SB446,48,2
177.52 (2) (a) 5. am. The sale of intrastate, interstate, and international
2telecommunications services, except interstate 800 services.
SB446, s. 132 3Section 132. 77.52 (2) (a) 5. b. of the statutes is repealed.
SB446, s. 133 4Section 133. 77.52 (2) (a) 5. c. of the statutes is created to read:
SB446,48,65 77.52 (2) (a) 5. c. The sale of ancillary services, except detailed
6telecommunications billing services.
SB446, s. 134 7Section 134. 77.52 (2) (a) 5m. of the statutes is amended to read:
SB446,48,148 77.52 (2) (a) 5m. The sale of services that consist of recording
9telecommunications messages and transmitting them to the purchaser of the service
10or at that purchaser's direction, but not including those services if they are merely
11an
that are taxable under subd. 5. or services that are incidental, as defined in s.
1277.51 (5), element of to another service that is not taxable under this subchapter and
13sold to that the purchaser of the incidental service and is not taxable under this
14subchapter
.
SB446, s. 135 15Section 135. 77.52 (2) (a) 10. of the statutes is amended to read:
SB446,49,1216 77.52 (2) (a) 10. Except for services provided by veterinarians and except for
17installing or applying tangible personal property that, subject to par. (ag), when
18installed or applied, will constitute an addition or capital improvement of real
19property, the repair, service, alteration, fitting, cleaning, painting, coating, towing,
20inspection, and maintenance of all items of tangible personal property or items or
21property under sub. (1) (b) or (c),
unless, at the time of that the repair, service,
22alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance,
23a sale in this state of the type of property repaired, serviced, altered, fitted, cleaned,
24painted, coated, towed, inspected, or maintained would have been exempt to the
25customer from sales taxation under this subchapter, other than the exempt sale of

1a motor vehicle or truck body to a nonresident under s. 77.54 (5) (a) and other than
2nontaxable sales under s. 77.51 (14r) juvenile 77.522 or unless the repair, service,
3alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance is
4provided under a contract that is subject to tax under subd. 13m
. The tax imposed
5under this subsection applies to the repair, service, alteration, fitting, cleaning,
6painting, coating, towing, inspection, or maintenance of items listed in par. (ag),
7regardless of whether the installation or application of tangible personal property or
8items or property under sub. (1) (b) or (c)
related to the items is an addition to or a
9capital improvement of real property, except that the tax imposed under this
10subsection does not apply to the original installation or the complete replacement of
11an item listed in par. (ag), if that the installation or replacement is a real property
12construction activity under s. 77.51 (2).
SB446, s. 136 13Section 136. 77.52 (2) (a) 13m. of the statutes is created to read:
SB446,49,2014 77.52 (2) (a) 13m. The sale of contracts, including service contracts,
15maintenance agreements, and warranties, that provide, in whole or in part, for the
16future performance of or payment for the repair, service, alteration, fitting, cleaning,
17painting, coating, towing, inspection, or maintenance of tangible personal property,
18unless the sale, lease, or rental in this state of the property to which the contract
19relates is or was exempt, to the purchaser of the contract, from taxation under this
20subchapter.
SB446, s. 137 21Section 137. 77.52 (2m) (a) of the statutes is amended to read:
SB446,50,222 77.52 (2m) (a) With respect to the services subject to tax under sub. (2), no part
23of the charge for the service may be deemed a sale or rental of tangible personal
24property or items or property under sub. (1) (b) or (c) if the property or items

1transferred by the service provider is are incidental to the selling, performing or
2furnishing of the service, except as provided in par. (b).
SB446, s. 138 3Section 138. 77.52 (2m) (b) of the statutes is amended to read:
SB446,50,94 77.52 (2m) (b) With respect to the services subject to tax under sub. (2) (a) 7.,
510., 11. and 20., all property or items or property under sub. (1) (b) or (c) physically
6transferred, or transferred electronically, to the customer in conjunction with the
7selling, performing or furnishing of the service is a sale of tangible personal property
8or items or property under sub. (1) (b) or (c)
separate from the selling, performing or
9furnishing of the service.
