77.54 (54) The sales price from the sale of and the storage, use, or other consumption of tangible personal property, and items, and property
, and goods under s. 77.52 (1) (b), and (c), and (d), and taxable services that are sold by a home exchange service that receives moneys from the appropriation account under s. 20.485 (1) (g) and is operated by the department of veterans affairs.
28,1850eb
Section 1850eb. 77.54 (55) of the statutes is created to read:
77.54 (55) The sales price from the police and fire protection fee imposed under s. 196.025 (6).
77.54 (56) (a) The Beginning July 1, 2011, the gross receipts from the sale of and the storage, use, or other consumption of a product whose power source is wind energy, direct radiant energy received from the sun, or gas generated from anaerobic digestion of animal manure and other agricultural waste, if the product produces at least 200 watts of alternating current or 600 British thermal units per day, except that the exemption under this subsection does not apply to an uninterruptible power source that is designed primarily for computers.
(b) Except for the sale of electricity or energy that is exempt from taxation under sub. (30), beginning on July 1, 2011, the gross receipts from the sale of and the storage, use, or other consumption of electricity or energy produced by a product described under par. (a).
77.54 (56) (a) Beginning July 1, 2011, the sales price from the sale of and the storage, use, or other consumption of a product whose power source is wind energy, direct radiant energy received from the sun, or gas generated from anaerobic digestion of animal manure and other agricultural waste, if the product produces at least 200 watts of alternating current or 600 British thermal units per day, except that the exemption under this subsection does not apply to an uninterruptible power source that is designed primarily for computers.
(b) Except for the sale of electricity or energy that is exempt from taxation under sub. (30), beginning on July 1, 2011, the sales price from the sale of and the storage, use, or other consumption of electricity or energy produced by a product described under par. (a).
28,1851
Section
1851. 77.54 (57) of the statutes is created to read:
77.54 (57) (a) In this subsection:
1d. "Animals" include bacteria, viruses, and other microorganisms.
1f. "Biotechnology" means the application of biotechnologies, including recombinant deoxyribonucleic acid techniques, biochemistry, molecular and cellular biology, genetics, genetic engineering, biological cell fusion, and other bioprocesses, that use living organisms or parts of an organism to produce or modify products to improve plants or animals or improve animal health, develop microorganisms for specific uses, identify targets for small molecule pharmaceutical development, or transform biological systems into useful processes and products.
1m. "Biotechnology business" means a business, as certified by the department in the manner prescribed by the department, that is primarily engaged in the application of biotechnologies that use a living organism or parts of an organism to produce or modify products to improve plants or animals, develop microorganisms for specific uses, identify targets for small molecule pharmaceutical development, or transform biological systems into useful processes and products.
2. "Machinery" has the meaning given in s. 70.11 (27) (a) 2.
4. "Primarily" means more than 50 percent.
5. "Qualified research" means qualified research as defined under section
41 (d) (1) of the Internal Revenue Code.
6. "Used exclusively" has the meaning given in sub. (3) (b) 3.
(b) The sales price from the sale of and the storage, use, or other consumption of all of the following:
1. Machinery and equipment, including attachments, parts, and accessories, that are sold to persons who are engaged primarily in manufacturing or biotechnology in this state and are used exclusively and directly in qualified research.
2. Tangible personal property or item or property under s. 77.52 (1) (b) or (c) that is sold to persons who are engaged primarily in manufacturing or biotechnology in this state, if the tangible personal property or item or property under s. 77.52 (1) (b) or (c) is consumed or destroyed or loses its identity while being used exclusively and directly in qualified research.
3. Machines and specific processing equipment, including accessories, attachments, and parts for the machines or equipment, that are used exclusively and directly in raising animals that are sold primarily to a biotechnology business, a public or private institution of higher education, or a governmental unit for exclusive and direct use by any such entity in qualified research or manufacturing.
4. The items listed in sub. (3m) (a) to (m), medicines, semen for artificial insemination, fuel, and electricity that are used exclusively and directly in raising animals that are sold primarily to a biotechnology business, a public or private institution of higher education, or a governmental unit for exclusive and direct use by any such entity in qualified research or manufacturing.
