JK:cjs
2019 - 2020 LEGISLATURE
2019 Assembly BILL 251
May 31, 2019 - Introduced by Representatives Rodriguez, Katsma, Kerkman,
Macco and Wittke, cosponsored by Senators Kooyenga, Marklein, Roth,
Wanggaard, Tiffany and Kapenga. Referred to Committee on Ways and
Means.
AB251,1,10 1An Act to repeal 77.51 (13b); to renumber and amend 73.03 (71) (a), 73.03 (71)
2(b), 73.03 (71) (c) and 73.03 (71) (d); to amend 66.0615 (1m) (f) 2., 77.51 (11d),
377.51 (13) (intro.), 77.51 (13) (a), 77.51 (13) (c), 77.982 (2), 77.991 (2) and
477.9951 (2); and to create 66.0615 (1m) (g), 73.03 (71) (a) 2., 73.03 (71) (b) 2.,
573.03 (71) (c) 2., 73.03 (71) (d) 2., 77.51 (7i), 77.51 (7j), 77.51 (13) (p) 7., 77.51
6(13) (q), 77.51 (14) (n) 7., 77.51 (17) (g), 77.52 (3m), 77.52 (14) (c), 77.523, 77.585
7(1g) and 77.585 (11) of the statutes; relating to: requiring marketplace
8providers to collect and remit sales tax from third parties and reducing
9individual income tax rates based on the collection of sales and use tax from
10out-of-state retailers and marketplace providers.
Analysis by the Legislative Reference Bureau
Current law requires the Department of Revenue to determine the amount of
additional revenue collected from the state sales and use tax from October 1, 2018,
to September 30, 2019, as a result of the U.S. Supreme Court decision that expands
the state's authority to collect such taxes from out-of-state retailers. See, South
Dakota v. Wayfair, Inc
., 585 U.S. ___ (2018). After DOR makes that determination,

the Department of Administration, in consultation with DOR, must then determine
how much the individual income tax rates may be reduced for the 2019 taxable year
in order to decrease individual income tax revenue by the amount of additional sales
and use tax revenue. If a review by the Legislative Audit Bureau results in a
redetermination of the rates, the Joint Committee on Finance decides which rates
to apply. The reduction in rates only applies to 2019.
This bill makes the rate reductions determined for 2019 applicable to all
subsequent taxable years, except that the second individual income tax rate listed
in each tax bracket would change again in 2020. The bill requires DOR to determine
the amount of additional revenue collected from the sales and use tax from October
1, 2019, to September 30, 2020, as a result of the Supreme Court decision. DOA, in
consultation with DOR, would then use that determination to determine how much
the second individual income tax rate listed in each tax bracket may be reduced in
the 2020 taxable year. Those reduced rates would apply in 2020 and in each year
thereafter. The bill also requires DOR to make its determination of additional sales
and use tax revenue based on the sales and use taxes collected from out-of-state
retailers and marketplace providers.
The bill requires that marketplace providers collect and remit sales tax on sales
facilitated on behalf of marketplace sellers. For purposes of the bill, a “marketplace
provider” is a person who facilitates a retail sale by a seller by listing or advertising
for sale, in any manner, the seller's products or taxable services and through
agreements or arrangements with third parties, directly or indirectly, who are
collecting payment from the purchaser and transmitting that payment to the seller.
The bill defines “marketplace seller” to mean a seller who sells products through a
physical or electronic marketplace operated by a marketplace provider, regardless
of whether the seller is required to be registered with DOR.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB251,1 1Section 1 . 66.0615 (1m) (f) 2. of the statutes is amended to read:
AB251,2,62 66.0615 (1m) (f) 2. Sections 77.51 (12m), (13), (14), (14g), (15a), and (15b), and
3(17),
77.52 (3), (3m), (13), (14), (18), and (19), 77.522, 77.523, 77.58 (1) to (5), (6m),
4and (7), 77.585, 77.59, 77.60, 77.61 (2), (3m), (5), (8), (9), (12) to (15), and (19m), and
577.62, as they apply to the taxes under subch. III of ch. 77, apply to the tax described
6under subd. 1.
AB251,2 7Section 2 . 66.0615 (1m) (g) of the statutes is created to read:
AB251,3,3
166.0615 (1m) (g) Sections 77.52 (3m) and 77.523, as they apply to the taxes
2under subch. III of ch. 77, shall apply to the tax imposed under par. (a) by a
3municipality.
AB251,3 4Section 3. 73.03 (71) (a) of the statutes is renumbered 73.03 (71) (a) (intro.)
5and amended to read:
AB251,3,116 73.03 (71) (a) (intro.) To determine the amount of additional revenue reported
7to the department from the taxes imposed under subch. III of ch. 77 as a result of the
8United States Supreme Court decision that expands the state's authority to require
9out-of-state retailers and marketplace providers, as defined in s. 77.51 (7i), to collect
10and remit the taxes imposed under subch. III of ch. 77 on purchases by Wisconsin
11residents during the period beginning following periods:
AB251,3,12 121. Beginning on October 1, 2018, and ending on September 30, 2019.
AB251,4 13Section 4. 73.03 (71) (a) 2. of the statutes is created to read:
AB251,3,1514 73.03 (71) (a) 2. Beginning on October 1, 2019, and ending on September 30,
152020.