AB547: Bill Text

AB547,6,10 (d) Issue a tax identification number to a person who claims an exemption under subch. III or V of ch. 77 and who is not required to register with the department for the purposes of subch. III or V of ch. 77 and establish procedures for the registration of such a person.

AB547,6,14 (e) Maintain a database that is accessible to sellers and certified service providers, as defined in s. 77.51 (1g), that indicates whether items defined in accordance with the Uniform Sales and Use Tax Administration Act are taxable or nontaxable.

AB547,6,18 (f) Maintain a database that is accessible to sellers and certified service providers, as defined in s. 77.51 (1g), that indicates tax rates, taxing jurisdiction boundaries, and zip code or address assignments related to the administration of taxes imposed under subchs. III and V of ch. 77.

AB547,6,21 (g) Set forth the information that the seller shall provide to the department for tax exemptions claimed by purchasers and establish the manner in which a seller shall provide such information to the department.

AB547,6,25 (h) Provide monetary allowances, in addition to the retailer's discount provided under s. 77.61 (4) (c), to certified service providers, as defined in s. 77.51 (1g), and sellers that use certified automated systems, as defined in s. 77.524 (1) (am), or proprietary systems, pursuant to the agreement as defined in s. 77.65 (2) (a).

AB547, s. 8 Section 8. 76.07 (4g) (b) 8. of the statutes is amended to read:

AB547,7,8 76.07 (4g) (b) 8. Determine transport-related revenue by adding public service revenue allocated to this state on the basis of routes for which the company is authorized to receive subsidy payments, mutual aid allocated to this state on the basis of the ratio of transport revenues allocated to this state to transport revenues everywhere in the previous year, in-flight sales allocated to this state as they are allocated under s. 77.51 (14r) 77.522 and all other transport-related revenues from sales made in this state.

AB547, s. 9 Section 9. 77.51 (1) of the statutes is renumbered 77.51 (1d).

AB547, s. 10 Section 10. 77.51 (1b) of the statutes is created to read:

AB547,7,12 77.51 (1b) "Alcohol beverage" means a beverage that is suitable for human consumption and that contains 0.5 percent or more of alcohol by volume.

AB547, s. 11 Section 11. 77.51 (1e) of the statutes is created to read:

AB547,7,17 77.51 (1e) "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.

AB547, s. 12 Section 12. 77.51 (1n) of the statutes is created to read:

AB547,7,21 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.

AB547, s. 13 Section 13. 77.51 (1p) of the statutes is created to read:

AB547,7,24 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.

AB547, s. 14 Section 14. 77.51 (2k) of the statutes is created to read:

AB547,8,2 77.51 (2k) "Delivered electronically" means delivered to a purchaser by means other than by tangible storage media.

AB547, s. 15 Section 15. 77.51 (2m) of the statutes is created to read:

AB547,8,7 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.

AB547, s. 16 Section 16. 77.51 (3p) of the statutes is created to read:

AB547,8,10 77.51 (3p) "Dietary supplement" means a product, other than tobacco, that is intended to supplement a person's diet, if all of the following apply:

AB547,8,12 (a) The product contains any of the following ingredients or any combination of any of the following ingredients:

AB547,8,13 1. A vitamin.

AB547,8,14 2. A mineral.

AB547,8,15 3. An herb or other botanical.

AB547,8,16 4. An amino acid.

AB547,8,18 5. A dietary substance that is intended for human consumption to supplement the diet by increasing total dietary intake.

AB547,8,19 6. A concentrate, metabolite, constituent, or extract.

AB547,8,23 (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.

AB547,8,25 (c) The product is required to be labeled as a dietary supplement as required under 21 CFR 101.36.

AB547, s. 17 Section 17. 77.51 (3pd) of the statutes is created to read:

AB547,9,10 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 included with the printed material is not billed directly to the recipients of the printed material. "Direct mail" includes any tangible personal property provided directly or indirectly by the purchaser of the printed material to the seller of the printed material for inclusion in any package containing printed material. "Direct mail" does not include multiple items of printed material delivered to a single address.

AB547, s. 18 Section 18. 77.51 (3pj) of the statutes is created to read:

AB547,9,14 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:

AB547,9,17 (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.

AB547,9,19 (b) It is intended for use in diagnosing, curing, mitigating, treating, or preventing a disease.

AB547,9,20 (c) It is intended to affect a function or structure of the body.

AB547, s. 19 Section 19. 77.51 (3pm) of the statutes is created to read:

AB547,9,25 77.51 (3pm) "Durable medical equipment" means equipment, including the repair parts and replacement parts for the equipment, that is for use in a person's home; 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.

AB547, s. 20 Section 20. 77.51 (3pp) of the statutes is created to read:

AB547,10,5 77.51 (3pp) "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.

