AB64: Bill Text

AB64,593,9 b. Handheld electronic schedulers, not including cellular phones.

AB64,593,10 c. Personal digital assistants, not including cellular phones.

AB64,593,11 d. Computer printers.

AB64,593,12 e. Printer supplies for computers, printer paper, and printer ink.

AB64,593,16 9. “School instructional material" means any of the following that is commonly used by a student in a course of study as a reference and to learn the subject being taught, but not including a school art supply, school computer supply, or school supply:

AB64,593,17 a. Reference books.

AB64,593,18 b. Reference maps and globes.

AB64,593,19 c. Textbooks.

AB64,593,20 d. Workbooks.

AB64,593,23 10. “School supply" means any of the following items that are commonly used by a student in a course of study, but not including a school art supply, school computer supply, or school instructional material:

AB64,593,24 a. Binders.

AB64,593,25 b. Book bags.

AB64,594,1 c. Calculators.

AB64,594,2 d. Cellophane tape.

AB64,594,3 e. Blackboard chalk.

AB64,594,4 f. Compasses.

AB64,594,5 g. Composition books.

AB64,594,6 h. Crayons.

AB64,594,7 i. Erasers.

AB64,594,8 j. Folders.

AB64,594,9 k. Glue, paste, and paste sticks.

AB64,594,10 L. Highlighters.

AB64,594,11 m. Index cards.

AB64,594,12 n. Index card boxes.

AB64,594,13 o. Legal pads.

AB64,594,14 p. Lunch boxes.

AB64,594,15 q. Markers.

AB64,594,16 r. Notebooks.

AB64,594,18 s. Loose-leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, and construction paper.

AB64,594,19 t. Pencil boxes and other school supply boxes.

AB64,594,20 u. Pencil sharpeners.

AB64,594,21 v. Pencils.

AB64,594,22 w. Pens.

AB64,594,23 x. Protractors.

AB64,594,24 y. Rulers.

AB64,594,25 z. Scissors.

AB64,595,1 za. Writing tablets.

AB64,595,6 11. “Sport or recreational equipment” means items designed for human use and worn in conjunction with an athletic or recreational activity. “Sport or recreational equipment” does not include items suitable for general use, clothing, clothing accessories or equipment, or protective equipment. “Sport or recreational equipment” includes:

AB64,595,7 a. Ballet and tap shoes.

AB64,595,8 b. Athletic shoes with cleats or spikes.

AB64,595,9 c. Gloves.

AB64,595,10 d. Goggles.

AB64,595,11 e. Hand and elbow guards.

AB64,595,12 f. Life preservers and vests.

AB64,595,13 g. Mouth guards.

AB64,595,14 h. Roller skates.

AB64,595,15 i. Ice skates.

AB64,595,16 j. Shin guards.

AB64,595,17 k. Shoulder pads.

AB64,595,18 L. Ski boots.

AB64,595,19 m. Waders.

AB64,595,20 n. Wetsuits and fins.

AB64,595,23 (b) For the 2-day period beginning on the first Saturday in August and ending on the following Sunday, the sales price from the sale of and the storage, use, or other consumption of the following:

AB64,595,24 1. Clothing, if the sales price of any single item is no more than $75.

AB64,596,2 2. A computer purchased by the consumer for the consumer's personal use, if the sales price of the computer is no more than $750.

AB64,596,4 3. School computer supplies purchased by the consumer for the consumer's personal use, if the sales price of any single item is no more than $250.

AB64,596,5 4. School supplies, if the sales price of any single item is no more than $75.

AB64,596,6 (c) The exemption under this subsection shall be administered as follows:

AB64,596,8 1. A sale of eligible property under a layaway sale qualifies for exemption if either of the following applies:

AB64,596,10 a. Final payment on a layaway order is made by, and the property is given to, the purchaser during the exemption period.

AB64,596,13 b. The purchaser selects the property and the retailer accepts the order for the item during the exemption period, for immediate delivery upon full payment, even if delivery is made after the exemption period.

AB64,596,16 2. The bundled transaction provisions under subs. (51) and (52) and ss. 77.51 (1f) and (3pf) and 77.52 (20), (21), (22), and (23) apply in the same manner during the exemption period under this subsection as they apply in other periods.

AB64,596,25 3. A discount by the seller reduces the sales price of the property and the discounted sales price determines whether the sales price is within the price threshold in par. (b). A coupon that reduces the sales price is treated as a discount if the seller is not reimbursed for the coupon amount by a 3rd party. If a discount applies to the total amount paid by a purchaser rather than to the sales price of a particular item and the purchaser has purchased both eligible property and taxable property, the seller shall allocate the discount based on the total sales prices of the taxable property compared to the total sales prices of all property sold in that same transaction.

AB64,597,3 4. Products that are normally sold as a single unit shall be sold in that manner and may not be divided into multiple units and sold as individual items in order to obtain the exemption under this subsection.

AB64,597,8 5. Eligible property that is purchased during the exemption period with the use of a rain check qualifies for the exemption regardless of when the rain check was issued. Items purchased after the exemption period with the use of a rain check are not eligible property under this subsection even if the rain check was issued during the exemption period.

AB64,597,10 6. The procedure for an exchange with regard to the exemption under this subsection is as follows:

AB64,597,14 a. If a purchaser purchases an item of eligible property during the exemption period, but later exchanges the item for a similar item of eligible property, even if different in size, color, or another feature, no additional tax is due even if the exchange is made after the exemption period.

AB64,597,18 b. If a purchaser purchases an item of eligible property during the exemption period, but after the exemption period has ended, the purchaser returns the item and receives credit on the purchase of a different item, the appropriate sales tax is due on the sale of the different item.

