SB446: Bill Text

SB446,10,24 (b) 1. The retail sale of tangible personal property and a service, if the tangible personal property is essential to the use of the service, and provided exclusively in connection with the service, and if the true object of the transaction is the service.

SB446,11,4 2. The retail sale of a service and items or property under s. 77.52 (1) (b) or (c), if such property or items are essential to the use of the service, and provided exclusively in connection with the service, and if the true object of the transaction is the service.

SB446,11,7 (c) The retail sale of services, if one of the services is essential to the use or receipt of another service, and provided exclusively in connection with the other service, and if the true object of the transaction is the other service.

SB446,11,13 (d) A transaction that includes taxable and nontaxable products, if the seller's purchase price or the sales price of the taxable products is no greater than 10 percent of the seller's total purchase price or sales price of all the bundled products, as determined by the seller using either the seller's purchase price or sales price, but not a combination of both, or, in the case of a service contract, the full term of the service contract.

SB446,11,24 (e) The retail sale of taxable tangible personal property or items or property under s. 77.52 (1) (b) or (c) and tangible personal property or items or property under s. 77.52 (1) (b) or (c) that is exempt from the taxes imposed under this subchapter, if the transaction includes food and food ingredients, drugs, durable medical equipment, mobility-enhancing equipment, prosthetic devices, or medical supplies and if the seller's purchase price or the sales price of the taxable tangible personal property or items or property under s. 77.52 (1) (b) or (c) is no greater than 50 percent of the seller's total purchase price or sales price of all the tangible personal property or items or property under s. 77.52 (1) (b) or (c) included in what would otherwise be a bundled transaction, as determined by the seller using either the seller's purchase price or the sales price, but not a combination of both.

SB446, s. 23 Section 23. 77.51 (1fm) of the statutes is created to read:

SB446,12,4 77.51 (1fm) "Candy" means a preparation of sugar, honey, or other natural or artificial sweetener combined with chocolate, fruit, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces. "Candy" does not include a preparation that contains flour or that requires refrigeration.

SB446, s. 24 Section 24. 77.51 (1n) of the statutes is created to read:

SB446,12,8 77.51 (1n) "Computer" means an electronic device that accepts information in digital or similar form and that manipulates such information to achieve a result based on a sequence of instructions.

SB446, s. 25 Section 25. 77.51 (1p) of the statutes is created to read:

SB446,12,11 77.51 (1p) "Computer software" means a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task.

SB446, s. 26 Section 26. 77.51 (1r) of the statutes is created to read:

SB446,12,16 77.51 (1r) "Conference bridging service" means an ancillary service that links 2 or more participants of an audio or video conference call and may include providing a telephone number, but does not include the telecommunications services used to reach the conference bridge.

SB446, s. 27 Section 27. 77.51 (2k) of the statutes is created to read:

SB446,12,19 77.51 (2k) "Delivered electronically" means delivered to a purchaser by means other than by tangible storage media.

SB446, s. 28 Section 28. 77.51 (2m) of the statutes is created to read:

SB446,12,24 77.51 (2m) "Delivery charges" means charges by a seller to prepare and deliver tangible personal property or services to a location designated by the purchaser of the tangible personal property or services, including charges for transportation, shipping, postage, handling, crating, and packing.

SB446, s. 29 Section 29. 77.51 (3c) of the statutes is created to read:

SB446,13,3 77.51 (3c) "Detailed telecommunications billing service" means an ancillary service that separately indicates information pertaining to individual calls on a customer's billing statement.

SB446, s. 30 Section 30. 77.51 (3n) of the statutes is created to read:

SB446,13,6 77.51 (3n) "Dietary supplement" means a product, other than tobacco, that is intended to supplement a person's diet, if all of the following apply:

SB446,13,8 (a) The product contains any of the following ingredients or any combination of any of the following ingredients:

SB446,13,9 1. A vitamin.

SB446,13,10 2. A mineral.

SB446,13,11 3. An herb or other botanical.

SB446,13,12 4. An amino acid.

SB446,13,14 5. A dietary substance that is intended for human consumption to supplement the diet by increasing total dietary intake.

SB446,13,15 6. A concentrate, metabolite, constituent, or extract.

SB446,13,19 (b) The product is intended for ingestion in tablet, capsule, powder, soft-gel, gel-cap, or liquid form, or, if not intended for ingestion in such forms, is not represented as conventional food and is not represented for use as the sole item of a meal or diet.

SB446,13,21 (c) The product is required to be labeled as a dietary supplement as required under 21 CFR 101.36.

SB446, s. 31 Section 31. 77.51 (3pd) of the statutes is created to read:

SB446,14,8 77.51 (3pd) "Direct mail" means printed material that is delivered by the U.S. postal service or other delivery service to a mass audience or to addressees on a mailing list provided by or at the direction of the purchaser of the printed material, if the cost of the printed material or any tangible personal property or items or property under s. 77.52 (1) (b) or (c) included with the printed material is not billed directly to the recipients of the printed material. "Direct mail" includes any tangible personal property or items or property under s. 77.52 (1) (b) or (c) provided directly or indirectly by the purchaser of the printed material to the seller of the printed material for inclusion in any package containing the printed material, including billing invoices, return envelopes, and additional marketing materials. "Direct mail" does not include multiple items of printed material delivered to a single address.