AB547, s. 21 Section 21. 77.51 (3t) of the statutes is created to read:

AB547,10,10 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 alcohol beverages or tobacco.

AB547, s. 22 Section 22. 77.51 (4) of the statutes, as affected by 2003 Wisconsin Act 48, is repealed.

AB547, s. 23 Section 23. 77.51 (5) of the statutes is amended to read:

AB547,10,21 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 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, even though the property may be necessary or essential to providing the service.

AB547, s. 24 Section 24. 77.51 (7) of the statutes is repealed and recreated to read:

AB547,10,25 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:

AB547,11,1 1. A transfer that includes future options to purchase or extend.

AB547,11,5 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.

AB547,11,6 (b) "Lease or rental" does not include any of the following:

AB547,11,10 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.

AB547,11,14 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.

AB547,11,18 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.

AB547,11,22 (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.

AB547,12,2 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.

AB547, s. 25 Section 25. 77.51 (7m) of the statutes is created to read:

AB547,12,10 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.

AB547, s. 26 Section 26. 77.51 (10m) of the statutes is created to read:

AB547,12,12 77.51 (10m) (a) "Prepared food" means:

AB547,12,13 1. Food and food ingredients sold in a heated state.

AB547,12,15 2. Food and food ingredients heated by the retailer, except as provided in par. (b).

AB547,12,19 3. Food and food ingredients sold with eating utensils that are provided by the retailer of the food and food ingredients, including plates, knives, forks, spoons, glasses, cups, napkins, and straws. In this subdivision, "plate" does not include a container or packaging used to transport food and food ingredients.

AB547,12,21 4. Except as provided in par. (b), 2 or more food ingredients mixed or combined by a retailer for sale as a single item.

AB547,12,22 (b) "Prepared food" under par. (a) 2. and 4. does not include:

AB547,13,2 1. Two or more food ingredients mixed or combined by a retailer for sale as a single item, if the retailer's primary classification in the 1997 North American Industry Classification System, published by the federal office of management and budget, is manufacturing under sectors 31 to 33, not including bakeries and tortilla manufacturing under industry group number 3118.

AB547,13,4 2. Two or more food ingredients mixed or combined by a retailer for sale as a single item, sold unheated, and sold by volume or weight.

AB547,13,7 3. Bakery items made by a retailer, including breads, rolls, pastries, buns, biscuits, bagels, croissants, donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, and tortillas.

AB547,13,9 4. Food and food ingredients that are only sliced, repackaged, or pasteurized by a retailer.

AB547,13,13 5. Eggs, fish, meat, and poultry, and foods containing any of them in raw form, that require cooking by the consumer, as recommended by the food and drug administration in chapter 3, part 401.11 of its food code to prevent food-borne illnesses.

AB547, s. 27 Section 27. 77.51 (10n) of the statutes is created to read:

AB547,13,17 77.51 (10n) "Prescription" means an order, formula, or recipe that is issued by any oral, written, electronic, or other means of transmission and by a person who is authorized by the laws of this state to issue such an order, formula, or recipe.

AB547, s. 28 Section 28. 77.51 (10r) of the statutes is created to read:

AB547,13,19 77.51 (10r) "Prewritten computer software" means any of the following:

AB547,13,21 (a) Computer software that is not designed and developed by the author or creator of the software according to a specific purchaser's specifications.

AB547,13,23 (b) Computer software upgrades that are not designed and developed by the author or creator of the software according to a specific purchaser's specifications.

AB547,14,3 (c) Computer software that is designed and developed by the author or creator of the software according to a specific purchaser's specifications and that is sold to another purchaser.

AB547,14,5 (d) Any combination of computer software under pars. (a) to (c), including any combination with any portion of such software.

AB547,14,10 (e) Computer software as described under pars. (a) to (d), and any portion of such software, that is modified or enhanced by any degree to a specific purchaser's specifications, except such modification or enhancement that is reasonably and separately indicated on an invoice, or other statement of the price, provided to the purchaser.

AB547, s. 29 Section 29. 77.51 (11m) of the statutes is created to read:

AB547,14,15 77.51 (11m) "Prosthetic device" means a device, including the repair parts and replacement parts for the device, that is placed in or worn on the body to artificially replace a missing portion of the body; to prevent or correct a physical deformity or malfunction; or to support a weak or deformed portion of the body.

AB547, s. 30 Section 30. 77.51 (12m) of the statutes is created to read:

AB547,14,20 77.51 (12m) (a) "Purchase 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 paid in money or otherwise, without any deduction for the following:

AB547,14,21 1. The seller's cost of the property sold.

AB547,14,24 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.

AB547,15,2 3. Charges by the seller for any services necessary to complete a sale, not including delivery and installation charges.

AB547,15,3 4. Delivery charges, except as provided in par. (b) 4.

AB547,15,4 5. Installation charges.