AB75: Bill Text

AB75, s. 1840 Section 1840. 77.52 (2) (ag) 39. (intro.) of the statutes is amended to read:

AB75,1048,20 77.52 (2) (ag) 39. (intro.) Equipment in offices, business facilities, schools, and hospitals but not in residential facilities including personal residences, apartments, long-term care facilities, as defined under s. 16.009 (1) (em), state institutions, as defined under s. 101.123 (1) (i) prisons, mental health institutes, as defined in s. 51.01 (12), centers for the developmentally disabled, as defined in s. 51.01 (3), Type 1 juvenile correctional facilities, as defined in s. 938.02 (19), or similar facilities including, by way of illustration but not of limitation, all of the following:

AB75, s. 1841 Section 1841. 77.53 (16m) of the statutes is created to read:

AB75,1049,3 77.53 (16m) If the purchase, rental, or lease of tangible personal property or service subject to the tax imposed by this section occurred on tribal lands and was subject to a sales tax by a federally recognized American Indian tribe or band in this state, the amount of sales tax paid to the tribe or band shall be applied as a credit against and deducted from the tax, to the extent thereof, imposed by this section. In this subsection "sales tax" includes a use or excise tax imposed on the use of tangible personal property or taxable service by the tribe or band.

AB75, s. 1842 Section 1842. 77.54 (2) of the statutes is amended to read:

AB75,1049,12 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.

AB75, s. 1843 Section 1843. 77.54 (2m) of the statutes is amended to read:

AB75,1049,23 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.

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

AB75,1050,8 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:

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

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

AB75,1050,15 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.

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

AB75,1050,20 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, s. 1848 Section 1848. 77.54 (9a) (ed) of the statutes is created to read:

AB75,1050,23 77.54 (9a) (ed) Any federally recognized American Indian tribe or band in this state.

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

AB75,1050,25 77.54 (9a) (er) Any transit authority created under s. 66.1039.

AB75, s. 1850 Section 1850. 77.54 (44) of the statutes is amended to read:

AB75,1051,3 77.54 (44) The gross receipts from the collection of low-income assistance fees that are charged under s. 16.957 196.3746 (4) (a) or (5) (a).

AB75, s. 1851 Section 1851. 77.54 (50) of the statutes is created to read:

AB75,1051,5 77.54 (50) (a) In this subsection:

AB75,1051,12 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.

AB75,1051,13 2. "Machinery" has the meaning given in s. 70.11 (27) (a) 2.

AB75,1051,14 3. "Manufacturing" has the meaning given in sub. (6m).

AB75,1051,15 4. "Primarily" means more than 50 percent.

AB75,1051,17 5. "Qualified research" means qualified research as defined under section 41 (d) (1) of the Internal Revenue Code.

AB75,1051,18 6. "Used exclusively" has the meaning given in sub. (3) (b) 3.

AB75,1051,20 (b) The gross receipts from the sale of and the storage, use, or other consumption of all of the following:

AB75,1051,24 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.

AB75,1052,4 2. Tangible personal property that is sold to persons who are engaged primarily in manufacturing or biotechnology in this state, if the tangible personal property is consumed or destroyed or loses its identity while being used exclusively and directly in qualified research.

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

AB75,1052,22 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, s. 1853 Section 1853. 77.61 (11) of the statutes is amended to read:

AB75,1053,6 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 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 as required by 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.

AB75, s. 1854 Section 1854. 77.61 (16) of the statutes is created to read:

AB75,1053,11 77.61 (16) A person who fails to produce records or documents, as provided under s. 73.03 (9), that support amounts or other information shown on a return required under s. 77.58 may be subject to any of the following, as determined by the department:

AB75,1053,13 (a) The disallowance of deductions, credits, or exemptions to which the requested records relate.

AB75,1053,16 (b) A penalty for each violation of this subsection that is equal to the greater of $500 or 25 percent of the amount of any adjustment by the department that results from the person's failure to produce the records.