77.55 (1) (intro.) There is exempted from the computation of the amount of the sales tax the sales price from the sale of any tangible personal property, or items,
or property, or goods under s. 77.52 (1) (b), or (c), and (d), or services to:
77.55 (2) There is exempted from the computation of the amount of the sales tax the sales price from sales of tangible personal property, and items, and property, and goods under s. 77.52 (1) (b), and (c), and (d), to a common or contract carrier, shipped by the seller via the purchasing carrier under a bill of lading whether the freight is paid in advance, or the shipment is made freight charges collect, to a point outside this state and the property, or item, or good is actually transported to the out-of-state destination for use by the carrier in the conduct of its business as a carrier.
77.55 (3) There is exempted from the computation of the amount of the sales tax the sales price from sales of tangible personal property, and items, and property, and goods under s. 77.52 (1) (b), and (c), and (d), purchased for use solely outside this state and delivered to a forwarding agent, export packer, or other person engaged in the business of preparing goods for export or arranging for their exportation, and actually delivered to a port outside the continental limits of the United States prior to making any use thereof.
77.56 (1) The storage, use or other consumption in this state of tangible personal property, including and items, property, and goods under s. 77.52 (1) (b), (c), and (d), the sales price from the sale of which is reported to the department in the measure of the sales tax, is exempted from the use tax.
28,1852
Section
1852. 77.58 (3) (a) of the statutes is amended to read:
77.58 (3) (a) For purposes of the sales tax a return shall be filed by every seller. For purposes of the use tax a return shall be filed by every retailer engaged in business in this state and by every person purchasing tangible personal property or services, the storage, use or other consumption of which is subject to the use tax, who has not paid the use tax due to a retailer required to collect the tax. If a qualified subchapter S subsidiary is not regarded as a separate entity under ch. 71, the owner of that subsidiary shall elect to either include the information for that subsidiary on the owner's return. Returns shall be signed by the person required to file the return or by a duly authorized agent but need not be verified by oath or file a separate electronic return for that entity. If a single-owner entity is disregarded as a separate entity under ch. 71, the owner shall elect to either include the information from the entity on the owner's return or file a separate electronic return for that entity. If an owner that owns more than one entity that is disregarded as a separate entity under ch. 71 elects to file a separate return for one of its disregarded entities, the owner shall file separate returns for all of its disregarded entities. Returns filed under this paragraph shall be signed by the person required to file the return or by a duly authorized agent but need not be verified by oath.
28,1852b
Section 1852b. 77.58 (3) (a) of the statutes, as affected by
2009 Wisconsin Acts 2 and .... (this act), is repealed and recreated to read:
77.58 (3) (a) For purposes of the sales tax a return shall be filed by every seller. For purposes of the use tax a return shall be filed by every retailer engaged in business in this state and by every person purchasing tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services, the storage, use or other consumption of which is subject to the use tax, who has not paid the use tax due to a retailer required to collect the tax. If a qualified subchapter S subsidiary is not regarded as a separate entity under ch. 71, the owner of that subsidiary shall elect to either include the information for that subsidiary on the owner's return or file a separate electronic return for that entity. If a single-owner entity is disregarded as a separate entity under ch. 71, the owner shall elect to either include the information from the entity on the owner's return or file a separate electronic return for that entity. If an owner that owns more than one entity that is disregarded as a separate entity under ch. 71 elects to file a separate return for one of its disregarded entities, the owner shall file separate returns for all of its disregarded entities. Returns filed under this paragraph shall be signed by the person required to file the return or by a duly authorized agent but need not be verified by oath.
77.58 (6) For the purposes of the sales tax, the sales price from rentals, licenses, or leases of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) shall be reported and the tax paid in accordance with such rules as the department prescribes.
77.585 (8) (a) A sale or purchase involving transfer of ownership of tangible personal property, or items or property under s. 77.52 (1) (b) or (c), is completed at the time when possession is transferred by the seller or the seller's agent to the purchaser or the purchaser's agent, except that for purposes of sub. (1) a common carrier or the U.S. postal service shall be considered the agent of the seller, regardless of any f.o.b. point and regardless of the method by which freight or postage is paid.
(b) 1. Except as provided in subd. 2., a sale or purchase involving a digital good under s. 77.52 (1) (d) is completed at the time when possession is transferred by the seller or the seller's agent to the purchaser or the purchaser's agent or when the digital good is first used, whichever comes first.
2. A sale or purchase of a product transferred electronically, including a digital good under s. 77.52 (1) (d), that is sold by subscription, is completed at the time when the payment for the subscription is due to the seller. For purposes of this subdivision, "subscription" means an agreement with a seller that grants the consumer the right to obtain products transferred electronically from within one or more product categories having the same tax treatment, in a fixed quantity or for a fixed period of time, or both.
77.59 (9n) (c) A Except as otherwise provided in this paragraph, a purchaser is not liable for the tax, interest, or penalties imposed on a transaction under this subchapter if the seller or certified service provider from whom the purchaser made the purchase relied on erroneous data provided in the databases under s. 73.03 (61) (e) and (f) or if the purchaser relied on erroneous data provided in the databases under s. 73.03 (61) (e) and (f). With respect to reliance on the database provided under s. 73.03 (61) (e), the relief provided under this paragraph is limited to the erroneous classification in the database of terms defined in this subchapter and specifically identified in the database as being "taxable," "exempt," "included in sales price" or "excluded from sales price," or "included in the definition" or "excluded from the definition." With respect to reliance on the database provided under s. 73.03 (61) (f), the relief provided under this paragraph does not apply to transactions by which the product is received by the purchaser at the business location of the seller.
77.61 (4) (c) For reporting the sales tax and collecting and reporting the use tax imposed on the retailer under s. 77.53 (3) and the accounting connected with it, retailers, not including certified service providers that receive compensation under s. 73.03 (61) (h), may deduct 0.5 percent of those taxes payable or $10 for that reporting period required under s. 77.58 (1) and not more than $1,000 for that reporting period, whichever is greater, but not more than the amount of the sales taxes or use taxes that is payable under ss. 77.52 and 77.53 (3) for that reporting period required under s. 77.58 (1), as administration expenses if the payment of the taxes is not delinquent. For purposes of calculating the retailer's discount under this paragraph, the taxes on retail sales reported by retailers under subch. V, including taxes collected and remitted as required under s. 77.785, shall be included if the payment of those taxes is not delinquent.
77.61 (11) Any city, village or town clerk or other official whose duty it is to issue licenses or permits to engage in a business involving the sale at retail of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) subject to tax under this subchapter, or the furnishing of services so subject to tax, shall, before issuing such license or permit, require proof that the person to whom such license or permit is to be issued is the holder of a seller's permit or use tax registration certificate, is registered to collect, report, and remit use tax under this subchapter, or has been informed by an employee of the department that the department will issue a seller's permit or use tax registration certificate to that person or register that person to collect, report, and remit use tax.
28,1854
Section
1854. 77.61 (19) of the statutes is created to read:
77.61 (19) A person who fails to produce records or documents, as provided under s. 73.03 (9) or 77.59 (2), that support amounts or other information required to be shown on a return required under s. 77.58 may be subject to any of the following penalties, as determined by the department, except that the department may not impose a penalty under this subsection if the person shows that under all facts and circumstances the person's response, or failure to respond, to the department's request was reasonable or justified by factors beyond the person's control:
(a) The disallowance of deductions, credits, exemptions, or inclusions of additional taxable sales or additional taxable purchases to which the requested records relate.
(b) A penalty for each violation of this subsection that is equal to the greater of $500 or 25 percent of the amount of the additional tax on any adjustment made by the department that results from the person's failure to produce the records.
(c) The department shall promulgate rules to administer this subsection and the rules shall include a standard response time, a standard for noncompliance, and penalty waiver provisions.
28,1855
Section
1855. 77.61 (19m) of the statutes is created to read:
77.61 (19m) (a) A single-owner entity that is disregarded as a separate entity under ch. 71 is disregarded as a separate entity for purposes of this subchapter.
(b) A single-owner entity that is disregarded as a separate entity under ch. 71 on the effective date of this paragraph .... [LRB inserts date], shall be treated under this subchapter as an entity separate from its owner for purposes of the sale, license, lease, or rental of and the storage, use, or other consumption of tangible personal property purchased by the single-owner entity or its owner prior to the effective date of this paragraph .... [LRB inserts date].
(c) A single-owner entity that is disregarded as a separate entity under ch. 71 on the effective date of this paragraph .... [LRB inserts date], shall be treated under this subchapter as an entity separate from its owner for purchases of building materials, if the materials are affixed and made a structural part of real estate, and the amount payable to the contractor is fixed without regard to the costs incurred in performing a written contract that was irrevocably entered into prior to the effective date of this paragraph .... [LRB inserts date], or that resulted from the acceptance of a formal written bid accompanied by a bond or other performance guaranty that was irrevocably submitted before the effective date of this paragraph .... [LRB inserts date].
28,1855b
Section 1855b. 77.61 (19m) (b) of the statutes, as created by 2009 Wisconsin Act .... (this act), is repealed and recreated to read:
77.61 (19m) (b) A single-owner entity that is disregarded as a separate entity under ch. 71 on the effective date of the 2009-11 biennial budget act .... [LRB inserts date], shall be treated under this subchapter as an entity separate from its owner for purposes of the sale, license, lease, or rental of and the storage, use, or other consumption of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) purchased by the single-owner entity or its owner prior to the effective date of the 2009-11 biennial budget act .... [LRB inserts date].
28,1855d
Section 1855d. 77.61 (20) of the statutes is created to read:
77.61 (20) The sale, license, lease, or rental of a product may be taxed only once under this subchapter regardless of whether such sale, license, lease, or rental is subject to taxation under more than one imposition provision under this subchapter.
28,1856
Section
1856. Subchapter V (title) of chapter 77 [precedes 77.70] of the statutes is amended to read:
Chapter 77
SUBCHAPTER V
COUNTY, transit
authority, AND SPECIAL DISTRICT
SALES AND USE TAXES
28,1856d
Section 1856d. 77.70 of the statutes is renumbered 77.70 (1) and amended to read:
77.70 (1) Any county desiring to impose county sales and use taxes under this subchapter may do so by the adoption of an ordinance, stating its purpose and referring to this subchapter. The rate of the tax imposed under this subsection is 0.5 percent of the gross receipts or sales price. The county sales and use taxes may be imposed only for the purpose of directly reducing the property tax levy and only in their entirety as provided in this subchapter. That ordinance shall be effective on the first day of January, the first day of April, the first day of July or the first day of October. A certified copy of that ordinance shall be delivered to the secretary of revenue at least 120 days prior to its effective date. The repeal of any such ordinance shall be effective on December 31. A certified copy of a repeal ordinance shall be delivered to the secretary of revenue at least 60 days before the effective date of the repeal.
28,1856e
Section 1856e. 77.70 (1) of the statutes, as affected by Wisconsin Acts 2 and .... (this act), is repealed and recreated to read:
77.70 (1) Any county desiring to impose county sales and use taxes under this subchapter may do so by the adoption of an ordinance, stating its purpose and referring to this subchapter. The rate of the tax imposed under this subsection is 0.5 percent of the sales price or purchase price. The county sales and use taxes may be imposed only for the purpose of directly reducing the property tax levy and only in their entirety as provided in this subchapter. That ordinance shall be effective on the first day of January, the first day of April, the first day of July or the first day of October. A certified copy of that ordinance shall be delivered to the secretary of revenue at least 120 days prior to its effective date. The repeal of any such ordinance shall be effective on December 31. A certified copy of a repeal ordinance shall be delivered to the secretary of revenue at least 120 days before the effective date of the repeal.
28,1856f
Section 1856f. 77.70 (2) of the statutes is created to read:
77.70 (2) In addition to the taxes imposed under subs. (1) and (3), if Milwaukee County satisfies the conditions under s. 66.1038 (5) (b), Milwaukee County may adopt an ordinance to impose a sales and use tax under this subchapter at the rate of 0.5 percent of the gross receipts or sales price. The taxes may be imposed only in their entirety. If Milwaukee County imposes the taxes under this subsection, it shall not levy property taxes for transit purposes. If Milwaukee County imposes the taxes under this subsection, it shall distribute the tax revenue to the Milwaukee Transit Authority created under s. 66.1038. An ordinance adopted under this subsection shall be effective on the first day of January, the first day of April, the first day of July or the first day of October. A certified copy of that ordinance shall be delivered to the secretary of revenue at least 120 days prior to its effective date. The repeal of any such ordinance shall be effective on December 31. A certified copy of a repeal ordinance shall be delivered to the secretary of revenue at least 120 days before the effective date of the repeal.
28,1856g
Section 1856g. 77.70 (2) of the statutes, as created by 2009 Wisconsin Act .... (this act), is repealed and recreated to read:
77.70 (2) In addition to the taxes imposed under subs. (1) and (3), if the Milwaukee County satisfies the conditions under s. 66.1038 (5) (b), Milwaukee County may adopt an ordinance to impose a sales and use tax under this subchapter at the rate of 0.5 percent of the sales price or purchase price. The taxes may be imposed only in their entirety. If Milwaukee County imposes the taxes under this subsection, it shall not levy property taxes for transit purposes. If Milwaukee County imposes the taxes under this subsection, it shall distribute the tax revenue to the Milwaukee Transit Authority created under s. 66.1038. An ordinance adopted under this subsection shall be effective on the first day of January, the first day of April, the first day of July or the first day of October. A certified copy of that ordinance shall be delivered to the secretary of revenue at least 120 days prior to its effective date. The repeal of any such ordinance shall be effective on December 31. A certified copy of a repeal ordinance shall be delivered to the secretary of revenue at least 120 days before the effective date of the repeal.
28,1856h
Section 1856h. 77.70 (3) of the statutes is created to read:
77.70 (3) If Milwaukee County imposes the tax under sub. (2), Milwaukee County may adopt an ordinance to impose a sales and use tax under this subchapter at the rate of 0.15 percent of the gross receipts or sales price. The taxes may be imposed only in their entirety. Milwaukee County shall annually distribute the tax revenue to the municipalities located in whole or in part in Milwaukee County, to be used for police, fire, and emergency medical services, in proportion to the number of sworn police officers and fire fighters employed by each municipality on July 1 of the preceding calendar year. An ordinance adopted under this subsection shall be effective on the first day of January, the first day of April, the first day of July or the first day of October. A certified copy of that ordinance shall be delivered to the secretary of revenue at least 120 days prior to its effective date. The repeal of any such ordinance shall be effective on December 31. A certified copy of a repeal ordinance shall be delivered to the secretary of revenue at least 120 days before the effective date of the repeal.
28,1856i
Section 1856i. 77.70 (3) of the statutes, as created by 2009 Wisconsin Act .... (this act), is repealed and recreated to read:
77.70 (3) If Milwaukee County imposes the tax under sub. (2), Milwaukee County may adopt an ordinance to impose a sales and use tax under this subchapter at the rate of 0.15 percent of the sales price or purchase price. The taxes may be imposed only in their entirety. Milwaukee County shall annually distribute the tax revenue to the municipalities located in whole or in part in Milwaukee County, to be used for police, fire, and emergency medical services, in proportion to the number of sworn police officers and fire fighters employed by each municipality on July 1 of the preceding calendar year. An ordinance adopted under this subsection shall be effective on the first day of January, the first day of April, the first day of July or the first day of October. A certified copy of that ordinance shall be delivered to the secretary of revenue at least 120 days prior to its effective date. The repeal of any such ordinance shall be effective on December 31. A certified copy of a repeal ordinance shall be delivered to the secretary of revenue at least 120 days before the effective date of the repeal.
