AB547: Bill Text

AB547, s. 45 Section 45. 77.51 (15b) of the statutes is created to read:

AB547,19,7 77.51 (15b) (a) "Sales price" means the total amount of consideration, including cash, credit, property, and services, for which tangible personal property or services are sold, leased, or rented, valued in money, whether received in money or otherwise, without any deduction for the following:

AB547,19,8 1. The seller's cost of the property sold.

AB547,19,11 2. The cost of materials used, labor or service cost, interest, losses, all costs of transportation to the seller, all taxes imposed on the seller, and any other expense of the seller.

AB547,19,13 3. Charges by the seller for any services necessary to complete a sale, not including delivery and installation charges.

AB547,19,14 4. Delivery charges, except as provided in par. (b) 4.

AB547,19,15 5. Installation charges.

AB547,19,18 6. The value of exempt tangible personal property, if the exempt tangible personal property is bundled with taxable tangible personal property and sold by the seller as a single product or piece of merchandise.

AB547,19,19 (b) "Sales price" does not include:

AB547,19,21 1. Discounts, including cash, terms, or coupons, that are not reimbursed by a 3rd party; that are allowed by a seller; and that are taken by a purchaser on a sale.

AB547,19,25 2. Interest, financing, and carrying charges from credit that is extended on a sale of tangible personal property or services, if the amount of the interest, financing, or carrying charges is separately stated on the invoice, bill of sale, or similar document that the seller gives to the purchaser.

AB547,20,3 3. Any taxes legally imposed directly on the purchaser that are separately stated on the invoice, bill of sale, or similar document that the seller gives to the purchaser.

AB547,20,4 4. Delivery charges for direct mail.

AB547,20,8 5. In all transactions in which an article of tangible personal property is traded toward the purchase of an article of greater value, the amount of the sales price that represents the amount allowed for the article traded, except that this subdivision does not apply to any transaction to which subd. 7. or 8. applies.

AB547,20,15 6. If a person who purchases a motor vehicle presents a statement issued under s. 218.0171 (2) (cq) to the seller at the time of purchase, and the person presents the statement to the seller within 60 days from the date of receiving a refund under s. 218.0171 (2) (b) 2. b., the trade-in amount specified in the statement issued under s. 218.0171 (2) (cq), but not to exceed the sales price from the sale of the motor vehicle. This subdivision applies only to the first motor vehicle purchased by a person after receiving a refund under s. 218.0171 (2) (b) 2. b.

AB547,20,21 7. Thirty-five percent of the sales price, excluding trade-ins, of a new mobile home, as defined in s. 340.01 (29), that is a primary housing unit or of a new mobile home, as defined in s. 340.01 (29), that is transported in 2 unattached sections if the total size of the combined sections, not including additions and attachments, is at least 984 square feet measured when the sections are ready for transport. This subdivision does not apply to a lease or rental.

AB547,21,2 8. At the retailer's option; except that after the retailer chooses an option the retailer may not use the other option for other sales without the department's written approval; either 35 percent of the sales price of a manufactured building, as defined in s. 101.71 (6), or an amount equal to the sales price of the manufactured building minus the cost of materials that become an ingredient or component part of the building.

AB547, s. 46 Section 46. 77.51 (17) of the statutes is amended to read:

AB547,21,7 77.51 (17) "Seller" includes every person selling, leasing or renting tangible personal property or selling, performing or furnishing services of a kind the gross receipts sales price from the sale, lease, rental, performance or furnishing of which are is required to be included in the measure of the sales tax.

AB547, s. 47 Section 47. 77.51 (17m) of the statutes is repealed and recreated to read:

AB547,21,9 77.51 (17m) "Service address" means any of the following:

AB547,21,13 (a) The location of the telecommunications equipment to which a customer's telecommunications service is charged and from which the telecommunications service originates or terminates, regardless of where the telecommunications service is billed or paid.

AB547,21,19 (b) If the location described under par. (a) is not known by the seller who sells the telecommunications service, the location where the signal of the telecommunications service originates, as identified by the seller's telecommunications system or, if the signal is not transmitted by the seller's telecommunications system, by information that the seller received from the seller's service provider.

AB547,21,21 (c) If the locations described under pars. (a) and (b) are not known by the seller who sells the telecommunications service, the customer's place of primary use.

