HB0259 - Uniform Sales & Use Tax Administration Act.

 

2001

State of Wyoming

01LSO-0579

 

 

 

HOUSE BILL NO.  HB0259

 

 

Uniform Sales & Use Tax Administration Act.

 

Sponsored by:

 

 

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 an effective date.

 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 the action of this
11  state in accordance with law.

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 each state to abide by the following
18  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

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 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)(viii)(H) and by creating a
21  new paragraph (ix), 39-15-106(a), 39-15-207, 39-16-101(a)
22  by creating a new paragraph (xii), 39-16-104 by creating a
23  new subsection (e), 39-16-105(a)(vii)(B) and by creating a

Page 12

 

 

 

 1  new paragraph (ix), 39-16-106(a) and 39-16-207 are amended
 2  to read:

 3 

 4         39-15-101.  Definitions.

 5 

 6         (a)  As used in this article:

 7 

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

12 

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

21 

22                   (A)  Shall apply to the measure subject to
23  sales tax and means the total amount or consideration,
24  including cash, credit, property and services for which

Page 13

 

 

 

 1  personal property or services are sold, leased or rented,
 2  valued in money, whether received in money or otherwise,
 3  without any deduction for the following:

 4 

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

 7 

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

12 

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

16 

17                         (IV)  Delivery charges;

18 

19                         (V)  Installation charges;

20 

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

 

Page 14

 

 

 

 1 

 2                   (B)  Shall not include:

 3 

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

 7 

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

13 

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

17 

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

23 

24         39-15-104.  Taxation rate.

 

Page 15

 

 

 

 1 

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

 8 

 9         39-15-105.  Exemptions.

10 

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

13 

14              (viii)  For the purpose of exempting sales of
15  services and tangible personal property as an economic
16  incentive, the following are exempt:

17 

18                   (H)  The tax imposed by W.S. 39-15-104(b)
19  shall not apply to farm implements. For purposes of this
20  section only, "farm implements" means any tractor or other
21  machinery designed or adapted and used exclusively for
22  agricultural operations and specifically excludes
23  snowmobiles, lawn tractors, all-terrain vehicles and repair

Page 16

 

 

 

 1  or replacement parts. This subparagraph is repealed
 2  effective December 31, 2005;

 3 

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

 7 

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

12 

13         39-15-106.  Licenses; permits.

14 

15         (a)  Every vendor shall obtain from the department a
16  sales tax license to conduct business in the state. Any
17  out-of-state vendor not otherwise subject to this article
18  may voluntarily apply for a license from the department and
19  if licensed, shall collect and remit the state sales tax
20  imposed by W.S. 39-15-103. The license shall be granted
21  only upon application stating the name and address of the
22  applicant, the character of the business in which the
23  applicant proposes to engage, the location of the proposed
24  business and other information as the department may

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 1  require. Effective July 1, 1997, a license fee of sixty
 2  dollars ($60.00) shall be required from each new vendor,
 3  except for any remote vendor who has no requirement to
 4  register in this state, and who is using one (1) of the
 5  technology models pursuant to W.S. 39-15-401, et seq.
 6  Failure of a vendor to timely file any return may result in
 7  forfeiture of the license granted under this section. The
 8  department shall charge sixty dollars ($60.00) for
 9  reinstatement of any forfeited license.

10 

11         39-15-207.  Compliance; collection procedures.

12 

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

17 

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

20 

21         (c)  Timelines. Local tax rates and boundary changes
22  for purposes of this article shall be effective on the
23  first day of a calendar quarter after sixty (60) days
24  notice has been given to a vendor. In the case of a vendor

Page 18

 

 

 

 1  selling from a printed catalog, the new tax rate shall take
 2  effect on the first day of the calendar quarter following
 3  one hundred twenty (120) days notice provided to the
 4  vendor.

 5 

 6         39-16-101.  Definitions.

 7 

 8         (a)  As used in this article:

 9 

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

12 

13         39-16-104.  Taxation rate.

14 

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

21 

22         39-16-105.  Exemptions.

23 

 

Page  19

 

 

 

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

 3 

 4              (vii)  For the purpose of exempting sales of
 5  services provided primarily to businesses, exemptions shall
 6  be as specified by the legislature and as follows:

 7 

 8                   (B)  The tax imposed by W.S. 39-16-104(b)
 9  shall not apply to farm implements. For purposes of this
10  section only, "farm implements" means any tractor or other
11  machinery designed or adapted and used exclusively for
12  agricultural operations and specifically excludes
13  snowmobiles, lawn tractors, all-terrain vehicles and repair
14  or replacement parts. This subparagraph is repealed
15  effective December 31, 2005.

16 

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

20 

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

 

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 1 

 2         39-16-106.  Licenses; permits.

 3 

 4         (a)  Every vendor shall register with the department
 5  of revenue, giving the name and address of all agents
 6  operating in the state and the location of all places of
 7  business together with other information as required by the
 8  department. Effective July 1, 1997, a license fee of sixty
 9  dollars ($60.00) shall be required from each new vendor,
10  except for any remote vendor who has no requirement to
11  register in this state, and who is using one (1) of the
12  technology models pursuant to W.S. 39-15-401, et seq.
13  Failure of a vendor to timely file any return may result in
14  forfeiture of the license granted under this section. The
15  department shall charge sixty dollars ($60.00) for
16  reinstatement of any forfeited license. Any out-of-state
17  vendor not otherwise subject to this article may
18  voluntarily register with the department and if registered,
19  shall collect and remit the state use tax imposed by W.S.
20  39-16-104.

21 

22         39-16-207.  Compliance; collection procedures.

23 

 

Page 21

 

 

 

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

 5 

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

 8 

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

17 

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

19 

20         Section 4.  The Wyoming legislature finds that this
21  state should enter into an agreement with one (1) or more
22  other states to simplify and modernize sales and use tax
23  administration in order to substantially reduce the burden

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 1  of tax compliance for all sellers and for all types of
 2  commerce.

 3 

 4         Section 5.

 5 

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

10 

11         (b)  Section 2 of this act is effective July 1, 2002.

12 

13                         (END)

 

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