SB446, s. 32 Section 32. 77.51 (3pe) of the statutes is created to read:

SB446,14,11 77.51 (3pe) "Directory assistance" means an ancillary service that provides telephone numbers or addresses.

SB446, s. 33 Section 33. 77.51 (3pf) of the statutes is created to read:

SB446,14,14 77.51 (3pf) "Distinct and identifiable product" does not include any of the following:

SB446,14,17 (a) Packaging, including containers, boxes, sacks, bags, bottles, and envelopes; and other materials, including wrapping, labels, tags, and instruction guides; that accompany, and are incidental or immaterial to, the retail sale of any product.

SB446,14,21 (b) A product that is provided free of charge to the consumer in conjunction with the purchase of another product, if the sales price of the other product does not vary depending on whether the product provided free of charge is included in the transaction.

SB446,14,22 (c) Any items specified under sub. (12m) (a) or (15b) (a).

SB446, s. 34 Section 34. 77.51 (3pj) of the statutes is created to read:

SB446,15,3 77.51 (3pj) "Drug" means a compound, substance, or preparation, or any component of them, other than food and food ingredients, dietary supplements, or alcoholic beverages, to which any of the following applies:

SB446,15,6 (a) It is listed in the United States Pharmacopoeia, Homeopathic Pharmacopoeia of the United States, or National Formulary, or any supplement to any of them.

SB446,15,8 (b) It is intended for use in diagnosing, curing, mitigating, treating, or preventing a disease.

SB446,15,9 (c) It is intended to affect a function or structure of the body.

SB446, s. 35 Section 35. 77.51 (3pm) of the statutes is created to read:

SB446,15,16 77.51 (3pm) "Durable medical equipment" means equipment, including the repair parts and replacement parts for the equipment that is primarily and customarily used for a medical purpose related to a person; that can withstand repeated use; that is not generally useful to a person who is not ill or injured; and that is not placed in or worn on the body. "Durable medical equipment" does not include mobility-enhancing equipment.

SB446, s. 36 Section 36. 77.51 (3pn) of the statutes is created to read:

SB446,15,21 77.51 (3pn) "Eight hundred service" means a telecommunications service that allows a caller to dial a toll-free number without incurring a charge for the call and is marketed under "800," "855," "866," "877," or "888" toll-free calling, or any other number designated as toll-free by the federal communications commission.

SB446, s. 37 Section 37. 77.51 (3po) of the statutes is created to read:

SB446,15,24 77.51 (3po) "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.

SB446, s. 38 Section 38. 77.51 (3rm) of the statutes is created to read:

SB446,16,2 77.51 (3rm) "Fixed wireless service" means a telecommunications service that provides radio communication between fixed points.

SB446, s. 39 Section 39. 77.51 (3t) of the statutes is created to read:

SB446,16,7 77.51 (3t) "Food and food ingredient" means a substance in liquid, concentrated, solid, frozen, dried, or dehydrated form, that is sold for ingestion, or for chewing, by humans and that is ingested or chewed for its taste or nutritional value. "Food and food ingredient" does not include alcoholic beverages or tobacco.

SB446, s. 40 Section 40. 77.51 (4) of the statutes, as affected by 2007 Wisconsin Acts 11 and 20, is repealed.

SB446, s. 41 Section 41. 77.51 (5) of the statutes is amended to read:

SB446,16,18 77.51 (5) For purposes of subs. (13) (e) and (f) and (14) (L) (15a) and s. 77.52 (2m), "incidental" means depending upon or appertaining to something else as primary; something necessary, appertaining to, or depending upon another which is termed the principal; something incidental to the main purpose of the service. Tangible personal property or items or property under s. 77.52 (1) (b) or (c) transferred by a service provider is incidental to the service if the purchaser's main purpose or objective is to obtain the service rather than the property or items, even though the property or items may be necessary or essential to providing the service.

SB446, s. 42 Section 42. 77.51 (5d) of the statutes is created to read:

SB446,16,24 77.51 (5d) "International telecommunications services" means telecommunications services that originate or terminate in the United States, including the District of Columbia and any U.S. territory or possession and originate or terminate outside of the United States, including the District of Columbia and any U.S. territory or possession.

SB446, s. 43 Section 43. 77.51 (5n) of the statutes is created to read:

SB446,17,3 77.51 (5n) "Interstate telecommunications services" means telecommunications services that originate in one state or U.S. territory or possession and terminate in a different state or U.S. territory or possession.

SB446, s. 44 Section 44. 77.51 (5r) of the statutes is created to read:

SB446,17,7 77.51 (5r) "Intrastate telecommunications services" means telecommunications services that originate in one state or U.S. territory or possession and terminate in the same state or U.S. territory or possession.