28,1856j
Section 1856j. 77.70 (4) of the statutes is created to read:
77.70 (4) Burnett County may adopt an ordinance to increase the rate of the tax imposed under sub. (1) from 0.5 percent to 1 percent, if the majority of the electors of the county approve the increase at a referendum. The county may use the additional revenue from the rate increase only to pay for an upgrade to radio towers in order to satisfy federal communications commission requirements to update a radio frequency with a narrow bandwidth no later than December 31, 2012. An ordinance adopted under this subsection shall be effective on the first day of January, the first day of April, the first day of July or the first day of October. A certified copy of that ordinance shall be delivered to the secretary of revenue at least 120 days prior to its effective date. The repeal of any such ordinance shall be effective on December 31. A certified copy of a repeal ordinance shall be delivered to the secretary of revenue at least 120 days before the effective date of the repeal. The tax imposed under this subsection may be in effect for no more than 3 years from the date on which the ordinance imposing the tax takes effect.
28,1857
Section
1857. 77.705 of the statutes is amended to read:
77.705 Adoption by resolution; baseball park district. A local professional baseball park district created under subch. III of ch. 229, by resolution under s. 229.68 (15), may impose a sales tax and a use tax under this subchapter at a rate of no more than 0.1% of the gross receipts or sales price. Those taxes may be imposed only in their entirety. The resolution shall be effective on the first day of the first month that begins at least 30 days after the adoption of the resolution. Any moneys transferred from the appropriation account under s. 20.566 (1) (gd) to the appropriation account under s. 20.835 (4) (gb) shall be used exclusively to retire the district's debt. Any moneys received under s. 341.14 (6r) (b) 13. b. and credited to the appropriation account under s. 20.835 (4) (gb) shall be used exclusively to retire the district's debt.
77.705 Adoption by resolution; baseball park district. A local professional baseball park district created under subch. III of ch. 229, by resolution under s. 229.68 (15), may impose a sales tax and a use tax under this subchapter at a rate of no more than 0.1% of the sales price or purchase price. Those taxes may be imposed only in their entirety. The resolution shall be effective on the first January 1, April 1, July 1, or October 1 that begins at least 120 days after the adoption of the resolution. Any moneys transferred from the appropriation account under s. 20.566 (1) (gd) to the appropriation account under s. 20.835 (4) (gb) shall be used exclusively to retire the district's debt. Any moneys received under s. 341.14 (6r) (b) 13. b. and credited to the appropriation account under s. 20.835 (4) (gb) shall be used exclusively to retire the district's debt.
28,1858
Section
1858. 77.708 of the statutes is created to read:
77.708 Adoption by resolution; transit authority. (1) A transit authority created under s. 66.1039, by resolution under s. 66.1039 (4) (s), may impose a sales tax and a use tax under this subchapter at a rate not to exceed 0.5 percent of the gross receipts or sales price. Those taxes may be imposed only in their entirety. The resolution shall be effective on the first day of the first calendar quarter that begins at least 120 days after the adoption of the resolution.
(2) Retailers and the department of revenue may not collect a tax under sub. (1) for any transit authority created under s. 66.1039 after the calendar quarter during which the transit authority adopts a repeal resolution under s. 66.1039 (4) (s), except that the department of revenue may collect from retailers taxes that accrued before such calendar quarter and fees, interest, and penalties that relate to those taxes.
28,1858b
Section 1858b. 77.708 (1) of the statutes, as created by 2009 Wisconsin Act .... (this act), is repealed and recreated to read:
77.708 (1) A transit authority created under s. 66.1039, by resolution under s. 66.1039 (4) (s), may impose a sales tax and a use tax under this subchapter at a rate not to exceed 0.5 percent of the sales price or purchase price. Those taxes may be imposed only in their entirety. The resolution shall be effective on the first day of the first calendar quarter that begins at least 120 days after the adoption of the resolution.
28,1859
Section
1859. 77.71 (intro.) of the statutes is amended to read:
77.71 Imposition of county, transit authority, and special district sales and use taxes. (intro.) Whenever a county sales and use tax ordinance is adopted under s. 77.70, a transit authority resolution is adopted under s. 77.708, or a special district resolution is adopted under s. 77.705 or 77.706, the following taxes are imposed:
