AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
taxation
Other taxation
Under current law, generally, the sale of tangible personal property that becomes an ingredient or component part of an article of tangible personal property, or is consumed, destroyed, or loses its identity in manufacturing an article of tangible personal property is exempt from the sales and use tax. This bill provides that the sale of such tangible personal property is only exempt from the sales and use tax if it is also used exclusively and directly by a manufacturer in manufacturing an article of tangible personal property that is destined for sale.
Under current law, for sales and use tax purposes, "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. The bill provides that the production 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.
Under current law, for sales and use tax purposes, "manufacturing" includes crushing, washing, grading, and blending sand, rock, gravel, and other minerals and ore dressing. Under the bill, "manufacturing" also includes conveying work in progress directly from one manufacturing process to another in the same plant; testing or inspecting the new article of tangible personal property that is being manufactured; storing work in progress in the same plant where the manufacturing occurs; assembling finished units of tangible personal property; and packaging a new article of tangible personal property, if the manufacturer, or another person on the manufacturer's behalf, performs the packaging and if the packaging becomes part of the new article of tangible personal property as it is customarily offered for sale by the manufacturer.
Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.
For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 1. 71.07 (3s) (a) 1. of the statutes is amended to read:
71.07 (3s) (a) 1. "Manufacturing" has the meaning given in s. 77.54 (6m), 2007 stats.
SECTION 2. 71.28 (3) (a) 1. of the statutes is amended to read:
71.28 (3) (a) 1. "Manufacturing" has the meaning given in s. 77.54 (6m), 2007 stats.
SECTION 3. 71.47 (3) (a) 1. of the statutes is amended to read:
71.47 (3) (a) 1. "Manufacturing" has the meaning given in s. 77.54 (6m), 2007 stats.
SECTION 4. 77.51 (7m) (a) 3. of the statutes is created to read:
77.51 (7m) (a) 3. Conveying work in progress directly from one manufacturing process to another in the same plant; testing or inspecting, throughout the manufacturing process, the new article of tangible personal property that is being manufactured; storing work in progress in the same plant where the manufacturing occurs; assembling finished units of tangible personal property; and packaging a new article of tangible personal property, if the manufacturer, or another person on the manufacturer's behalf, performs the packaging and if the packaging becomes part of the new article as it is customarily offered for sale by the manufacturer.
SECTION 5. 77.51 (7m) (b) of the statutes is created to read:
77.51 (7m) (b) "Manufacturing" does not include storing raw materials or finished units of tangible personal property, research or development, delivery to or from the plant, or repairing or maintaining plant facilities.
SECTION 6. 77.51 (10m) of the statutes is created to read:
77.51 (10m) For purposes of sub. (7m), "plant" means a parcel of property or adjoining parcels of property, including parcels that are separated only by a public road, and the buildings, machinery, and equipment that are located on the parcel, that are owned by or leased to the manufacturer.
SECTION 7. 77.51 (10n) of the statutes is created to read:
77.51 (10n) For purposes of sub. (7m), "plant inventory" does not include unsevered mineral deposits.
SECTION 8. 77.54 (2) of the statutes is amended to read:
77.54 (2) The gross receipts from sales of and the storage, use or other consumption of tangible personal property becoming that is used exclusively and directly by a manufacturer in manufacturing an article of tangible personal property that is destined for sale and that becomes an ingredient or component part of an the article of tangible personal property destined for sale or which is consumed or destroyed or loses its identity in the manufacture manufacturing the article of tangible personal property in any form destined for sale, except as provided in sub. (30) (a) 6.
SECTION 9. 77.54 (2m) of the statutes is amended to read:
77.54 (2m) The gross receipts from the sales of and the storage, use or other consumption of tangible personal property or services that are used exclusively and directly by a manufacturer in manufacturing shoppers guides, newspapers, or periodicals and that become an ingredient or component of shoppers guides, newspapers, or periodicals or that are consumed or lose their identity in the manufacture of shoppers guides, newspapers, or periodicals, whether or not the shoppers guides, newspapers, or periodicals are transferred without charge to the recipient. In this subsection, "shoppers guides",," "newspapers," and "periodicals" have the meanings under sub. (15). The exemption under this subdivision does not apply to advertising supplements that are not newspapers.
SECTION 10. 77.54 (6m) (intro.) of the statutes is renumbered 77.51 (7m) (a) (intro.) and amended to read:
77.51 (7m) (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:
SECTION 11. 77.54 (6m) (a) of the statutes is renumbered 77.51 (7m) (a) 1.
SECTION 12. 77.54 (6m) (b) of the statutes is renumbered 77.51 (7m) (a) 2. and amended to read:
77.51 (7m) (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.
SECTION 9443. Effective dates; Revenue.
(1) TANGIBLE PERSONAL PROPERTY CONSUMED IN MANUFACTURING. The treatment of sections 71.07 (3s) (a) 1., 71.28 (3) (a) 1., 71.47 (3) (a) 1., 77.51 (7m) (a) 3. and (b), (10m), and (10n) and 77.54 (2) and (2m) of the statutes, the renumbering of section 77.54 (6m) (a) of the statutes, and the renumbering and amendment of section 77.54 (6m) (intro.) and (b) of the statutes take effect on the first day of the 2nd month beginning after publication.
(End)
LRB-1222LRB-1222/P2
JK:bjk:ph
2009 - 2010 LEGISLATURE
DOA:......Lillethun, BB0292 - Exempt youth sports league and entry fees from taxable admissions
For 2009-11 Budget -- Not Ready For Introduction
2009 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
taxation
Other taxation
This bill provides that, for sales and use tax purposes, taxable sales do not include the sale of tickets or admissions by a nonprofit organization to participate in any sports activity in which more than 50 percent of the participants are 19 years old or younger.
Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.
For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 1. 77.52 (2) (a) 2. a. of the statutes is amended to read:
77.52 (2) (a) 2. a. Except as provided in subd. 2. b. and c., the sale of admissions to amusement, athletic, entertainment or recreational events or places except county fairs, the sale, rental or use of regular bingo cards, extra regular cards, special bingo cards and the sale of bingo supplies to players and the furnishing, for dues, fees or other considerations, the privilege of access to clubs or the privilege of having access to or the use of amusement, entertainment, athletic or recreational devices or facilities, including the sale or furnishing of use of recreational facilities on a periodic basis or other recreational rights, including but not limited to membership rights, vacation services and club memberships.
SECTION 2. 77.52 (2) (a) 2. c. of the statutes is created to read:
77.52 (2) (a) 2. c. Taxable sales do not include the sale of admissions by a nonprofit organization to participate in any sports activity in which more than 50 percent of the participants are 19 years old or younger.
(End)
LRB-1223LRB-1223/P2
JK:bjk:rs
2009 - 2010 LEGISLATURE
DOA:......Lillethun, BB0293 - Economic nexus standard for Internet businesses
For 2009-11 Budget -- Not Ready For Introduction
2009 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
taxation
Other taxation
Under this bill, for sales and use tax purposes, a retailer engaged in business in this state includes any person who has an affiliate in this state, if the person is related to the affiliate for federal tax purposes and if the affiliate uses facilities or employees in this state to advertise, promote, or facilitate the establishment of or market for sales of items by the related person to purchasers in this state or for providing services to the related person's purchasers in this state, including accepting returns of purchases or resolving customer complaints.
For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 1. 77.51 (13g) (c) of the statutes is created to read:
77.51 (13g) (c) Any person who has an affiliate in this state, if the person is related to the affiliate and if the affiliate uses facilities or employees in this state to advertise, promote, or facilitate the establishment of or market for sales of items by the related person to purchasers in this state or for providing services to the related person's purchasers in this state, including accepting returns of purchases or resolving customer complaints. For purposes of this paragraph, 2 persons are related if any of the following apply:
1. One person, or each person, is a corporation and one person and any person related to that person in a manner that would require a stock attribution from the corporation to the person or from the person to the corporation under section 318 of the Internal Revenue Code owns directly, indirectly, beneficially, or constructively at least 50 percent of the corporation's outstanding stock value.
2. One person, or each person, is a partnership, estate, or trust and any partner or beneficiary; and the partnership, estate, or trust and its partners or beneficiaries; own directly, indirectly, beneficially, or constructively, in the aggregate, at least 50 percent of the profits, capital, stock, or value of the other person or both persons.
3. An individual stockholder and the members of the stockholder's family, as defined in section 318 of the Internal Revenue Code, owns directly, indirectly, beneficially, or constructively, in the aggregate, at least 50 percent of both persons' outstanding stock value.
(End)
LRB-1224LRB-1224/1
JK:jld:rs
2009 - 2010 LEGISLATURE
DOA:......Lillethun, BB0296 - Expand treasury offset program to cover vendor debts
For 2009-11 Budget -- Not Ready For Introduction
2009 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
taxation
Other taxation
Under current law, DOR may enter into agreements with the Internal Revenue Service (IRS) to collect a taxpayer's federal tax obligation by subtracting the obligation amount from the taxpayer's state tax refund and submitting the amount to the IRS. DOR may also charge a fee of up to $25 per transaction for that collection. In addition, DOR may enter into agreements with the IRS to collect a taxpayer's state tax obligation by subtracting the obligation amount from the taxpayer's federal tax refund and submitting that amount to DOR.
Under this bill, DOR may enter into agreements with the IRS to collect a person's federal nontax debt by subtracting the amount from any state payment to that person, other than a tax refund. DOR may also charge a fee of up to $25 per transaction for that collection. In addition, DOR may enter into agreements with the IRS to collect a person's state tax or nontax debt by subtracting the amount from any federal payment to that person, as authorized by federal law.
For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 1. 73.03 (52) of the statutes is renumbered 73.03 (52) (a).
SECTION 2. 73.03 (52) (b) of the statutes is created to read:
73.03 (52) (b) To enter into agreements with the Internal Revenue Service that provide for offsetting state payments, except tax refunds, against federal nontax obligations; and to charge a fee up to $25 per transaction for such offsets; and offsetting federal payments, as authorized by federal law, against state tax and nontax obligations, and collecting the offset cost from the debtor, if the agreements provide that setoffs under par. (a) and ss. 71.93 and 71.935 occur before the setoffs under this paragraph.
SECTION 9443. Effective dates; Revenue.
(1) OFFSET AGREEMENTS. The renumbering of section 73.03 (52) of the statutes and the creation of section 73.03 (52) (b) of the statutes take effect on the first day of the 14th month beginning after publication.
(End)
