AB515: Bill Text

LRB-3537/3

JK:jlg:jf

1999 - 2000 LEGISLATURE

1999 Assembly BILL 515

October 5, 1999 - Introduced by Representatives Seratti, Rhoades, Gronemus, Petrowski, Schneider, Ott, Suder, Freese, Ainsworth, Hundertmark, Schooff, Gard, Grothman, Hahn, Lassa, Albers, Gundrum, Pettis, Olsen, Hasenohrl, F. Lasee, Reynolds, Skindrud, Musser, Plouff, Jensen, Spillner, Wasserman, Kestell, Leibham, Gunderson, Sykora, Kreibich, Ward, Hutchison, Stone, Powers, Klusman, Johnsrud, Handrick, Brandemuehl, Kedzie, Townsend, Huebsch and Goetsch, cosponsored by Senators Breske, Drzewiecki, Roessler, Schultz, Zien, A. Lasee, Welch, Rude, Fitzgerald, Panzer, Lazich, Baumgart and Shibilski. Referred to Joint survey committee on Tax Exemptions.

AB515,1,4 An Act to repeal 77.54 (3) (b) 1., 77.54 (3) (b) 2., 77.54 (3) (c), 77.54 (3m), 77.54 (27), 77.54 (30) (a) 3. and 5., 77.54 (33) and 77.54 (34); to amend 77.54 (3) (a); and to create 77.54 (3) (b) 2m. of the statutes; relating to: a sales tax and use tax exemption on tangible personal property used in the business of farming.

Analysis by the Legislative Reference Bureau

Under current law, tractors and other machines that are used for farming are exempt from the sales tax and the use tax. Under current law, a machine that is used for farming is, generally, not exempt from the sales tax and the use tax if the machine is attached to or becomes part of real property, regardless of the extent to which the machine is used in the business of farming.

Under this bill, tangible personal property that is used for farming is exempt from the sales tax and the use tax, regardless of whether the tangible personal property is attached to or becomes part of real property. Under the bill, tangible personal property that is consumed or loses its identity in the business of farming is also exempt from the sales tax and the use tax.

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:

AB515, s. 1 Section 1. 77.54 (3) (a) of the statutes is amended to read:

AB515,2,13 77.54 (3) (a) The gross receipts from the sales of and the storage, use or other consumption of tractors and machines, including accessories, attachments and parts therefor, tangible personal property that is used exclusively and directly in the business of farming, including dairy farming, agriculture, horticulture, floriculture and custom farming services, but excluding automobiles, trucks, and other motor vehicles for highway use; excluding personal property that is attached to, fastened to, connected to or built into real property or that becomes an addition to, component of or capital improvement of real property and excluding tangible personal property used or consumed in the erection of buildings or in the alteration, repair or improvement of real property, regardless of any contribution that that personal property makes to the production process in that building or real property and regardless of the extent to which that personal property functions as a machine.

AB515, s. 2 Section 2. 77.54 (3) (b) 1. of the statutes is repealed.

AB515, s. 3 Section 3. 77.54 (3) (b) 2. of the statutes is repealed.

AB515, s. 4 Section 4. 77.54 (3) (b) 2m. of the statutes is created to read:

AB515,2,20 77.54 (3) (b) 2m. Notwithstanding s. 77.51 (20), "tangible personal property" includes tangible personal property that is fastened to, connected to or built into real property and tangible personal property that is consumed or loses its identity in the business of farming.

AB515, s. 5 Section 5. 77.54 (3) (c) of the statutes is repealed.

AB515, s. 6 Section 6. 77.54 (3m) of the statutes is repealed.

AB515, s. 7 Section 7. 77.54 (27) of the statutes is repealed.

AB515, s. 8 Section 8. 77.54 (30) (a) 3. and 5. of the statutes are repealed.

AB515, s. 9 Section 9. 77.54 (33) of the statutes is repealed.

AB515, s. 10 Section 10. 77.54 (34) of the statutes is repealed.

AB515, s. 11 Section 11. Effective date.

AB515,3,8 (1) This act takes effect on the first day of the 2nd month beginning after publication.

AB515,3,9 (End)