SB267,28,1817
1. "Direct mail form" means a form for direct mail prescribed by the
18department.
SB267,28,2019
2. "Multiple-points-of-use exemption form" means the
20multiple-points-of-use exemption form, as prescribed by the department.
SB267,28,2121
3. "Product" includes tangible personal property, digital goods, and services.
SB267,28,2522
4. "Receive" means taking possession of tangible personal property; making
23first use of services; or taking possession or making first use of digital goods,
24whichever comes first. "Receive" does not include a shipping company taking
25possession of tangible personal property on a purchaser's behalf.
SB267,29,1
15. "Transportation equipment" means all of the following:
SB267,29,32
a. Locomotives and railcars that are used to carry persons or property in
3interstate commerce.
SB267,29,84
b. Trucks and truck tractors that have a gross vehicle weight rating of 10,001
5pounds or greater, trailers, semitrailers, and passenger buses, if such vehicles are
6registered under the International Registration Plan and operated under the
7authority of a carrier that is authorized by the federal government to carry persons
8or property in interstate commerce.
SB267,29,119
c. Aircraft that is operated by air carriers that are authorized by the federal
10government or a foreign authority to carry persons or property in interstate
11commerce.
SB267,29,1312
d. Containers that are designed for use on the vehicles described in subd. 5. a.
13to c. and component parts attached to or secured on such vehicles.
SB267,29,1514
(b) Except as provided in pars. (c) to (d) and subs. (2), (3), (4), and (5), the
15location of a sale is determined as follows:
SB267,29,1716
1. If a purchaser receives the product at a seller's business location, the sale
17occurs at that business location.
SB267,29,2118
2. If a purchaser does not receive the product at a seller's business location, the
19sale occurs at the location where the purchaser, or the purchaser's designated donee,
20receives the product, including the location indicated by the instructions known to
21the seller for delivery to the purchaser or the purchaser's designated donee.
SB267,29,2522
3. If the location of a sale of a product cannot be determined under subds. 1. and
232., the sale occurs at the purchaser's address as indicated by the seller's business
24records, if the records are maintained in the ordinary course of the seller's business
25and if using that address to establish the location of a sale is not in bad faith.
SB267,30,4
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.
SB267,30,65
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:
SB267,30,87
a. If the item sold is tangible personal property, the sale occurs at the location
8from which the tangible personal property is shipped.
SB267,30,119
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.
SB267,30,1312
c. If a service is sold, the sale occurs at the location from which the service was
13provided.
SB267,30,2014
(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 to the seller, the purchaser shall pay or remit, as
19appropriate, to the department the tax imposed under s. 77.53 (1) on all purchases
20for which the tax is due and the seller is relieved from liability for collecting such tax.
SB267,31,421
(d) 1. If the service, digital good, or computer software is delivered
22electronically, a business purchaser who purchases a service, digital good, or
23computer software who does not hold a direct pay permit under s. 77.52 (17m), and
24who knows at the time that the purchaser purchases such service, good, or software
25that the service, good, or software will be concurrently available for use in more than
1one taxing jurisdiction shall provide a multiple-points-of-use exemption form to the
2seller, in conjunction with the purchase, and shall pay or remit, as appropriate, to the
3department the tax imposed under s. 77.53 (1) on all purchases for which the tax is
4due.
SB267,31,85
2. To apportion the amount of the tax due multiple taxing jurisdictions, a
6purchaser who provides an exemption form under subd. 1. shall use any reasonable,
7consistent, and uniform apportionment method supported by the purchaser's
8business records that exist at the time of the sale.
SB267,31,129
3. An exemption form provided under subd. 1. shall remain effective for all sales
10by the seller who received the form to the purchaser who provided the form, unless
11the purchaser revokes the form in writing and provides such a revocation to the
12seller.
SB267,31,2113
4. If the service, digital good, or computer software is delivered electronically,
14a business purchaser who purchases a service, digital good, or computer software,
15who holds a direct pay permit under s. 77.52 (17m), and who knows at the time that
16the purchaser purchases such service, good, or software that the service, good, or
17software will be concurrently available for use in more than one taxing jurisdiction
18is not required to provide a multiple-points-of-use exemption form to the seller, but
19shall collect, pay, or remit, as appropriate, to the department the tax imposed under
20s. 77.53 (1) and shall use the apportionment method described under par. (b) to
21apportion the tax due multiple taxing jurisdictions.
SB267,31,2422
5. A seller who receives a multiple-points-of-use exemption form under this
23paragraph is relieved from liability for collecting the tax imposed under s. 77.53 (1)
24on purchases related to the multiple-points-of-use exemption form.
SB267,32,10
1(2) Lease or rental. (a) Except as provided in pars. (b) and (c), with regards
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) 1. If the
4property is moved from the place where the property was initially delivered, the
5subsequent periodic payments on the lease or rental occur at the property's primary
6location as indicated by an address for the property that is provided by the lessee and
7that is available to the lessor in records that the lessor maintains in the ordinary
8course of the lessor's business, if the use of such an address does not constitute bad
9faith. The location of a lease or rental as determined under this paragraph shall not
10be altered by any intermittent use of the property at different locations.
SB267,32,1811
(b) The lease or rental of motor vehicles, semitrailers, and aircraft, that are not
12transportation equipment, occurs at the primary location of such motor vehicles,
13semitrailers, or aircraft as indicated by an address for the property that is provided
14by the lessee and that is available to the lessor in records that the lessor maintains
15in the ordinary course of the lessor's business, if the use of such an address does not
16constitute bad faith. The location of a lease or rental as determined under this
17paragraph shall not be altered by any intermittent use of the property at different
18locations.
SB267,32,2019
(c) The lease or rental of transportation equipment occurs at the location
20determined under sub. (1) (b) 1.
SB267,32,21
21(3) Telecommunications. (a) In this subsection:
SB267,32,2422
1. "Air-to-ground radiotelephone service" means a radio service in which
23common carriers are authorized to offer and provide radio telecommunications
24service for hire to subscribers in aircraft.
SB267,33,2
12. "Call-by-call basis" means any method of charging for telecommunications
2services by which the price of such services is measured by individual calls.
SB267,33,53
3. "Communications channel" means a physical or virtual path of
4communications over which signals are transmitted between or among customer
5channel termination points.
SB267,33,126
4. "Customer" means a person who enters into a contract with a seller of
7telecommunications services or, in any transaction for which the end user is not the
8person who entered into a contract with the seller of telecommunications services,
9the end user of the telecommunications services. "Customer" does not include a
10person who resells telecommunications services or, for mobile telecommunications
11services, a serving carrier under an agreement to serve a customer outside the home
12service provider's licensed service area.
SB267,33,1413
5. "Customer channel termination point" means the location where a customer
14inputs or receives communications.
SB267,33,1515
6. "End user" means an individual who uses a telecommunications service.
SB267,33,1716
7. "Home service provider" means a home service provider under section 124
17(5) of P.L.
106-252.
SB267,33,1918
8. "Mobile telecommunications service" means a mobile telecommunications
19service under
4 USC 116 to
126, as amended by P.L.
106-252.
SB267,33,2120
9. "Place of primary use" means place of primary use, as determined under
4
21USC 116 to
126, as amended by P.L.
106-252.
SB267,34,322
10. "Postpaid calling service" means a telecommunications service that is
23obtained by paying for it on a call-by-call basis using a bankcard, travel card, credit
24card, debit card, or similar method, or by charging it to a telephone number that is
25not associated with the location where the telecommunications service originates or
1terminates. "Postpaid calling service" includes a service that would otherwise be a
2prepaid calling service except that the service provided to the customer is not
3exclusively a telecommunications service.
SB267,34,84
11. "Prepaid calling service" means the right to access services that are
5exclusively telecommunications services, if that right is paid for in advance of
6providing such services, requires using an access number or authorization code to
7originate calls, and is sold in predetermined units or dollars that decrease with use
8in a known amount.
SB267,34,159
12. "Private communication service" means a telecommunications service that
10entitles the customer to exclusive or priority use of a communications channel or
11group of communications channels between or among termination points, regardless
12of the manner in which the communications channel or group of communications
13channels is connected, and includes switching capacity, extension lines, stations, and
14other associated services that are provided in connection with the use of such channel
15or channels.
SB267,34,1716
13. "Radio service" means a communication service provided by the use of radio,
17including radiotelephone, radiotelegraph, paging, and facsimile service.
SB267,34,1918
14. "Radiotelegraph service" means transmitting messages from one place to
19another by means of radio.
SB267,34,2120
15. "Radiotelephone service" means transmitting sound from one place to
21another by means of radio.
SB267,35,222
(b) Except as provided in pars. (d) to (g), the sale of a telecommunications
23service that is sold on a call-by-call basis occurs in the taxing jurisdiction for sales
24and use tax purposes where the call originates and terminates, in the case of a call
25that originates and terminates in the same such jurisdiction, or the taxing
1jurisdiction for sales and use tax purposes where the call originates or terminates
2and where the service address is located.
SB267,35,53
(c) Except as provided in pars. (d) to (g), the sale of a telecommunications
4service that is sold on a basis other than a call-by-call basis occurs at the customer's
5place of primary use.
SB267,35,86
(d) The sale of a mobile telecommunications service, except an air-to-ground
7radiotelephone service and a prepaid calling service, occurs at the customer's place
8of primary use.
SB267,35,139
(e) The sale of a postpaid calling service occurs at the location where the signal
10of the telecommunications service originates, as first identified by the seller's
11telecommunications system or, if the signal is not transmitted by the seller's
12telecommunications system, by information that the seller received from the seller's
13service provider.
SB267,35,1814
(f) The sale of a prepaid calling service occurs at the location determined under
15sub. (1) (b), except that, if the service is a mobile telecommunications service and the
16location cannot be determined under sub. (1) (b) 1. to 4., the prepaid calling service
17occurs at the location determined under sub. (1) (b) 5. c. or at the location associated
18with the mobile telephone number, as determined by the seller.
SB267,35,2119
(g) 1. The sale of a private communication service for a separate charge related
20to a customer channel termination point occurs at the location of the customer
21channel termination point.
SB267,35,2522
2. The sale of a private communication service in which all customer channel
23termination points are located entirely in one taxing jurisdiction for sales and use
24tax purposes occurs in the taxing jurisdiction in which the customer channel
25termination points are located.
SB267,36,4
13. If the segments are charged separately, the sale of a private communication
2service that represents segments of a communications channel between 2 customer
3channel termination points that are located in different taxing jurisdictions for sales
4and use tax purposes occurs in an equal percentage in both such jurisdictions.
SB267,36,115
4. If the segments are not charged separately, the sale of a private
6communication service for segments of a communications channel that is located in
7more than one taxing jurisdiction for sales and use tax purposes occurs in each such
8jurisdiction in a percentage determined by dividing the number of customer channel
9termination points in that jurisdiction by the number of customer channel
10termination points in all jurisdictions where segments of the communications
11channel are located.
SB267,36,16
12(4) Florists. (a) For purposes of this subsection, "retail florist" means a person
13engaged in the business of selling cut flowers, floral arrangements, and potted plants
14and who prepares such flowers, floral arrangements, and potted plants. "Retail
15florist" does not include a person who sells cut flowers, floral arrangements, and
16potted plants primarily by mail or via the Internet.
SB267,36,2117
(b) The sale of tangible personal property by a retail florist who takes an order
18from a purchaser occurs at the location where the retail florist takes the order, if the
19retail florist forwards the order to another retail florist who is at a location other than
20the location of the florist who takes the order and who transfers the tangible personal
21property to a person identified by the purchaser.
SB267,36,2222
(c) This subsection does not apply to sales occurring on or after January 1, 2006.
SB267,37,3
23(5) When a sale occurs. A sale or purchase involving transfer of ownership
24of property is completed at the time when possession is transferred by the seller or
25the seller's agent to the purchaser or the purchaser's agent, except that for purposes
1of sub. (1) a common carrier or the U.S. postal service shall be considered the agent
2of the seller, regardless of any f.o.b. point and regardless of the method by which
3freight or postage is paid.
SB267, s. 66
4Section
66. 77.523 (title) of the statutes is repealed.
SB267, s. 67
5Section
67. 77.523 of the statutes is renumbered 77.59 (9p) (a) and amended
6to read:
SB267,38,37
77.59
(9p) (a) If a customer purchases a service that is subject to
4 USC 116 8to
126, as amended by P.L.
106-252, and if the customer believes that the amount
9of the tax assessed for the service under this subchapter or the place of primary use
10or taxing jurisdiction assigned to the service is erroneous, the customer may request
11that the service provider correct the alleged error by sending a written notice to the
12service provider. The notice shall include a description of the alleged error, the street
13address for the customer's place of primary use of the service, the account name and
14number of the service for which the customer seeks a correction, and any other
15information that the service provider reasonably requires to process the request.
16Within 60 days from the date that a service provider receives a request under this
17section paragraph, the service provider shall review its records to determine the
18customer's taxing jurisdiction. If the review indicates that there is no error as
19alleged, the service provider shall explain the findings of the review in writing to the
20customer. If the review indicates that there is an error as alleged, the service
21provider shall correct the error and shall refund or credit the amount of any tax
22collected erroneously, along with the related interest, as a result of the error from the
23customer in the previous 48 months, consistent with s. 77.59 (4). A customer may
24take no other action, or commence any action, to correct an alleged error in the
25amount of the tax assessed under this subchapter on a service that is subject to
4 USC
1116 to
126, as amended by P.L.
106-252, or to correct an alleged error in the assigned
2place of primary use or taxing jurisdiction, unless the customer has exhausted his
3or her remedies under this
section paragraph.
SB267, s. 68
4Section
68. 77.524 (1) (intro.) of the statutes is amended to read:
SB267,38,55
77.524
(1) (intro.) In this
subsection
section:
SB267, s. 69
6Section
69. 77.524 (1) (a) of the statutes is renumbered 77.524 (1) (am).
SB267, s. 70
7Section
70. 77.524 (1) (ag) of the statutes is created to read:
SB267,38,108
77.524
(1) (ag) "Agent" means a person appointed by a seller to represent the
9seller before the states that are signatories to the agreement, as defined in 77.65 (2)
10(a).
SB267, s. 71
11Section
71. 77.524 (1) (b) of the statutes is renumbered 77.51 (1g).
SB267, s. 72
12Section
72. 77.53 (1) of the statutes is amended to read:
SB267,38,2213
77.53
(1) Except as provided in sub. (1m), an excise tax is levied and imposed
14on the use or consumption in this state of
coins, stamps, leased property, and taxable
15services under s. 77.52 purchased from any retailer, at the rate of 5% of the
sales 16purchase price of
those such coins, stamps, leased property, and services; on the
17storage, use or other consumption in this state of tangible personal property
18purchased from any retailer, at the rate of 5% of the
sales purchase price of that
19property; and on the storage, use or other consumption of tangible personal property
20manufactured, processed or otherwise altered, in or outside this state, by the person
21who stores, uses or consumes it, from material purchased from any retailer, at the
22rate of 5% of the
sales purchase price of that material.
SB267, s. 73
23Section
73. 77.53 (4) of the statutes is repealed.
SB267, s. 74
24Section
74. 77.53 (9) of the statutes is amended to read:
SB267,39,9
177.53
(9) Every retailer selling tangible personal property or taxable services
2for storage, use or other consumption in this state shall register with the department
3and obtain a certificate under s. 73.03 (50) and give the name and address of all
4agents operating in this state, the location of all distribution or sales houses or offices
5or other places of business in this state, the standard industrial code classification
6of each place of business in this state and the other information that the department
7requires.
Any person who may register under this subsection may designate an
8agent, as defined in s. 77.524 (1) (ag), to register with the department under this
9subsection, in the manner prescribed by the department.
SB267, s. 75
10Section
75. 77.53 (9m) of the statutes is renumbered 77.53 (9m) (a).
SB267, s. 76
11Section
76. 77.53 (9m) (b) of the statutes is created to read:
SB267,39,1412
77.53
(9m) (b) Any person who may register under par. (a) may designate an
13agent, as defined in s. 77.524 (1) (ag), to register with the department under par. (a),
14in the manner prescribed by the department.
SB267, s. 77
15Section
77. 77.53 (9m) (c) of the statutes is created to read:
SB267,39,1816
77.53
(9m) (c) The registration under par. (a) by a person who is not otherwise
17required to collect any tax imposed by this subchapter shall not be used as a factor
18in determining whether the seller has nexus with this state for any tax at any time.
SB267, s. 78
19Section
78. 77.53 (10) of the statutes is amended to read:
SB267,40,1120
77.53
(10) For the purpose of the proper administration of this section and to
21prevent evasion of the use tax and the duty to collect the use tax, it is presumed that
22tangible personal property or taxable services sold by any person for delivery in this
23state is sold for storage, use, or other consumption in this state until the contrary is
24established. The burden of proving the contrary is upon the person who makes the
25sale unless that person takes from the purchaser
a
an electronic or paper certificate
,
1in a manner prescribed by department, to the effect that the property or taxable
2service is purchased for resale, or otherwise exempt from the tax
;, except that no
3certificate is required for
sales of cattle, sheep, goats, and pigs that are sold at a
4livestock market, as defined in s. 95.68 (1) (e), and no certificate is required for sales
5of commodities, as defined in 7 USC 2, that are consigned for sale in a warehouse in
6or from which the commodity is deliverable on a contract for future delivery subject
7to the rules of a commodity market regulated by the U.S. commodity futures trading
8commission if upon the sale the commodity is not removed from the warehouse the
9sale of tangible personal property that is exempt under s. 77.54 (7), (7m), (8), (10),
10(11), (14), (14b), (15), (17), (20n), (21), (22b), (30), (31), (32), (35), (36), (37), (42), (44),
11(45), and (46), except as provided in s. 77.54 (30) (e) and (f).
SB267, s. 79
12Section
79. 77.53 (11) of the statutes is amended to read:
SB267,41,313
77.53
(11) The certificate referred to in sub. (10) relieves the person selling the
14property or service from the burden of proof only if taken
in good faith from a person
15who is engaged as a seller of tangible personal property or taxable services and who
16holds the permit provided for by s. 77.52 (9) and who, at the time
of purchasing that
17the person purchases the tangible personal property or taxable service
, intends to
18sell it in the regular course of operations or is unable to ascertain at the time of
19purchase whether the property or service will be sold or will be used for some other
20purpose, or if taken in good faith from a person claiming exemption
. The certificate
21under sub. (10) shall not relieve the seller of the burden of proof if the seller
22fraudulently fails to collect sales tax or solicit the purchaser to claim an unlawful
23exemption. The certificate shall
be signed by and bear the name and address of 24provide information that identifies the purchaser and shall indicate
the number of
25the permit issued to the purchaser, the general character of tangible personal
1property or taxable service sold by the purchaser and the basis for the claimed
2exemption
and a paper certificate shall be signed by the purchaser. The certificate
3shall be substantially in the form
that the department prescribes.
SB267, s. 80
4Section
80. 77.53 (16) of the statutes is amended to read:
SB267,41,175
77.53
(16) If the purchase, rental or lease of tangible personal property or
6service subject to the tax imposed by this section was subject to a sales tax by another
7state in which the purchase was made, the amount of sales tax paid the other state
8shall be applied as a credit against and deducted from the tax, to the extent thereof,
9imposed by this section
, except no credit may be applied against and deducted from
10a sales tax paid on the purchase of direct mail, if the direct mail purchaser did not
11provide to the seller a direct pay permit, a direct mail form, or other information that
12indicates the appropriate taxing jurisdiction to which the direct mail is delivered to
13the ultimate recipients. In this subsection "sales tax" includes a use or excise tax
14imposed on the use of tangible personal property or taxable service by the state in
15which the sale occurred and "state" includes the District of Columbia but does not
16include the commonwealth of Puerto Rico or the several territories organized by
17congress.
SB267, s. 81
18Section
81. 77.53 (17) of the statutes is amended to read:
SB267,42,219
77.53
(17) This section does not apply to tangible personal property purchased
20outside this state,
as determined under s. 77.522, other than motor vehicles, boats,
21snowmobiles, mobile homes not exceeding 45 feet in length, trailers, semitrailers,
22all-terrain vehicles and airplanes registered or titled or required to be registered or
23titled in this state, which is brought into this state by a nondomiciliary for the
24person's own storage, use or other consumption while temporarily within this state
25when such property is not stored, used or otherwise consumed in this state in the
1conduct of a trade, occupation, business or profession or in the performance of
2personal services for wages or fees.
SB267, s. 82
3Section
82. 77.53 (17m) of the statutes is amended to read:
SB267,42,84
77.53
(17m) This section does not apply to a boat purchased in a state
5contiguous to this state
, as determined under s. 77.522, by a person domiciled in that
6state if the boat is berthed in this state's boundary waters adjacent to the state of the
7domicile of the purchaser and if the transaction was an exempt occasional sale under
8the laws of the state in which the purchase was made.
SB267, s. 83
9Section
83. 77.53 (17r) (a) of the statutes is amended to read:
SB267,42,1010
77.53
(17r) (a) It is purchased in another state
, as determined under s. 77.522.
SB267, s. 84
11Section
84. 77.53 (18) of the statutes is amended to read:
SB267,42,1712
77.53
(18) This section does not apply to the storage, use or other consumption
13in this state of household goods for personal use or to aircraft, motor vehicles, boats,
14snowmobiles, mobile homes, trailers, semitrailers and all-terrain vehicles, for
15personal use, purchased by a nondomiciliary of this state outside this state
, as
16determined under s. 77.522, 90 days or more before bringing the goods or property
17into this state in connection with a change of domicile to this state.