AB64,597,22 c. If a purchaser purchases an item of eligible property before the exemption period, but during the exemption period the purchaser returns the item and receives credit on the purchase of a different item of eligible property, no sales tax is due on the sale of the new item if the new item is purchased during the exemption period.

AB64,598,9 7. Delivery charges, including shipping, handling, and service charges, are part of the sales price of eligible property. For the purpose of determining the price threshold under par. (b), if all the property in a shipment qualifies as eligible property and the sales price for each item in the shipment is within the price threshold under par. (b), the shipment is considered a sale of eligible property and the seller does not have to allocate the delivery, handling, or service charge to determine if the price threshold under par. (b) is exceeded. If the shipment includes eligible property and taxable property, including an item of eligible property with a sales price in excess of the price threshold, the seller shall allocate the delivery, handling, and service charge by using one of the following methods and shall apply the tax to the percentage of the delivery, handling, and service charge allocated to the taxable property:

AB64,598,11 a. A percentage based on the total sales price of the taxable property compared to the total sales price of all property in the shipment.

AB64,598,13 b. A percentage based on the total weight of the taxable property compared to the total weight of all property in the shipment.

AB64,598,15 8. Eligible property qualifies for exemption under this subsection if either of the following applies:

AB64,598,17 a. The item is both delivered to and paid for by the customer during the exemption period.

AB64,599,2 b. The purchaser orders and pays for the item and the seller accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period. For purposes of this subdivision, the seller accepts an order when the seller has taken action to fill the order for immediate shipment. Actions to fill an order include placement of an in date stamp on a mail order or assignment of an order number to a telephone order. For purposes of this subdivision, an order is for immediate shipment when the customer does not request delayed shipment and regardless of whether the shipment is delayed because of a backlog of orders or because stock is currently unavailable, or on back order, by the seller.

AB64,599,7 9. For a 60-day period immediately after the exemption period under this subsection, when a purchaser returns an item that would qualify for the exemption, no credit for or refund of sales tax shall be given unless the purchaser provides a receipt or invoice that shows tax was paid or the seller has sufficient documentation to show that tax was paid on the specific item.

AB64,599,10 10. The time zone of the seller's location determines the authorized period for the exemption under this subsection when the retailer and purchaser are located in different time zones.

AB64,599,11 (d) This subsection does not apply in 2019 or in any year thereafter.

AB64,1195 Section 1195. 77.59 (3) of the statutes is amended to read:

AB64,599,25 77.59 (3) No determination of the tax liability of a person may be made unless written notice of the determination is given to the person within 4 years after the due date of the person's Wisconsin income or franchise tax return that corresponds to the date the sale or purchase was completed or, if exempt, within 4 years of the 15th day of the 4th month of the year following the close of the calendar or fiscal year that corresponds to the date the sale or purchase was completed; within 4 years of the dissolution of a corporation; or within 4 years of the date any sales and use tax return required to be filed for any period in that year was filed, whichever is later. The notice required under this paragraph shall specify whether the determination is an office audit determination or a field audit determination, and it shall be in writing. If the department is unable to obtain service by mail as provided in s. 73.03 (73), publication of it as a class 3 notice, under ch. 985, shall be service of notice in any case where notice is required under this subchapter.

AB64,1196 Section 1196. 77.59 (5r) of the statutes is created to read:

AB64,600,10 77.59 (5r) A seller who continues to collect tax erroneously on a product after receiving 2 or more written notices from the department indicating that the product is not taxable is entitled to an adjustment or a refund of the tax collected only if the seller returns the tax and related interest to the buyers from whom the seller collected the tax. The seller shall submit the tax and related interest to the buyers, or to the department if the seller can not locate the buyers, no later than 90 days after the date of the adjustment or refund. If the seller does not submit the tax and related interest to the buyers or to the department before the end of the 90-day period, the seller is subject to the penalties described in sub. (5m).

AB64,1197 Section 1197. 77.59 (7) of the statutes is amended to read:

AB64,600,25 77.59 (7) If the department believes that the collection of any tax imposed by this subchapter will be jeopardized by delay, it shall notify the person determined to owe the tax of its intention to proceed under s. 71.91 (5) for collection of the amount determined to be owing, including penalties and interest. Such notice shall be by certified or registered mail or by personal service served as provided in s. 73.03 (73) and the warrant of the department shall not issue if the person, within 10 days after such notice furnishes a bond in such amount not exceeding double the amount determined to be owing and with such sureties as the department approves, conditioned upon the payment of so much of the taxes, interest, and penalties as shall finally be determined to be due. Nothing in this subsection shall affect the review of determinations of tax as provided in this subchapter and any amounts collected under this subsection shall be deposited with the department and disbursed after final determination of the taxes as are amounts deposited under ss. 71.89 (1) and 71.90 (2).

AB64,1198 Section 1198. 77.78 of the statutes is amended to read:

AB64,601,9 77.78 Registration. No motor vehicle, boat, snowmobile, recreational vehicle, as defined in s. 340.01 (48r), trailer, semitrailer, all-terrain vehicle, utility terrain vehicle, off-highway motorcycle, as defined in s. 23.335 (1) (q), or aircraft that is required to be registered by this state may be registered or titled by this state unless the registrant files a sales and use tax report and pays the county tax and special district tax at the time of registering or titling to the state agency that registers or titles the property. That state agency shall transmit those tax revenues to the department of revenue.

AB64,1199 Section 1199. 77.82 (2m) (d) of the statutes is amended to read:

AB64,601,12 77.82 (2m) (d) All of the application recording fees collected under par. (a) shall be credited to the appropriation under s. 20.370 (1) (2) (cr).

AB64,1200 Section 1200. 77.82 (2m) (dm) 1. of the statutes is amended to read: