LRB-0951/1
JK:kmg:pg
2001 - 2002 LEGISLATURE
February 1, 2001 - Introduced by Representatives Sinicki, Musser, Balow,
Berceau, Gronemus, Huebsch, La Fave, F. Lasee, Plale, Powers, Richards,
Vrakas, Wasserman and
Huber, cosponsored by Senators Grobschmidt,
Schultz, Burke and
Darling. Referred to Committee on Ways and Means.
AB64,1,3
1An Act to amend 77.51 (4) (c) 2. and 77.51 (15) (c) 1.; and
to create 77.51 (4) (b)
22m., 77.51 (15) (b) 2m. and 77.52 (5m) of the statutes;
relating to: the sales tax
3and the use tax on tips and gratuities.
Analysis by the Legislative Reference Bureau
Under current law, the state imposes a sales tax on all retailers at the rate of
5% of the gross receipts from the sale, lease, or rental of tangible personal property
and the sale of services. Under current law, retailers generally pass on all sales taxes
to the consumer.
Under current law, for purposes of imposing a sales tax, gross receipts include
any addition to the sales price of tangible personal property that is charged to a
customer in lieu of a tip or a gratuity. Under this bill, for purposes of imposing a sales
tax, gross receipts do not include any addition to the sales price of tangible personal
property that is charged to a customer in lieu of a tip or a gratuity.
Under current law, the state imposes a use tax on all consumers, at the rate of
5% of the sales price, for the consumption, use, or storage of goods in this state that
the consumer purchases from an out-of-state retailer or purchasers without paying
the appropriate sales tax and the consumption or use of services in this state that the
consumer purchases from an out-of-state retailer or purchases without paying the
appropriate sales tax.
Under current law, for purposes of imposing a use tax, the sales price of tangible
personal property includes any addition to the sales price that is charged to a
customer in lieu of a tip or a gratuity. Under this bill, for purposes of imposing a use
tax, the sales price of tangible personal property does not include any addition to the
sales price of tangible personal property that is charged to a customer in lieu of a tip
or a gratuity.
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:
AB64, s. 1
1Section
1. 77.51 (4) (b) 2m. of the statutes is created to read:
AB64,2,42
77.51
(4) (b) 2m. Any services that are a part of the sale of tangible personal
3property, including any fee, service charge, labor charge, or other addition to the price
4charged a customer by the retailer that represents or is in lieu of a tip or gratuity.
AB64, s. 2
5Section
2. 77.51 (4) (c) 2. of the statutes is amended to read:
AB64,2,96
77.51
(4) (c) 2.
Any For taxes imposed under subch. V, any services that are a
7part of the sale of tangible personal property, including any fee, service charge, labor
8charge
, or other addition to the price charged a customer by the retailer which
9represents or is in lieu of a tip or gratuity.
AB64, s. 3
10Section
3. 77.51 (15) (b) 2m. of the statutes is created to read:
AB64,2,1311
77.51
(15) (b) 2m. Any services that are a part of the sale of tangible personal
12property, including any fee, service charge, labor charge, or other addition to the price
13charged a customer by the retailer that represents or is in lieu of a tip or gratuity.
AB64, s. 4
14Section
4. 77.51 (15) (c) 1. of the statutes is amended to read:
AB64,2,1815
77.51
(15) (c) 1.
Any For taxes imposed under subch. V, any services that are
16a part of the sale of tangible personal property, including any fee, service charge,
17labor charge
, or other addition to the price charged a customer by the retailer which
18represents or is in lieu of a tip or gratuity.
AB64, s. 5
19Section
5. 77.52 (5m) of the statutes is created to read:
AB64,3,3
177.52
(5m) A retailer shall list separately on a receipt for a service any fee,
2service charge, labor charge, or other addition to the price of the service charged to
3a customer by the retailer that represents or is in lieu of a tip or gratuity.
AB64,3,65
(1)
This act takes effect on the first day of the 2nd month beginning after
6publication.
