SECTION 2. Tax 11.05(3)(m) to (u) are renumbered Tax 11.05(3)(n) to (v).
SECTION 3. Tax 11.05(3)(m), (w) and (x) are created to read:
Tax 11.05(3)(m) Meals, food, food products or beverages, except soda water beverages, fermented malt beverages and intoxicating liquor, furnished in accordance with any contract or agreement by a public or private institution of higher education, or paid for to a public or private institution of higher education through the use of an account of the institution and furnished by the institution, if either of the following conditions is met:
1. The meals, food, food products or beverages are furnished to an undergraduate student, a graduate student or a student enrolled in a professional school if the student is enrolled for credit at that institution, provided the items are consumed by that student.
2. The meals, food, food products or beverages are furnished to a national football league team.
(w) Parking tickets.
(x) Charges for lessons.
SECTION 4. Tax 11.05(4)(a) and (b)2. are amended to read:
Tax 11.05(4)(a) Section 77.54(9a), Stats., exempts sales to and the storage, use or other consumption of tangible personal property and services by Wisconsin or by any agency thereof
of Wisconsin, or any Wisconsin county, city, village, town, school district, county-city hospital established under s. 66.47, Stats., sewerage commission organized under s. 281.43(4), Stats., metropolitan sewerage district organized under ss. 66.20 to 66.26 or 66.88 to 66.918, Stats., local exposition district under subch. II of ch. 229, Stats., joint local water authority created under s. 66.0735, Stats., university of Wisconsin hospitals and clinics authority or any other unit of government, or any agency or instrumentality of one or more units of government within Wisconsin. However, the exemption does not apply to governmental units of other states or hospital service insurance corporations under s. 613.80, Stats.
(b)2. An A Wisconsin sales and use tax exemption certificate, form S-207 or S-209
S-211.
Note to Revisor: Replace the note at the end of sub. (4)(b)2. with the following:
Note: Form S-211 is available from any department of revenue office.
SECTION 5. Tax 11.05(4)(b)3. is created to read:
Tax 11.05(4)(b)3. Its certificate of exempt status number that the retailer should record on the invoice or other document it keeps as part of its records.
Note to Revisor: In the second note at the end of Tax 11.05, remove the word “and" before part (t) and add the following at the end of the note:
; and (u) The exemption for certain meals, food, food products and beverages furnished by institutions of higher education was revised to apply only if the items are furnished to an undergraduate student, a graduate student or a student enrolled in a professional school if the student is enrolled for credit at that institution and if the items are consumed by that student, or the items are furnished to a national football league team, effective for contracts or agreements entered into on or after October 14, 1997, pursuant to 1997 Wis. Act 27, and further revised to include certain meals, food, food products or beverages paid for to an institution of higher education through the use of an account of the institution, if the items are furnished by the institution, effective December 31, 1997, pursuant to 1997 Wis. Act 41.
SECTION 6. Tax 11.87(1)(b) is amended to read:
Tax 11.87(1)(b) “Exempt food" means food, food products and beverages not subject to the sales and use tax as provided in s. 77.54(20) and (20m), Stats.
SECTION 7. Tax 11.87(1)(e) and (f) are renumbered Tax 11.87(1)(f) and (e).
Note to Revisor: Add the following note at the end of Tax 11.87(1)(h):
Note: See s. Tax 11.51 to determine which items are exempt food and which items are taxable food.
SECTION 8. Tax 11.87(2)(c) and (3)(a) are amended to read:
Tax 11.87(2)(c)(title) Food components of meals
Meals. Food items which comprise or are components of a meal shall be taxable food when sold on a “take out" or “to go" basis and are packaged or wrapped and removed from the premises for consumption elsewhere for consumption either on or off the seller's premises.
Note to Revisor: 1) Replace the example at the end of sub. (2)(c) with the following:
Example: A basket of chicken with cole slaw and french fries sold “to go" is a taxable meal.
(2) Add the following note after the example at the end of sub. (2)(c):
Note: See s. Tax 11.51 for a definition of meal.
(3)(a) Meals, food, food products or beverages , except soda water beverages, fermented malt beverages and intoxicating liquor, sold on their premises by hospitals, sanatoriums, nursing homes, retirement homes, community-based residential facilities as defined in s. 50.01(1g), Stats., or day care centers registered under ch. 48, Stats., and served on their premises. However, if an affiliated organization sells the items, the exemption does not apply.
Note to Revisor: Do not change the example at the end of sub. (3)(a).
SECTION 9. Tax 11.87(3)(c) is repealed and recreated to read:
Tax 11.87(3)(c) Institutions of higher education. Meals, food, food products or beverages, except soda water beverages, fermented malt beverages and intoxicating liquor, furnished in accordance with any contract or agreement by a public or private institution of higher education, or paid for to a public or private institution of higher education through the use of an account of the institution and furnished by the institution, if either of the following conditions is met:
1. The meals, food, food products or beverages are furnished to an undergraduate student, a graduate student or a student enrolled in a professional school if the student is enrolled for credit at that institution, provided the items are consumed by that student.
2. The meals, food, food products or beverages are furnished to a national football league team.
Note to Revisor: 1) Replace the first note at the end of Tax 11.87 with the following:
Note: Section Tax 11.87 interprets ss. 77.51(4)(c)2., (14)(b) and (f) and (15)(c)1. and 77.54(20) and (20m), Stats.
2) In the second note at the end of Tax 11.87, remove the word “on" in parts (a) and (c), remove the word “and" before part (c), and add the following at the end of the note:
; (d) The exemption for certain meals, food, food products and beverages furnished by institutions of higher education was revised to apply only if the items are furnished to an undergraduate student, a graduate student or a student enrolled in a professional school if the student is enrolled for credit at that institution and if the items are consumed by that student, or the items are furnished to a national football league team, effective for contracts or agreements entered into on or after October 14, 1997, pursuant to 1997 Wis. Act 27, and further revised to include certain meals, food, food products or beverages paid for to an institution of higher education through the use of an account of the institution, if the items are furnished by the institution, effective December 31, 1997, pursuant to 1997 Wis. Act 41; and (e) Sales of certain food combinations became exempt effective August 1, 1997, pursuant to 1997 Wis. Act 237.
SECTION 10. Tax 11.94(1)(d) and (2)(a) and (c) are amended to read:
Tax 11.94(1)(d) Gifts purchased in Wisconsin by residents or nonresidents and shipped out-of-state by the seller at the direction of the purchaser shall not be are not subject to the sales or use tax if the purchaser does not take physical possession of the gift at the time of the sale. However, if the purchaser takes possession of the gift at the time of the sale, the sale is taxable.
(2)(a) When a seller charges a purchaser for the delivery of taxable tangible personal property, the seller's total charge, including any transportation charge, shall be subject to the sales or use tax. It is immaterial whether delivery is made by the seller's vehicle, a common or contract carrier, or the United States postal service.
Note to Revisor: Do not change the example at the end of sub. (2)(a).
(c) A Wisconsin purchaser who purchases taxable goods without tax for use in Wisconsin is subject to the use tax or sales tax pursuant to s. Tax 11.14(2)(c) based on the “sales price" of the goods to the purchaser. The “sales price" shall include transportation charges paid by the Wisconsin purchaser to the seller for shipment of the goods to the purchaser. The “sales price" does not include transportation charges paid by the Wisconsin purchaser to a carrier independent of the seller when the purchaser arranges for the transportation.
SECTION 11. Tax 11.94(2)(d) is repealed.
Note to Revisor: Replace the first note at the end of Tax 11.94 with the following:
Note: Section Tax 11.94 interprets ss. 71.51(4)(a)3., (14)(intro.) and (d), (14r) and (15)(a) and 77.52(1), Stats.
Initial Regulatory Flexibility Analysis
This proposed rule order does not have a significant economic impact on a substantial number of small businesses.
Fiscal Estimate
The proposed order reflects changes in the treatment for sales of meals by institutions of higher learning enacted in 1997 Wis. Acts 27 and 41, an exemption for local water authorities enacted in 1997 Wis. Act 184, and Circuit court decisions relating to treatment of transportation costs. Other changes clarify existing language to reflect the Department's current position, and alter style and format to conform to Legislative Council Clearinghouse standards. These rule changes do not have a fiscal effect.
Notice of Submission of Proposed Rules to the Presiding Officer of each House of the Legislature, Under S. 227.19, Stats.
Please check the Bulletin of Proceedings for further information on a particular rule.
Agriculture, Trade and Consumer Protection
(CR 98-159):
Ch. ATCP 139 - Relating to consumer product safety; to safety standards for children's bicycle helmets; and to banning drawstrings in children's clothing which pose serious safety hazards.
Chs. Chir 1 to 4 and 7 and ss. Chir 6.02 and 9.04 - Relating to: definitions, applications, examinations, temporary permits and renewal.
Wisconsin Emergency Management
(CR 99-17):
S. WEM 1.04 (8) - Relating to inventory reporting for petroleum marketing facilities.
Financial Institutions--Banking
(CR 99-58):
Ch. DFI-Bkg 4 - Relating to investments in time deposits and certificates of deposits.
Financial Institutions--Banking
(CR 99-59):
Ch. DFI-Bkg 6 - Relating to aggregate investments in bonds and certain other securities.
Financial Institutions--Banking
(CR 99-60):
Ch. DFI-Bkg 7 - Relating to real estate mortgage loans.
Funeral Directors Examining Board
(CR 99-8):
S. FD 6.10 - Relating to the solicitation of prospective purchasers of burial agreements funded with the proceeds of a life insurance policy.
Health and Family Services
(CR 99-4):
SS. HFS 119.07 and 119.15 - Relating to operation of the Health Insurance Risk-Sharing Plan (HIRSP).
Ch. HFS 114 - Relating to neonatal intensive care unit training grants.
Hearings and Appeals, Division of
(CR 98-119):
Ch. HA 3 - Relating to the procedure and practice for fair hearings regarding the food stamp and Medicaid programs.
S. PSC 132.02 (3) - Relating to the ch. PSC 132 definition of “public utility” and to cable operators' access to railroad rights-of-way.
S. RL 12.04 and ch. RL 25 - Relating to education, pre-license and continuing education programs and courses for real estate brokers and salespersons.
Ch. Trans 212 - Relating to standards for the inspection of bridges in Wisconsin.
SS. Trans 276.07 and 276.09 - Relating to allowing the operation of “double bottoms” (and certain other vehicles) on certain specified highways.
Administrative Rules Filed With The
Revisor Of Statutes Bureau
The following administrative rules have been filed with the Revisor of Statutes Bureau and are in the process of being published. The date assigned to each rule is the projected effective date. It is possible that the publication of these rules could be delayed. Contact the Revisor of Statutes Bureau at (608) 266-7275 for updated information on the effective dates for the listed rules.
