SB163: Bill Text

2. A computer purchased by the consumer for the consumer's personal use, if the sales price of the computer is no more than $750.

3. School computer supplies, if the sales price of any single item is no more than $250.

4. School supplies, if the sales price of any single item is no more than $75.

The bill provides, however, that the exemption does not apply after 2018.

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:

SB163,1 Section 1. 77.52 (13) of the statutes is amended to read:

SB163,2,13 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).

SB163,2 Section 2. 77.53 (10) of the statutes is amended to read:

SB163,3,2 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).

SB163,3 Section 3. 77.54 (64) of the statutes is created to read:

SB163,3,4 77.54 (64) (a) In this subsection:

SB163,3,6 1. “Clothing" means any wearing apparel for humans that is suitable for general use, not including all of the following:

SB163,3,7 a. Belt buckles sold separately.

SB163,3,8 b. Costume masks sold separately.

SB163,3,9 c. Patches and emblems sold separately.

SB163,3,11 d. Sewing equipment and supplies, including knitting needles, patterns, pins, scissors, sewing machines, sewing needles, tape measures, and thimbles.

SB163,3,13 e. Sewing materials that become part of clothing, including buttons, fabric, lace, thread, yarn, and zippers.

SB163,3,14 f. Clothing accessories or equipment.

SB163,3,15 g. Protective equipment.

SB163,3,16 h. Sport or recreational equipment.

SB163,3,19 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:

SB163,3,20 a. Briefcases.

SB163,3,21 b. Cosmetics.

SB163,3,22 c. Hair notions, including barrettes, hair bows, and hair nets.

SB163,3,23 d. Handbags.

SB163,3,24 e. Handkerchiefs.

SB163,3,25 f. Jewelry.

SB163,4,1 g. Nonprescription sunglasses.

SB163,4,2 h. Umbrellas.

SB163,4,3 i. Wallets.

SB163,4,4 j. Watches.

SB163,4,5 k. Wigs.

SB163,4,6 L. Hair pieces.

SB163,4,8 3. “Eligible property” means an item that qualifies for exemption under this subsection.

SB163,4,13 4. “Layaway sale” means a transaction in which property is set aside for future delivery to a customer who makes a deposit, agrees to pay the balance of the sales price over time, and, at the end of the payment period, receives the property. An order is accepted for layaway by the seller when the seller removes the property from inventory or clearly identifies the property as sold to the purchaser.

SB163,4,18 5. “Protective equipment” means items for human wear that are designed to protect the wearer against injury or disease or to protect property or other persons from damage or injury. “Protective equipment” does not include items suitable for general use, clothing, clothing accessories or equipment, or sport or recreational equipment. “Protective equipment” includes:

SB163,4,19 a. Breathing masks.

SB163,4,20 b. Clean room apparel and equipment.

SB163,4,21 c. Ear and hearing protectors.

SB163,4,22 d. Face shields.

SB163,4,23 e. Hard hats.

SB163,4,24 f. Helmets.

SB163,4,25 g. Paint or dust respirators.

SB163,5,1 h. Protective gloves.

SB163,5,2 i. Safety glasses and goggles.

SB163,5,3 j. Safety belts.

SB163,5,4 k. Tool belts.

SB163,5,5 L. Welders gloves and masks.

SB163,5,7 6. “Rain check” means a seller allowing a purchaser to purchase an item at a certain price at a later time because the item was out-of-stock.

SB163,5,10 7. “School art supply” means any of the following items that are commonly used by a student in a course of study for artwork, but not including a school computer supply, school supply, or school instructional material:

SB163,5,11 a. Clay and glazes.

SB163,5,12 b. Acrylic, tempera, and oil paints.

SB163,5,13 c. Paintbrushes.

SB163,5,14 d. Sketch and drawing pads.

SB163,5,15 e. Watercolors.

SB163,5,18 8. “School computer supply" means any of the following items that are commonly used by a student in a course of study in which a computer is used, but not including a school art supply, school supply, or school instructional material:

SB163,5,19 a. Computer storage media, diskettes, and compact discs.

SB163,5,20 b. Handheld electronic schedulers, not including cellular phones.

SB163,5,21 c. Personal digital assistants, not including cellular phones.

SB163,5,22 d. Computer printers.

SB163,5,23 e. Printer supplies for computers, printer paper, and printer ink.

SB163,6,2 9. “School instructional material" means any of the following that is commonly used by a student in a course of study as a reference and to learn the subject being taught, but not including a school art supply, school computer supply, or school supply:

SB163,6,3 a. Reference books.

SB163,6,4 b. Reference maps and globes.

SB163,6,5 c. Textbooks.

SB163,6,6 d. Workbooks.

SB163,6,9 10. “School supply" means any of the following items that are commonly used by a student in a course of study, but not including a school art supply, school computer supply, or school instructional material:

SB163,6,10 a. Binders.

SB163,6,11 b. Book bags.

SB163,6,12 c. Calculators.

SB163,6,13 d. Cellophane tape.

SB163,6,14 e. Blackboard chalk.

SB163,6,15 f. Compasses.

SB163,6,16 g. Composition books.

SB163,6,17 h. Crayons.

SB163,6,18 i. Erasers.

SB163,6,19 j. Folders.

SB163,6,20 k. Glue, paste, and paste sticks.

SB163,6,21 L. Highlighters.

SB163,6,22 m. Index cards.

SB163,6,23 n. Index card boxes.

SB163,6,24 o. Legal pads.

SB163,6,25 p. Lunch boxes.

SB163,7,1 q. Markers.

SB163,7,2 r. Notebooks.

SB163,7,4 s. Loose-leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, and construction paper.