Sales tax overpayments-refund period.

WORKING DRAFT
2013
STATE OF
WYOMING
13LSO-0308

SENATE FILE
NO.

SF0100

Sales tax overpayments-refund period.

Sponsored by:
Senator(s) Cooper

A BILL

for

AN ACT relating to
sales and use tax; changing the refund period for overpayment of sales and use tax
;
conforming related provisions
including retaining records
and collecting delinquent taxes
;

specifying
applicability;
and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.
W.S. 39
‑
15
‑
107(a)
(ii),
(v)
and
(x),
39
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15
‑
108(c)(xi),
39
‑
15
‑
109(c)(
i
)
and
(d)(
i
), 39
‑
15
‑
110,
39
‑
16
‑
108(c)(vii),
39
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16
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109(c)(
i
) and 39
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16
‑
110 are amended to read:

39
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15
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107.

Compliance; collection procedures.

(a)

Returns, reports and preservation of records. The following shall apply:

(ii)

Every vendor and person liable for the payment of sales tax under this article shall preserve for
three (3)

five (5)
years at his principal place of business, suitable records and books as may be necessary to determine the amount of tax for which he is liable under this article, together with all invoices and books showing all merchandise purchased for resale. All records, books and invoices shall be available for examination by the department during regular business hours except as arranged by mutual consent;

(v)

The department shall preserve returns and reports for
three (3)

five (5)

years;

(x)

Taxes paid on gross receipts represented by accounts found to be worthless may be credited against subsequent liability of the vendor. The vendor shall not take the credit for any bad debt until he has used the customary debt collection procedures as documented in writing by the vendor and has written off the debt; or until the debt qualifies as a bad debt under 26 U.S.C. section 166 excluding financing charges or interest, sales or use taxes charged on the purchase price, uncollectible
amounts on property that remain in the possession of the seller until the full purchase price is paid, any expenses incurred in attempting to collect any debt, and repossessed property. If any account is thereafter collected by the vendor, a tax shall be paid upon the amount collected. The amount collected shall be applied proportionally first to the taxable price of the property or service and the sales tax thereon, and then to interest, service charges and any other charges. Should the bad debt exceed the taxable sales for a subsequent period the vendor may request a refund of the tax on the bad debt from the department so long as the claim is made within
three (3)

five (5)

years of the date of the return on which the bad debt could first be claimed. A certified service provider under W.S. 39
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15
‑
401 through 39
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15
‑
408 acting on behalf of a vendor may claim the bad debt allowance for the vendor and shall remit the credit or refund received to the vendor. Should the bad debt apply to more than one (1) state, the debt may be allocated between the affected states.

39
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15
‑
108.

Enforcement.

(c)

Penalties. The following shall apply:

(xi)

Every vendor shall preserve for
three (3)

five (5)
years at his principal place of business, suitable records and books as may be necessary to determine the amount of tax for which he is liable under this article, together with all invoices and books showing all merchandise purchased for resale. All records, books and invoices shall be available for examination by the department during regular business hours except as arranged by mutual consent;

39
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15
‑
109.

Taxpayer remedies.

(c)

Refunds. The following shall apply:

(
i
)

Any tax, penalty or interest which has been erroneously paid, collected or computed shall either be credited against any subsequent tax liability of the vendor or refunded. No credit or refund shall be allowed after
three (3)

five (5)

years from the date of overpayment. The receipt of a claim for a refund by the department shall toll the statute of limitations. All refund requests received by the department shall be approved or denied within ninety (90) days of receipt. Any refund or credit erroneously made or allowed may be recovered in an action
brought by the attorney general in any court of competent jurisdiction;

(d)

Credits. The following shall apply:

(
i
)

Any tax, penalty or interest which has been erroneously paid, collected or computed shall either be credited against any subsequent tax liability of the vendor or refunded. No credit or refund shall be allowed after
three (3)

five (5)

years from the date of overpayment. The receipt of a claim for a refund by the department shall toll the statute of limitations. Any refund or credit erroneously made or allowed may be recovered in an action brought by the attorney general in any court of competent jurisdiction;

39
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15
‑
110.

Statute of limitations.

(a)

No credit or refund shall be allowed after
three (3)

five (5)

years from the date of overpayment. The receipt of a claim for a refund by the department shall toll the statute of limitations.

(b)

The department may bring an action to recover any delinquent taxes, penalty or interest in any appropriate court within
three (3)

five (5)
years following the delinquency. In the case of an assessment created by an audit, the delinquency period is deemed to start thirty (30) days after the date the assessment letter is sent. Any tax penalty and interest related to the audit assessment shall be calculated from the filing period during which the deficiency occurred. In any such action a certificate by the department is prima facie evidence of the amount due.

39
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16
‑
108.

Enforcement.

(c)

Penalties. The following shall apply:

(vii)

The department may bring an action to recover any delinquent taxes, penalty or interest in any appropriate court within
three (3)

five (5)
years following the delinquency. In the case of an assessment created by an audit, the delinquency period is deemed to start thirty (30) days after the date the assessment letter is sent. Any Tax penalty and interest related to the audit assessment shall be calculated from the filing period during which the deficiency occurred. In such action a
certificate by the department is prima facie evidence of the amount due;

39
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16
‑
109.

Taxpayer remedies.

(c)

Refunds. The following shall apply:

(
i
)

Any tax, penalty or interest which has been erroneously paid, collected or computed shall on department approval be credited against any subsequent tax liability from the payee or may be refunded. No credit or refund shall be allowed after
three (3)

five (5)

years from the date of overpayment. The receipt of a claim for a refund by the department shall toll the statute of limitations. All refund requests received by the department shall be approved or denied within ninety (90) days of receipt. Any refund or credit erroneously made or allowed may be recovered in an action brought by the attorney general in a court of competent jurisdiction in Laramie county, Wyoming.

39
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16
‑
110.

Statute of limitations.

(a)

Every vendor and person storing, using or consuming tangible personal property in this state shall
preserve within this state for
three (3)

five (5)
years suitable records and books as may be necessary to determine the amount of tax for which he is liable under the provisions of this article, together with invoices and books showing all merchandise purchased. All records, books and invoices shall be available for examination by the department during regular business hours except as arranged by mutual consent.

(b)

No credit or refund shall be allowed after
three (3)

five (5)

years from the date of overpayment. The receipt of a claim for a refund by the department shall toll the statute of limitations. All refund requests received by the department shall be approved or denied within ninety (90) days of receipt.

Section 2.

This act shall be deemed to allow a refund
of overpaid taxes or a collection of delinquent taxes
for any applicable amount for the five (5) years immediately preceding the effective date of this act
if the
necessary records have been
retained for that five (5) year period as specified in section 1 of this act
.

Section 3
.
This act is 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.

(END)

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SF0100