2017 - 2018 LEGISLATURE
April 13, 2017 - Introduced by Senators Feyen,
L. Taylor and LeMahieu,
cosponsored by Representatives
VanderMeer, Krug, Horlacher, Petryk,
Skowronski, Summerfield and Swearingen. Referred to Committee on
Revenue, Financial Institutions and Rural Issues.
1An Act to amend
77.52 (13) and 77.53 (10); and to create
77.54 (64) of the 2
statutes; relating to: a sales tax holiday in August.
Analysis by the Legislative Reference Bureau
Under this bill, for the two-day period beginning on the first Saturday in
August and ending on the following Sunday, the sales of the following items are
exempt from the sales and use tax:
1. An item of clothing, not including clothing accessories, if the sales price of
any single item is no more than $75.
2. A computer purchased by the consumer for the consumer's personal use, if
the sales price of the computer is no more than $750.
3. School computer supplies, if the sales price of any single item is no more than
4. School supplies, if the sales price of any single item is no more than $75.
The bill provides, however, that the exemption does not apply after 2018.
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:
77.52 (13) of the statutes is amended to read:
For the purpose of the proper administration of this section and to 3
prevent evasion of the sales tax it shall be presumed that all receipts are subject to 4
the tax until the contrary is established. The burden of proving that a sale of tangible 5
personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services 6
is not a taxable sale at retail is upon the person who makes the sale unless that 7
person takes from the purchaser an electronic or a paper certificate, in a manner 8
prescribed by the department, to the effect that the property, item, good, or service 9
is purchased for resale or is otherwise exempt, except that no certificate is required 10
for the sale of tangible personal property, or items, property, or goods under sub. (1) 11
(b), (c), or (d), or services that are exempt under s. 77.54 (5) (a) 3., (7), (7m), (8), (10), 12
(11), (14), (15), (17), (20n), (21), (22b), (31), (32), (35), (36), (37), (42), (44), (45), (46), 13
(52), and (64)
77.53 (10) of the statutes is amended to read:
For the purpose of the proper administration of this section and to 16
prevent evasion of the use tax and the duty to collect the use tax, it is presumed that 17
tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or 18
(d), or taxable services sold by any person for delivery in this state is sold for storage, 19
use, or other consumption in this state until the contrary is established. The burden 20
of proving the contrary is upon the person who makes the sale unless that person 21
takes from the purchaser an electronic or paper certificate, in a manner prescribed 22
by department, to the effect that the property, or items, property, or goods under s. 23
77.52 (1) (b), (c), or (d), or taxable service is purchased for resale, or otherwise exempt 24
from the tax, except that no certificate is required for the sale of tangible personal 25
property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services that
are exempt under s. 77.54 (7), (7m), (8), (10), (11), (14), (15), (17), (20n), (21), (22b), 2
(31), (32), (35), (36), (37), (42), (44), (45), (46), (51), and
(52), and (64)
77.54 (64) of the statutes is created to read:
(a) In this subsection:
1. “Clothing" means any wearing apparel for humans that is suitable for 6
general use, not including all of the following:
a. Belt buckles sold separately.
b. Costume masks sold separately.
c. Patches and emblems sold separately.
d. Sewing equipment and supplies, including knitting needles, patterns, pins, 11
scissors, sewing machines, sewing needles, tape measures, and thimbles.
e. Sewing materials that become part of clothing, including buttons, fabric, 13
lace, thread, yarn, and zippers.
f. Clothing accessories or equipment.
g. Protective equipment.
h. Sport or recreational equipment.
2. “Clothing accessories or equipment" means incidental items worn on a 18
person or in conjunction with clothing, not including clothing, protective equipment, 19
or sport or recreational equipment, but including all of the following:
c. Hair notions, including barrettes, hair bows, and hair nets.
g. Nonprescription sunglasses.
L. Hair pieces.
3. “Eligible property” means an item that qualifies for exemption under this 8
4. “Layaway sale” means a transaction in which property is set aside for future 10
delivery to a customer who makes a deposit, agrees to pay the balance of the sales 11
price over time, and, at the end of the payment period, receives the property. An order 12
is accepted for layaway by the seller when the seller removes the property from 13
inventory or clearly identifies the property as sold to the purchaser.
5. “Protective equipment” means items for human wear that are designed to 15
protect the wearer against injury or disease or to protect property or other persons 16
from damage or injury. “Protective equipment” does not include items suitable for 17
general use, clothing, clothing accessories or equipment, or sport or recreational 18
equipment. “Protective equipment” includes:
a. Breathing masks.
b. Clean room apparel and equipment.