SB446, s. 45 Section 45. 77.51 (6m) of the statutes is renumbered 77.51 (5m).

SB446, s. 46 Section 46. 77.51 (7) of the statutes is repealed and recreated to read:

SB446,17,12 77.51 (7) (a) "Lease or rental" means any transfer of possession or control of tangible personal property for a fixed or indeterminate term and for consideration and includes:

SB446,17,13 1. A transfer that includes future options to purchase or extend.

SB446,17,17 2. Agreements related to the transfer of possession or control of motor vehicles or trailers, if the amount of any consideration may be increased or decreased by reference to the amount realized on the sale or other disposition of such motor vehicles or trailers, consistent with section 7701 (h) (1) of the Internal Revenue Code.

SB446,17,18 (b) "Lease or rental" does not include any of the following:

SB446,17,22 1. A transfer of possession or control of tangible personal property under a security agreement or deferred payment plan, if such agreement or plan requires transferring title to the tangible personal property after making all required payments.

SB446,18,2 2. A transfer of possession or control of tangible personal property under any agreement that requires transferring title to the tangible personal property after making all required payments and after paying an option price that does not exceed the greater of $100 or 1 percent of the total amount of the required payments.

SB446,18,6 3. Providing tangible personal property along with an operator, if the operator is necessary for the tangible personal property to perform in the manner for which it is designed and if the operator does more than maintain, inspect, or set up the tangible personal property.

SB446,18,10 (c) 1. Transfers described under par. (a) are considered a lease or rental, regardless of whether such transfer is considered a lease or rental under generally accepted accounting principles, or any provision of federal or local law, or any other provision of state law.

SB446,18,14 2. Transfers described under par. (b) are not considered a lease or rental, regardless of whether such transfer is considered a lease or rental under generally accepted accounting principles, or any provision of federal or local law, or any other provision of state law.

SB446, s. 47 Section 47. 77.51 (7g) of the statutes is created to read:

SB446,18,17 77.51 (7g) "Load-and-leave" means delivery to a purchaser by using a tangible storage media that is not physically transferred to the purchaser.

SB446, s. 48 Section 48. 77.51 (7k) of the statutes is created to read:

SB446,18,23 77.51 (7k) "Mobile wireless service" means a telecommunications service for which the origination or termination points of the service's transmission, conveyance, or routing are not fixed, regardless of the technology used to transmit, convey, or route the service. "Mobile wireless service" includes a telecommunications service provided by a commercial mobile radio service provider.

SB446, s. 49 Section 49. 77.51 (7m) of the statutes is created to read:

SB446,19,8 77.51 (7m) "Mobility-enhancing equipment" means equipment, including the repair parts and replacement parts for the equipment, that is primarily and customarily used to provide or increase the ability of a person to move from one place to another; that may be used in a home or motor vehicle; and that is generally not used by a person who has normal mobility. "Mobility-enhancing equipment" does not include a motor vehicle or any equipment on a motor vehicle that is generally provided by a motor vehicle manufacturer. "Mobility-enhancing equipment" does not include durable medical equipment.

SB446, s. 50 Section 50. 77.51 (8m) of the statutes is created to read:

SB446,19,17 77.51 (8m) "Nine hundred service" means an inbound toll telecommunications service purchased by a subscriber that allows the subscriber's customers to call the subscriber's prerecorded announcement or live service. "Nine hundred service" does not include any charge for collection services provided by the seller of the telecommunications services to the subscriber or for any product or service the subscriber sells to the subscriber's customers. A "nine hundred service" is designated with the "900" number or any other number designated by the federal communications commission.

SB446, s. 51 Section 51. 77.51 (9) (a) of the statutes is amended to read:

SB446,20,4 77.51 (9) (a) Isolated and sporadic sales of tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services where the infrequency, in relation to the other circumstances, including the sales price and the gross profit, support the inference that the seller is not pursuing a vocation, occupation or business or a partial vocation or occupation or part-time business as a vendor of personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services. No sale of any tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable service may be deemed an occasional sale if at the time of such sale the seller holds or is required to hold a seller's permit, except that this provision does not apply to an organization required to hold a seller's permit solely for the purpose of conducting bingo games and except as provided in par. (am).

SB446, s. 52 Section 52. 77.51 (9) (am) of the statutes is amended to read:

SB446,20,11 77.51 (9) (am) The sale of personal property, other than inventory held for sale, previously used by a seller to conduct its trade or business at a location after that person has ceased actively operating in the regular course of business as a seller of tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services at that location, even though the seller holds a seller's permit for one or more other locations.

SB446, s. 53 Section 53. 77.51 (9p) of the statutes is created to read:

SB446,20,17 77.51 (9p) "One nonitemized price" does not include a price that is separately identified by product on a binding sales document, or other sales-related document, that is made available to the customer in paper or electronic form, including an invoice, a bill of sale, a receipt, a contract, a service agreement, a lease agreement, a periodic notice of rates and services, a rate card, or a price list.

SB446, s. 54 Section 54. 77.51 (9s) of the statutes is created to read: