AB40: Bill Text

AB40,1464 Section 1464. 73.16 (1) (a) of the statutes is repealed.

AB40,1465 Section 1465. 73.16 (1) (ab) of the statutes is created to read:

AB40,727,25 73.16 (1) (ab) "Combined group" has the meaning given in s. 71.255 (1) (a).

AB40,1466 Section 1466. 73.16 (3) of the statutes is created to read:

AB40,728,6 73.16 (3) Relying on past audits. (a) A person who is subject to a determination by the department, including all other members of that person's combined group for purposes of determining the tax due under s. 71.23 for taxable years beginning after December 31, 2008, shall not be liable for any amount that the department asserts that the person owes if all of the following conditions are satisfied:

AB40,728,10 1. The liability asserted by the department is the result of a tax issue during the period associated with a prior determination for which the person is subject to and the tax issue is the same as the tax issue during the period associated with the current determination.

AB40,728,16 2. A department employee who was involved in the prior determination identified or reviewed the tax issue before completing the prior determination, as shown by any schedules, exhibits, audit reports, documents, or other written evidence pertaining to the determination, and the schedules, exhibits, reports, documents and other written evidence show that the department did not adjust the person's treatment of the tax issue.

AB40,728,18 3. The liability asserted by the department as described under subd. 1. was not asserted in the prior determination.

AB40,729,2 (b) This subsection does not apply to any period associated with a determination, if the period begins after the promulgation of a rule, dissemination of written guidance to the public or to the person who is subject to the determination, the effective date of a statute, or the date on which a tax appeals commission or court decision becomes final and conclusive and if the rule, guidance, statute, or decision imposes the liability as a result of the tax issue described in par. (a) 1. This subsection does not apply to any period associated with a determination if the taxpayer did not give the department employee adequate and accurate information or if the issue is settled by a written agreement between the department and the taxpayer.

AB40,1467 Section 1467. 76.14 of the statutes is amended to read:

AB40,729,23 76.14 Remedies for nonpayment of taxes. All taxes levied under this subchapter upon the property of any company defined in s. 76.02, which are not paid at the time provided by law, shall thereupon become delinquent and bear interest at the rate of 1.5% per month until actually paid. Upon a showing by the department under s. 73.16 (4), the failure of any such company to pay the taxes and interest so required of the company within 60 days after the entry of final judgment dismissing in whole or in part any action of the company to restrain or set aside a tax, or the failure of the company within 60 days after the entry of final judgment in favor of the state for the taxes and interest to pay the judgment shall be cause for forfeiture of all the rights, privileges and franchises granted by special charter or obtained under general laws, by or under which the company is organized and its business is operated. The attorney general upon the showing by the department under s. 73.16 (4) shall proceed by action to have forfeiture of such rights, privileges and franchises of the company duly declared. Any such company, at any time before the final judgment for forfeiture of such rights, privileges and franchises is rendered, may be permitted, absent a showing by the department under s. 73.16 (4), to pay the taxes, interest and the costs of the action upon special application to the court in which the action is pending upon such terms as the court directs. Section 71.91, as it applies to the collection of delinquent taxes under ch. 71, applies to the collection of delinquent taxes under this subchapter.

AB40,1468 Section 1468. 76.636 (1) (d) of the statutes is amended to read:

AB40,730,7 76.636 (1) (d) "Full-time job" means a regular, nonseasonal, full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays, and for which the individual receives pay that is equal to at least 150 percent of the federal minimum wage and receives benefits that are not required by federal or state law. "Full-time job" does not include initial training before an employment position begins has the meaning given in s. 238.30 (2m).

AB40,1469 Section 1469. 76.636 (1) (e) 3. of the statutes is amended to read:

AB40,730,11 76.636 (1) (e) 3. A person who is employed in a trial job, as defined in s. 49.141 (1) (n), 2011 stats., or in a real work, real pay project position under s. 49.147 (3m) trial employment match program job, as defined in s. 49.141 (1) (n).

