LRB-1092/1
JK:lmk:rs
2005 - 2006 LEGISLATURE
April 27, 2005 - Introduced by Representatives Schneider, Wasserman, Jensen
and Albers. Referred to Committee on Ways and Means.
AB371,1,3
1An Act to amend 77.51 (4) (b) 1. and 77.51 (15) (b) 1. of the statutes;
relating
2to: the sales tax and the use tax on purchases made with a manufacturer's
3rebate.
Analysis by the Legislative Reference Bureau
Under current law, the state imposes a sales tax on all retailers at the rate of
5 percent of the gross receipts from the sale of tangible personal property. The
retailer generally passes the sales tax on to the consumer. The state also imposes a
use tax on all consumers, at the rate of 5 percent of the sales price for the use or
storage of tangible personal property in this state that the consumer either
purchases from out-of-state retailers or purchases without paying the appropriate
sales tax. Under current law, when a consumer purchases tangible personal
property that qualifies for a manufacturer's rebate, the consumer pays either a sales
tax or a use tax on the original price of the tangible personal property rather than
on the price as reduced by the manufacturer's rebate.
Under this bill, when a consumer purchases tangible personal property, other
than motor vehicles, that qualifies for a manufacturer's rebate, the consumer pays
either a sales tax or a use tax on the price of the tangible personal property as reduced
by the manufacturer's rebate rather than on the original price.
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:
AB371, s. 1
1Section
1. 77.51 (4) (b) 1. of the statutes is amended to read:
AB371,2,42
77.51
(4) (b) 1. Cash or term discounts
; or amounts paid by the manufacturer
3of the item sold, not including a motor vehicle, as defined in s. 340.01 (35), that reduce
4the amount paid by the buyer of the item; allowed and taken on sales.
AB371, s. 2
5Section
2. 77.51 (15) (b) 1. of the statutes is amended to read:
AB371,2,86
77.51
(15) (b) 1. Cash discounts
; or amounts paid by the manufacturer of the
7item sold, not including a motor vehicle, as defined in s. 340.01 (35), that reduce the
8amount paid by the buyer of the item; allowed and taken on sales.
AB371,2,11
10(1) Manufacturers' rebates. This act first applies to sales on the effective date
11of this subsection.
AB371,2,1413
(1)
Manufacturers' rebates. This act takes effect on the 7th day beginning
14after publication.
