AB64: Bill Text

AB64,1167 Section 1167. 73.142 of the statutes is created to read:

AB64,578,17 73.142 Sunsets; credits, subtractions, and exemptions. (1) (a) In this subsection:

AB64,578,18 1. “Credit” means any tax credit enacted under s. 71.07, 71.28, or 71.47.

AB64,578,21 2. “Subtraction” means any subtract modification, deduction, or exemption enacted under s. 71.05 (1), (6) (b), (22), or (23), 71.26 (1), (1m), or (3), or 71.45 (1) or (1t).

AB64,578,25 (b) With regard to any credit or subtraction that takes effect after December 31, 2016, and first applies to a taxable year beginning after December 31, 2016, no new claim for that credit or subtraction may be filed more than 7 taxable years after its initial applicability.

AB64,579,5 (c) In August of each year, the department of revenue shall submit to the speaker and minority leader of the assembly, the president and minority leader of the senate, and the chief clerk of each house of the legislature, for distribution to the appropriate standing committees under s. 13.172 (3), a report that details credits and subtractions for which no new claims may be filed after the next 2 calendar years.

AB64,579,7 (d) Any enactment to which par. (b) applies is not a bill that increases the rate of the income tax or franchise tax in a way that would be subject to s. 13.085 (1).

AB64,579,9 (2) (a) In this subsection, “exemption” means any exemption or credit enacted under subch. III of ch. 77 or under ch. 78 or 139.

AB64,579,13 (b) With regard to an exemption that takes effect after December 31, 2016, no person may claim the exemption after the date that is 7 years after its effective date, unless the department of revenue determines that the exemption is necessary to comply with the agreement, as defined in s. 77.65 (2) (a).

AB64,579,18 (c) In August of each year, the department of revenue shall submit to the speaker and minority leader of the assembly, the president and minority leader of the senate, and the chief clerk of each house of the legislature, for distribution to the appropriate standing committees under s. 13.172 (3), a report that details the exemptions that expire in the next 2 calendar years.

AB64,579,20 (d) Any enactment to which par. (b) applies is not a bill that increases any tax rate in a way that would be subject to s. 13.085 (1).

AB64,1168 Section 1168 . 73.16 (2) (b) of the statutes is amended to read:

AB64,580,6 73.16 (2) (b) The department may retroactively apply any rule change that is related to implementing a legislative act or a final and conclusive decision of the tax appeals commission or the courts to take effect no earlier than the act's effective date or the date on which the decision became final and conclusive, unless otherwise prescribed by the legislature, tax appeals commission, or court, and only if the department submits the rule's scope statement to the governor for approval under s. 227.135 (2) no later than 18 months after the latter of the legislative act's publication date, effective date, or initial applicability date, or the date on which the decision becomes final and conclusive. A retroactive application of a rule change not described under this paragraph shall be subject to approval under s. 227.185 (1).

AB64,1169 Section 1169. 77.14 of the statutes is amended to read:

AB64,580,15 77.14 Forest croplands information, protection, appropriation. The department of natural resources shall publish and distribute information regarding the method of taxation of forest croplands under this subchapter, and may employ a fire warden in charge of fire prevention in forest croplands. All actual and necessary expenses incurred by the department of natural resources or by the department of revenue in the performance of their duties under this subchapter shall be paid from the appropriation made in s. 20.370 (1) (2) (mv) upon certification by the department incurring such expenses.

AB64,1170 Section 1170. 77.22 (2) (c) of the statutes is repealed.

AB64,1171 Section 1171. 77.22 (2) (d) of the statutes is repealed.

AB64,1172 Section 1172 . 77.51 (2) of the statutes is amended to read:

AB64,581,11 77.51 (2) “Contractors" and “subcontractors" are the consumers of tangible personal property or items or goods under s. 77.52 (1) (b) or (d) used by them in real property construction activities, and the sales and use tax applies to the sale of tangible personal property or items or goods under s. 77.52 (1) (b) or (d) to them. A contractor engaged primarily in real property construction activities may use resale certificates only with respect to purchases of tangible personal property or items or goods under s. 77.52 (1) (b) or (d) which that the contractor has sound reason to believe the contractor will sell to customers for whom the contractor will not perform real property construction activities involving the use of such tangible personal property or items or goods under s. 77.52 (1) (b) or (d). In this subsection, “real property construction activities" means activities that occur at a site where tangible personal property or items or goods under s. 77.52 (1) (b) or (d) that are applied or adapted to the use or purpose to which real property is devoted are affixed to that real property, if the intent of the person who affixes that property is to make a permanent accession to the real property. In this subsection, “real property construction activities" does not include affixing property subject to tax under s. 77.52 (1) (c) to real property or affixing to real property tangible personal property that remains tangible personal property after it is affixed.

AB64,1173 Section 1173 . 77.51 (9) (a) of the statutes is renumbered 77.51 (9) (a) 1.

AB64,1174 Section 1174 . 77.51 (9) (a) 2. of the statutes is created to read:

AB64,581,20 77.51 (9) (a) 2. For purposes of subd. 1., it is presumed that a seller is not pursuing a vocation, occupation, or business or a partial vocation or occupation or part-time business as a vendor of tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or taxable services if the seller's total taxable sales price from sales of tangible personal property, items, property, and goods under s. 77.52 (1) (b), (c), and (d), and taxable services is less than $2,000 during a calendar year.

AB64,1175 Section 1175 . 77.51 (11d) of the statutes is amended to read:

AB64,581,25 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), (52), and (60), and 77.59 (5r), “product" includes tangible personal property, and items, property, and goods under s. 77.52 (1) (b), (c), and (d), and services.

AB64,1176 Section 1176. 77.51 (12t) of the statutes is created to read:

AB64,582,9 77.51 (12t) “Real property construction activities" means activities that occur at a site where tangible personal property or items or goods under s. 77.52 (1) (b) or (d) that are applied or adapted to the use or purpose to which real property is devoted are affixed to that real property, if the intent of the person who affixes that property is to make a permanent accession to the real property. “Real property construction activities" does not include affixing property subject to tax under s. 77.52 (1) (c) to real property or affixing to real property tangible personal property that remains tangible personal property after it is affixed.

AB64,1177 Section 1177. 77.51 (13) (am) of the statutes is amended to read:

AB64,582,15 77.51 (13) (am) Any person making any retail sale of a motor vehicle, aircraft, snowmobile, recreational vehicle, as defined in s. 340.01 (48r), trailer, semitrailer, all-terrain vehicle, utility terrain vehicle, off-highway motorcycle, as defined in s. 23.335 (1) (q), or boat registered or titled, or required to be registered or titled, under the laws of this state or of the United States.

AB64,1178 Section 1178 . 77.52 (2) (a) 10. of the statutes is amended to read:

AB64,583,15 77.52 (2) (a) 10. Except for the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, and maintenance of any aircraft or aircraft parts; except for services provided by veterinarians; and except for installing or applying tangible personal property, or items or goods under sub. (1) (b) or (d), that, subject to par. (ag), when installed or applied, will constitute an addition or capital improvement of real property; the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, and maintenance of all items of tangible personal property or items, property, or goods under sub. (1) (b), (c), or (d), unless, at the time of that repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance, a sale in this state of the type of property, item, or good repaired, serviced, altered, fitted, cleaned, painted, coated, towed, inspected, or maintained would have been exempt to the customer from sales taxation under this subchapter, other than the exempt sale of a motor vehicle or truck body to a nonresident under s. 77.54 (5) (a) and other than nontaxable sales under s. 77.522 or unless the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance is provided under a contract that is subject to tax under subd. 13m. The tax imposed under this subsection applies to the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance of items listed in par. (ag), regardless of whether the installation or application of tangible personal property or items, property, or goods under sub. (1) (b), (c), or (d) related to the items is an addition to or a capital improvement of real property, except that the tax imposed under this subsection does not apply to the original installation or the complete replacement of an item listed in par. (ag), if that installation or replacement is a real property construction activity under s. 77.51 (2).

AB64,1179 Section 1179 . 77.52 (2m) (b) of the statutes is amended to read:

AB64,583,23 77.52 (2m) (b) With respect to the services subject to tax under sub. (2) (a) 7., 10., 11., and 20. and except as provided in s. 77.54 (60) (b) and (bm) 2., all tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) physically transferred, or transferred electronically, to the customer in conjunction with the selling, performing, or furnishing of the service is a sale of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) separate from the selling, performing, or furnishing of the service.

AB64,1180 Section 1180. 77.52 (11) of the statutes is amended to read:

AB64,584,21 77.52 (11) If any person fails to comply with any provision of this subchapter relating to the sales tax or any rule of the department relating to the sales tax adopted under this subchapter, is delinquent in respect to any tax imposed by the department or fails timely to file any return or report in respect to any tax under ch. 71, 72, 76, 77, 78 or 139 after having been requested to file that return or report, the department upon hearing, after giving the person 10 days' notice in writing specifying the time and place of hearing and requiring the person to show cause why the permit should not be revoked or suspended, may revoke or suspend any one or more of the permits held by the person. The department shall give to the person written notice of the suspension or revocation of any of the permits. The notices required in this subsection may be served personally or by mail in the manner prescribed for service of notice of a deficiency determination as provided in s. 73.03 (73). If the department suspends or revokes a permanent permit under this subsection, it may grant a temporary permit that is valid for one month and may then grant additional temporary permits if the person pays all amounts owed under this chapter for the month for which the previous temporary permit was issued. Persons who receive a temporary permit waive the notice requirement under s. 77.61 (2). The department shall not issue a new permanent permit after the revocation of a permit unless it is satisfied that the former holder of the permit will comply with the provisions of this subchapter, the rules of the department relating to the sales tax and the provisions relating to other taxes administered by the department.

AB64,1181 Section 1181 . 77.52 (13) of the statutes is amended to read:

AB64,585,9 77.52 (13) For the purpose of the proper administration of this section and to prevent evasion of the sales tax it shall be presumed that all receipts are subject to the tax until the contrary is established. The burden of proving that a sale of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services is not a taxable sale at retail is upon the person who makes the sale unless that person takes from the purchaser an electronic or a paper certificate, in a manner prescribed by the department, to the effect that the property, item, good, or service is purchased for resale or is otherwise exempt, except that no certificate is required for the sale of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services that are exempt under s. 77.54 (5) (a) 3., (7), (7m), (8), (10), (11), (14), (15), (17), (20n), (21), (22b), (31), (32), (35), (36), (37), (42), (44), (45), (46), (51), and (52), and (64).

AB64,1182 Section 1182. 77.52 (18) (bm) of the statutes is amended to read:

AB64,585,24 77.52 (18) (bm) If the purchaser of a stock of goods fails to withhold from the purchase price as required, the purchaser becomes personally liable for the payment of the amount required to be withheld by the purchaser to the extent of the purchase price valued in money. Within 60 days after receiving a written request from the purchaser for a certificate, or within 60 days from the date the former owner's records are made available for audit, whichever period expires later, but in any event not later than 90 days after receiving the request, the department shall either issue the certificate or mail notice to the purchaser at the purchaser's address as it appears on the records of the department of the amount that must be paid as a condition of issuing the certificate. Failure of the department to mail send the notice will release the purchaser from any further obligation to withhold the purchase price as above provided. The obligation of the successor may be enforced within 4 years of the time the retailer sells out the retailer's business or stock of goods or at the time that the determination against the retailer becomes final, whichever event occurs later.

AB64,1183 Section 1183 . 77.53 (10) of the statutes is amended to read:

AB64,586,13 77.53 (10) For the purpose of the proper administration of this section and to prevent evasion of the use tax and the duty to collect the use tax, it is presumed that tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or taxable services sold by any person for delivery in this state is sold for storage, use, or other consumption in this state until the contrary is established. The burden of proving the contrary is upon the person who makes the sale unless that person takes from the purchaser an electronic or paper certificate, in a manner prescribed by department, to the effect that the property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or taxable service is purchased for resale, or otherwise exempt from the tax, except that no certificate is required for the sale of tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services that are exempt under s. 77.54 (7), (7m), (8), (10), (11), (14), (15), (17), (20n), (21), (22b), (31), (32), (35), (36), (37), (42), (44), (45), (46), (51), and (52), and (64).

AB64,1184 Section 1184. 77.53 (17) of the statutes is amended to read:

AB64,586,25 77.53 (17) This section does not apply to tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) purchased outside this state, as determined under s. 77.522, other than motor vehicles, boats, snowmobiles, recreational vehicles, as defined in s. 340.01 (48r), trailers, semitrailers, all-terrain vehicles, utility terrain vehicles, off-highway motorcycles, as defined in s. 23.335 (1) (q), and airplanes registered or titled or required to be registered or titled in this state, which is brought into this state by a nondomiciliary for the person's own storage, use or other consumption while temporarily within this state when such property, item, or good is not stored, used or otherwise consumed in this state in the conduct of a trade, occupation, business or profession or in the performance of personal services for wages or fees.

AB64,1185 Section 1185. 77.53 (18) of the statutes is amended to read:

AB64,587,10 77.53 (18) This section does not apply to the storage, use or other consumption in this state of household goods or items, property, or goods under s. 77.52 (1) (b), (c), or (d) for personal use or to aircraft, motor vehicles, boats, snowmobiles, mobile homes, manufactured homes, as defined in s. 101.91 (2), recreational vehicles, as defined in s. 340.01 (48r), trailers, semitrailers, all-terrain vehicles, and utility terrain vehicles, and off-highway motorcycles, as defined in s. 23.335 (1) (q), for personal use, purchased by a nondomiciliary of this state outside this state, as determined under s. 77.522, 90 days or more before bringing the goods, items, or property into this state in connection with a change of domicile to this state.

AB64,1186 Section 1186. 77.54 (7) (b) (intro.) of the statutes is amended to read:

AB64,587,18 77.54 (7) (b) (intro.) If the item transferred is a motor vehicle, snowmobile, recreational vehicle, as defined in s. 340.01 (48r), trailer, semitrailer, all-terrain vehicle, utility terrain vehicle, off-highway motorcycle, as defined in s. 23.335 (1) (q), or aircraft and the item is registered or titled, or required to be registered or titled, in this state or if the item is a boat that is registered or titled, or required to be registered or titled, in this state or under the laws of the United States, the exemption under par. (a) applies only if all of the following conditions are fulfilled:

AB64,1187 Section 1187. 77.54 (20n) (d) of the statutes is created to read:

AB64,587,22 77.54 (20n) (d) The sales price from the sale of and the storage, use, or other consumption of prepared food that is sold by a retailer and that meets all of the following conditions:

AB64,587,25 1. The prepared food is manufactured by the retailer in a building assessed as manufacturing property under s. 70.995, or that would be assessed as manufacturing property under s. 70.995 if the building was located in this state.

AB64,588,2 2. The retailer makes no retail sales of prepared food at the building described in subd. 1.

AB64,588,3 3. The retailer freezes the prepared food prior to its sale.

AB64,588,4 4. The retailer sells the prepared food at retail in a frozen state.

AB64,588,6 5. The prepared food is not sold with eating utensils that are provided by the retailer, as described in s. 77.51 (10m) (a) 3.

AB64,588,7 6. The prepared food is not candy, soft drinks, or dietary supplements.

AB64,1188 Section 1188 . 77.54 (60) (a) of the statutes is renumbered 77.54 (60) (d) (intro.) and amended to read:

AB64,588,10 77.54 (60) (d) (intro.) In this subsection,“ lump sum:

AB64,588,19 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.

AB64,1189 Section 1189 . 77.54 (60) (b) of the statutes is amended to read:

AB64,589,3 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.

AB64,1190 Section 1190 . 77.54 (60) (bm) of the statutes is created to read:

AB64,589,8 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 to another subcontractor for eventual sale to the prime contractor, as part of a construction contract, if any of the following applies:

AB64,589,10 a. The total sales price of all products is less than 10 percent of the total amount of the construction contract.

AB64,589,12 b. The products will be sold by the prime contractor as part of a construction contract, and that sale is exempt under par. (b).

AB64,589,15 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.

AB64,1191 Section 1191 . 77.54 (60) (c) of the statutes is renumbered 77.54 (60) (c) (intro.) and amended to read:

AB64,589,20 77.54 (60) (c) (intro.) 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:

AB64,590,2 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.

AB64,1192 Section 1192 . 77.54 (60) (c) 2. of the statutes is created to read:

AB64,590,9 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.

AB64,1193 Section 1193 . 77.54 (60) (d) 2. and 3. of the statutes are created to read:

AB64,590,14 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), to perform real property construction activities on the real property.

AB64,590,16 3. “Subcontractor" means a contractor who enters into a construction contract with a prime contractor or another subcontractor.

AB64,1194 Section 1194. 77.54 (64) of the statutes is created to read:

AB64,590,18 77.54 (64) (a) In this subsection:

AB64,590,20 1. “Clothing" means any wearing apparel for humans that is suitable for general use, not including all of the following:

AB64,590,21 a. Belt buckles sold separately.

AB64,590,22 b. Costume masks sold separately.

AB64,590,23 c. Patches and emblems sold separately.

AB64,590,25 d. Sewing equipment and supplies, including knitting needles, patterns, pins, scissors, sewing machines, sewing needles, tape measures, and thimbles.

AB64,591,2 e. Sewing materials that become part of clothing, including buttons, fabric, lace, thread, yarn, and zippers.

AB64,591,3 f. Clothing accessories or equipment.

AB64,591,4 g. Protective equipment.

AB64,591,5 h. Sport or recreational equipment.

AB64,591,8 2. “Clothing accessories or equipment" means incidental items worn on a person or in conjunction with clothing, not including clothing, protective equipment, or sport or recreational equipment, but including all of the following:

AB64,591,9 a. Briefcases.

AB64,591,10 b. Cosmetics.

AB64,591,11 c. Hair notions, including barrettes, hair bows, and hair nets.

AB64,591,12 d. Handbags.

AB64,591,13 e. Handkerchiefs.