AB75, s. 1855 Section 1855. 77.61 (16m) of the statutes is created to read:

AB75,1053,19 77.61 (16m) 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, s. 1856 Section 1856. Subchapter V (title) of chapter 77 [precedes 77.70] of the statutes is amended to read:

AB75,1053,22 Chapter 77

AB75,1054,2 SUBCHAPTER V COUNTY, transit authority, AND SPECIAL DISTRICT SALES AND USE TAXES

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

AB75,1054,14 77.705 Adoption by resolution; baseball park district. A local professional baseball park district created under subch. III of ch. 229, by resolution under s. 229.68 (15), may impose a sales tax and a use tax under this subchapter at a rate of no more than 0.1% of the gross receipts or sales price. Those taxes may be imposed only in their entirety. The resolution shall be effective on the first day of the first month that begins at least 30 days after the adoption of the resolution. Any moneys transferred from the appropriation account under s. 20.566 (1) (gd) to the appropriation account under s. 20.835 (4) (gb) shall be used exclusively to retire the district's debt. Any moneys received under s. 341.14 (6r) (b) 13. b. and credited to the appropriation account under s. 20.835 (4) (gb) shall be used exclusively to retire the district's debt.

AB75, s. 1858 Section 1858. 77.708 of the statutes is created to read:

AB75,1054,21 77.708 Adoption by resolution; transit authority. (1) A transit authority created under s. 66.1039, by resolution under s. 66.1039 (4) (s), may impose a sales tax and a use tax under this subchapter at a rate not to exceed 0.5 percent of the gross receipts or sales price. Those taxes may be imposed only in their entirety. The resolution shall be effective on the first day of the first calendar quarter that begins at least 120 days after the adoption of the resolution.

AB75,1055,2 (2) Retailers and the department of revenue may not collect a tax under sub. (1) for any transit authority created under s. 66.1039 after the calendar quarter during which the transit authority adopts a repeal resolution under s. 66.1039 (4) (s), except that the department of revenue may collect from retailers taxes that accrued before such calendar quarter and fees, interest, and penalties that relate to those taxes.

AB75, s. 1859 Section 1859. 77.71 (intro.) of the statutes is amended to read:

AB75,1055,8 77.71 Imposition of county, transit authority, and special district sales and use taxes. (intro.) Whenever a county sales and use tax ordinance is adopted under s. 77.70, a transit authority resolution is adopted under s. 77.708, or a special district resolution is adopted under s. 77.705 or 77.706, the following taxes are imposed:

AB75, s. 1860 Section 1860. 77.71 (1) of the statutes is amended to read:

AB75,1055,19 77.71 (1) For the privilege of selling, leasing, or renting tangible personal property and for the privilege of selling, performing, or furnishing services a sales tax is imposed upon retailers at the rate of 0.5% in the case of a county tax, at the rate under s. 77.708 in the case of a transit authority tax, or at the rate under s. 77.705 or 77.706 in the case of a special district tax of the gross receipts from the sale, lease, or rental of tangible personal property, except property taxed under sub. (4), sold, leased, or rented at retail in the county or, special district, or transit authority's jurisdictional area, or from selling, performing, or furnishing services described under s. 77.52 (2) in the county or, special district, or transit authority's jurisdictional area.

AB75, s. 1861 Section 1861. 77.71 (2) of the statutes is amended to read:

AB75,1056,9 77.71 (2) An excise tax is imposed at the rate of 0.5% in the case of a county tax, at the rate under s. 77.708 in the case of a transit authority tax, or at the rate under s. 77.705 or 77.706 in the case of a special district tax of the sales price upon every person storing, using, or otherwise consuming in the county or, special district, or transit authority's jurisdictional area tangible personal property or services if the property or service is subject to the state use tax under s. 77.53, except that a receipt indicating that the tax under sub. (1), (3), or (4) has been paid relieves the buyer of liability for the tax under this subsection and except that if the buyer has paid a similar local tax in another state on a purchase of the same property or services that tax shall be credited against the tax under this subsection and except that for motor vehicles that are used for a purpose in addition to retention, demonstration, or display while held for sale in the regular course of business by a dealer the tax under this subsection is imposed not on the sales price but on the amount under s. 77.53 (1m).

AB75, s. 1862 Section 1862. 77.71 (3) of the statutes is amended to read:

AB75,1056,22 77.71 (3) An excise tax is imposed upon a contractor engaged in construction activities within the county or, special district, or transit authority's jurisdictional area, at the rate of 0.5% in the case of a county tax, at the rate under s. 77.708 in the case of a transit authority tax, or at the rate under s. 77.705 or 77.706 in the case of a special district tax of the sales price of tangible personal property that is used in constructing, altering, repairing, or improving real property and that becomes a component part of real property in that county or special district or in the transit authority's jurisdictional area, except that if the contractor has paid the sales tax of a county in the case of a county tax, transit authority, or of a special district in the case of a special district tax in this state on that property, or has paid a similar local sales tax in another state on a purchase of the same property, that tax shall be credited against the tax under this subsection.

AB75, s. 1863 Section 1863. 77.71 (4) of the statutes is amended to read:

AB75,1057,10 77.71 (4) An excise tax is imposed at the rate of 0.5 percent in the case of a county tax, at the rate under s. 77.708 in the case of a transit authority tax, or at the rate under s. 77.705 or 77.706 in the case of a special district tax of the sales price upon every person storing, using or otherwise consuming a motor vehicle, boat, snowmobile, recreational vehicle, as defined in s. 340.01 (48r), trailer, semitrailer, all-terrain vehicle or aircraft, if that property must be registered or titled with this state and if that property is to be customarily kept in a county that has in effect an ordinance under s. 77.70, the jurisdictional area of a transit authority that has in effect a resolution under s. 77.708, or in a special district that has in effect a resolution under s. 77.705 or 77.706, except that if the buyer has paid a similar local sales tax in another state on a purchase of the same property that tax shall be credited against the tax under this subsection.

AB75, s. 1864 Section 1864. 77.73 (1) and (2) of the statutes are amended to read:

AB75,1057,17 77.73 (1) Retailers making deliveries in their company-operated vehicles of tangible personal property, or of property on which taxable services were performed, to purchasers in a county or, special district, or transit authority's jurisdictional area are doing business in that county or, special district, or jurisdictional area, and that county or, special district, or transit authority has jurisdiction to impose the taxes under this subchapter on them.

AB75,1057,24 (2) Counties and, special districts, and transit authorities do not have jurisdiction to impose the tax under s. 77.71 (2) in regard to tangible personal property purchased in a sale that is consummated in another county or special district in this state, or in another transit authority's jurisdictional area, that does not have in effect an ordinance or resolution imposing the taxes under this subchapter and later brought by the buyer into the county or, special district, or jurisdictional area of the transit authority that has imposed a tax under s. 77.71 (2).

AB75, s. 1865 Section 1865. 77.75 of the statutes is amended to read:

AB75,1058,6 77.75 Reports. Every person subject to county, transit authority, or special district sales and use taxes shall, for each reporting period, record that person's sales made in the county or, special district , or jurisdictional area of a transit authority that has imposed those taxes separately from sales made elsewhere in this state and file a report of the measure of the county, transit authority, or special district sales and use taxes and the tax due thereon separately.

AB75, s. 1866 Section 1866. 77.76 (1) of the statutes is amended to read:

AB75,1058,14 77.76 (1) The department of revenue shall have full power to levy, enforce, and collect county, transit authority, and special district sales and use taxes and may take any action, conduct any proceeding, impose interest and penalties, and in all respects proceed as it is authorized to proceed for the taxes imposed by subch. III. The department of transportation and the department of natural resources may administer the county, transit authority, and special district sales and use taxes in regard to items under s. 77.61 (1).

AB75, s. 1867 Section 1867. 77.76 (2) of the statutes is amended to read:

AB75,1058,19 77.76 (2) Judicial and administrative review of departmental determinations shall be as provided in subch. III for state sales and use taxes, and no county, transit authority, or special district may intervene in any matter related to the levy, enforcement, and collection of the taxes under this subchapter.

AB75, s. 1868 Section 1868. 77.76 (3r) of the statutes is created to read:

AB75,1059,13 77.76 (3r) From the appropriation under s. 20.835 (4) (gc) the department of revenue shall distribute 98.5 percent of the taxes reported for each transit authority that has imposed taxes under this subchapter, minus the transit authority portion of the retailers' discount, to the transit authority no later than the end of the 3rd month following the end of the calendar quarter in which such amounts were reported. At the time of distribution the department of revenue shall indicate the taxes reported by each taxpayer. In this subsection, the "transit authority portion of the retailers' discount" is the amount determined by multiplying the total retailers' discount by a fraction the numerator of which is the gross transit authority sales and use taxes payable and the denominator of which is the sum of the gross state and transit authority sales and use taxes payable. The transit authority taxes distributed shall be increased or decreased to reflect subsequent refunds, audit adjustments, and all other adjustments of the transit authority taxes previously distributed. Interest paid on refunds of transit authority sales and use taxes shall be paid from the appropriation under s. 20.835 (4) (gc) at the rate paid by this state under s. 77.60 (1) (a). Any transit authority receiving a report under this subsection is subject to the duties of confidentiality to which the department of revenue is subject under s. 77.61 (5).