AB40,1470 Section 1470. 76.636 (2) (b) of the statutes is amended to read:

AB40,730,17 76.636 (2) (b) The amount determined by multiplying the amount determined under s. 238.385 (1) (b) or s. 560.785 (1) (b), 2009 stats., by the number of full-time jobs created in a development zone and filled by a member of a targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a) or the subsidies and reimbursements paid under s. 49.147 (3m) (c) for those jobs.

AB40,1471 Section 1471. 76.636 (2) (c) of the statutes is amended to read:

AB40,730,23 76.636 (2) (c) The amount determined by multiplying the amount determined under s. 238.385 (1) (c) or s. 560.785 (1) (c), 2009 stats., by the number of full-time jobs created in a development zone and not filled by a member of a targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a) or the subsidies and reimbursements paid under s. 49.147 (3m) (c) for those jobs.

AB40,1472 Section 1472. 76.636 (2) (d) of the statutes is amended to read:

AB40,731,8 76.636 (2) (d) The amount determined by multiplying the amount determined under s. 238.385 (1) (bm) or s. 560.785 (1) (bm), 2009 stats., by the number of full-time jobs retained, as provided in the rules under s. 238.385 or s. 560.785, 2009 stats., excluding jobs for which a credit has been claimed under s. 71.47 (1dj), in an enterprise development zone under s. 238.397 or s. 560.797, 2009 stats., and for which significant capital investment was made and by then subtracting the subsidies paid under s. 49.147 (3) (a) or the subsidies and reimbursements paid under s. 49.147 (3m) (c) for those jobs.

AB40,1473 Section 1473. 76.636 (2) (e) of the statutes is amended to read:

AB40,731,16 76.636 (2) (e) The amount determined by multiplying the amount determined under s. 238.385 (1) (c) or s. 560.785 (1) (c), 2009 stats., by the number of full-time jobs retained, as provided in the rules under s. 238.385 or s. 560.785, 2009 stats., excluding jobs for which a credit has been claimed under s. 71.47 (1dj), in a development zone and not filled by a member of a targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a) or the subsidies and reimbursements paid under s. 49.147 (3m) (c) for those jobs.

AB40,1474 Section 1474. 76.84 (5) of the statutes is created to read:

AB40,731,19 76.84 (5) Section 71.91, as it applies to the collection of delinquent taxes under ch. 71, applies to the collection of delinquent taxes under this subchapter.

AB40,1475 Section 1475. 77.51 (2d) of the statutes is created to read:

AB40,731,22 77.51 (2d) "Custom farming services" include services performed by a veterinarian to animals that are farm livestock or work stock.

AB40,1476 Section 1476. 77.51 (10f) of the statutes is amended to read:

AB40,732,4 77.51 (10f) "Prepaid wireless calling service" means a telecommunications service that provides the right to utilize mobile wireless service as well as other nontelecommunications services, including the download of digital products delivered electronically, content, and ancillary services, and that is paid for prior to use and sold in predetermined dollar units whereby the number of units declines or dollars that decrease with use in a known amount.

AB40,1477 Section 1477. 77.51 (10m) (a) 3. (intro.) of the statutes is amended to read:

AB40,732,11 77.51 (10m) (a) 3. (intro.) Food and food ingredients sold with eating utensils that are provided by the retailer of the food and food ingredients, including plates, bowls, knives, forks, spoons, glasses, cups, napkins, or straws. In this subdivision, "plate" does not include a container or packaging used to transport food and food ingredients. For purposes of this subdivision, a retailer provides utensils if any of the following applies:

AB40,1478 Section 1478. 77.51 (10m) (a) 3. b. of the statutes is amended to read:

AB40,732,16 77.51 (10m) (a) 3. b. For retailers not described under subd. 3. a., the retailer's customary practice is to physically give or hand the utensils to the purchaser, except that plates, bowls, glasses, or cups that are necessary for the purchaser to receive the food and food ingredients need only be made available to the purchaser.

AB40,1479 Section 1479. 77.51 (11d) of the statutes is amended to read:

AB40,732,21 77.51 (11d) For purposes of subs. (1ag), (1f), (3pf), and (9p) and ss. 77.52 (20) and (21), 77.522, and 77.54 (51) and, (52), and (60), "product" includes tangible personal property, and items, property, and goods under s. 77.52 (1) (b), (c), and (d), and services.

AB40,1480 Section 1480. 77.51 (11m) of the statutes is amended to read:

AB40,733,2 77.51 (11m) "Prosthetic device" means a replacement, corrective, or supportive device, including the repair parts and replacement parts for the device, that is placed in or worn on the body to artificially replace a missing portion of the body; to prevent or correct a physical deformity or malfunction; or to support a weak or deformed portion of the body.

AB40,1481 Section 1481. 77.51 (12m) (a) 2. of the statutes is amended to read:

AB40,733,6 77.51 (12m) (a) 2. The cost of materials used, labor or service cost, interest, losses, all costs of transportation to the seller, all taxes imposed on the seller, except as provided in par. (b) 3m., and any other expense of the seller.

AB40,1482 Section 1482. 77.51 (12m) (b) 3m. of the statutes is created to read:

AB40,733,11 77.51 (12m) (b) 3m. Taxes imposed on the seller that are separately stated on the invoice, bill of sale, or similar document that the seller gives to the purchaser if the law imposing or authorizing the tax provides that the seller may, but is not required to, pass on to and collect the tax from the user or consumer.

AB40,1483 Section 1483. 77.51 (15b) (a) 2. of the statutes is amended to read:

AB40,733,15 77.51 (15b) (a) 2. The cost of materials used, labor or service cost, interest, losses, all costs of transportation to the seller, all taxes imposed on the seller, except as provided in par. (b) 3m., and any other expense of the seller.

AB40,1484 Section 1484. 77.51 (15b) (b) 3m. of the statutes is created to read:

AB40,733,20 77.51 (15b) (b) 3m. Taxes imposed on the seller that are separately stated on the invoice, bill of sale, or similar document that the seller gives to the purchaser if the law imposing or authorizing the tax provides that the seller may, but is not required to, pass on to and collect the tax from the user or consumer.

AB40,1485 Section 1485. 77.52 (2) (a) 11. of the statutes is amended to read:

AB40,734,4 77.52 (2) (a) 11. The producing, fabricating, processing, printing, or imprinting of tangible personal property or items, property, or goods under s. 77.52 sub. (1) (b), (c), or (d) for a consideration for consumers who furnish directly or indirectly the materials used in the producing, fabricating, processing, printing, or imprinting. This subdivision does not apply to the printing or imprinting of tangible personal property or items, property, or goods under s. 77.52 sub. (1) (b), (c), or (d) that results in printed material, catalogs, or envelopes that are exempt under s. 77.54 (25) or, (25m), or (59).

AB40,1486 Section 1486. 77.52 (21) (b) of the statutes is amended to read:

AB40,734,10 77.52 (21) (b) A Except as provided in sub. (2m) (a), a person who provides a product that is not distinct and identifiable because it is provided free of charge to a purchaser who must also purchase another product that is subject to the tax imposed under this subchapter from that person in the same transaction may purchase the product provided free of charge without tax, for resale.

AB40,1487 Section 1487. 77.522 (4) (a) 9. of the statutes is amended to read:

AB40,734,16 77.522 (4) (a) 9. "Place of primary use" means place of primary use, as determined under 4 USC 116 to 126, as amended by P.L. 106-252 the residential street address or the primary business street address of the customer. In the case of mobile telecommunications services, "place of primary use" means a street address within the licensed service area of the home service provider.

AB40,1488 Section 1488. 77.53 (16) of the statutes is amended to read:

AB40,735,8 77.53 (16) If the purchase, rental or lease of tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or service subject to the tax imposed by this section was subject to a sales tax by another state in which the purchase was made, the amount of sales tax paid the other state shall be applied as a credit against and deducted from the tax, to the extent thereof, imposed by this section, except no credit may be applied against and deducted from a sales tax paid on the purchase of advertising and promotional direct mail, if the advertising and promotional direct mail purchaser did not provide to the seller a direct pay permit, an exemption certificate claiming advertising and promotional direct mail, or other information that indicates the appropriate taxing jurisdiction to which the advertising and promotional direct mail is delivered to the ultimate recipients. In this subsection "sales tax" includes a use or excise tax imposed on the use of tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or taxable service by the state to which the sale was sourced and "state" includes the District of Columbia and the commonwealth of Puerto Rico but does not include the several territories organized by congress.