SB446, s. 139 10Section 139. 77.52 (2n) of the statutes, as created by 2007 Wisconsin Act 20,
11is repealed and recreated to read:
SB446,50,1512 77.52 (2n) The selling, licensing, performing, or furnishing of the services
13described under sub. (2) (a) at retail in this state, as determined under s. 77.522, is
14subject to the tax imposed under sub. (2) unless an exemption in this subchapter
15applies.
SB446, s. 140 16Section 140. 77.52 (3m) of the statutes is repealed.
SB446, s. 141 17Section 141. 77.52 (3n) of the statutes is repealed.
SB446, s. 142 18Section 142. 77.52 (4) of the statutes is amended to read:
SB446,50,2419 77.52 (4) It is unlawful for any retailer to advertise or hold out or state to the
20public or to any customer, directly or indirectly, that the tax or any part thereof will
21be assumed or absorbed by the retailer or that it will not be added to the selling price
22of the property or items or property under sub. (1) (b) or (c) sold or that if added it,
23or any part thereof, will be refunded. Any person who violates this subsection is
24guilty of a misdemeanor.
SB446, s. 143 25Section 143. 77.52 (6) of the statutes is repealed.
SB446, s. 144
1Section 144. 77.52 (7) of the statutes is amended to read:
SB446,51,152 77.52 (7) Every person desiring to operate as a seller within this state who
3holds a valid certificate under s. 73.03 (50) shall file with the department an
4application for a permit for each place of operations. Every application for a permit
5shall be made upon a form prescribed by the department and shall set forth the name
6under which the applicant intends to operate, the location of the applicant's place of
7operations, and the other information that the department requires. The Except as
8provided in sub. (7b), the
application shall be signed by the owner if a sole proprietor;
9in the case of sellers other than sole proprietors, the application shall be signed by
10the person authorized to act on behalf of such sellers. A nonprofit organization that
11has gross receipts a sales price taxable under s. 77.54 (7m) shall obtain a seller's
12permit and pay taxes under this subchapter on all taxable gross receipts sales prices
13received after it is required to obtain that permit. If that organization becomes
14eligible later for the exemption under s. 77.54 (7m) except for its possession of a
15seller's permit, it may surrender that permit.
SB446, s. 145 16Section 145. 77.52 (7b) of the statutes is created to read:
SB446,51,1917 77.52 (7b) Any person who may register under sub. (7) may designate an agent,
18as defined in s. 77.524 (1) (ag), to register with the department under sub. (7), in the
19manner prescribed by the department.
SB446, s. 146 20Section 146. 77.52 (12) of the statutes is amended to read:
SB446,52,621 77.52 (12) A person who operates as a seller in this state without a permit or
22after a permit has been suspended or revoked or has expired, unless the person has
23a temporary permit under sub. (11), and each officer of any corporation, partnership
24member, limited liability company member, or other person authorized to act on
25behalf of a seller who so operates, is guilty of a misdemeanor. Permits shall be held

1only by persons actively operating as sellers of tangible personal property, items or
2property under sub. (1) (b) or (c),
or taxable services. Any person not so operating
3shall forthwith surrender that person's permit to the department for cancellation.
4The department may revoke the permit of a person found not to be actively operating
5as a seller of tangible personal property, items or property under sub. (1) (b) or (c),
6or taxable services.
