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2013 - 2014 LEGISLATURE
October 14, 2013 - Introduced by Senators Ellis, Lasee, Gudex, Grothman,
Cowles and Farrow, cosponsored by Representatives Steineke, Kaufert,
Hintz, Sinicki, Murphy, Kahl, Bies, A. Ott, Bernard Schaber, Pridemore,
Sanfelippo, Kuglitsch, Tittl, Ohnstad, Wachs and Bernier. Referred to
Committee on Economic Development and Local Government.
SB348,1,3 1An Act to amend 77.52 (2) (a) 10. and 77.52 (13); and to repeal and recreate
277.54 (5) (a) of the statutes; relating to: the sales and use tax exemption for
3aircraft parts, maintenance, and labor.
Analysis by the Legislative Reference Bureau
Under current law, the sale of aircraft, including accessories, attachments, fuel,
and parts, is exempt from the sales and use tax if the aircraft is sold to a person who
uses the aircraft as a certified or licensed carrier in interstate or foreign commerce
or sold to and used by a foreign government. Also, under current law, the sale of
aircraft is exempt from the sales and use tax, if the aircraft is sold to persons who are
not state residents and the aircraft is removed from this state. Repair and
maintenance services performed on all such aircraft are also exempt from the sales
and use tax.
This bill exempts the sale of aircraft parts from the sales and use tax, regardless
of how the aircraft is used. In addition, the bill exempts the repair and maintenance
of all aircraft and aircraft parts from the sales and use tax.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.

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:
SB348,1 1Section 1. 77.52 (2) (a) 10. of the statutes is amended to read:
SB348,3,42 77.52 (2) (a) 10. Except for the repair, service, alteration, fitting, cleaning,
3painting, coating, towing, inspection, and maintenance of any aircraft or aircraft
4parts; except
for services provided by veterinarians; and except for installing or
5applying tangible personal property, or items or goods under sub. (1) (b) or (d), that,
6subject to par. (ag), when installed or applied, will constitute an addition or capital
7improvement of real property,; the repair, service, alteration, fitting, cleaning,
8painting, coating, towing, inspection, and maintenance of all items of tangible
9personal property or items, property, or goods under sub. (1) (b), (c), or (d), unless, at
10the time of that repair, service, alteration, fitting, cleaning, painting, coating,
11towing, inspection, or maintenance, a sale in this state of the type of property, item,
12or good repaired, serviced, altered, fitted, cleaned, painted, coated, towed, inspected,
13or maintained would have been exempt to the customer from sales taxation under
14this subchapter, other than the exempt sale of a motor vehicle or truck body to a
15nonresident under s. 77.54 (5) (a) and other than nontaxable sales under s. 77.522
16or unless the repair, service, alteration, fitting, cleaning, painting, coating, towing,
17inspection, or maintenance is provided under a contract that is subject to tax under
18subd. 13m. The tax imposed under this subsection applies to the repair, service,
19alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance of
20items listed in par. (ag), regardless of whether the installation or application of
21tangible personal property or items, property, or goods under sub. (1) (b), (c), or (d)

1related to the items is an addition to or a capital improvement of real property, except
2that the tax imposed under this subsection does not apply to the original installation
3or the complete replacement of an item listed in par. (ag), if that installation or
4replacement is a real property construction activity under s. 77.51 (2).
SB348,2 5Section 2. 77.52 (13) of the statutes is amended to read:
SB348,3,176 77.52 (13) For the purpose of the proper administration of this section and to
7prevent evasion of the sales tax it shall be presumed that all receipts are subject to
8the tax until the contrary is established. The burden of proving that a sale of tangible
9personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services
10is not a taxable sale at retail is upon the person who makes the sale unless that
11person takes from the purchaser an electronic or a paper certificate, in a manner
12prescribed by the department, to the effect that the property, item, good, or service
13is purchased for resale or is otherwise exempt, except that no certificate is required
14for the sale of tangible personal property, or items, property, or goods under sub. (1)
15(b), (c), or (d), or services that are exempt under s. 77.54 (5) (a) 3., (7), (7m), (8), (10),
16(11), (14), (15), (17), (20n), (21), (22b), (31), (32), (35), (36), (37), (42), (44), (45), (46),
17(51), and (52).
SB348,3 18Section 3. 77.54 (5) (a) of the statutes is repealed and recreated to read:
SB348,3,2319 77.54 (5) (a) 1. Aircraft, including accessories, attachments, and fuel for such
20aircraft, sold to persons using the aircraft as certified or licensed carriers of persons
21or property in interstate or foreign commerce under authority of the laws of the
22United States or any foreign government, or sold to any foreign government for use
23by such government outside this state.
SB348,4,324 2. Aircraft, including attachments for such aircraft, sold to persons who are not
25residents of this state and who will not use such aircraft in this state otherwise than

1in the removal of such aircraft from this state or in the repair, service, alteration,
2fitting, cleaning, painting, coating, towing, inspection, and maintenance of such
3aircraft in this state.
SB348,4,44 3. Parts used to modify or repair aircraft.
SB348,4,85 4. Motor vehicles or truck bodies sold to persons who are not residents of this
6state and who will not use such motor vehicles or trucks for which the truck bodies
7were made in this state otherwise than in the removal of such motor vehicles or
8trucks from this state.
SB348,4 9Section 4. Effective date.
SB348,4,1110 (1) This act takes effect on first day of the 3rd month beginning after
11publication.
SB348,4,1212 (End)
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