall not include:

 

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

 

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

 

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

 

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

 

39-15-104.  Taxation rate.

 

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

 

Page 10

 

 

 

39-15-105.  Exemptions.

 

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

 

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

 

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

 

39-15-106.  Licenses; permits.

 

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

 

Page 11

 

 

 

39-15-207.  Compliance; collection procedures.

 

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

 

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

 

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

 

39-16-101.  Definitions.

 

(a)  As used in this article:

 

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

 

39-16-104.  Taxation rate.

 

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

 

39-16-105.  Exemptions.

 

Page 12

 

 

 

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

 

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

 

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

 

39-16-106.  Licenses; permits.

 

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

 

39-16-207.  Compliance; collection procedures.

 

Page 13

 

 

 

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

 

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

 

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

 

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

 

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

 

Section 5.

 

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

 

Page 14

 

 

 

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

 

(END)

 

 

 

 

                                     

Speaker of the House                  President of the Senate

 

                                              

                 Governor                     

                                              

                 TIME APPROVED: _________     

                 DATE APPROVED: _________     

 

I hereby certify that this act originated in the House.

 

 

Chief Clerk

 

Page 15