AB547, s. 48 Section 48. 77.51 (17w) of the statutes is created to read:

AB547,22,2 77.51 (17w) "Soft drink" means a beverage that contains less than 0.5 percent of alcohol and that contains natural or artificial sweeteners. "Soft drink" does not include a beverage that contains milk or milk products; soy, rice, or similar milk substitutes; or more than 50 percent vegetable or fruit juice by volume.

AB547, s. 49 Section 49. 77.51 (20) of the statutes is amended to read:

AB547,22,12 77.51 (20) "Tangible personal property" means all tangible personal property of every kind and description that can be seen, weighed, measured, felt, or touched, or that is in any other manner perceptible to the senses, and includes electricity, natural gas, steam and, water, and also leased property affixed to realty if the lessor has the right to remove the property upon breach or termination of the lease agreement, unless the lessor of the property is also the lessor of the realty to which the property is affixed. "Tangible personal property" also includes coins and stamps of the United States sold or traded as collectors' items above their face value and computer programs except custom prewritten computer programs software.

AB547, s. 50 Section 50. 77.51 (21) of the statutes is amended to read:

AB547,22,16 77.51 (21) "Taxpayer" means the person who is required to pay, collect, or account for or who is otherwise directly interested in the taxes imposed by this subchapter, including a certified service provider.

AB547, s. 51 Section 51. 77.51 (21p) of the statutes is created to read:

AB547,22,19 77.51 (21p) "Tobacco" means cigarettes, cigars, chewing tobacco, pipe tobacco, and any other item that contains tobacco.

AB547, s. 52 Section 52. 77.51 (22) (bm) of the statutes is created to read:

AB547,23,2 77.51 (22) (bm) In this subsection, "exercise of any right or power over tangible personal property or taxable services" includes distributing, selecting recipients, determining mailing schedules, or otherwise directing the distribution, dissemination, or disposal of tangible personal property or taxable services, regardless of whether the purchaser of such property or services owns or physically possesses, in this state, the property or services.

AB547, s. 53 Section 53. 77.52 (1) of the statutes is renumbered 77.52 (1) (a) and amended to read:

AB547,23,10 77.52 (1) (a) For the privilege of selling, licensing, leasing or renting tangible personal property, including accessories, components, attachments, parts, supplies and materials, at retail a tax is imposed upon all retailers at the rate of 5 percent of the gross receipts sales price from the sale, license, lease or rental of tangible personal property, including accessories, components, attachments, parts, supplies and materials, sold, leased or rented at retail in this state.

AB547, s. 54 Section 54. 77.52 (1) (b) of the statutes is created to read:

AB547,23,15 77.52 (1) (b) For the privilege of selling at retail coins and stamps of the United States that are sold or traded as collectors' items above their face value, a tax is imposed on all retailers at the rate of 5 percent of the sales price from the sale of such coins and stamps.

AB547, s. 55 Section 55. 77.52 (1) (c) of the statutes is created to read:

AB547,23,21 77.52 (1) (c) For the privilege of leasing property that is affixed to real property, a tax is imposed on all retailers at the rate of 5 percent of the sales price from the lease of such property, if the lessor has the right to remove the leased property upon breach or termination of the lease agreement, unless the lessor of the leased property is also the lessor of the real property to which the leased property is affixed.

AB547, s. 56 Section 56. 77.52 (2) (intro.) of the statutes is amended to read:

AB547,24,2 77.52 (2) (intro.) For the privilege of selling, licensing, performing or furnishing the services described under par. (a) at retail in this state to consumers or users, a tax is imposed upon all persons selling, licensing, performing or furnishing the services at the rate of 5% of the gross receipts sales price from the sale, license, performance or furnishing of the services.

AB547, s. 57 Section 57. 77.52 (2) (a) 10. of the statutes is amended to read:

AB547,25,21 77.52 (2) (a) 10. Except for installing or applying tangible personal property which, when installed or applied, will constitute an addition or capital improvement of real property, the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, and maintenance of all items of tangible personal property unless, at the time of such repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance, a sale in this state of the type of property repaired, serviced, altered, fitted, cleaned, painted, coated, towed, inspected, or maintained would have been exempt to the customer from sales taxation under this subchapter, other than the exempt sale of a motor vehicle or truck body to a nonresident under s. 77.54 (5) (a) and other than nontaxable sales outside this state under s. 77.51 (14r) 77.522. For purposes of this paragraph, the following items shall be considered to have retained their character as tangible personal property, regardless of the extent to which any such item is fastened to, connected with, or built into real property: furnaces, boilers, stoves, ovens, including associated hoods and exhaust systems, heaters, air conditioners, humidifiers, dehumidifiers, refrigerators, coolers, freezers, water pumps, water heaters, water conditioners and softeners, clothes washers, clothes dryers, dishwashers, garbage disposal units, radios and radio antennas, incinerators, television receivers and antennas, record players, tape players, jukeboxes, vacuum cleaners, furniture and furnishings, carpeting and rugs, bathroom fixtures, sinks, awnings, blinds, gas and electric logs, heat lamps, electronic dust collectors, grills and rotisseries, bar equipment, intercoms, recreational, sporting, gymnasium and athletic goods and equipment including by way of illustration but not of limitation bowling alleys, golf practice equipment, pool tables, punching bags, ski tows, and swimming pools; equipment in offices, business facilities, schools, and hospitals but not in residential facilities including personal residences, apartments, long-term care facilities, as defined under s. 16.009 (1) (em), state institutions, as defined under s. 101.123 (1) (i), Type 1 secured correctional facilities, as defined in s. 938.02 (19), or similar facilities including, by way of illustration but not of limitation, lamps, chandeliers, and fans, venetian blinds, canvas awnings, office and business machines, ice and milk dispensers, beverage-making equipment, vending machines, soda fountains, steam warmers and tables, compressors, condensing units and evaporative condensers, pneumatic conveying systems; laundry, dry cleaning, and pressing machines, power tools, burglar alarm and fire alarm fixtures, electric clocks and electric signs. "Service" does not include services performed by veterinarians. The tax imposed under this subsection applies to the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance of items listed in this subdivision, regardless of whether the installation or application of tangible personal property related to the items is an addition to or a capital improvement of real property, except that the tax imposed under this subsection does not apply to the original installation or the complete replacement of an item listed in this subdivision, if such installation or replacement is a real property construction activity under s. 77.51 (2).

AB547, s. 58 Section 58. 77.52 (6) of the statutes is repealed.

AB547, s. 59 Section 59. 77.52 (7) of the statutes is amended to read:

AB547,26,12 77.52 (7) Every person desiring to operate as a seller within this state who holds a valid certificate under s. 73.03 (50) shall file with the department an application for a permit for each place of operations. Every application for a permit shall be made upon a form prescribed by the department and shall set forth the name under which the applicant intends to operate, the location of the applicant's place of operations, and the other information that the department requires. The Except as provided in sub. (7b), the application shall be signed by the owner if a sole proprietor; in the case of sellers other than sole proprietors, the application shall be signed by the person authorized to act on behalf of such sellers. A nonprofit organization that has gross receipts a sales price taxable under s. 77.54 (7m) shall obtain a seller's permit and pay taxes under this subchapter on all taxable gross receipts sales prices received after it is required to obtain that permit. If that organization becomes eligible later for the exemption under s. 77.54 (7m) except for its possession of a seller's permit, it may surrender that permit.

AB547, s. 60 Section 60. 77.52 (7b) of the statutes is created to read:

AB547,26,16 77.52 (7b) Any person who may register under sub. (7) may designate an agent, as defined in s. 77.524 (1) (ag), to register with the department under sub. (7), in the manner prescribed by the department.

AB547, s. 61 Section 61. 77.52 (13) of the statutes is amended to read:

AB547,27,8 77.52 (13) For the purpose of the proper administration of this section and to prevent evasion of the sales tax it shall be presumed that all receipts are subject to the tax until the contrary is established. The burden of proving that a sale of tangible personal property or services is not a taxable sale at retail is upon the person who makes the sale unless that person takes from the purchaser a an electronic or paper certificate, in a manner prescribed by the department, to the effect that the property or service is purchased for resale or is otherwise exempt; , except that no certificate is required for sales of cattle, sheep, goats, and pigs that are sold at a livestock market, as defined in s. 95.68 (1) (e), and no certificate is required for sales of commodities, as defined in 7 USC 2, that are consigned for sale in a warehouse in or from which the commodity is deliverable on a contract for future delivery subject to the rules of a commodity market regulated by the U.S. commodity futures trading commission if upon the sale the commodity is not removed from the warehouse the sale of tangible personal property that is exempt under s. 77.54 (7), (7m), (8), (10), (11), (14), (14b), (15), (17), (20n), (21), (22b), (30), (31), (32), (35), (36), (37), (42), (44), (45), and (46), except as provided in s. 77.54 (30) (e) and (f).