SB446, s. 147 7Section 147. 77.52 (13) of the statutes is amended to read:
SB446,52,248 77.52 (13) For the purpose of the proper administration of this section and to
9prevent evasion of the sales tax it shall be presumed that all receipts are subject to
10the tax until the contrary is established. The burden of proving that a sale of tangible
11personal property, items or property under sub. (1) (b) or (c), or services is not a
12taxable sale at retail is upon the person who makes the sale unless that person takes
13from the purchaser a an electronic or a paper certificate, in a manner prescribed by
14the department,
to the effect that the property, item, or service is purchased for resale
15or is otherwise exempt;, except that no certificate is required for sales of cattle, sheep,
16goats, and pigs that are sold at an animal market, as defined in s. 95.68 (1) (ag), and
17no certificate is required for sales of commodities, as defined in 7 USC 2, that are
18consigned for sale in a warehouse in or from which the commodity is deliverable on
19a contract for future delivery subject to the rules of a commodity market regulated
20by the U.S. commodity futures trading commission if upon the sale the commodity
21is not removed from the warehouse
the sale of tangible personal property, items or
22property under sub. (1) (b) or (c), and services that are exempt under s. 77.54 (7), (7m),
23(8), (10), (11), (14), (15), (17), (20n), (21), (22b), (30), (31), (32), (35), (36), (37), (42),
24(44), (45), (46), (51), and (52), except as provided in s. 77.54 (30) (e) and (f)
.
SB446, s. 148
1Section 148. 77.52 (14) (a) (intro.) and 1. and (b) of the statutes are
2consolidated, renumbered 77.52 (14) (a) and amended to read:
SB446,53,253 77.52 (14) (a) The certificate referred to in sub. (13) relieves the seller from the
4burden of proof
of the tax otherwise applicable only if any of the following is true:
51. The certificate is taken in good faith
the seller obtains a fully completed exemption
6certificate, or the information required to prove the exemption,
from a person who
7is engaged as a seller of tangible personal property or taxable services and who holds
8the permit provided for in sub. (9) and who, at the time of purchasing
purchaser no
9later than 90 days after the date of the sale of
the tangible personal property, items
10or property under sub. (1) (b) or (c),
or services, intends to sell it in the regular course
11of operations or is unable to ascertain at the time of purchase whether the property
12or service will be sold or will be used for some other purpose. (b)
except as provided
13in par. (am). The certificate under sub. (13) shall not relieve the seller of the tax
14otherwise applicable if the seller fraudulently fails to collect sales tax, solicits the
15purchaser to claim an unlawful exemption, accepts an exemption certificate from a
16purchaser who claims to be an entity that is not subject to the taxes imposed under
17this subchapter, if the subject of the transaction sought to be covered by the
18exemption certificate is received by the purchaser at a location operated by the seller
19in this state and the exemption certificate clearly and affirmatively indicates that
20the claimed exemption is not available in this state.
The certificate referred to in sub.
21(13) shall be signed by and bear the name and address of provide information that
22identifies
the purchaser, and shall indicate the general character of the tangible
23personal property or service sold by the purchaser and
the basis for the claimed
24exemption and a paper certificate shall be signed by the purchaser. The certificate
25shall be in such form as the department prescribes by rule.
SB446, s. 149
1Section 149. 77.52 (14) (a) 2. of the statutes is repealed.
SB446, s. 150 2Section 150. 77.52 (14) (am) of the statutes is created to read:
SB446,54,83 77.52 (14) (am) If the seller has not obtained a fully completed exemption
4certificate or the information required to prove the exemption, as provided in par. (a),
5the seller may, no later than 120 days after the department requests that the seller
6substantiate the exemption, either provide proof of the exemption to the department
7by other means or obtain, in good faith, a fully completed exemption certificate from
8the purchaser.
SB446, s. 151 9Section 151. 77.52 (15) of the statutes is amended to read:
SB446,54,2110 77.52 (15) If a purchaser who gives a resale certificate purchases tangible
11personal property, items or property under sub. (1) (b) or (c), or taxable services
12without paying a sales tax or use tax on such purchase because such property, items,
13or services were for resale
makes any use of the property, items, or services other than
14retention, demonstration or display while holding it the property, items, or services
15for sale, lease or rental in the regular course of the purchaser's operations, the use
16shall be taxable to the purchaser under s. 77.53 as of the time that the property is,
17items, or services are
first used by the purchaser, and the sales purchase price of the
18property, items, or services to the purchaser shall be the measure of the tax. Only
19when there is an unsatisfied use tax liability on this basis because the seller has
20provided incorrect information about that transaction to the department shall the
21seller be liable for sales tax with respect to the sale of the property to the purchaser.
SB446, s. 152 22Section 152. 77.52 (16) of the statutes is amended to read:
SB446,55,623 77.52 (16) Any person who gives a resale certificate for property, items or
24property under sub. (1) (b) or (c),
or services which that person knows at the time of
25purchase is not to be resold by that person in the regular course of that person's

1operations as a seller for the purpose of evading payment to the seller of the amount
2of the tax applicable to the transaction is guilty of a misdemeanor. Any person
3certifying to the seller that the sale of property, items or property under sub. (1) (b)
4or (c),
or taxable service is exempt, knowing at the time of purchase that it is not
5exempt, for the purpose of evading payment to the seller of the amount of the tax
6applicable to the transaction, is guilty of a misdemeanor.
SB446, s. 153 7Section 153. 77.52 (19) of the statutes is amended to read:
SB446,55,168 77.52 (19) The department shall by rule provide for the efficient collection of
9the taxes imposed by this subchapter on sales of property, items or property under
10sub. (1) (b) or (c),
or services by persons not regularly engaged in selling at retail in
11this state or not having a permanent place of business, but who are temporarily
12engaged in selling from trucks, portable roadside stands, concessions at fairs and
13carnivals, and the like. The department may authorize such persons to sell property
14or items or property under sub. (1) (b) or (c)
or sell, perform , or furnish services on
15a permit or nonpermit basis as the department by rule prescribes and failure of any
16person to comply with such rules constitutes a misdemeanor.
SB446, s. 154 17Section 154. 77.52 (20) of the statutes is created to read:
SB446,55,1918 77.52 (20) (a) Except as provided in par. (b), the entire sales price of a bundled
19transaction is subject to the tax imposed under this subchapter.
SB446,56,220 (b) At the retailer's option, if the retailer can identify, by reasonable and
21verifiable standards from the retailer's books and records that are kept in the
22ordinary course of its business for other purposes, including purposes unrelated to
23taxes, the portion of the price that is attributable to products that are not subject to
24the tax imposed under this subchapter, that portion of the sales price is not taxable
25under this subchapter. This paragraph does not apply to a bundled transaction that

1contains food and food ingredients, drugs, durable medical equipment, mobility
2enhancing equipment, prosthetic devices, or medical supplies.
SB446, s. 155 3Section 155. 77.52 (21) of the statutes is created to read:
SB446,56,74 77.52 (21) A person who provides a product that is not a distinct and
5identifiable product because it is provided free of charge, as provided in s. 77.51 (3pf)
6(b), is the consumer of that product and shall pay the tax imposed under this
7subchapter on the purchase price of that product.
SB446, s. 156 8Section 156. 77.52 (22) of the statutes is created to read:
SB446,56,119 77.52 (22) With regard to transactions described in s. 77.51 (1f) (b), the service
10provider is the consumer of the tangible personal property and shall pay the tax
11imposed under this subchapter on the purchase price of the property.
SB446, s. 157 12Section 157. 77.52 (23) of the statutes is created to read:
SB446,56,1613 77.52 (23) With regard to transactions described in s. 77.51 (1f) (c), the service
14provider is the consumer of the service that is essential to the use or receipt of the
15other service and shall pay the tax imposed under this subchapter on the purchase
16price of the service that is essential to the use or receipt of the other service.
SB446, s. 158 17Section 158. 77.522 of the statutes is created to read:
SB446,56,18 1877.522 Sourcing. (1) General. (a) In this section:
SB446,56,2019 1. "Direct mail form" means a form for direct mail prescribed by the
20department.
SB446,56,2421 2. "Receive" means taking possession of tangible personal property; making
22first use of services; or taking possession or making first use of digital goods,
23whichever comes first. "Receive" does not include a shipping company taking
24possession of tangible personal property on a purchaser's behalf.
