Amendment ASA1-AB623

AB623-ASA1,15 Section 15. 77.54 (60) (a) of the statutes is renumbered 77.54 (60) (d) and amended to read:

AB623-ASA1,6,6 77.54 (60) (d) In this subsection,"lump sum:

AB623-ASA1,6,15 1. "Construction 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 products.

AB623-ASA1,16 Section 16. 77.54 (60) (b) of the statutes is amended to read:

AB623-ASA1,6,24 77.54 (60) (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 products that are sold by a prime contractor as part of a lump sum construction contract, if the total sales price of all such taxable products is less than 10 percent of the total amount of the lump sum construction contract. Except as provided in par. (c), the prime contractor is the consumer of such taxable the products and shall pay the tax imposed under this subchapter on the taxable products.

AB623-ASA1,17 Section 17. 77.54 (60) (bm) of the statutes is created to read:

AB623-ASA1,7,4 77.54 (60) (bm) 1. The sales price from the sale of and the storage, use, or other consumption of products that are sold by a subcontractor to a prime contractor or another subcontractor as part of a construction contract, if any of the following applies:

AB623-ASA1,7,6 a. The sales price is exempted under par. (b) for the products resold by the prime contractor.

AB623-ASA1,7,8 b. The sales price is less than 10 percent of the total amount of the construction contract.

AB623-ASA1,7,11 2. Except as provided in par. (c), the subcontractor is the consumer of the products exempted under this paragraph and shall pay the tax imposed under this subchapter on the products.

AB623-ASA1,18 Section 18. 77.54 (60) (c) of the statutes is amended to read:

AB623-ASA1,7,15 77.54 (60) (c) If the lump sum construction contract under par. (b) is entered into with between a prime contractor and an entity that is exempt from taxation under sub. (9a), the all of the following apply:

AB623-ASA1,7,22 1. The prime contractor is the consumer of all taxable products used by the prime contractor in real property construction activities, but the prime contractor may purchase without tax, for resale, tangible personal property, items and property under s. 77.52 (1) (b) and (c), and taxable services products that are sold by the prime contractor to the entity as part of the lump sum construction contract with the entity and that are not consumed by the prime contractor in real property construction activities.

AB623-ASA1,19 Section 19. 77.54 (60) (c) 2. of the statutes is created to read:

AB623-ASA1,8,4 77.54 (60) (c) 2. A subcontractor of the prime contractor is the consumer of all products used by the subcontractor in real property construction activities, but the subcontractor may purchase without tax, for resale, products that are sold by the subcontractor to the prime contractor or another subcontractor, as part of the subcontractor's construction contract under par. (bm), for resale to the entity and that are not consumed by the subcontractor in real property construction activities.

AB623-ASA1,20 Section 20. 77.54 (60) (d) 2. and 3. of the statutes are created to read:

AB623-ASA1,8,8 77.54 (60) (d) 2. "Prime contractor" means a contractor who enters into a construction contract with an owner or lessee of real property, except for leased property under s. 77.52 (1) (c).

AB623-ASA1,8,10 3. "Subcontractor" means a contractor who enters into a construction contract with a prime contractor or another subcontractor.

AB623-ASA1,21 Section 21. 77.61 (19) (intro.) of the statutes is renumbered 77.61 (19) (a) (intro.) and amended to read:

AB623-ASA1,8,21 77.61 (19) (a) (intro.) 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 and fails to comply in good faith with a summons issued pursuant to s. 73.03 (9) seeking those records and documents 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:

AB623-ASA1,22 Section 22. 77.61 (19) (a) and (b) of the statutes are renumbered 77.61 (19) (a) 1. and 2.

AB623-ASA1,23 Section 23. Nonstatutory provisions.

AB623-ASA1,9,3 (1) The repeal of sections 20.566 (1) (hn) and 73.03 (28d) of the statutes does not affect the validity of any assessment based entirely or in part on information or documents obtained from the multistate tax commission prior to the repeal.

AB623-ASA1,24 Section 24. Initial applicability.

AB623-ASA1,9,10 (1) The treatment of sections 71.10 (1m) (b) (intro.), 1., and 2., 71.30 (2m) (b) (intro.), 1., and 2., and 71.80 (1m) (b) (intro.), 1., and 2. of the statutes first applies to taxable years beginning on January 1 of the year in which this subsection takes effect, except that if this subsection takes effect after July 31, this act first applies to taxable years beginning on January 1 of the year following the year in which this subsection takes effect.

AB623-ASA1,9,12 (2) The treatment of section 73.03 (28d) of the statutes first applies to a contract that is entered into or extended, modified, or renewed on July 1, 2017.

AB623-ASA1,9,15 (3) The treatment of sections 71.80 (9m) (intro.), (a), and (b) and 77.61 (19) (intro.), (a), and (b) of the statutes first applies to an audit commenced, or a summons issued, on the effective date of this subsection.

AB623-ASA1,9,18 (4) The treatment of sections 77.52 (2m) (b) and 77.54 (60) (a), (b), (bm), (c) and 2., and (d) 2. and 3. of the statutes first applies to a contract that is entered into or extended, modified, or renewed on the effective date of this subsection.

AB623-ASA1,25 Section 25. Effective dates. This act takes effect on the day after publication, except as follows:

AB623-ASA1,9,22 (1) The treatment of section 20.566 (1) (hn) of the statutes takes effect on July 1, 2017.

AB623-ASA1,9,23 (End)