Administrative Rule Review Report  #AR12-021

Legislative Service Office

1-May-12

 

AGENCY:                                       Department of Revenue

 

DATE SUBMITTED:                     4/16/2012

 

SUBJECT:                                       Chapter 2, Sales and Use Tax

 

NATURE OF RULES:                   Legislative, Procedural

 

STATUTORY AUTHORITY:        W.S. 39‑11‑102(b).

 

DETERMINATION OF PROCEDURAL COMPLIANCE BASED UPON INFORMATION

SUBMITTED BY THE AGENCY TO LSO:  The Agency failed to provide notice, required by W.S. 16‑3‑103(a)(i)(D), that the rules being adopted were new rules.  As a consequence, notice of the proposed rulemaking was not provided until recently to the prime sponsor or committee responsible for the enabling legislation as required by W.S. 28‑9‑103(d). Otherwise, procedural compliance is apparently complete to date.

 

SUMMARY OF RULES:  These rules deal with sales and use tax.  The definitions of the chapter are amended to correct spelling errors, to comply with statutory changes and to conform with legal decisions related to these rules.  The rules are amended to clarify how tax rate changes affect periodic billing to comply with the Streamlined Sales and Use Tax Agreement.  The rules are amended to clarify that payments are applied to the oldest debt first.  The rules are amended to clarify the state's responsibility when providing documents which are relied upon by vendors.

 

The rules are amended to provide that off-setting credits apply to use tax paid in another state.  The rules remove references to multiple points of use as they no longer apply in rule or statute.  In the collection of sales tax, the rules are amended to provide for annual filing for vendors that collect minimal sales tax, to provide rules for vendors to claim the vendor compensation credit in accordance with statute and to clarify when taxes can be collected based on gross receipts.

 

The rules are amended to clarify that vendors are relieved from collecting sales tax when an exemption certificate is claimed.  The rules are amended to clarify that foods sold through vending machines is included in food for domestic home consumption.  The rules are also amended to clarify the process for a taxpayer seeking a refund from a vendor.  The rules are also amended to clarify other issues including that a cover charge is considered as an admission charge, that electronic downloads of computer software are taxable, that in-room viewing of videos are not specified digital products, a digital code for a product takes on the nature of the underlying digital product and that water is included in food for domestic home consumption.  The rules also include clarifying language from the Streamlined Sales and Use Tax Agreement related to warranties and maintenance contracts.  Additional technical changes are made throughout the rules.

 

FINDINGS:  The rules appear to be within the scope of statutory authority and legislative intent.

 

STAFF RECOMMENDATION:       That the rules be placed on the Consent List and be approved by the Council as submitted by the Agency but that the Council request the Governor to caution the Agency concerning the need to comply with statutory procedural requirements for adoption of rules, as noted in the rule review report.

 

 

 

                                                                        _______________________

                                                                        Joshua Anderson

                                                                        Staff Attorney

 

 

 

                                                                        _______________________

                                                                        Lynda G. Cook

                                                                        Staff Attorney

JDA/cj