AB43,2277 9Section 2277 . 139.75 (1m) of the statutes is created to read:
AB43,1254,1310 139.75 (1m) “Cigar” means a roll, of any size or shape, of tobacco for smoking
11that is made wholly or in part of tobacco, regardless of whether the tobacco is pure,
12flavored, adulterated, or mixed with an ingredient, if the roll has a wrapper made
13wholly or in part of tobacco.
AB43,2278 14Section 2278 . 139.75 (4t) of the statutes is created to read:
AB43,1254,1615 139.75 (4t) “Little cigar” means a cigar that has an integrated cellulose acetate
16filter and is wrapped in a substance containing tobacco.
AB43,2279 17Section 2279 . 139.75 (5b) of the statutes is created to read:
AB43,1255,418 139.75 (5b) “Manufacturer's list price" means the total price of tobacco
19products charged by the manufacturer or other seller to an unrelated distributor.
20The total price shall include all charges by the manufacturer or other seller that are
21necessary to complete the sale. The total price may not be reduced by any cost or
22expense, regardless of whether the cost or expense is separately stated on an invoice,
23that is incurred by the manufacturer or other seller, including fees, delivery, freight,
24transportation, packaging, handling, marketing, federal excise taxes, and import
25fees or duties. The total price may not be reduced by the value or cost of discounts

1or free promotional or sample products. For purposes of this subsection, a
2manufacturer or other seller is related to a distributor if the 2 parties have
3significant common purposes and either substantial common membership or,
4directly or indirectly, substantial common direction or control.
AB43,2280 5Section 2280. 139.75 (12) of the statutes is amended to read:
AB43,1255,136 139.75 (12) “Tobacco products" means cigars; little cigars; cheroots; stogies;
7periques; granulated, plug cut, crimp cut, ready-rubbed and other smoking tobacco;
8snuff, including moist snuff; snuff flour; cavendish; plug and twist tobacco; fine cut
9and other chewing tobaccos; shorts; refuse scraps, clippings, cuttings and sweepings
10of tobacco and other kinds and forms of tobacco prepared in such manner as to be
11suitable for chewing or smoking in a pipe or otherwise, or both for chewing and
12smoking; but “tobacco products" does not include cigarettes, as defined under s.
13139.30 (1m).
AB43,2281 14Section 2281. 139.75 (14) of the statutes is renumbered 139.75 (14) (a) and
15amended to read:
AB43,1255,2216 139.75 (14) (a) “Vapor product” means a noncombustible product that produces
17vapor or aerosol for inhalation from the application of a heating element to a liquid
18or other substance that is depleted as the product is used, regardless of whether the
19liquid or other substance contains nicotine
, which may or may not contain nicotine,
20that employs a heating element, power source, electronic circuit, or other electronic,
21chemical, or mechanical means, regardless of shape or size, that can be used to
22produce vapor from a solution or other substance
.
AB43,2282 23Section 2282. 139.75 (14) (b) and (c) of the statutes are created to read:
AB43,1255,2424 139.75 (14) (b) “Vapor product” includes all of the following:
AB43,1256,2
11. An electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe,
2or similar product or device.
AB43,1256,63 2. Any cartridge or other container of a solution or other substance, which may
4or may not contain nicotine, that is intended to be used with or in an electronic
5cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or
6device.
AB43,1256,97 (c) “Vapor product” does not include a product regulated as a drug or device
8under sections 501 to 524A of the federal food, drug, and cosmetic act, 21 USC 351
9to 360n-1.
AB43,2283 10Section 2283. 139.76 (1) of the statutes is amended to read:
AB43,1257,411 139.76 (1) An excise tax is imposed upon the sale, offering or exposing for sale,
12possession with intent to sell or removal for consumption or sale or other disposition
13for any purpose of tobacco products by any person engaged as a distributor of them
14at the rate, for tobacco products, not including moist snuff and vapor products, of 71
15percent of the manufacturer's established list price to distributors without
16diminution by volume or other discounts on domestic products
and, for moist snuff,
17at the rate of 100 percent of the manufacturer's established list price to distributors
18without diminution by volume or other discounts on domestic products. The tax
19imposed under this subsection on cigars shall not exceed an amount equal to 50 cents
20for each cigar. On products imported from another country, not including moist snuff
21and vapor products, the rate of tax is 71 percent of the amount obtained by adding
22the manufacturer's list price to the federal tax, duties and transportation costs to the
23United States. On moist snuff imported from another country, the rate of the tax is
24100 percent of the amount obtained by adding the manufacturer's list price to the
25federal tax, duties, and transportation costs to the United States.
The tax attaches

1at the time the tobacco products are received by the distributor in this state. The tax
2shall be passed on to the ultimate consumer of the tobacco products. All tobacco
3products received in this state for sale or distribution within this state, except
4tobacco products actually sold as provided in sub. (2), shall be subject to such tax.
AB43,2284 5Section 2284 . 139.76 (1) of the statutes, as affected by 2023 Wisconsin Act ....
6(this act), is amended to read:
AB43,1257,187 139.76 (1) An excise tax is imposed upon the sale, offering or exposing for sale,
8possession with intent to sell or removal for consumption or sale or other disposition
9for any purpose of tobacco products by any person engaged as a distributor of them
10at the rate, for tobacco products, not including moist snuff and vapor products little
11cigars
, of 71 percent of the manufacturer's list price and, for moist snuff, at the rate
12of 100 percent of the manufacturer's list price. The tax imposed under this
13subsection on cigars, except little cigars, shall not exceed an amount equal to 50 cents
14for each cigar. The tax attaches at the time the tobacco products are received by the
15distributor in this state. The tax shall be passed on to the ultimate consumer of the
16tobacco products. All tobacco products received in this state for sale or distribution
17within this state, except tobacco products actually sold as provided in sub. (2), shall
18be subject to such tax.
AB43,2285 19Section 2285 . 139.76 (1b) of the statutes is created to read:
AB43,1258,220 139.76 (1b) The tax under sub. (1) is imposed on little cigars at the rate of 126
21mills on each little cigar, regardless of weight. To evidence payment of the tax
22imposed under this section on little cigars, the department shall provide stamps. A
23person who has paid the tax shall affix stamps of the proper denomination to each
24package in which little cigars are packed, prior to the first sale within this state.

1Section 139.32 as it applies to the tax under s. 139.31 applies to the tax imposed
2under this section on little cigars.
AB43,2286 3Section 2286. 139.76 (1m) of the statutes is amended to read:
AB43,1258,174 139.76 (1m) An excise tax is imposed upon the sale, offering or exposing for
5sale, possession with intent to sell or removal for consumption or sale or other
6disposition for any purpose of vapor products by any person engaged as a distributor
7of them at the rate of 5 cents per milliliter of the liquid or other substance based on
8the volume as listed by the manufacturer and at a proportionate rate for any other
9quantity or fractional part thereof
71 percent of the manufacturer's established list
10price to distributors without diminution by volume or other discounts on domestic
11products. On vapor products imported from another country, the rate of tax is 71
12percent of the amount obtained by adding the manufacturer's list price to the federal
13tax, duties, and transportation costs to the United States
. The tax attaches at the
14time the vapor products are received by the distributor in this state. The tax shall
15be passed on to the ultimate consumer of the vapor products. All vapor products
16received in this state for sale or distribution within this state, except those actually
17sold as provided in sub. (2), shall be subject to such tax.
AB43,2287 18Section 2287. 139.77 (1) of the statutes is amended to read:
AB43,1259,319 139.77 (1) On or before the 15th day of each month, every distributor with a
20place of business in this state shall file a return showing the quantity , including
21milliliters in the case of a vapor product,
and taxable price of each tobacco product
22or vapor product brought, or caused to be brought, into this state for sale; or made,
23manufactured or fabricated in this state for sale in this state, during the preceding
24month. Every distributor outside this state shall file a return showing the quantity,
25including milliliters in the case of a vapor product,
and taxable price of each tobacco

1product or vapor product shipped or transported to retailers in this state to be sold
2by those retailers during the preceding month. At the time that the return is filed,
3the distributor shall pay the tax.
AB43,2288 4Section 2288. 139.78 (1) of the statutes is amended to read:
AB43,1259,135 139.78 (1) A tax is imposed upon the use or storage by consumers of tobacco
6products in this state at the rate, for tobacco products, not including moist snuff and
7vapor products, of 71 percent of the cost of the tobacco products manufacturer's list
8price
and, for moist snuff, at the rate of 100 percent of the manufacturer's established
9list price to distributors without diminution by volume or other discounts on
10domestic products
. The tax imposed under this subsection on cigars shall not exceed
11an amount equal to 50 cents for each cigar. The tax does not apply if the tax imposed
12by s. 139.76 (1) on the tobacco products has been paid or if the tobacco products are
13exempt from the tobacco products tax under s. 139.76 (2).
AB43,2289 14Section 2289 . 139.78 (1) of the statutes, as affected by 2023 Wisconsin Act ....
15(this act), is amended to read:
AB43,1259,2316 139.78 (1) A tax is imposed upon the use or storage by consumers of tobacco
17products in this state at the rate, for tobacco products, not including moist snuff and
18vapor products little cigars, of 71 percent of the manufacturer's list price and, for
19moist snuff, at the rate of 100 percent of the manufacturer's list price. The tax
20imposed under this subsection on cigars, except little cigars, shall not exceed an
21amount equal to 50 cents for each cigar. The tax does not apply if the tax imposed
22by s. 139.76 (1) on the tobacco products has been paid or if the tobacco products are
23exempt from the tobacco products tax under s. 139.76 (2).
AB43,2290 24Section 2290 . 139.78 (1b) of the statutes is created to read:
AB43,1260,5
1139.78 (1b) A tax is imposed and levied upon the use or storage of little cigars
2in this state by any person for any purpose. The tax is levied and shall be collected
3at the same rate as provided for in s. 139.76 (1b). The tax under this subsection does
4not apply if the tax imposed by s. 139.76 (1) has been paid or if the little cigars are
5exempt from tax under s. 139.76 (2).
AB43,2291 6Section 2291. 139.78 (1m) of the statutes is amended to read:
AB43,1260,147 139.78 (1m) A tax is imposed upon the use or storage by consumers of vapor
8products in this state at the rate of 5 cents per milliliter of the liquid or other
9substance based on the volume as listed by the manufacturer and at a proportionate
10rate for any other quantity or fractional part thereof
71 percent of the manufacturer's
11established list price to distributors without diminution by volume or other discounts
12on domestic products
. The tax does not apply if the tax imposed by s. 139.76 (1m) on
13the vapor products has been paid or if the vapor products are exempt from the vapor
14products tax under s. 139.76 (2).
AB43,2292 15Section 2292 . 139.83 of the statutes is renumbered 139.83 (1).
AB43,2293 16Section 2293 . 139.83 (2) of the statutes is created to read:
AB43,1260,2017 139.83 (2) Sections 139.315, 139.32, 139.321, 139.322, 139.34, 139.35, 139.36,
18139.362, 139.363, 139.38, 139.395, 139.41, 139.42, 139.43, and 139.44 (8), as they
19apply to the taxes under subch. II, apply to the administration and enforcement of
20this subchapter for little cigars.
AB43,2294 21Section 2294 . Subchapter IV of chapter 139 [precedes 139.97] of the statutes
22is created to read:
AB43,1260,2323 chapter 139
AB43,1260,2424 subchapter Iv
AB43,1260,2525 marijuana tax and regulation
AB43,1261,1
1139.97 Definitions. In this subchapter:
AB43,1261,2 2(1) “Department" means the department of revenue.
AB43,1261,5 3(2) “Lot" means a definite quantity of marijuana or usable marijuana identified
4by a lot number, every portion or package of which is consistent with the factors that
5appear in the labeling.
AB43,1261,7 6(3) “Lot number" means a number that specifies the person who holds a valid
7permit under this subchapter and the harvesting or processing date for each lot.
AB43,1261,8 8(4) “Marijuana" has the meaning given in s. 961.70 (2).
AB43,1261,12 9(5) “Marijuana distributor” means a person in this state who purchases or
10receives usable marijuana from a marijuana processor and who sells or otherwise
11transfers the usable marijuana to a marijuana retailer for the purpose of resale to
12consumers.
AB43,1261,16 13(6) “Marijuana processor" means a person in this state who processes
14marijuana into usable marijuana, packages and labels usable marijuana for sale in
15retail outlets, and sells at wholesale or otherwise transfers usable marijuana to
16marijuana distributors.
AB43,1261,18 17(7) “Marijuana producer" means a person in this state who produces marijuana
18and sells it at wholesale or otherwise transfers it to marijuana processors.
AB43,1261,20 19(8) “Marijuana retailer" means a person in this state that sells usable
20marijuana at a retail outlet.
AB43,1261,23 21(9) “Microbusiness” means a marijuana producer that produces marijuana in
22one area that is less than 10,000 square feet and who also operates as any 2 of the
23following:
AB43,1261,2424 (a) A marijuana processor.
AB43,1261,2525 (b) A marijuana distributor.
AB43,1262,1
1(c) A marijuana retailer.
AB43,1262,4 2(10) “Permittee" means a marijuana producer, marijuana processor, marijuana
3distributor, marijuana retailer, or microbusiness that is issued a permit under s.
4139.972.
AB43,1262,5 5(11) “Retail outlet" means a location for the retail sale of usable marijuana.
AB43,1262,6 6(12) “Sales price" has the meaning given in s. 77.51 (15b).
AB43,1262,9 7(13) “Usable marijuana" means marijuana that has been processed for human
8consumption and includes dried marijuana flowers, marijuana-infused products,
9and marijuana edibles.
AB43,1262,14 10139.971 Marijuana tax. (1) (a) An excise tax is imposed on a marijuana
11producer at the rate of 15 percent of the sales price on each wholesale sale or transfer
12in this state of marijuana to a marijuana processor. This paragraph applies to a
13microbusiness that transfers marijuana to a processing operation within the
14microbusiness.
AB43,1262,1815 (b) An excise tax is imposed on a marijuana retailer at the rate of 10 percent
16of the sales price on each retail sale in this state of usable marijuana, except that the
17tax does not apply to sales of usable marijuana to an individual who holds a valid tax
18exemption certificate issued under s. 73.17 (4).
AB43,1262,22 19(2) Each person liable for the taxes imposed under sub. (1) shall pay the taxes
20to the department no later than the 15th day of the month following the month in
21which the person's tax liability is incurred and shall include with the payment a
22return on a form prescribed by the department.
AB43,1263,2 23(3) For purposes of this section, a marijuana producer may not sell marijuana
24directly to a marijuana distributor or marijuana retailer, and a marijuana retailer
25may purchase usable marijuana for resale only from a marijuana distributor. This

1subsection does not apply to a microbusiness that transfers marijuana or usable
2marijuana to another operation with the microbusiness.
AB43,1263,8 3139.972 Permits required. (1) (a) No person may operate in this state as a
4marijuana producer, marijuana processor, marijuana distributor, marijuana
5retailer, or microbusiness without first filing an application for and obtaining the
6proper permit from the department to perform such operations. In addition, no
7person may operate in this state as a marijuana producer or marijuana processor
8without first filing an application for and obtaining the proper permit under s. 94.56.
AB43,1263,119 (b) This section applies to all officers, directors, agents, and stockholders
10holding 5 percent or more of the stock of any corporation applying for a permit under
11this section.
AB43,1263,1312 (c) Subject to ss. 111.321, 111.322, and 111.335, a permit under this section may
13not be granted to any person to whom any of the following applies:
AB43,1263,1514 1. The person has been convicted of a violent misdemeanor, as defined in s.
15941.29 (1g) (b), at least 3 times.
AB43,1263,1716 2. The person has been convicted of a violent felony, as defined in s. 941.29 (1g)
17(a), unless pardoned.
AB43,1263,1918 3. During the preceding 3 years, the person has been committed under s. 51.20
19for being drug dependent.
AB43,1263,2420 4. The person chronically and habitually uses alcohol beverages or other
21substances to the extent that his or her normal faculties are impaired. A person is
22presumed to chronically and habitually use alcohol beverages or other substances to
23the extent that his or her normal faculties are impaired if, within the preceding 3
24years, any of the following applies:
AB43,1264,2
1a. The person has been committed for involuntary treatment under s. 51.45
2(13).
AB43,1264,33 b. The person has been convicted of a violation of s. 941.20 (1) (b).
AB43,1264,134 c. In 2 or more cases arising out of separate incidents, a court has found the
5person to have committed a violation of s. 346.63 or a local ordinance in conformity
6with that section; a violation of a law of a federally recognized American Indian tribe
7or band in this state in conformity with s. 346.63; or a violation of the law of another
8jurisdiction, as defined in s. 340.01 (41m), that prohibits use of a motor vehicle while
9intoxicated, while under the influence of a controlled substance, a controlled
10substance analog, or a combination thereof, with an excess or specified range of
11alcohol concentration, or while under the influence of any drug to a degree that
12renders the person incapable of safely driving, as those or substantially similar
13terms are used in that jurisdiction's laws.
AB43,1264,1514 5. The person has income that comes principally from gambling or has been
15convicted of 2 or more gambling offenses.
AB43,1264,1616 6. The person has been convicted of crimes relating to prostitution.
AB43,1264,1817 7. The person has been convicted of of crimes relating to loaning money or
18anything of value to persons holding licenses or permits pursuant to ch. 125.
AB43,1264,1919 8. The person is under the age of 21.
AB43,1264,2120 9. The person has not been a resident of this state continuously for at least 90
21days prior to the application date.
AB43,1265,422 (cm) An applicant with 20 or more employees may not receive a permit under
23this section to operate as a marijuana distributor or marijuana retailer unless the
24applicant certifies to the department that the applicant has entered into a labor
25peace agreement, as defined in s. 94.56 (1) (a), and will abide by the terms of the

1agreement as a condition of maintaining a valid permit under this section. The
2applicant shall submit to the department a copy of the page of the labor peace
3agreement that contains the signatures of the labor organization representative and
4the applicant.
AB43,1265,165 (cn) The department shall use a competitive scoring system to determine which
6applicants are eligible to receive a permit under this section. The department shall
7issue permits to the highest scoring applicants that it determines will best protect
8the environment; provide stable, family-supporting jobs to local residents; ensure
9worker and consumer safety; operate secure facilities; and uphold the laws of the
10jurisdictions in which they operate. The department shall, using criteria established
11by rule, score an applicant for a permit to operate as a marijuana retailer on the
12applicant's ability to articulate a social equity plan related to the operation of a
13marijuana retail establishment. The department may deny a permit to an applicant
14with a low score as determined under this paragraph. The department may request
15that the applicant provide any information or documentation that the department
16deems necessary for purposes of making a determination under this paragraph.
AB43,1265,2417 (d) 1. Before the department issues a new or renewed permit under this section,
18the department shall give notice of the permit application to the governing body of
19the municipality where the permit applicant intends to operate the premises of a
20marijuana producer, marijuana processor, marijuana distributor, marijuana
21retailer, or microbusiness. No later than 30 days after the department submits the
22notice, the governing body of the municipality may file with the department a written
23objection to granting or renewing the permit. At the municipality's request, the
24department may extend the period for filing objections.
AB43,1266,14
12. A written objection filed under subd. 1. shall provide all the facts on which
2the objection is based. In determining whether to grant or deny a permit for which
3an objection has been filed under this paragraph, the department shall give
4substantial weight to objections from a municipality based on chronic illegal activity
5associated with the premises for which the applicant seeks a permit or the premises
6of any other operation in this state for which the applicant holds or has held a valid
7permit or license, the conduct of the applicant's patrons inside or outside the
8premises of any other operation in this state for which the applicant holds or has held
9a valid permit or license, and local zoning ordinances. In this subdivision, “ chronic
10illegal activity" means a pervasive pattern of activity that threatens the public
11health, safety, and welfare of the municipality, including any crime or ordinance
12violation, and that is documented in crime statistics, police reports, emergency
13medical response data, calls for service, field data, or similar law enforcement agency
14records.
AB43,1266,1915 (e) After denying a permit, the department shall immediately notify the
16applicant in writing of the denial and the reasons for the denial. After making a
17decision to grant or deny a permit for which a municipality has filed an objection
18under par. (d), the department shall immediately notify the governing body of the
19municipality in writing of its decision and the reasons for the decision.
AB43,1266,2120 (f) 1. The department's denial of a permit under this section is subject to judicial
21review under ch. 227.
AB43,1266,2322 2. The department's decision to grant a permit under this section regardless of
23an objection filed under par. (d) is subject to judicial review under ch. 227.
AB43,1266,2524 (g) The department shall not issue a permit under this section to any person
25who does not hold a valid certificate under s. 73.03 (50).
AB43,1267,7
1(2) Each person who applies for a permit under this section shall submit with
2the application a $250 fee. Each person who is granted a permit under this section
3shall annually pay to the department a $2,000 fee for as long as the person holds a
4valid permit under this section. A permit issued under this section is valid for one
5year and may be renewed, except that the department may revoke or suspend a
6permit prior to its expiration. A person is not entitled to a refund of the fees paid
7under this subsection if the person's permit is denied, revoked, or suspended.
AB43,1267,11 8(3) The department may not issue a permit under this section to operate any
9premises which are within 500 feet of the perimeter of the grounds of any elementary
10or secondary school, playground, recreation facility, child care facility, public park,
11public transit facility, or library.
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