SECTION 17. 73.03 (50b) of the statutes is created to read:
73.03 (50b) To waive the fee established under sub. (50) for applying for and renewing the business tax registration certificate, if the person who is applying for or renewing the certificate is not required for purposes of ch. 77 to hold such a certificate.
SECTION 18. 73.03 (61) of the statutes is created to read:
73.03 (61) To do all of the following related to the Uniform Sales and Use Tax Administration Act:
(a) Certify compliance with the agreement, as defined in s. 77.65 (2) (a).
(b) Pursuant to the agreement, as defined in s. 77.65 (2) (a), certify certified service providers, as defined in s. 77.51 (1g), and certified automated systems, as defined in s. 77.524 (1) (am).
(c) Consistent with the agreement, as defined in s. 77.65 (2) (a), establish performance standards and eligibility criteria for a seller that sells tangible personal property or taxable services in at least 5 states that are signatories to the agreement, as defined in s. 77.65 (2) (a); that has total annual sales revenue of at least $500,000,000; that has a proprietary system that calculates the amount of tax owed to each taxing jurisdiction in which the seller sells tangible personal property or taxable services; and that has entered into a performance agreement with the states that are signatories to the agreement, as defined in s. 77.65 (2) (a). For purposes of this paragraph, "seller" includes an affiliated group of sellers using the same proprietary system to calculate the amount of tax owed in each taxing jurisdiction in which the sellers sell tangible personal property or taxable services.
(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.
(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.
(f) Maintain a database that is accessible to sellers and certified service providers, as defined in s. 77.51 (1g), and available in a downloadable format, 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.
(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.
(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).
SECTION 19. 76.07 (4g) (b) 8. of the statutes is amended to read:
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.
SECTION 20. 77.51 (1) of the statutes is renumbered 77.51 (1fd) and amended to read:
77.51 (1fd) "Business" includes any activity engaged in by any person or caused to be engaged in by any person with the object of gain, benefit or advantage, either direct or indirect, and includes also the furnishing and distributing of tangible personal property, specified digital goods, additional digital goods, or taxable services for a consideration by social clubs and fraternal organizations to their members or others.
****NOTE: This is reconciled s.77.51 (1) . This SECTION has been affected by drafts with the following LRB numbers: 0725 and 0728.
SECTION 21. 77.51 (1a) of the statutes is created to read:
77.51 (1a) "Additional digital goods" means video greeting cards sent by electronic mail, finished artwork, periodicals, and video or electronic games. For purposes of this subchapter, the sale of or the storage, use, or other consumption of a digital code is treated the same as the sale of or the storage, use, or other consumption of any additional digital goods for which the digital code relates.
SECTION 22. 77.51 (1b) of the statutes is created to read:
77.51 (1b) "Alcoholic beverage" means a beverage that is suitable for human consumption and that contains 0.5 percent or more of alcohol by volume.
SECTION 23. 77.51 (1ba) of the statutes is created to read:
77.51 (1ba) "Ancillary services" means services that are associated with or incidental to providing telecommunications services, including detailed telecommunications billing, directory assistance, vertical service, and voice mail services, but not including specified digital goods.
SECTION 24. 77.51 (1f) of the statutes is created to read:
77.51 (1f) "Bundled transaction" means the retail sale of 2 or more products, not including real property and services to real property, if the products are distinct and identifiable products and sold for one nonitemized price. "Bundled transaction" does not include any of the following:
(a) The sale of any products for which the sales price varies or is negotiable based on the purchaser's selection of the products included in the transaction.
(b) 1. The retail sale of tangible personal property and a service, if the tangible personal property is essential to the use of the service, and provided exclusively in connection with the service, and if the true object of the transaction is the service.
2. The retail sale of a service and specified digital goods or additional digital goods, if such goods are essential to the use of the service, and provided exclusively in connection with the service, and if the true object of the transaction is the service.
(c) The retail sale of services, if one of the services is essential to the use or receipt of another service, and provided exclusively in connection with the other service, and if the true object of the transaction is the other service.
(d) A transaction that includes taxable and nontaxable products, if the seller's purchase price or the sales price of the taxable products is no greater than 10 percent of the seller's total purchase price or sales price of all the bundled products, as determined by the seller using either the seller's purchase price or sales price, but not a combination of both, or, in the case of a service contract, the full term of the service contract.
(e) The retail sale of taxable tangible personal property and tangible personal property that is exempt from the taxes imposed under this subchapter, if the transaction includes food and food ingredients, drugs, durable medical equipment, mobility-enhancing equipment, prosthetic devices, or medical supplies and if the seller's purchase price or the sales price of the taxable tangible personal property is no greater than 50 percent of the seller's total purchase price or sales price of all the tangible personal property included in what would otherwise be a bundled transaction, as determined by the seller using either the seller's purchase price or the sales price, but not a combination of both.
SECTION 25. 77.51 (1fm) of the statutes is created to read:
77.51 (1fm) "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.
SECTION 26. 77.51 (1n) of the statutes is created to read:
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.
SECTION 27. 77.51 (1p) of the statutes is created to read:
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. "Computer software" does not include specified digital goods.
SECTION 28. 77.51 (1r) of the statutes is created to read:
77.51 (1r) "Conference bridging service" means an ancillary service that links 2 or more participants of an audio or video conference call and may include providing a telephone number, but does not include the telecommunications services used to reach the conference bridge.
SECTION 29. 77.51 (2k) of the statutes is created to read:
77.51 (2k) "Delivered electronically" means delivered to a purchaser by means other than by tangible storage media.
SECTION 30. 77.51 (2m) of the statutes is created to read:
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.
SECTION 31. 77.51 (3c) of the statutes is created to read:
77.51 (3c) "Detailed telecommunications billing service" means an ancillary service that separately indicates information pertaining to individual calls on a customer's billing statement.
SECTION 32. 77.51 (3n) of the statutes is created to read:
77.51 (3n) "Dietary supplement" means a product, other than tobacco, that is intended to supplement a person's diet, if all of the following apply:
(a) The product contains any of the following ingredients or any combination of any of the following ingredients:
1. A vitamin.
2. A mineral.
3. An herb or other botanical.
4. An amino acid.
5. A dietary substance that is intended for human consumption to supplement the diet by increasing total dietary intake.
6. A concentrate, metabolite, constituent, or extract.
(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.
(c) The product is required to be labeled as a dietary supplement as required under 21 CFR 101.36.
SECTION 33. 77.51 (3p) of the statutes is created to read:
77.51 (3p) "Digital audio works" means works that result from the fixation of a series of musical, spoken, or other sounds that are transferred electronically, including prerecorded or live music, prerecorded or live readings of books or other written materials, prerecorded or live speeches, or ringtones, but not including audio greeting cards sent by electronic mail.
SECTION 34. 77.51 (3pa) of the statutes is created to read:
77.51 (3pa) "Digital audiovisual works" means a series of related images that, when shown in succession, impart an impression of motion, along with accompanying sounds, if any, that are transferred electronically. "Digital audiovisual works" includes motion pictures, musical videos, news programs, and live events, but does not include video greeting cards sent by electronic mail or video or electronic games.
SECTION 35. 77.51 (3pb) of the statutes is created to read:
77.51 (3pb) "Digital books" means works that are generally recognized as books and are transferred electronically. "Digital books" includes novels, nonfiction works, and short stories, but does not include newspapers, periodicals, chat room discussions, or blogs.
SECTION 36. 77.51 (3pc) of the statutes is created to read:
77.51 (3pc) "Digital code" means a code that provides the person who holds the code a right to obtain an additional digital good, a digital audiovisual work, digital audio work, or digital book and that may be obtained by any means, including tangible forms and electronic mail, regardless of whether the code is designated as song code, video code, or book code. "Digital code" includes codes used to access or obtain any specified digital goods, or any additional digital goods that have been previously purchased, and promotion cards or codes that are purchased by a retailer or other business entity for use by the retailer's or entity's customers. "Digital code" does not include the following:
1. A code that represents any redeemable card, gift card, or gift certificate that entitles the holder of such card or certificate to select any specified digital goods or additional digital goods at the cash value indicated by the card or certificate.
2. Digital cash that represents a monetary value that a customer may use to pay for a future purchase.
SECTION 37. 77.51 (3pd) of the statutes is created to read:
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 the printed material, including billing invoices, return envelopes, and additional marketing materials. "Direct mail" does not include multiple items of printed material delivered to a single address.
SECTION 38. 77.51 (3pe) of the statutes is created to read:
77.51 (3pe) "Directory assistance" means an ancillary service that provides telephone numbers or addresses.
SECTION 39. 77.51 (3pf) of the statutes is created to read:
77.51 (3pf) "Distinct and identifiable product" does not include any of the following:
(a) Packaging, including containers, boxes, sacks, bags, bottles, and envelopes; and other materials, including wrapping, labels, tags, and instruction guides; that accompany, and are incidental or immaterial to, the retail sale of any product.
(b) A product that is provided free of charge to the consumer in conjunction with the purchase of another product, if the sales price of the other product does not vary depending on whether the product provided free of charge is included in the transaction.
(c) Any items specified under sub. (12m) (a) or (15b) (a).
SECTION 40. 77.51 (3pj) of the statutes is created to read:
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:
(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.
(b) It is intended for use in diagnosing, curing, mitigating, treating, or preventing a disease.
(c) It is intended to affect a function or structure of the body.
SECTION 41. 77.51 (3pm) of the statutes is created to read:
77.51 (3pm) "Durable medical equipment" means equipment, including the repair parts and replacement parts for the equipment 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.
SECTION 42. 77.51 (3pn) of the statutes is created to read:
77.51 (3pn) "Eight hundred service" means a telecommunications service that allows a caller to dial a toll-free number without incurring a charge for the call and is marketed under "800," "855," "866," "877," or "888" toll-free calling, or any other number designated as toll-free by the federal communications commission.
SECTION 43. 77.51 (3po) of the statutes is created to read:
77.51 (3po) "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.
SECTION 44. 77.51 (3pq) of the statutes is created to read:
77.51 (3pq) "Finished artwork" means the final art used for actual reproduction by photomechanical or other processes or for display purposes. "Finished artwork" also includes all of the following items regardless of whether such items are reproduced:
(a) Drawings.
(b) Paintings.
