Amendment ASA1-AB75

AB75-ASA1,1006,9 77.54 (6) (a) Machines and specific processing equipment and repair parts or replacements thereof, exclusively and directly used by a manufacturer in manufacturing tangible personal property or items or property under s. 77.52 (1) (b) or (c) and safety attachments for those machines and equipment.

AB75-ASA1, s. 1843g Section 1843g. 77.54 (6) (b) of the statutes is amended to read:

AB75-ASA1,1006,15 77.54 (6) (b) Containers, labels, sacks, cans, boxes, drums, bags or other packaging and shipping materials for use in packing, packaging or shipping tangible personal property or items or property under s. 77.52 (1) (b) or (c), if such items the containers, labels, sacks, cans, boxes, drums, bags, or other packaging and shipping materials are used by the purchaser to transfer merchandise to customers and meat.

AB75-ASA1,1006,19 (bm) Meat casing, wrapping paper, tape, containers, labels, sacks, cans, boxes, drums, bags or other packaging and shipping materials for use in packing, packaging or shipping meat or meat products regardless of whether such items are used to transfer merchandise to customers.

AB75-ASA1, s. 1844 Section 1844. 77.54 (6m) (intro.) of the statutes is renumbered 77.51 (7h) (a) (intro.) and amended to read:

AB75-ASA1,1007,4 77.51 (7h) (a) (intro.) For purposes of sub. (6) (a) "manufacturing" is "Manufacturing" means the production by machinery of a new article of tangible personal property with a different form, use, and name from existing materials, by a process popularly regarded as manufacturing, and that begins with conveying raw materials and supplies from plant inventory to the place where work is performed in the same plant and ends with conveying finished units of tangible personal property to the point of first storage in the same plant. "Manufacturing" includes but is not limited to:

AB75-ASA1, s. 1845 Section 1845. 77.54 (6m) (a) of the statutes is renumbered 77.51 (7h) (a) 1.

AB75-ASA1, s. 1846 Section 1846. 77.54 (6m) (b) of the statutes is renumbered 77.51 (7h) (a) 2. and amended to read:

AB75-ASA1,1007,11 77.51 (7h) (a) 2. Ore dressing, including the mechanical preparation, by crushing and other processes, and the concentration, by flotation and other processes, of ore, and beneficiation, including but not limited to the preparation of ore for smelting.

AB75-ASA1, s. 1846d Section 1846d. 77.54 (7) (a) of the statutes is amended to read:

AB75-ASA1,1007,17 77.54 (7) (a) Except as provided in pars. (b) to (d), the occasional sales of tangible personal property, items and property under s. 77.52 (1) (b) and (c), and services and the storage, use or other consumption in this state of tangible personal property and items and property under s. 77.52 (1) (b) and (c) the transfer of which to the purchaser is an occasional sale.

AB75-ASA1, s. 1846e Section 1846e. 77.54 (7m) of the statutes, as affected by 2009 Wisconsin Act 2, is amended to read:

AB75-ASA1,1008,10 77.54 (7m) Occasional sales of tangible personal property, or items, or property, or goods under s. 77.52 (1) (b), or (c), and (d), or services, including admissions or tickets to an event; by a neighborhood association, church, civic group, garden club, social club or similar nonprofit organization; not involving entertainment for which payment in the aggregate exceeds $500 for performing or as reimbursement of expenses unless access to the event may be obtained without payment of a direct or indirect admission fee; conducted by the organization if the organization is not engaged in a trade or business and is not required to have a seller's permit. For purposes of this subsection, an organization is engaged in a trade or business and is required to have a seller's permit if its sales of tangible personal property, and items, property, and goods under s. 77.52 (1) (b), (c), and (d), and services, not including sales of tickets to events, and its events occur on more than 20 days during the year, unless its receipts do not exceed $25,000 during the year. The exemption under this subsection does not apply to the sales price from the sale of bingo supplies to players or to the sale, rental or use of regular bingo cards, extra regular cards and special bingo cards.

AB75-ASA1, s. 1846f Section 1846f. 77.54 (9a) (intro.) of the statutes, as affected by 2009 Wisconsin Act 2, is amended to read:

AB75-ASA1,1008,15 77.54 (9a) (intro.) The sales price from sales to, and the storage by, use by or other consumption of tangible personal property, and items, and property, and goods under s. 77.52 (1) (b), and (c), and (d), and taxable services by:

AB75-ASA1, s. 1847 Section 1847. 77.54 (9a) (a) of the statutes is amended to read:

AB75-ASA1,1008,20 77.54 (9a) (a) This state or any agency thereof, the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Wisconsin Quality Home Care Authority, and the Fox River Navigational System Authority.

AB75-ASA1, s. 1848 Section 1848. 77.54 (9a) (ed) of the statutes is created to read:

AB75-ASA1,1008,23 77.54 (9a) (ed) Any federally recognized American Indian tribe or band in this state.

AB75-ASA1, s. 1849 Section 1849. 77.54 (9a) (er) of the statutes is created to read:

AB75-ASA1,1008,25 77.54 (9a) (er) Any transit authority created under s. 66.1039.

AB75-ASA1, s. 1849b Section 1849b. 77.54 (18) of the statutes, as affected by 2009 Wisconsin Act 2, is amended to read:

AB75-ASA1,1009,13 77.54 (18) When the sale, license, lease, or rental of a service or property, including items, property, and goods under s. 77.52 (1) (b), (c), and (d), that was previously exempt or not taxable under this subchapter becomes taxable, and the service or property is furnished under a written contract by which the seller is unconditionally obligated to provide the service or property for the amount fixed under the contract, the seller is exempt from sales or use tax on the sales price for services or property provided until the contract is terminated, extended, renewed or modified. However, from the time the service or property becomes taxable until the contract is terminated, extended, renewed or modified the user is subject to use tax, measured by the purchase price, on the service or property purchased under the contract.

AB75-ASA1, s. 1849c Section 1849c. 77.54 (23m) of the statutes, as affected by 2009 Wisconsin Act 2, is amended to read:

AB75-ASA1,1009,20 77.54 (23m) The sales price from the sale, license, lease or rental of or the storage, use or other consumption of motion picture film or tape, and motion pictures or radio or television programs for listening, viewing, or broadcast, and advertising materials related thereto, sold, licensed, leased or rented to a motion picture theater or radio or television station.

AB75-ASA1, s. 1849d Section 1849d. 77.54 (30) (a) 6. of the statutes is amended to read:

AB75-ASA1,1009,23 77.54 (30) (a) 6. Fuel and electricity consumed in manufacturing tangible personal property, or items or property under s. 77.52 (1) (b) or (c), in this state.

AB75-ASA1, s. 1849m Section 1849m. 77.54 (30) (a) 7. of the statutes is created to read:

AB75-ASA1,1010,5 77.54 (30) (a) 7. Fuel sold for use in motorboats that are regularly employed in carrying persons for hire for sport fishing in and upon the outlying waters, as defined in s. 29.001 (63), and the rivers and tributaries specified in s. 29.2285 (2) (a) 1. and 2., if the owner and all operators are licensed under s. 29.514 to operate the boat for that purpose.

AB75-ASA1, s. 1849s Section 1849s. 77.54 (35) of the statutes, as affected by 2009 Wisconsin Act 2, is amended to read:

AB75-ASA1,1010,11 77.54 (35) The sales price from the sales of tangible personal property, or items, or property, or goods under s. 77.52 (1) (b), or (c), or (d), tickets, or admissions by any baseball team affiliated with the Wisconsin Department of American Legion baseball.

AB75-ASA1, s. 1850b Section 1850b. 77.54 (49) of the statutes, as affected by 2009 Wisconsin Act 2, is amended to read:

AB75-ASA1,1011,3 77.54 (49) The sales price from the sale of and the storage, use, or other consumption of taxable services and tangible personal property or items, or property, or goods under s. 77.52 (1) (b), or (c), or (d), that are physically transferred to the purchaser as a necessary part of services that are subject to the taxes imposed under s. 77.52 (2) (a) 7., 10., 11., and 20., if the seller and the purchaser of such services and property, or item, or good are members of the same affiliated group under section 1504 of the Internal Revenue Code and are eligible to file a single consolidated return for federal income tax purposes. For purposes of this subsection, if a seller purchases a taxable service, or item, or property, or goods under s. 77.52 (1) (b), or (c), or (d), or tangible personal property, as described in this subsection, that is subsequently sold to a member of the seller's affiliated group and the sale is exempt under this subsection from the taxes imposed under this subchapter, the original purchase of the taxable service, or item, or property, or goods under s. 77.52 (1) (b), or (c), or (d), or tangible personal property by the seller is not considered a sale for resale or exempt under this subsection.

AB75-ASA1, s. 1850d Section 1850d. 77.54 (50) of the statutes, as created by 2009 Wisconsin Act 2, is amended to read:

AB75-ASA1,1011,10 77.54 (50) The sales price from the sale, license, lease, or rental of and the storage, use, or other consumption of specified digital goods or additional digital goods, if the sale, license, lease, or rental of and the storage, use, or other consumption of such goods sold in a tangible form is exempt from, or not subject to, taxation under this subchapter.

AB75-ASA1, s. 1850e Section 1850e. 77.54 (54) of the statutes, as affected by 2009 Wisconsin Act 2, is amended to read:

AB75-ASA1,1011,17 77.54 (54) The sales price from the sale of and the storage, use, or other consumption of tangible personal property, and items, and property, and goods under s. 77.52 (1) (b), and (c), and (d), and taxable services that are sold by a home exchange service that receives moneys from the appropriation account under s. 20.485 (1) (g) and is operated by the department of veterans affairs.

AB75-ASA1, s. 1851 Section 1851. 77.54 (57) of the statutes is created to read:

AB75-ASA1,1011,19 77.54 (57) (a) In this subsection:

AB75-ASA1,1012,2 1. "Biotechnology" means the application of biotechnologies, including recombinant deoxyribonucleic acid techniques, biochemistry, molecular and cellular biology, genetics, genetic engineering, biological cell fusion, and other bioprocesses, that use living organisms or parts of an organism to produce or modify products to improve plants or animals or improve animal health, develop microorganisms for specific uses, identify targets for small molecule pharmaceutical development, or transform biological systems into useful processes and products.

AB75-ASA1,1012,3 2. "Machinery" has the meaning given in s. 70.11 (27) (a) 2.

AB75-ASA1,1012,4 3. "Manufacturing" has the meaning given in sub. (7h).

AB75-ASA1,1012,5 4. "Primarily" means more than 50 percent.

AB75-ASA1,1012,7 5. "Qualified research" means qualified research as defined under section 41 (d) (1) of the Internal Revenue Code.

AB75-ASA1,1012,8 6. "Used exclusively" has the meaning given in sub. (3) (b) 3.

AB75-ASA1,1012,10 (b) The sales price from the sale of and the storage, use, or other consumption of all of the following:

AB75-ASA1,1012,14 1. Machinery and equipment, including attachments, parts, and accessories, that are sold to persons who are engaged primarily in manufacturing or biotechnology in this state and are used exclusively and directly in qualified research.

AB75-ASA1,1012,19 2. Tangible personal property or item or property under s. 77.52 (1) (b) or (c) that is sold to persons who are engaged primarily in manufacturing or biotechnology in this state, if the tangible personal property or item or property under s. 77.52 (1) (b) or (c) is consumed or destroyed or loses its identity while being used exclusively and directly in qualified research.

AB75-ASA1, s. 1851e Section 1851e. 77.55 (1) (intro.) of the statutes, as affected by 2009 Wisconsin Act 2, is amended to read:

AB75-ASA1,1012,24 77.55 (1) (intro.) There is exempted from the computation of the amount of the sales tax the sales price from the sale of any tangible personal property, or items, or property, or goods under s. 77.52 (1) (b), or (c), and (d), or services to:

AB75-ASA1, s. 1851f Section 1851f. 77.55 (2) of the statutes, as affected by 2009 Wisconsin Act 2, is amended to read:

AB75-ASA1,1013,10 77.55 (2) There is exempted from the computation of the amount of the sales tax the sales price from sales of tangible personal property, and items, and property, and goods under s. 77.52 (1) (b), and (c), and (d), 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, or item, or good is actually transported to the out-of-state destination for use by the carrier in the conduct of its business as a carrier.

AB75-ASA1, s. 1851g Section 1851g. 77.55 (3) of the statutes, as affected by 2009 Wisconsin Act 2, is amended to read:

AB75-ASA1,1013,19 77.55 (3) There is exempted from the computation of the amount of the sales tax the sales price from sales of tangible personal property, and items, and property, and goods under s. 77.52 (1) (b), and (c), and (d), 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.

AB75-ASA1, s. 1851h Section 1851h. 77.56 (1) of the statutes, as affected by 2009 Wisconsin Act 2, is amended to read:

AB75-ASA1,1013,25 77.56 (1) The storage, use or other consumption in this state of tangible personal property, including and items, property, and goods under s. 77.52 (1) (b), (c), and (d), the sales price from the sale of which is reported to the department in the measure of the sales tax, is exempted from the use tax.

AB75-ASA1, s. 1852 Section 1852. 77.58 (3) (a) of the statutes is amended to read:

AB75-ASA1,1014,18 77.58 (3) (a) For purposes of the sales tax a return shall be filed by every seller. For purposes of the use tax a return shall be filed by every retailer engaged in business in this state and by every person purchasing tangible personal property or services, the storage, use or other consumption of which is subject to the use tax, who has not paid the use tax due to a retailer required to collect the tax. If a qualified subchapter S subsidiary is not regarded as a separate entity under ch. 71, the owner of that subsidiary shall elect to either include the information for that subsidiary on the owner's return. Returns shall be signed by the person required to file the return or by a duly authorized agent but need not be verified by oath or file a separate electronic return for that entity. If a single-owner entity is disregarded as a separate entity under ch. 71, the owner shall elect to either include the information from the entity on the owner's return or file a separate electronic return for that entity. If an owner that owns more than one entity that is disregarded as a separate entity under ch. 71 elects to file a separate return for one of its disregarded entities, the owner shall file separate returns for all of its disregarded entities. Returns filed under this paragraph shall be signed by the person required to file the return or by a duly authorized agent but need not be verified by oath.

AB75-ASA1, s. 1852b Section 1852b. 77.58 (3) (a) of the statutes, as affected by 2009 Wisconsin Acts 2 and .... (this act), is repealed and recreated to read:

AB75-ASA1,1015,11 77.58 (3) (a) For purposes of the sales tax a return shall be filed by every seller. For purposes of the use tax a return shall be filed by every retailer engaged in business in this state and by every person purchasing tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services, the storage, use or other consumption of which is subject to the use tax, who has not paid the use tax due to a retailer required to collect the tax. If a qualified subchapter S subsidiary is not regarded as a separate entity under ch. 71, the owner of that subsidiary shall elect to either include the information for that subsidiary on the owner's return or file a separate electronic return for that entity. If a single-owner entity is disregarded as a separate entity under ch. 71, the owner shall elect to either include the information from the entity on the owner's return or file a separate electronic return for that entity. If an owner that owns more than one entity that is disregarded as a separate entity under ch. 71 elects to file a separate return for one of its disregarded entities, the owner shall file separate returns for all of its disregarded entities. Returns filed under this paragraph shall be signed by the person required to file the return or by a duly authorized agent but need not be verified by oath.

AB75-ASA1, s. 1852d Section 1852d. 77.58 (6) of the statutes, as affected by 2009 Wisconsin Act 2, is amended to read:

AB75-ASA1,1015,17 77.58 (6) For the purposes of the sales tax, the sales price from rentals, licenses, or leases of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) shall be reported and the tax paid in accordance with such rules as the department prescribes.

AB75-ASA1, s. 1852f Section 1852f. 77.585 (8) of the statutes, as created by 2009 Wisconsin Act 2, is repealed and recreated to read:

AB75-ASA1,1015,25 77.585 (8) (a) A sale or purchase involving transfer of ownership of tangible personal property, or items or property under s. 77.52 (1) (b) or (c), 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.

AB75-ASA1,1016,4 (b) 1. Except as provided in subd. 2., a sale or purchase involving a digital good under s. 77.52 (1) (d) 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 or when the digital good is first used, whichever comes first.

AB75-ASA1,1016,11 2. A sale or purchase of a product transferred electronically, including a digital good under s. 77.52 (1) (d), that is sold by subscription, is completed at the time when the payment for the subscription is due to the seller. For purposes of this subdivision, "subscription" means an agreement with a seller that grants the consumer the right to obtain products transferred electronically from within one or more product categories having the same tax treatment, in a fixed quantity or for a fixed period of time, or both.

AB75-ASA1, s. 1852g Section 1852g. 77.59 (9n) (c) of the statutes, as created by 2009 Wisconsin Act 2, is amended to read:

AB75-ASA1,1017,2 77.59 (9n) (c) A Except as otherwise provided in this paragraph, a purchaser is not liable for the tax, interest, or penalties imposed on a transaction under this subchapter if the seller or certified service provider from whom the purchaser made the purchase relied on erroneous data provided in the databases under s. 73.03 (61) (e) and (f) or if the purchaser relied on erroneous data provided in the databases under s. 73.03 (61) (e) and (f). With respect to reliance on the database provided under s. 73.03 (61) (e), the relief provided under this paragraph is limited to the erroneous classification in the database of terms defined in this subchapter and specifically identified in the database as being "taxable," "exempt," "included in sales price" or "excluded from sales price," or "included in the definition" or "excluded from the definition." With respect to reliance on the database provided under s. 73.03 (61) (f), the relief provided under this paragraph does not apply to transactions by which the product is received by the purchaser at the business location of the seller.

AB75-ASA1, s. 1852m Section 1852m. 77.61 (4) (c) of the statutes, as affected by 2009 Wisconsin Act 2, is amended to read:

AB75-ASA1,1017,16 77.61 (4) (c) For reporting the sales tax and collecting and reporting the use tax imposed on the retailer under s. 77.53 (3) and the accounting connected with it, retailers, not including certified service providers that receive compensation under s. 73.03 (61) (h), may deduct 0.5 percent of those taxes payable or $10 for that reporting period required under s. 77.58 (1) and not more than $1,000 for that reporting period, whichever is greater, but not more than the amount of the sales taxes or use taxes that is payable under ss. 77.52 and 77.53 (3) for that reporting period required under s. 77.58 (1), as administration expenses if the payment of the taxes is not delinquent. For purposes of calculating the retailer's discount under this paragraph, the taxes on retail sales reported by retailers under subch. V, including taxes collected and remitted as required under s. 77.785, shall be included if the payment of those taxes is not delinquent.

AB75-ASA1, s. 1853d Section 1853d. 77.61 (11) of the statutes, as affected by 2009 Wisconsin Act 2, is repealed and recreated to read:

AB75-ASA1,1018,3 77.61 (11) Any city, village or town clerk or other official whose duty it is to issue licenses or permits to engage in a business involving the sale at retail of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) subject to tax under this subchapter, or the furnishing of services so subject to tax, shall, before issuing such license or permit, require proof that the person to whom such license or permit is to be issued is the holder of a seller's permit or use tax registration certificate, is registered to collect, report, and remit use tax under this subchapter, or has been informed by an employee of the department that the department will issue a seller's permit or use tax registration certificate to that person or register that person to collect, report, and remit use tax.

AB75-ASA1, s. 1854 Section 1854. 77.61 (19) of the statutes is created to read:

AB75-ASA1,1018,11 77.61 (19) A person who fails to produce records or documents, as provided under s. 73.03 (9) or 77.59 (2), that support amounts or other information required to be shown on a return required under s. 77.58 may be subject to any of the following penalties, as determined by the department, except that the department may not impose a penalty under this subsection if the person shows that under all facts and circumstances the person's response, or failure to respond, to the department's request was reasonable or justified by factors beyond the person's control:

AB75-ASA1,1018,14 (a) The disallowance of deductions, credits, exemptions, or inclusions of additional taxable sales or additional taxable purchases to which the requested records relate.

AB75-ASA1,1018,17 (b) A penalty for each violation of this subsection that is equal to the greater of $500 or 25 percent of the amount of the additional tax on any adjustment made by the department that results from the person's failure to produce the records.

AB75-ASA1,1018,20 (c) The department shall promulgate rules to administer this subsection and the rules shall include a standard response time, a standard for noncompliance, and penalty waiver provisions.

AB75-ASA1, s. 1855 Section 1855. 77.61 (19m) of the statutes is created to read:

AB75-ASA1,1018,23 77.61 (19m) (a) A single-owner entity that is disregarded as a separate entity under ch. 71 is disregarded as a separate entity for purposes of this subchapter.

AB75-ASA1,1019,4 (b) A single-owner entity that is disregarded as a separate entity under ch. 71 on the effective date of this paragraph .... [LRB inserts date], shall be treated under this subchapter as an entity separate from its owner for purposes of the sale, license, lease, or rental of and the storage, use, or other consumption of tangible personal property purchased by the single-owner entity or its owner prior to the effective date of this paragraph .... [LRB inserts date].

AB75-ASA1,1019,14 (c) A single-owner entity that is disregarded as a separate entity under ch. 71 on the effective date of this paragraph .... [LRB inserts date], shall be treated under this subchapter as an entity separate from its owner for purchases of building materials, if the materials are affixed and made a structural part of real estate, and the amount payable to the contractor is fixed without regard to the costs incurred in performing a written contract that was irrevocably entered into prior to the effective date of this paragraph .... [LRB inserts date], or that resulted from the acceptance of a formal written bid accompanied by a bond or other performance guaranty that was irrevocably submitted before the effective date of this paragraph .... [LRB inserts date].

AB75-ASA1, s. 1855b Section 1855b. 77.61 (19m) (b) of the statutes, as created by 2009 Wisconsin Act .... (this act), is repealed and recreated to read:

AB75-ASA1,1019,23 77.61 (19m) (b) A single-owner entity that is disregarded as a separate entity under ch. 71 on the effective date of the 2009-11 biennial budget act .... [LRB inserts date], shall be treated under this subchapter as an entity separate from its owner for purposes of the sale, license, lease, or rental of and the storage, use, or other consumption of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) purchased by the single-owner entity or its owner prior to the effective date of the 2009-11 biennial budget act .... [LRB inserts date].

AB75-ASA1, s. 1855d Section 1855d. 77.61 (20) of the statutes is created to read:

AB75-ASA1,1020,3 77.61 (20) The sale, license, lease, or rental of a product may be taxed only once under this subchapter regardless of whether such sale, license, lease, or rental is subject to taxation under more than one imposition provision under this subchapter.

AB75-ASA1, s. 1856 Section 1856. Subchapter V (title) of chapter 77 [precedes 77.70] of the statutes is amended to read:

AB75-ASA1,1020,6 Chapter 77

AB75-ASA1,1020,10 SUBCHAPTER V COUNTY, transit authority, AND SPECIAL DISTRICT SALES AND USE TAXES

AB75-ASA1, s. 1857 Section 1857. 77.705 of the statutes is amended to read: