SECTION 125. 77.54 (26m) of the statutes is amended to read:
77.54 (26m) The gross receipts sales price from the sale of and the storage, use or other consumption of waste reduction or recycling machinery and equipment, including parts therefor, exclusively and directly used for waste reduction or recycling activities which reduce the amount of solid waste generated, reuse solid waste, recycle solid waste, compost solid waste or recover energy from solid waste. The exemption applies even though an economically useful end product results from the use of the machinery and equipment. For the purposes of this subsection, "solid waste" means garbage, refuse, sludge or other materials or articles, whether these materials or articles are discarded or purchased, including solid, semisolid, liquid or contained gaseous materials or articles resulting from industrial, commercial, mining or agricultural operations or from domestic use or from public service activities.
SECTION 126. 77.54 (27) of the statutes is amended to read:
77.54 (27) The gross receipts sales price from the sale of semen used for artificial insemination of livestock.
SECTION 127. 77.54 (28) of the statutes is amended to read:
77.54 (28) The gross receipts from the sale of and the storage, use or other consumption to or by the ultimate consumer of apparatus or equipment for the injection of insulin or the treatment of diabetes and supplies used to determine blood sugar level.
SECTION 128. 77.54 (29) of the statutes is amended to read:
77.54 (29) The gross receipts sales price from the sales of and the storage, use or other consumption of equipment used in the production of maple syrup.
SECTION 129. 77.54 (30) (a) (intro.) of the statutes is amended to read:
77.54 (30) (a) (intro.) The gross receipts sales price from the sale of:
SECTION 130. 77.54 (30) (c) of the statutes is amended to read:
77.54 (30) (c) If fuel or electricity is sold partly for a use exempt under this subsection and partly for a use which is not exempt under this subsection, no tax shall be collected on that percentage of the gross receipts sales price equal to the percentage of the fuel or electricity which is used for an exempt use, as specified in an exemption certificate provided by the purchaser to the seller.
SECTION 131. 77.54 (31) of the statutes is amended to read:
77.54 (31) The gross receipts sales price from the sale of and the storage, use or other consumption in this state, but not the lease or rental, of used mobile homes that are primary housing units under s. 340.01 (29).
SECTION 132. 77.54 (32) of the statutes is amended to read:
77.54 (32) The gross receipts sales price from charges, including charges for a search, imposed by an authority, as defined in s. 19.32 (1), for copies of a public record that a person may examine and use under s. 16.61 (12) or for copies of a record under s. 19.35 (1).
SECTION 133. 77.54 (33) of the statutes is amended to read:
77.54 (33) The gross receipts sales price from sales of and the storage, use or other consumption of medicines drugs used on farm livestock, not including workstock.
SECTION 134. 77.54 (34) of the statutes is amended to read:
77.54 (34) The gross receipts sales price from the sale of and the storage, use or other consumption of milk house supplies used exclusively in producing and handling milk on dairy farms.
SECTION 135. 77.54 (35) of the statutes is amended to read:
77.54 (35) The gross receipts sales price from the sales of tangible personal property, tickets or admissions by any baseball team affiliated with the Wisconsin Department of American Legion baseball.
SECTION 136. 77.54 (36) of the statutes is amended to read:
77.54 (36) The gross receipts sales price from the rental for a continuous period of one month or more of a mobile home, as defined in s. 66.0435 (1) (d), that is used as a residence. In this subsection, "one month" means a calendar month or 30 days, whichever is less, counting the first day of the rental and not counting the last day of the rental.
SECTION 137. 77.54 (37) of the statutes is amended to read:
77.54 (37) The gross receipts sales price from revenues collected under s. 146.70 (3) and the surcharge established by rule by the public service commission under s. 146.70 (3m) (f) for customers of wireless providers, as defined in s. 146.70 (3m) (a) 6.
SECTION 138. 77.54 (38) of the statutes is amended to read:
77.54 (38) The gross receipts sales price from the sale of and the storage, use or other consumption of snowmobile trail groomers and attachments for them that are purchased, stored, used or consumed by a snowmobile club that meets at least 3 times a year, that has at least 10 members, that promotes snowmobiling and that participates in the department of natural resources' snowmobile program under s. 350.12 (4) (b).
SECTION 139. 77.54 (39) of the statutes is amended to read:
77.54 (39) The gross receipts sales price from the sale of and the storage, use or other consumption of off-highway, heavy mechanical equipment such as feller bunchers, slashers, delimbers, chippers, hydraulic loaders, loaders, skidder-forwarders, skidders, timber wagons and tractors used exclusively and directly in the harvesting or processing of raw timber products in the field by a person in the logging business. In this subsection, "heavy mechanical equipment" does not include hand tools such as axes, chains, chain saws and wedges.
SECTION 140. 77.54 (40) of the statutes is repealed.
SECTION 141. 77.54 (41) of the statutes is amended to read:
77.54 (41) The gross receipts sales price from the sale of building materials, supplies and equipment to; and the storage, use or other consumption of those kinds of property by; owners, contractors, subcontractors or builders if that property is acquired solely for or used solely in, the construction, renovation or development of property that would be exempt under s. 70.11 (36).
SECTION 142. 77.54 (42) of the statutes is amended to read:
77.54 (42) The gross receipts sales price from the sale of and the storage, use or other consumption of animal identification tags provided under s. 93.06 (1h) and standard samples provided under s. 93.06 (1s).
SECTION 143. 77.54 (43) of the statutes is amended to read:
77.54 (43) The gross receipts sales price from the sale of and the storage, use or other consumption of raw materials used for the processing, fabricating or manufacturing of, or the attaching to or incorporating into, printed materials that are transported and used solely outside this state.
SECTION 144. 77.54 (44) of the statutes is amended to read:
77.54 (44) The gross receipts sales price from the collection of public benefits fees that are charged under s. 16.957 (4) (a) or (5) (a).
SECTION 145. 77.54 (45) of the statutes is amended to read:
77.54 (45) The gross receipts sales price from the sale of and the use or other consumption of a onetime license or similar right to purchase admission to professional football games at a football stadium, as defined in s. 229.821 (6), that is granted by a municipality; a local professional football stadium district; or a professional football team or related party, as defined in s. 229.821 (12); if the person who buys the license or right is entitled, at the time the license or right is transferred to the person, to purchase admission to at least 3 professional football games in this state during one football season.
SECTION 146. 77.54 (46) of the statutes is amended to read:
77.54 (46) The gross receipts sales price from the sale of and the storage, use, or other consumption of the U.S. flag or the state flag. This subsection does not apply to a representation of the U.S. flag or the state flag.
SECTION 147. 77.54 (46m) of the statutes is amended to read:
77.54 (46m) The gross receipts sales price from the sale of and the storage, use, or other consumption of telecommunications services, if the telecommunications services are obtained by using the rights to purchase telecommunications services, including purchasing reauthorization numbers, by paying in advance and by using an access number and authorization code; and if the tax imposed under s. 77.52 or 77.53 was previously paid on the sale or purchase of such rights.
SECTION 148. 77.55 (1) (intro.) of the statutes is amended to read:
77.55 (1) (intro.) There are is exempted from the computation of the amount of the sales tax the gross receipts sales price from the sale of any tangible personal property or services to:
SECTION 149. 77.55 (2) of the statutes is amended to read:
77.55 (2) There are is exempted from the computation of the amount of the sales tax the gross receipts sales price from sales of tangible personal property to a common or contract carrier, shipped by the seller via the purchasing carrier under a bill of lading whether the freight is paid in advance, or the shipment is made freight charges collect, to a point outside this state and the property is actually transported to the out-of-state destination for use by the carrier in the conduct of its business as a carrier.
SECTION 150. 77.55 (2m) of the statutes is amended to read:
77.55 (2m) There are is exempted from the computation of the amount of sales tax the gross receipts sales price from sales of railroad crossties to a common or contract carrier, shipped wholly or in part by way of the purchasing carrier under a bill of lading, whether the freight is paid in advance or the shipment is made freight charges collect, to a point outside this state if the property is transported to the out-of-state destination for use by the carrier in the conduct of its business as a carrier. Interruption of the shipment for storage, drying, processing or creosoting of the railroad crossties in this state does not invalidate the exemption under this subsection.
SECTION 151. 77.55 (3) of the statutes is amended to read:
77.55 (3) There are is exempted from the computation of the amount of the sales tax the gross receipts sales price from sales of tangible personal property purchased for use solely outside this state and delivered to a forwarding agent, export packer, or other person engaged in the business of preparing goods for export or arranging for their exportation, and actually delivered to a port outside the continental limits of the United States prior to making any use thereof.
SECTION 152. 77.56 (1) of the statutes is amended to read:
77.56 (1) The storage, use or other consumption in this state of property, the gross receipts sales price from the sale of which are is reported to the department in the measure of the sales tax, is exempted from the use tax.
SECTION 153. 77.57 of the statutes is amended to read:
77.57 Liability of purchaser. If a purchaser certifies in writing to a seller that the property purchased will be used in a manner or for a purpose entitling the seller to regard the gross receipts sales price from the sale as exempted by this subchapter from the computation of the amount of the sales tax and uses the property in some other manner or for some other purpose, the purchaser is liable for payment of the sales tax. The tax shall be measured by the sales price of the property to the purchaser, but if the taxable use first occurs more than 6 months after the sale to the purchaser, the purchaser may use as the measure of the tax either that sales price or the fair market value of the property at the time the taxable use first occurs.
SECTION 154. 77.58 (3) (b) of the statutes is amended to read:
77.58 (3) (b) For purposes of the sales tax the return shall show the gross receipts of the seller during the preceding reporting period. For purposes of the use tax, in case of a return filed by a retailer, the return shall show the total sales price of the property or taxable services sold, the storage, use or consumption of which became subject to the use tax during the preceding reporting period. In case of a sales or use tax return filed by a purchaser, the return shall show the total sales price of the property and taxable services purchased, the storage, use or consumption of which became subject to the use tax during the preceding reporting period. The return shall also show the amount of the taxes for the period covered by the return and such other information as the department deems necessary for the proper administration of this subchapter.
SECTION 155. 77.58 (6) of the statutes is amended to read:
77.58 (6) For the purposes of the sales tax gross receipts, the sales price from rentals or leases of tangible personal property shall be reported and the tax paid in accordance with such rules as the department prescribes.
SECTION 156. 77.58 (6m) of the statutes is created to read:
77.58 (6m) (a) The department may, in cases where it is satisfied that an undue hardship would otherwise result, permit the reporting of a sales price or purchase price on some basis other than the accrual basis.
(b) The entire sales price of credit transactions shall be reported in the period in which the sale is made without reduction in the amount of tax payable by the retailer by reason of the retailer's transfer at a discount the open account, note, conditional sales contract, lease contract, or other evidence of indebtedness.
SECTION 157. 77.58 (9a) of the statutes is created to read:
77.58 (9a) In addition to filing a return as provided in this section, a person described under s. 77.524 (3), (4), or (5) shall provide to the department any information that the department considers necessary for the administration of this subchapter, in the manner prescribed by the department, except that the department may not require that the person provide such information to the department more than once every 180 days.
SECTION 158. 77.585 of the statutes is created to read:
77.585 Return adjustments. (1) (a) In this subsection, "bad debt" means the portion of the sales price or purchase price that the seller has reported as taxable under this subchapter and that the seller may claim as a deduction under section 166 of the Internal Revenue Code. "Bad debt" does not include financing charges or interest, sales or use taxes imposed on the sales price or purchase price, uncollectible amounts on property that remains in the seller's possession until the full sales price or purchase price is paid, expenses incurred in attempting to collect any debt, debts sold or assigned to 3rd parties for collection, and repossessed property.
(b) A seller may claim as a deduction on a return under s. 77.58 the amount of any bad debt that the seller writes off as uncollectible in the seller's books and records and that is eligible to be deducted as bad debt for federal income tax purposes, regardless of whether the seller is required to file a federal income tax return. A seller who claims a deduction under this paragraph shall claim the deduction on the return under s. 77.58 that is submitted for the period in which the seller writes off the amount of the deduction as uncollectible in the seller's books and records and in which such amount is eligible to be deducted as bad debt for federal income tax purposes. If the seller subsequently collects in whole or in part any bad debt for which a deduction is claimed under this paragraph, the seller shall include the amount collected in the return filed for the period in which the amount is collected and shall pay the tax with the return.
(c) For purposes of computing a bad debt deduction or reporting a payment received on a previously claimed bad debt, any payment made on a debt or on an account is applied first to the price of the property or service sold, and the proportionate share of the sales tax on that property or service, and then to interest, service charges, and other charges related to the sale.
(d) A seller may obtain a refund of the tax collected on any bad debt amount deducted under par. (b) that exceeds the amount of the seller's taxable sales as provided under s. 77.59 (4), except that the period for making a claim as determined under s. 77.59 (4) begins on the date on which the return on which the bad debt could be claimed would have been required to be submitted to the department under s. 77.58.
(e) If a seller is using a certified service provider, the certified service provider may claim a bad debt deduction under this subsection on the seller's behalf if the seller has not claimed and will not claim the same deduction. A certified service provider who receives a bad debt deduction under this subsection shall credit that deduction to the seller and a certified service provider who receives a refund under this subsection shall submit that refund to the seller.
(f) If a bad debt relates to the retail sales of tangible personal property or taxable services that occurred in this state and in one or more other states, as determined under s. 77.522, the total amount of such bad debt shall be apportioned among the states in which the underlying sales occurred in a manner prescribed by the department to arrive at the amount of the deduction under par. (b).