SB446,56,2525 3. "Transportation equipment" means any of the following:
SB446,57,2
1a. Locomotives and railcars that are used to carry persons or property in
2interstate commerce.
SB446,57,73 b. Trucks and truck tractors that have a gross vehicle weight rating of 10,001
4pounds or greater, trailers, semitrailers, and passenger buses, if such vehicles are
5registered under the international registration plan and operated under the
6authority of a carrier that is authorized by the federal government to carry persons
7or property in interstate commerce.
SB446,57,108 c. Aircraft that is operated by air carriers that are authorized by the federal
9government or a foreign authority to carry persons or property in interstate or
10foreign commerce.
SB446,57,1211 d. Containers that are designed for use on the vehicles described in subd. 4. a.
12to c. and component parts attached to or secured on such vehicles.
SB446,57,1413 (b) Except as provided in par. (c) and subs. (2), (3), and (4), the location of a sale
14is determined as follows:
SB446,57,1615 1. If a purchaser receives the product at a seller's business location, the sale
16occurs at that business location.
SB446,57,2017 2. If a purchaser does not receive the product at a seller's business location, the
18sale occurs at the location where the purchaser, or the purchaser's designated donee,
19receives the product, including the location indicated by the instructions known to
20the seller for delivery to the purchaser or the purchaser's designated donee.
SB446,57,2421 3. If the location of a sale of a product cannot be determined under subds. 1. and
222., the sale occurs at the purchaser's address as indicated by the seller's business
23records, if the records are maintained in the ordinary course of the seller's business
24and if using that address to establish the location of a sale is not in bad faith.
SB446,58,4
14. If the location of a sale of a product cannot be determined under subds. 1. to
23., the sale occurs at the purchaser's address as obtained during the consummation
3of the sale, including the address indicated on the purchaser's payment instrument,
4if no other address is available and if using that address is not in bad faith.
SB446,58,65 5. If the location of a sale of a product cannot be determined under subds. 1. to
64., the location of the sale is determined as follows:
SB446,58,87 a. If the item sold is tangible personal property, the sale occurs at the location
8from which the tangible personal property is shipped.
SB446,58,119 b. If the item sold is a digital good, or computer software delivered
10electronically, the sale occurs at the location from which the digital good or computer
11software was first available for transmission by the seller.
SB446,58,1312 c. If a service is sold, the sale occurs at the location from which the service was
13provided.
SB446,58,2414 (c) The sale of direct mail occurs at the location from which the direct mail is
15shipped, if the purchaser does not provide to the seller a direct pay permit, a direct
16mail form, or other information that indicates the appropriate taxing jurisdiction to
17which the direct mail is delivered to the ultimate recipients. If the purchaser
18provides a direct mail form or direct pay permit to the seller, the purchaser shall pay
19or remit, as appropriate, to the department the tax imposed under s. 77.53 on all
20purchases for which the tax is due and the seller is relieved from liability for
21collecting such tax. A direct mail form provided to a seller under this paragraph shall
22remain effective for all sales by the seller who received the form to the purchaser who
23provided the form, unless the purchaser revokes the form in writing and provides
24such revocation to the seller.
SB446,59,10
1(2) Lease or rental. (a) Except as provided in pars. (b) and (c), with regard
2to the first or only payment on the lease or rental, the lease or rental of tangible
3personal property occurs at the location determined under sub. (1) (b). If the property
4is moved from the place where the property was initially delivered, the subsequent
5periodic payments on the lease or rental occur at the property's primary location as
6indicated by an address for the property that is provided by the lessee and that is
7available to the lessor in records that the lessor maintains in the ordinary course of
8the lessor's business, if the use of such an address does not constitute bad faith. The
9location of a lease or rental as determined under this paragraph shall not be altered
10by any intermittent use of the property at different locations.