AB547, s. 62 Section 62. 77.52 (14) (a) (intro.) and 1. and (b) of the statutes are consolidated, renumbered 77.52 (14) and amended to read:

AB547,27,25 77.52 (14) The certificate referred to in sub. (13) relieves the seller from the burden of proof only if any of the following is true: 1. The the certificate is taken in good faith from a person who is engaged as a seller of tangible personal property or taxable services and who holds the permit provided for in sub. (9) and who, at the time of purchasing that the person purchases the tangible personal property or services, intends to sell it in the regular course of operations or is unable to ascertain at the time of purchase whether the property or service will be sold or will be used for some other purpose. (b). The certificate under sub. (13) shall not relieve the seller of the burden of proof if the seller fraudulently fails to collect sales tax or solicits the purchaser to claim an unlawful exemption. The certificate referred to in sub. (13) shall be signed by and bear the name and address of provide information that identifies the purchaser, and shall indicate the general character of the tangible personal property or service sold by the purchaser and the basis for the claimed exemption and a paper certificate shall be signed by the purchaser. The certificate shall be in such form as the department prescribes by rule.

AB547, s. 63 Section 63. 77.52 (14) (a) 2. of the statutes is repealed.

AB547, s. 64 Section 64. 77.52 (15) of the statutes is amended to read:

AB547,28,14 77.52 (15) If a purchaser who gives a resale certificate purchases tangible personal property or taxable services without paying a sales tax or use tax on such purchase because such property or services were for resale makes any use of the property or services other than retention, demonstration or display while holding it the property or services for sale, lease or rental in the regular course of the purchaser's operations, the use shall be taxable to the purchaser under s. 77.53 as of the time that the property is or services are first used by the purchaser, and the sales purchase price of the property or services to the purchaser shall be the measure of the tax. Only when there is an unsatisfied use tax liability on this basis because the seller has provided incorrect information about that transaction to the department shall the seller be liable for sales tax with respect to the sale of the property to the purchaser.

AB547, s. 65 Section 65. 77.522 of the statutes is created to read:

AB547,28,16 77.522 Sourcing. (1) General. (a) In this section:

AB547,28,18 1. "Direct mail form" means a form for direct mail prescribed by the department.

AB547,28,20 2. "Multiple-points-of-use exemption form" means the multiple-points-of-use exemption form, as prescribed by the department.

AB547,28,21 3. "Product" includes tangible personal property, digital goods, and services.

AB547,28,25 4. "Receive" means taking possession of tangible personal property; making first use of services; or taking possession or making first use of digital goods, whichever comes first. "Receive" does not include a shipping company taking possession of tangible personal property on a purchaser's behalf.

AB547,29,1 5. "Transportation equipment" means all of the following:

AB547,29,3 a. Locomotives and railcars that are used to carry persons or property in interstate commerce.

AB547,29,8 b. Trucks and truck tractors that have a gross vehicle weight rating of 10,001 pounds or greater, trailers, semitrailers, and passenger buses, if such vehicles are registered under the International Registration Plan and operated under the authority of a carrier that is authorized by the federal government to carry persons or property in interstate commerce.

AB547,29,11 c. Aircraft that is operated by air carriers that are authorized by the federal government or a foreign authority to carry persons or property in interstate commerce.

AB547,29,13 d. Containers that are designed for use on the vehicles described in subd. 5. a. to c. and component parts attached to or secured on such vehicles.

AB547,29,15 (b) Except as provided in pars. (c) to (d) and subs. (2), (3), (4), and (5), the location of a sale is determined as follows:

AB547,29,17 1. If a purchaser receives the product at a seller's business location, the sale occurs at that business location.

AB547,29,21 2. If a purchaser does not receive the product at a seller's business location, the sale occurs at the location where the purchaser, or the purchaser's designated donee, receives the product, including the location indicated by the instructions known to the seller for delivery to the purchaser or the purchaser's designated donee.

AB547,29,25 3. If the location of a sale of a product cannot be determined under subds. 1. and 2., the sale occurs at the purchaser's address as indicated by the seller's business records, if the records are maintained in the ordinary course of the seller's business and if using that address to establish the location of a sale is not in bad faith.

AB547,30,4 4. If the location of a sale of a product cannot be determined under subds. 1. to 3., the sale occurs at the purchaser's address as obtained during the consummation of the sale, including the address indicated on the purchaser's payment instrument, if no other address is available and if using that address is not in bad faith.

AB547,30,6 5. If the location of a sale of a product cannot be determined under subds. 1. to 4., the location of the sale is determined as follows:

AB547,30,8 a. If the item sold is tangible personal property, the sale occurs at the location from which the tangible personal property is shipped.

AB547,30,11 b. If the item sold is a digital good, or computer software delivered electronically, the sale occurs at the location from which the digital good or computer software was first available for transmission by the seller.

AB547,30,13 c. If a service is sold, the sale occurs at the location from which the service was provided.

AB547,30,20 (c) The sale of direct mail occurs at the location from which the direct mail is shipped, if the purchaser does not provide to the seller a direct pay permit, a direct mail form, or other information that indicates the appropriate taxing jurisdiction to which the direct mail is delivered to the ultimate recipients. If the purchaser provides a direct mail form to the seller, the purchaser shall pay or remit, as appropriate, to the department the tax imposed under s. 77.53 (1) on all purchases for which the tax is due and the seller is relieved from liability for collecting such tax.

AB547,31,4 (d) 1. If the service, digital good, or computer software is delivered electronically, a business purchaser who purchases a service, digital good, or computer software who does not hold a direct pay permit under s. 77.52 (17m), and who knows at the time that the purchaser purchases such service, good, or software that the service, good, or software will be concurrently available for use in more than one taxing jurisdiction shall provide a multiple-points-of-use exemption form to the seller, in conjunction with the purchase, and shall pay or remit, as appropriate, to the department the tax imposed under s. 77.53 (1) on all purchases for which the tax is due.

AB547,31,8 2. To apportion the amount of the tax due multiple taxing jurisdictions, a purchaser who provides an exemption form under subd. 1. shall use any reasonable, consistent, and uniform apportionment method supported by the purchaser's business records that exist at the time of the sale.

AB547,31,12 3. An exemption form provided under subd. 1. shall remain effective for all sales by the seller who received the form to the purchaser who provided the form, unless the purchaser revokes the form in writing and provides such a revocation to the seller.

AB547,31,21 4. If the service, digital good, or computer software is delivered electronically, a business purchaser who purchases a service, digital good, or computer software, who holds a direct pay permit under s. 77.52 (17m), and who knows at the time that the purchaser purchases such service, good, or software that the service, good, or software will be concurrently available for use in more than one taxing jurisdiction is not required to provide a multiple-points-of-use exemption form to the seller, but shall collect, pay, or remit, as appropriate, to the department the tax imposed under s. 77.53 (1) and shall use the apportionment method described under par. (b) to apportion the tax due multiple taxing jurisdictions.

AB547,31,24 5. A seller who receives a multiple-points-of-use exemption form under this paragraph is relieved from liability for collecting the tax imposed under s. 77.53 (1) on purchases related to the multiple-points-of-use exemption form.

AB547,32,10 (2) Lease or rental. (a) Except as provided in pars. (b) and (c), with regards to the first or only payment on the lease or rental, the lease or rental of tangible personal property occurs at the location determined under sub. (1) (b) 1. If the property is moved from the place where the property was initially delivered, the subsequent periodic payments on the lease or rental occur at the property's primary location as indicated by an address for the property that is provided by the lessee and that is available to the lessor in records that the lessor maintains in the ordinary course of the lessor's business, if the use of such an address does not constitute bad faith. The location of a lease or rental as determined under this paragraph shall not be altered by any intermittent use of the property at different locations.

AB547,32,18 (b) The lease or rental of motor vehicles, semitrailers, and aircraft, that are not transportation equipment, occurs at the primary location of such motor vehicles, semitrailers, or aircraft as indicated by an address for the property that is provided by the lessee and that is available to the lessor in records that the lessor maintains in the ordinary course of the lessor's business, if the use of such an address does not constitute bad faith. The location of a lease or rental as determined under this paragraph shall not be altered by any intermittent use of the property at different locations.

AB547,32,20 (c) The lease or rental of transportation equipment occurs at the location determined under sub. (1) (b) 1.

AB547,32,21 (3) Telecommunications. (a) In this subsection:

AB547,32,24 1. "Air-to-ground radiotelephone service" means a radio service in which common carriers are authorized to offer and provide radio telecommunications service for hire to subscribers in aircraft.

AB547,33,2 2. "Call-by-call basis" means any method of charging for telecommunications services by which the price of such services is measured by individual calls.

AB547,33,5 3. "Communications channel" means a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points.