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;
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(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
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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:
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(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;
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(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;
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(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.
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(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
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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
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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;
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(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.
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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.
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39-15-207. Compliance; collection
procedures.
(a) Returns, reports
and preservation of records.
There are no specific
applicable provisions for compliance returns, reports and preservation
and collection
procedures
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.
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(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.
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(a) Returns, reports
and preservation of records.
There are no specific
applicable provisions for compliance returns, reports and preservation
and collection
procedures
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.
(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.
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(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
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