SB446: Bill Text

SB446, s. 15 Section 15. 73.03 (50) (d) of the statutes is amended to read:

SB446,7,18 73.03 (50) (d) In the case of a sole proprietor, signs the form or, in the case of other persons, has an individual who is authorized to act on behalf of the person sign the form, or, in the case of a single-owner entity that is disregarded as a separate entity under section 7701 of the Internal Revenue Code, the person is the owner. Any person who may register under this subsection may designate an agent, as defined in s. 77.524 (1) (ag), to register with the department under this subsection in the manner prescribed by the department. In this paragraph, "sign" has the meaning given in s. 77.51 (17r).

SB446, s. 16 Section 16. 73.03 (50b) of the statutes is created to read:

SB446,7,23 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.

SB446, s. 17 Section 17. 73.03 (61) of the statutes is created to read:

SB446,8,2 73.03 (61) To do all of the following related to the Uniform Sales and Use Tax Administration Act:

SB446,8,3 (a) Certify compliance with the agreement, as defined in s. 77.65 (2) (a).

SB446,8,6 (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).

SB446,8,18 (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, items or property under s. 77.52 (1) (b) or (c), 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.

SB446,8,22 (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.

SB446,9,2 (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.

SB446,9,7 (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.

SB446,9,10 (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.

SB446,9,14 (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).

SB446, s. 18 Section 18. 76.07 (4g) (b) 8. of the statutes is amended to read:

SB446,9,22 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.

SB446, s. 19 Section 19. 77.51 (1) of the statutes is renumbered 77.51 (1fd) and amended to read:

SB446,10,6 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, items or property under s. 77.52 (1) (b) or (c), or taxable services for a consideration by social clubs and fraternal organizations to their members or others.

SB446, s. 20 Section 20. 77.51 (1b) of the statutes is created to read:

SB446,10,9 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.

SB446, s. 21 Section 21. 77.51 (1ba) of the statutes is created to read:

SB446,10,14 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.

SB446, s. 22 Section 22. 77.51 (1f) of the statutes is created to read:

SB446,10,19 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:

SB446,10,21 (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.

SB446,10,24 (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.

SB446,11,4 2. The retail sale of a service and items or property under s. 77.52 (1) (b) or (c), if such property or items 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.

SB446,11,7 (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.

SB446,11,13 (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.

SB446,11,24 (e) The retail sale of taxable tangible personal property or items or property under s. 77.52 (1) (b) or (c) and tangible personal property or items or property under s. 77.52 (1) (b) or (c) 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 or items or property under s. 77.52 (1) (b) or (c) is no greater than 50 percent of the seller's total purchase price or sales price of all the tangible personal property or items or property under s. 77.52 (1) (b) or (c) 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.

SB446, s. 23 Section 23. 77.51 (1fm) of the statutes is created to read:

SB446,12,4 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.

SB446, s. 24 Section 24. 77.51 (1n) of the statutes is created to read:

SB446,12,8 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.

SB446, s. 25 Section 25. 77.51 (1p) of the statutes is created to read:

SB446,12,11 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.

SB446, s. 26 Section 26. 77.51 (1r) of the statutes is created to read:

SB446,12,16 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.

SB446, s. 27 Section 27. 77.51 (2k) of the statutes is created to read:

SB446,12,19 77.51 (2k) "Delivered electronically" means delivered to a purchaser by means other than by tangible storage media.

SB446, s. 28 Section 28. 77.51 (2m) of the statutes is created to read:

SB446,12,24 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.

SB446, s. 29 Section 29. 77.51 (3c) of the statutes is created to read:

SB446,13,3 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.

SB446, s. 30 Section 30. 77.51 (3n) of the statutes is created to read:

SB446,13,6 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:

SB446,13,8 (a) The product contains any of the following ingredients or any combination of any of the following ingredients:

SB446,13,9 1. A vitamin.

SB446,13,10 2. A mineral.

SB446,13,11 3. An herb or other botanical.

SB446,13,12 4. An amino acid.

SB446,13,14 5. A dietary substance that is intended for human consumption to supplement the diet by increasing total dietary intake.

SB446,13,15 6. A concentrate, metabolite, constituent, or extract.

SB446,13,19 (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.

SB446,13,21 (c) The product is required to be labeled as a dietary supplement as required under 21 CFR 101.36.

SB446, s. 31 Section 31. 77.51 (3pd) of the statutes is created to read:

SB446,14,8 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 or items or property under s. 77.52 (1) (b) or (c) included with the printed material is not billed directly to the recipients of the printed material. "Direct mail" includes any tangible personal property or items or property under s. 77.52 (1) (b) or (c) 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.

SB446, s. 32 Section 32. 77.51 (3pe) of the statutes is created to read:

SB446,14,11 77.51 (3pe) "Directory assistance" means an ancillary service that provides telephone numbers or addresses.

SB446, s. 33 Section 33. 77.51 (3pf) of the statutes is created to read:

SB446,14,14 77.51 (3pf) "Distinct and identifiable product" does not include any of the following:

SB446,14,17 (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.

SB446,14,21 (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.

SB446,14,22 (c) Any items specified under sub. (12m) (a) or (15b) (a).

SB446, s. 34 Section 34. 77.51 (3pj) of the statutes is created to read:

SB446,15,3 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:

SB446,15,6 (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.

SB446,15,8 (b) It is intended for use in diagnosing, curing, mitigating, treating, or preventing a disease.

SB446,15,9 (c) It is intended to affect a function or structure of the body.

SB446, s. 35 Section 35. 77.51 (3pm) of the statutes is created to read:

SB446,15,16 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.

SB446, s. 36 Section 36. 77.51 (3pn) of the statutes is created to read:

SB446,15,21 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.

SB446, s. 37 Section 37. 77.51 (3po) of the statutes is created to read:

SB446,15,24 77.51 (3po) "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.

SB446, s. 38 Section 38. 77.51 (3rm) of the statutes is created to read:

SB446,16,2 77.51 (3rm) "Fixed wireless service" means a telecommunications service that provides radio communication between fixed points.

SB446, s. 39 Section 39. 77.51 (3t) of the statutes is created to read:

SB446,16,7 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 alcoholic beverages or tobacco.

SB446, s. 40 Section 40. 77.51 (4) of the statutes, as affected by 2007 Wisconsin Acts 11 and 20, is repealed.

SB446, s. 41 Section 41. 77.51 (5) of the statutes is amended to read:

SB446,16,18 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 or items or property under s. 77.52 (1) (b) or (c) 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 or items, even though the property or items may be necessary or essential to providing the service.

SB446, s. 42 Section 42. 77.51 (5d) of the statutes is created to read:

SB446,16,24 77.51 (5d) "International telecommunications services" means telecommunications services that originate or terminate in the United States, including the District of Columbia and any U.S. territory or possession and originate or terminate outside of the United States, including the District of Columbia and any U.S. territory or possession.

SB446, s. 43 Section 43. 77.51 (5n) of the statutes is created to read:

SB446,17,3 77.51 (5n) "Interstate telecommunications services" means telecommunications services that originate in one state or U.S. territory or possession and terminate in a different state or U.S. territory or possession.

SB446, s. 44 Section 44. 77.51 (5r) of the statutes is created to read:

SB446,17,7 77.51 (5r) "Intrastate telecommunications services" means telecommunications services that originate in one state or U.S. territory or possession and terminate in the same state or U.S. territory or possession.

SB446, s. 45 Section 45. 77.51 (6m) of the statutes is renumbered 77.51 (5m).