LRB-4720/4
JS:jlg:km
1997 - 1998 LEGISLATURE
February 24, 1998 - Introduced by Representatives Gard, Porter, Jensen, Riley,
Ziegelbauer, Hahn, Musser, Hanson, Baldwin, Dobyns, Handrick, Walker,
Ward, Kaufert, Sykora, Goetsch, Seratti, Olsen, Green, F. Lasee, Schafer,
Johnsrud, L. Young, Albers, Grothman, Duff, Travis
and Harsdorf,
cosponsored by Senators Fitzgerald, Burke, Drzewiecki, Chvala, Zien, Rude,
Darling, Grobschmidt, Huelsman, Welch, Wineke
and Panzer. Referred to
Joint survey committee on Tax Exemptions.
AB825,1,5 1An Act to amend 77.51 (4) (a) (intro.) and 77.51 (15) (a) (intro.); and to create
277.51 (4) (cm), 77.51 (15) (cm), 77.54 (20) (bg) and 77.54 (20m) of the statutes;
3relating to: defining "meal" and "sandwich" for the sales tax and use tax on
4food and specifying the tax status of exempt food and similar goods that are
5packaged with other property.
Analysis by the Legislative Reference Bureau
Under current law, meals and sandwiches sold for off-premises consumption
are subject to the sales tax and the use tax. This bill defines those terms. The bill
also specifies that if food, food products and beverages are packaged with other goods
by a person other than a retailer before a sale to the consumer and 50% or more of
the sales price of the package is attributable to goods that are exempt the package
is exempt. However, if less than 50% of the sales price of the package is attributable
to goods that are exempt, the part of the value of the package that is attributable to
the taxable items is taxable.
This bill will be referred to the joint survey committee on tax exemptions for a
detailed analysis, which will be printed as an appendix to this 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:
AB825, s. 1 1Section 1. 77.51 (4) (a) (intro.) of the statutes is amended to read:
AB825,2,62 77.51 (4) (a) (intro.) "Gross Except as provided in par. (cm), "gross receipts"
3means the total amount of the sale, lease or rental price, as the case may be, from
4sales at retail of tangible personal property, or taxable services, valued in money,
5whether received in money or otherwise, without any deduction on account of the
6following:
AB825, s. 2 7Section 2. 77.51 (4) (cm) of the statutes is created to read:
AB825,2,128 77.51 (4) (cm) "Gross receipts" means the portion of the sales price attributable
9to taxable goods if exempt food, food products or beverages are packaged with other
10goods by a person other than a retailer before a sale to a final consumer and if less
11than 50% of the sales price of the goods packaged together is attributable to goods
12that are exempt under s. 77.54 (20).
AB825, s. 3 13Section 3. 77.51 (15) (a) (intro.) of the statutes is amended to read:
AB825,2,1714 77.51 (15) (a) (intro.) "Sales Except as provided in par. (cm), "sales price" means
15the total amount for which tangible personal property is sold, leased or rented,
16valued in money, whether paid in money or otherwise, without any deduction on
17account of any of the following:
AB825, s. 4 18Section 4. 77.51 (15) (cm) of the statutes is created to read:
AB825,3,219 77.51 (15) (cm) "Sales price" means the portion of the sales price attributable
20to taxable goods if exempt food, food products or beverages are packaged with other
21goods by a person other than a retailer before a sale to a final consumer and if less

1than 50% of the sales price of the goods packaged together is attributable to goods
2that are exempt under s. 77.54 (20).
AB825, s. 5 3Section 5. 77.54 (20) (bg) of the statutes is created to read:
AB825,3,44 77.54 (20) (bg) In this subsection:
AB825,3,125 1. "Meal" includes, but is not limited to, a diversified selection of food, food
6products or beverages that are customarily consumed as a breakfast, lunch or dinner,
7that may not easily be consumed without an article of tableware and that may not
8conveniently be consumed while standing or walking; except that "meal" does not
9include frozen items that are sold to a consumer, items that are customarily heated
10or cooked after the retail sale and before they are consumed or a diversified selection
11of food, food products and beverages that is packaged together by a person other than
12the retailer before the sale to the consumer.
AB825,3,1913 2. "Sandwich" means food that consists of a filling; such as meat, cheese or a
14savory mixture; that is placed on a slice, or between 2 slices; of a variety of bread or
15something that takes the place of bread; such as a roll, croissant or bagel. "Sandwich"
16includes, but is not limited to, pita sandwiches, gyros and pocket sandwiches.
17"Sandwich" does not include burritos, tacos, enchiladas, chimichangas, hors
18d'oeuvres, canapes, egg rolls, cookies, cakes, pies and similar desserts and pastries
19and food that is sold frozen.
AB825, s. 6 20Section 6. 77.54 (20m) of the statutes is created to read:
AB825,3,2521 77.54 (20m) The gross receipts from the sales of, and the storage, use or other
22consumption of, food, food products or beverages and of other goods that are
23packaged together by a person other than a retailer before the sale to the final
24consumer if 50% or more of the sales price of the package is attributable to goods that
25are exempt.
AB825, s. 7
1Section 7. Effective date.
AB825,4,22 (1) This act takes effect retroactively to August 1, 1997.
AB825,4,33 (End)
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