Assembly Bill 251

Requiring marketplace providers to collect and remit sales tax from third parties and reducing individual income tax rates based on the collection of sales and use tax from out-of-state retailers and marketplace providers. (FE)

Became law

The governor signed it on Jul 3, 2019. It's ⁠.

Introduced, passed

May 31, 2019
Committee, passed

Approved
Assembly vote, passed

Passed Jun 20, 2019
Senate vote, passed

Passed 33 to 0
Governor, passed

Signed
Law, here now

2019 Wisconsin Act 10

Latest entry in the official record, Jul 3, 2019: “Published 7-4-2019”

Read the bill

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Wisconsin Act

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Official term: Act. More in the glossary

Legislative Reference Bureau

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Author

A lawmaker who formally puts a bill forward. The text itself is drafted by the Legislative Reference Bureau.

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Signed on in support

Lawmakers who back a bill without being one of its authors, often from the other chamber.

Official term: Cosponsor. More in the glossary

Cost estimate

A state agency's estimate of what a bill would cost or save.

Official term: Fiscal estimate. More in the glossary

Roll call

A vote where each lawmaker's yes or no is recorded by name.

Official term: Roll call vote. More in the glossary

What it does

Summary by the , the Legislature's nonpartisan drafting office. It's their wording, not ours.

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.

Read the full summary

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.

Who's behind it

5 representatives are its ⁠. All 5 are Republicans.

7 more lawmakers ⁠.

See all 12 names

Authors (5)

Terry Katsma · Republican, Assembly
Samantha Kerkman · Republican, Assembly
John Macco · Republican, Assembly
Jessie Rodriguez · Republican, Assembly
Bob Wittke · Republican, Assembly

Signed on in support (7)

Tim Carpenter · Democrat, Senate
Chris Kapenga · Republican, Senate
Dale Kooyenga · Republican, Senate
Howard Marklein · Republican, Senate
Roger Roth · Republican, Senate
Thomas Tiffany · Republican, Senate
Van Wanggaard · Republican, Senate

What it would cost

State agencies filed a . Each opens as a PDF from the Legislature.

Fiscal Estimate From DOR

Versions and amendments

Every text the Legislature printed for this bill, including proposed changes. Each opens on the Legislature's site.