AB75, s. 1869 Section 1869. 77.76 (4) of the statutes is amended to read:

AB75,1059,20 77.76 (4) There shall be retained by the state 1.5% of the taxes collected for taxes imposed by special districts under ss. 77.705 and 77.706 and transit authorities under s. 77.708 and 1.75% of the taxes collected for taxes imposed by counties under s. 77.70 to cover costs incurred by the state in administering, enforcing, and collecting the tax. All interest and penalties collected shall be deposited and retained by this state in the general fund.

AB75, s. 1870 Section 1870. 77.76 (5) of the statutes is created to read:

AB75,1060,3 77.76 (5) If a retailer receives notice from the department of revenue that the retailer is required to collect and remit the taxes imposed under s. 77.708, but the retailer believes that the retailer is not required to collect such taxes because the retailer is not doing business within the transit authority's jurisdictional area, the retailer shall notify the department of revenue no later than 30 days after receiving notice from the department. The department of revenue shall affirm or revise its original determination no later than 30 days after receiving the retailer's notice.

AB75, s. 1871 Section 1871. 77.77 (1) to (3) of the statutes are amended to read:

AB75,1060,10 77.77 (1) The gross receipts from services subject to the tax under s. 77.52 (2) are not subject to the taxes under this subchapter, and the incremental amount of tax caused by a rate increase applicable to those services is not due, if those services are billed to the customer and paid for before the effective date of the county ordinance, special district resolution, transit authority resolution, or rate increase, whether the service is furnished to the customer before or after that date.

AB75,1060,15 (2) Lease or rental receipts from tangible personal property that the lessor is obligated to furnish at a fixed price under a contract entered into before the effective date of a county ordinance, transit authority resolution, or special district resolution are subject to the taxes under this subchapter on the effective date of the ordinance or resolution, as provided for the state sales tax under s. 77.54 (18).

AB75,1060,25 (3) The sale of building materials to contractors engaged in the business of constructing, altering, repairing or improving real estate for others is not subject to the taxes under this subchapter, and the incremental amount of tax caused by the rate increase applicable to those materials is not due, 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 the county ordinance, special district resolution, transit authority resolution, or rate increase or that resulted from the acceptance of a formal written bid accompanied by a bond or other performance guaranty that was irrevocably submitted before that date.

AB75, s. 1872 Section 1872. 77.78 of the statutes is amended to read:

AB75,1061,8 77.78 Registration. No motor vehicle, boat, snowmobile, recreational vehicle, as defined in s. 340.01 (48r), trailer, semitrailer, all-terrain vehicle or aircraft that is required to be registered by this state may be registered or titled by this state unless the registrant files a sales and use tax report and pays the county tax, transit authority tax, and special district tax at the time of registering or titling to the state agency that registers or titles the property. That state agency shall transmit those tax revenues to the department of revenue.

AB75, s. 1873 Section 1873. 77.92 (4) of the statutes is amended to read:

AB75,1061,25 77.92 (4) "Net business income," with respect to a partnership, means taxable income as calculated under section 703 of the Internal Revenue Code; plus the items of income and gain under section 702 of the Internal Revenue Code, including taxable state and municipal bond interest and excluding nontaxable interest income or dividend income from federal government obligations; minus the items of loss and deduction under section 702 of the Internal Revenue Code, except items that are not deductible under s. 71.21; plus guaranteed payments to partners under section 707 (c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3s), (3n), (3p), (3q), (3r), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k), and (8r); and plus or minus, as appropriate, transitional adjustments, depreciation differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain, loss, and deductions from farming. "Net business income," with respect to a natural person, estate, or trust, means profit from a trade or business for federal income tax purposes and includes net income derived as an employee as defined in section 3121 (d) (3) of the Internal Revenue Code.

AB75, s. 1874 Section 1874. 77.994 (1) (intro.) of the statutes is amended to read:

AB75,1062,8 77.994 (1) (intro.) Except as provided in sub. subs. (2) and (3), a municipality or a county all of which is included in a premier resort area under s. 66.1113 may, by ordinance, impose a tax at a rate of 0.5% of the gross receipts from the sale, lease, or rental in the municipality or county of goods or services that are taxable under subch. III made by businesses that are classified in the standard industrial classification manual, 1987 edition, published by the U.S. office of management and budget, under the following industry numbers:

AB75, s. 1875 Section 1875. 77.994 (1) (ac) of the statutes is created to read:

AB75,1062,10 77.994 (1) (ac) 5251 — Hardware stores.

AB75, s. 1876 Section 1876. 77.994 (1) (ba) of the statutes is created to read:

AB75,1062,12 77.994 (1) (ba) 5411 — Grocery stores.