(2) If a lessor of tangible personal property has reimbursed the vendor for the sales tax on the sale of the property by the vendor to the lessor, the tax due from the lessor on the rental receipts may be offset by a credit equal to the tax otherwise due on the rental receipts from the property for the reporting period. The credit shall expire when the cumulative rental receipts equal the sales price upon which the vendor paid sales taxes to this state.
(3) If a purchaser of tangible personal property has reimbursed the vendor of the property for the sales tax on the sale and subsequently, before making any use of the property other than retention, demonstration, or display while holding it for sale or rental, makes a taxable sale of the property, the tax due on the taxable sale may be offset by the tax reimbursed.
(4) A seller may claim a deduction on any part of the sales price or purchase price that the seller refunds in cash or credit as a result of returned property or adjustments in the sales price or purchase price after the sale has been completed, if the seller has included the refunded price in a prior return made by the seller and has paid the tax on such price, and if the seller has returned to the purchaser in cash or in credit all tax previously paid by the purchaser on the amount of the refund at the time of the purchase. A deduction under this subsection shall be claimed on the return for the period in which the refund is paid.
(5) No reduction in the amount of tax payable by the retailer is allowable in the event property sold on credit is repossessed except where the entire consideration paid by the purchaser is refunded to the purchaser or where a credit for a worthless account is allowable under sub. (1).
(6) A purchaser who is subject to the use tax on the storage, use, or other consumption of fuel may claim a deduction from the purchase price that is subject to the use tax for fuel taxes refunded by this state or the United States to the purchaser that is included in the purchase price of the fuel.
(7) For sales tax purposes, if a retailer establishes to the department's satisfaction that the sales tax has been added to the total amount of the sales price and has not been absorbed by the retailer, the total amount of the sales price shall be the amount received exclusive of the sales tax imposed.
(8) A sale or purchase involving transfer of ownership of property is completed at the time when possession is transferred by the seller or the seller's agent to the purchaser or the purchaser's agent, except that for purposes of sub. (1) a common carrier or the U.S. postal service shall be considered the agent of the seller, regardless of any f.o.b. point and regardless of the method by which freight or postage is paid.
SECTION 159. 77.59 (2m) of the statutes is created to read:
77.59 (2m) The department may audit, or may authorize others to audit, sellers and certified service providers who are registered with the department pursuant to the agreement, as defined in s. 77.65 (2) (a).
SECTION 160. 77.59 (9) of the statutes is amended to read:
77.59 (9) If any person fails to file a return, the department shall make an estimate of the amount of the gross receipts sales price of the person person's sales, or, as the case may be, of the amount of the total sales purchase price of tangible personal property or taxable service sold or purchased by the person, the sale by or the storage, use or other consumption of which in this state is subject to sales or use tax. The estimate shall be made for the period in respect to which the person failed to make a return and shall be based upon any information which is in the department's possession or may come into its possession. Upon the basis of this estimate the department shall compute and determine the amount required to be paid to the state, adding to the sum thus arrived at a penalty equal to 25% thereof. One or more such determinations may be made for one or for more than one period. When a business is discontinued a determination may be made at any time thereafter, within the periods specified in sub. (3), as to liability arising out of that business.
SECTION 161. 77.59 (9n) of the statutes is created to read:
77.59 (9n) No seller or certified service provider is liable for any deficiency or refund under this subchapter that is the result of the seller or certified service provider relying on erroneous information contained in a database maintained under s. 73.03 (61) (e) or (f).
SECTION 162. 77.59 (9p) (b) of the statutes is created to read:
77.59 (9p) (b) If a customer purchases a service that is not subject to 4 USC 116 to 126, as amended by P.L. 106-252, or tangible personal property, and if the customer believes that the amount of the tax assessed for the sale of the service or property under this subchapter is erroneous, the customer may request that the seller correct the alleged error by sending a written notice to the seller. The notice shall include a description of the alleged error and any other information that the seller reasonably requires to process the request. Within 60 days from the date that a seller receives a request under this paragraph, the seller shall review its records to determine the validity of the customer's claim. If the review indicates that there is no error as alleged, the seller shall explain the findings of the review in writing to the customer. If the review indicates that there is an error as alleged, the seller shall correct the error and shall refund the amount of any tax collected erroneously, along with the related interest, as a result of the error from the customer, consistent with s. 77.59 (4). A customer may take no other action, or commence any action, to correct an alleged error in the amount of the tax assessed under this subchapter on a service that is not subject to 4 USC 116 to 126, as amended by P.L. 106-252, or tangible personal property, unless the customer has exhausted his or her remedies under this paragraph.
SECTION 163. 77.59 (9r) of the statutes is created to read:
