2. Food and food ingredients heated by the retailer, except as provided in par. (b).
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, or straws. In this subdivision, "plate" does not include a container or packaging used to transport food and food ingredients.
4. Except as provided in par. (b), 2 or more food ingredients mixed or combined by a retailer for sale as a single item.
(b) "Prepared food" under par. (a) 2. and 4. does not include:
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.
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.
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.
4. Food and food ingredients that are only sliced, repackaged, or pasteurized by a retailer.
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.
SECTION 26. 77.51 (10n) of the statutes is created to read:
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.
SECTION 27. 77.51 (10r) of the statutes is created to read:
77.51 (10r) "Prewritten computer software" means any of the following:
(a) Computer software that is not designed and developed by the author or creator of the software according to a specific purchaser's specifications.
(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.
(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.
(d) Any combination of computer software under pars. (a) to (c), including any combination with any portion of such software.
(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.
SECTION 28. 77.51 (11m) of the statutes is created to read:
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.
SECTION 29. 77.51 (12m) of the statutes is created to read:
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:
1. The seller's cost of the property sold.
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.
3. Charges by the seller for any services necessary to complete a sale, not including delivery and installation charges.
4. a. Delivery charges, except as provided in par. (b) 4.
b. If a shipment includes property that is subject to tax under this subchapter and property that is not subject to tax under this subchapter, the amount of the delivery charge allocated to the property that is subject to tax under this subchapter based on the total purchase price of the property that is subject to tax under this subchapter as compared to the total purchase price of all the property or on the total weight of the property that is subject to tax under this subchapter as compared to the total weight of all the property.
5. Installation charges.
6. The value of exempt tangible personal property, if the exempt tangible personal property is bundled with taxable tangible personal property and sold by the seller as a single product or piece of merchandise.
(b) "Purchase price" does not include:
1. Discounts, including cash, terms, or coupons, that are not reimbursed by a 3rd party; that are allowed by a seller; and that are taken by a purchaser on a sale.
2. Interest, financing, and carrying charges from credit that is extended on a sale of personal property or services, if the amount of the interest, financing, or carrying charges is separately stated on the invoice, bill of sale, or similar document that the seller gives to the purchaser.
3. Any taxes legally imposed directly on the purchaser that are separately stated on the invoice, bill of sale, or similar document that the seller gives to the purchaser.
4. Delivery charges for direct mail.
5. In all transactions in which an article of tangible personal property is traded toward the purchase of an article of greater value, the amount of the purchase price that represents the amount allowed for the article traded, except that this subdivision does not apply to any transaction to which subd. 7. or 8. applies.
6. If a person who purchases a motor vehicle presents a statement issued under s. 218.0171 (2) (cq) to the seller at the time of purchase, and the person presents the statement to the seller within 60 days from the date of receiving a refund under s. 218.0171 (2) (b) 2. b., the trade-in amount specified in the statement issued under s. 218.0171 (2) (cq), but not to exceed the purchase price from the sale of the motor vehicle. This subdivision applies only to the first motor vehicle purchased by a person after receiving a refund under s. 218.0171 (2) (b) 2. b.
7. Thirty-five percent of the purchase price, excluding trade-ins, of a new mobile home, as defined in s. 340.01 (29), that is a primary housing unit or of a new mobile home, as defined in s. 340.01 (29), that is transported in 2 unattached sections if the total size of the combined sections, not including additions and attachments, is at least 984 square feet measured when the sections are ready for transport. This subdivision does not apply to a lease or rental.
8. At the retailer's option; except that after the retailer chooses an option the retailer may not use the other option for other sales without the department's written approval; either 35 percent of the purchase price of a manufactured building, as defined in s. 101.71 (6), or an amount equal to the purchase price of the manufactured building minus the cost of materials that become an ingredient or component part of the building.
SECTION 30. 77.51 (12p) of the statutes is created to read:
77.51 (12p) "Purchaser" means a person to whom a sale of tangible personal property is made or to whom a service is furnished.
SECTION 31. 77.51 (13) (o) of the statutes is amended to read:
77.51 (13) (o) A person selling medicine drugs for animals to a veterinarian. As used in this paragraph, "animal" includes livestock, pets and poultry.
SECTION 32. 77.51 (13g) (intro.) of the statutes is amended to read:
77.51 (13g) (intro.) Except as provided in sub. (13h), "retailer engaged in business in this state", unless otherwise limited by federal statute, for purposes of the use tax, means any of the following:
SECTION 33. 77.51 (13g) (c) of the statutes is created to read:
77.51 (13g) (c) Any retailer selling tangible personal property or taxable services for storage, use, or other consumption in this state, unless otherwise limited by federal law.
SECTION 34. 77.51 (13s) of the statutes is created to read:
77.51 (13s) "Retail sale" or "sale at retail" means any sale, lease, or rental for any purpose other than resale, sublease, or subrent.
SECTION 35. 77.51 (14) (intro.) of the statutes is amended to read:
77.51 (14) (intro.) "Sale", "sale, lease or rental", "retail sale", "sale at retail", or equivalent terms include includes any one or all of the following: the transfer of the ownership of, title to, possession of, or enjoyment of tangible personal property or services for use or consumption but not for resale as tangible personal property or services and includes:
SECTION 36. 77.51 (14) (a) of the statutes is amended to read:
77.51 (14) (a) Any sale at an auction in respect to tangible personal property which is sold to a successful bidder. The proceeds from, except the sale of property sold at auction which is bid in by the seller and on which title does not pass to a new purchaser shall be deducted from the gross proceeds of the sale and the tax paid only on the net proceeds.
SECTION 37. 77.51 (14) (d) of the statutes is repealed.
SECTION 38. 77.51 (14) (g) of the statutes is renumbered 77.51 (15a) (b) 4.
SECTION 39. 77.51 (14) (i) of the statutes is repealed.
SECTION 40. 77.51 (14) (j) of the statutes is amended to read:
77.51 (14) (j) The granting of possession of tangible personal property by a lessor to a lessee, or to another person at the direction of the lessee. Such a transaction is deemed a continuing sale in this state by the lessor for the duration of the lease as respects any period of time the leased property is situated in this state, irrespective of the time or place of delivery of the property to the lessee or such other person.
SECTION 41. 77.51 (14) (k) of the statutes is repealed.
SECTION 42. 77.51 (14) (L) of the statutes, as affected by 2005 Wisconsin Act .... (this act), is repealed.
SECTION 43. 77.51 (14r) of the statutes is repealed.
SECTION 44. 77.51 (15) of the statutes is repealed.
SECTION 45. 77.51 (15a) of the statutes is created to read:
77.51 (15a) (a) "Sales, lease, or rental for resale, sublease, or subrent" includes transfers of tangible personal property, audiovisual works, finished artwork, literary works, and audio works to a service provider that the service provider transfers in conjunction with but not incidental to the selling, performing, or furnishing of any service, and transfers of tangible personal property, audiovisual works, finished artwork, literary works, and audio works to a service provider that the service provider physically transfers in conjunction with the selling, performing, or furnishing services under s. 77.52 (2) (a) 7., 10., 11., or 20. This paragraph does not apply to sub. (2).
(b) "Sales, lease, or rental for resale, sublease, or subrent" does not include any of the following:
1. The sale of building materials, supplies, and equipment to owners, contractors, subcontractors, or builders for use in real property construction activities or the alteration, repair, or improvement of real property, regardless of the quantity of such materials, supplies, and equipment sold.
2. Any sale of tangible personal property to a purchaser even though such property may be used or consumed by some other person to whom such purchaser transfers the tangible personal property without valuable consideration, such as gifts, and advertising specialties distributed gratis apart from the sale of other tangible personal property or service.
3. Transfers of tangible personal property, audiovisual works, finished artwork, literary works, and audio works to a service provider that the service provider transfers in conjunction with the selling, performing, or furnishing of any service, if the tangible personal property, audiovisual work, finished artwork, literary work, and audio work is incidental to the service, unless the service provider is selling, performing, or furnishing services under s. 77.52 (2) (a) 7., 10., 11., or 20.
SECTION 46. 77.51 (15b) of the statutes is created to read:
77.51 (15b) (a) "Sales 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 received in money or otherwise, without any deduction for the following:
1. The seller's cost of the property sold.
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.
3. Charges by the seller for any services necessary to complete a sale, not including delivery and installation charges.
4. a. Delivery charges, except as provided in par. (b) 4.
b. If a shipment includes property that is subject to tax under this subchapter and property that is not subject to tax under this subchapter, the amount of the delivery charge allocated to the property that is subject to tax under this subchapter based on the total sales price of the property that is subject to tax under this subchapter as compared to the total sales price of all the property or on the total weight of the property that is subject to tax under this subchapter as compared to the total weight of all the property.
5. Installation charges.
6. The value of exempt tangible personal property, if the exempt tangible personal property is bundled with taxable tangible personal property and sold by the seller as a single product or piece of merchandise.
(b) "Sales price" does not include:
1. Discounts, including cash, terms, or coupons, that are not reimbursed by a 3rd party; that are allowed by a seller; and that are taken by a purchaser on a sale.
2. Interest, financing, and carrying charges from credit that is extended on a sale of tangible personal property or services, if the amount of the interest, financing, or carrying charges is separately stated on the invoice, bill of sale, or similar document that the seller gives to the purchaser.
3. Any taxes legally imposed directly on the purchaser that are separately stated on the invoice, bill of sale, or similar document that the seller gives to the purchaser.
4. Delivery charges for direct mail.
5. In all transactions in which an article of tangible personal property is traded toward the purchase of an article of greater value, the amount of the sales price that represents the amount allowed for the article traded, except that this subdivision does not apply to any transaction to which subd. 7. or 8. applies.
6. If a person who purchases a motor vehicle presents a statement issued under s. 218.0171 (2) (cq) to the seller at the time of purchase, and the person presents the statement to the seller within 60 days from the date of receiving a refund under s. 218.0171 (2) (b) 2. b., the trade-in amount specified in the statement issued under s. 218.0171 (2) (cq), but not to exceed the sales price from the sale of the motor vehicle. This subdivision applies only to the first motor vehicle purchased by a person after receiving a refund under s. 218.0171 (2) (b) 2. b.
7. Thirty-five percent of the sales price, excluding trade-ins, of a new mobile home, as defined in s. 340.01 (29), that is a primary housing unit or of a new mobile home, as defined in s. 340.01 (29), that is transported in 2 unattached sections if the total size of the combined sections, not including additions and attachments, is at least 984 square feet measured when the sections are ready for transport. This subdivision does not apply to a lease or rental.
8. At the retailer's option; except that after the retailer chooses an option the retailer may not use the other option for other sales without the department's written approval; either 35 percent of the sales price of a manufactured building, as defined in s. 101.71 (6), or an amount equal to the sales price of the manufactured building minus the cost of materials that become an ingredient or component part of the building.
SECTION 47. 77.51 (17) of the statutes is amended to read:
77.51 (17) "Seller" includes every person selling, leasing or renting tangible personal property or selling, performing or furnishing services of a kind the gross receipts sales price from the sale, lease, rental, performance or furnishing of which are is required to be included in the measure of the sales tax.
SECTION 48. 77.51 (17m) of the statutes is repealed and recreated to read:
77.51 (17m) "Service address" means any of the following:
