Eliminate Benefit for Sellers That Over-Collect Tax from Consumers

(2017 Wis. Act 324, amend sec. 77.51(11d) and create sec. 77.59(5r), first applies to a seller that receives an adjustment or a refund described in the statute on April 18, 2018)

A seller who continues to collect tax erroneously on a product after receiving two or more written notices from the department stating that the product is not taxable is only entitled to an adjustment for, or a refund of, the tax if the seller returns the tax and associated interest to the buyer from whom it was collected within 90 days after the date of the refund. If the seller cannot locate the buyer within 90 days after the date of the adjustment or refund, the seller must submit the taxes and related interest to the department.

If the seller does not submit the taxes and related interest to the department or the buyers within 90 days of the adjustment or refund, the seller is subject to the penalties in subsection (5m).

April 30, 2018