SB446,59,1911 (b) The lease or rental of motor vehicles, trailers, semitrailers, and aircraft,
12that are not transportation equipment, occurs at the primary location of such motor
13vehicles, trailers, semitrailers, or aircraft as indicated by an address for the property
14that is provided by the lessee and that is available to the lessor in records that the
15lessor maintains in the ordinary course of the lessor's business, if the use of such an
16address does not constitute bad faith, except that a lease or rental under this
17paragraph that requires only one payment occurs at the location determined under
18sub. (1) (b). The location of a lease or rental as determined under this paragraph shall
19not be altered by any intermittent use of the property at different locations.
SB446,59,2120 (c) The lease or rental of transportation equipment occurs at the location
21determined under sub. (1) (b).
SB446,59,2422 (d) A license of tangible personal property or items or property under s. 77.52
23(1) (b) or (c) shall be treated as a lease or rental of tangible personal property under
24this subsection.
SB446,59,25 25(3) Telecommunications. (a) In this subsection:
SB446,60,3
11. "Air-to-ground radiotelephone service" means a radio service in which
2common carriers are authorized to offer and provide radio telecommunications
3service for hire to subscribers in aircraft.
SB446,60,54 2. "Call-by-call basis" means any method of charging for telecommunications
5services by which the price of such services is measured by individual calls.
SB446,60,86 3. "Communications channel" means a physical or virtual path of
7communications over which signals are transmitted between or among customer
8channel termination points.
SB446,60,159 4. "Customer" means a person who enters into a contract with a seller of
10telecommunications services or, in any transaction for which the end user is not the
11person who entered into a contract with the seller of telecommunications services,
12the end user of the telecommunications services. "Customer" does not include a
13person who resells telecommunications services or, for mobile telecommunications
14services, a serving carrier under an agreement to serve a customer outside the home
15service provider's licensed service area.
SB446,60,1716 5. "Customer channel termination point" means the location where a customer
17inputs or receives communications.
SB446,60,1818 6. "End user" means an individual who uses a telecommunications service.
SB446,60,2019 7. "Home service provider" means a home service provider under section 124
20(5) of P.L. 106-252.
SB446,60,2221 8. "Mobile telecommunications service" means a mobile telecommunications
22service under 4 USC 116 to 126, as amended by P.L. 106-252.
SB446,60,2423 9. "Place of primary use" means place of primary use, as determined under 4
24USC 116
to 126, as amended by P.L. 106-252.
SB446,61,8
110. "Postpaid calling service" means a telecommunications service that is
2obtained by paying for it on a call-by-call basis using a bankcard, travel card, credit
3card, debit card, or similar method, or by charging it to a telephone number that is
4not associated with the location where the telecommunications service originates or
5terminates. "Postpaid calling service" includes a telecommunications service, not
6including a prepaid wireless calling service, that would otherwise be a prepaid
7calling service except that the service provided to the customer is not exclusively a
8telecommunications service.
SB446,61,109 14. "Radio service" means a communication service provided by the use of radio,
10including radiotelephone, radiotelegraph, paging, and facsimile service.
SB446,61,1211 15. "Radiotelegraph service" means transmitting messages from one place to
12another by means of radio.
SB446,61,1413 16. "Radiotelephone service" means transmitting sound from one place to
14another by means of radio.
SB446,61,2015 (b) Except as provided in pars. (d) to (j), the sale of a telecommunications service
16that is sold on a call-by-call basis occurs in the taxing jurisdiction for sales and use
17tax purposes where the call originates and terminates, in the case of a call that
18originates and terminates in the same such jurisdiction, or the taxing jurisdiction for
19sales and use tax purposes where the call originates or terminates and where the
20service address is located.
SB446,61,2321 (c) Except as provided in pars. (d) to (j), the sale of a telecommunications service
22that is sold on a basis other than a call-by-call basis occurs at the customer's place
23of primary use.
SB446,62,3
1(d) The sale of a mobile telecommunications service, except an air-to-ground
2radiotelephone service and a prepaid calling service, occurs at the customer's place
3of primary use.
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