AB40,1489 Section 1489. 77.54 (57) (a) 1f. of the statutes is renumbered 77.51 (1c).

AB40,1490 Section 1490. 77.54 (57) (a) 1m. of the statutes is renumbered 77.51 (1d).

AB40,1491 Section 1491. 77.54 (57) (a) 4. of the statutes is renumbered 77.51 (10rn).

AB40,1492 Section 1492. 77.54 (57) (a) 5. of the statutes is repealed.

AB40,1493 Section 1493. 77.54 (57) (b) 1. of the statutes is repealed.

AB40,1494 Section 1494. 77.54 (57) (b) 2. of the statutes is repealed.

AB40,1495 Section 1495. 77.54 (57) (b) 4. of the statutes is amended to read:

AB40,735,20 77.54 (57) (b) 4. The items listed in sub. (3m) (a) to (m), medicines drugs, semen for artificial insemination, fuel, and electricity that are used exclusively and directly in raising animals that are sold primarily to a biotechnology business, a public or private institution of higher education, or a governmental unit for exclusive and direct use by any such entity in qualified research or manufacturing.

AB40,1496 Section 1496. 77.54 (57d) of the statutes is created to read:

AB40,735,22 77.54 (57d) (a) In this subsection:

AB40,735,23 1. "Building" has the meaning given in s. 70.111 (10) (a) 1.

AB40,735,24 2. "Combined group" has the meaning given in s. 71.255 (1) (a).

AB40,735,25 3. "Machinery" has the meaning given in s. 70.11 (27) (a) 2.

AB40,736,3 4. "Qualified research" means qualified research as defined under section 41 (d) (1) of the Internal Revenue Code, except that it includes qualified research that is funded by a member of a combined group for another member of a combined group.

AB40,736,4 5. "Used exclusively" has the meaning given in sub. (3) (b) 3.

AB40,736,9 (b) The sales price from the sale of and the storage, use, or other consumption of machinery and equipment, including attachments, parts, and accessories, and other tangible personal property or items or property under s. 77.52 (1) (b) or (c) that are sold to any of the following and that are consumed or destroyed or lose their identities while being used exclusively and directly in qualified research:

AB40,736,11 1. A person engaged in manufacturing in this state at a building assessed under s. 70.995.

AB40,736,12 2. A person engaged primarily in biotechnology in this state.

AB40,736,15 3. A combined group member who is conducting qualified research for another combined group member and that other combined group member is a person described under subd. 1. or 2.

AB40,1497 Section 1497. 77.54 (60) of the statutes is created to read:

AB40,736,25 77.54 (60) (a) In this subsection, "lump sum contract" means a contract to perform real property construction activities and to provide tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services and for which the contractor quotes the charge for labor, services of subcontractors, tangible personal property, items and property under s. 77.52 (1) (b) and (c), and taxable services as one price, including a contract for which the contractor itemizes the charges for labor, services of subcontractors, tangible personal property, items and property under s. 77.52 (1) (b) and (c), and taxable services as part of a schedule of values or similar document.

AB40,737,7 (b) The sales price from the sale of and the storage, use, or other consumption of tangible personal property, items and property under s. 77.52 (1) (b) and (c), and taxable services that are sold by a contractor as part of a lump sum contract, if the total sales price of all such taxable products is less than 10 percent of the total amount of the lump sum contract. Except as provided in par. (c), the contractor is the consumer of such taxable products and shall pay the tax imposed under this subchapter on the taxable products.

AB40,737,14 (c) If the lump sum contract is entered into with an entity that is exempt from taxation under sub. (9a), the contractor is the consumer of all taxable products used by the contractor in real property construction activities, but the contractor may purchase without tax, for resale, tangible personal property, items and property under s. 77.52 (1) (b) and (c), and taxable services that are sold by the contractor as part of the lump sum contract with the entity and that are not consumed by the contractor in real property construction activities.

AB40,1498 Section 1498. 77.58 (1) (a) of the statutes is amended to read:

AB40,737,19 77.58 (1) (a) If the amount of tax for any calendar quarter exceeds $600 $1,200, the department may require by written notice to the taxpayer that the taxes imposed on and after the date specified in the notice are due and payable on the last day of the month next succeeding the calendar month for which imposed.

AB40,1499 Section 1499. 77.585 (10) of the statutes is created to read:

AB40,737,24 77.585 (10) A retailer who receives an exemption certificate after reporting a sale as taxable may either claim a deduction for the tax amount on a subsequent return or file an amended return for the period in which the transaction was originally reported.

AB40,1500 Section 1500. 77.59 (4) (a) of the statutes is amended to read:

AB40,738,22 77.59 (4) (a) Except as provided in sub. (3m), at any time within 4 years after the due date, or in the case of buyers the unextended due date, of a person's corresponding Wisconsin income or franchise tax return or, if exempt, within 4 years of the 15th day of the 4th month of the year following the close of the calendar or fiscal year for which that person files a claim, that person may, unless a determination by the department by office or field audit of a seller has been made and unless a determination by office audit of a buyer other than an audit in which the tax that is the subject of the refund claim was not adjusted has been made and unless a determination by field audit of the buyer has been made, file with the department a claim for refund of taxes paid to the department by that person. If the amount of the claim is at least $50 or if either the seller has ceased doing business, the buyer is being field audited or the seller may no longer file a claim, the buyer may, within the time period under this subsection, file a claim with the department for a refund of the taxes paid to the seller. A claim is timely if it fulfills the requirements under s. 77.61 (14). A buyer may claim a refund under this paragraph only on a form prescribed by the department, only by signing that form and only if the seller signs the form unless the department waives that requirement. If both a buyer and a seller file a valid claim for the same refund, the department may pay either claim. The claim for refund shall be regarded as a request for determination. The determination thus requested shall be made by the department within one year after the claim for refund is received by it unless the taxpayer has consented in writing to an extension of the one-year time period prior to its expiration.

AB40,1501 Section 1501. 77.62 (intro.) of the statutes is amended to read:

AB40,739,4 77.62 Collection of delinquent sales and use taxes. (intro.) The department of revenue may exercise the powers vested in it by ss. 71.80 (12), 71.82 (2), 71.91 (1) (a) and (c), (2) to (5m) and (7), 71.92 and 73.0301 in connection with collection of delinquent sales and use taxes including, without limitation because of enumeration, the power incorporated by reference in s. 71.91 (5) (j), and the power to:

AB40,1502 Section 1502. 77.982 (2) of the statutes is amended to read:

AB40,739,11 77.982 (2) Sections 77.51 (1f), (3pf), (9p), (12m), (14), (14g), (15a), and (15b), 77.52 (1b), (3), (5), (13), (14), and (18) to (23), 77.54 (51) and (52), 77.58 (1) to (5), (6m), and (7), 77.522, 77.585, 77.59, 77.60, 77.61 (2), (3m), (5), (6), (8), (9), and (12) to (15), and (19m), and 77.62, as they apply to the taxes under subch. III, apply to the tax under this subchapter. Section 77.73, as it applies to the taxes under subch. V, applies to the tax under this subchapter.

AB40,1503 Section 1503. 77.991 (2) of the statutes is amended to read:

AB40,739,19 77.991 (2) Sections 77.51 (12m), (14), (14g), (15a), and (15b), 77.52 (1b), (3), (5), (13), (14), (18), and (19), 77.58 (1) to (5), (6m), and (7), 77.522, 77.585, 77.59, 77.60, 77.61 (2), (3m), (5), (6), (8), (9), and (12) to (15), and (19m), and 77.62, as they apply to the taxes under subch. III, apply to the tax under this subchapter. Section 77.73, as it applies to the taxes under subch. V, applies to the tax under this subchapter. The renter shall collect the tax under this subchapter from the person to whom the passenger car is rented.

AB40,1504 Section 1504. 77.9951 (2) of the statutes is amended to read: