1997 Wisconsin Act 27

27,2392 Section 2392 . 77.53 (1m) (a) of the statutes is amended to read:

77.53 (1m) (a) If the motor vehicle is assigned to and used by an employe of the dealer for whom the dealer is required to withhold amounts for federal income tax purposes or by a person who both has an ownership interest in the dealership and actively participates in the day-to-day operation of the dealership, $96 per month for each motor vehicle registration plate held by the dealer, except that beginning in 1997 the department shall annually, as of January 1, adjust the dollar amount under this paragraph, rounded to the nearest whole dollar, to reflect the annual percentage change in the U.S. consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor, for the 12 months ending on June 30 of the year before the change. In this paragraph, “actively participates" means performs services for the motor vehicle dealership; including selling, accounting, managing and consulting; for more than 500 hours in a taxable year for which the person receives compensation, and “actively participates" does not include services performed only in the capacity of an investor; including studying and reviewing financial statements or reports on the operation of the business, preparing or compiling summaries or analyses of the finances of the business for the investor's own use or monitoring the finances or operations of the activity in a nonmanagerial capacity.

27,2392m Section 2392m. 77.53 (9) of the statutes is amended to read:

77.53 (9) Every retailer selling tangible personal property or taxable services for storage, use or other consumption in this state shall obtain a certificate under s. 73.03 (50) and give the name and address of all agents operating in this state, the location of all distribution or sales houses or offices or other places of business in this state, the standard industrial code classification of each place of business in this state and such other information as the department requires.

27,2392mm Section 2392mm. 77.53 (9) of the statutes, as affected by 1997 Wisconsin Act .... (this act), is amended to read:

77.53 (9) Every retailer selling tangible personal property or taxable services for storage, use or other consumption in this state shall register with the department and obtain a certificate under s. 73.03 (50) and give the name and address of all agents operating in this state, the location of all distribution or sales houses or offices or other places of business in this state, the standard industrial code classification of each place of business in this state and such the other information as that the department requires.

27,2392no Section 2392no. 77.53 (9m) of the statutes is amended to read:

77.53 (9m) Any person who is not otherwise required to collect any tax imposed by this subchapter and who makes sales to persons within this state of tangible personal property or taxable services the use of which is subject to tax under this subchapter may register with the department under the terms and conditions that the department imposes and shall obtain a valid certificate under s. 73.03 (50) and thereby be authorized and required to collect, report and remit to the department the use tax imposed by this subchapter.

27,2392p Section 2392p. 77.53 (10) of the statutes is amended to read:

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 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 a certificate to the effect that the property or taxable service is purchased for resale, or otherwise exempt from the tax; except that no certificate is required for sales of commodities, as defined in 7 USC 2, that are consigned for resale in a warehouse in or from which the commodity is deliverable on a contract for future delivery subject to a commodity market regulated by the U.S. commodity futures trading commission if upon the sale the commodity is not removed from the warehouse.

27,2393 Section 2393 . 77.54 (3m) of the statutes is repealed and recreated to read:

77.54 (3m) The gross receipts from the sale of and the storage, use or other consumption of the following items if they are used exclusively by the purchaser or user in the business of farming; including dairy farming, agriculture, horticulture, floriculture and custom farming services:

(a) Seeds for planting.

(b) Plants.

(c) Feed.

(d) Fertilizer.

(e) Soil conditioners.

(f) Animal bedding.

(g) Sprays, pesticides and fungicides.

(h) Breeding and other livestock.

(i) Poultry.

(j) Farm work stock.

(k) Baling twine and baling wire.

(L) Containers for fruits, vegetables, grain, hay, silage and animal wastes.

(m) Plastic bags, plastic sleeves and plastic sheeting used to store or cover hay or silage.

27,2393no Section 2393no. 77.54 (14) (f) of the statutes is created to read:

77.54 (14) (f) Furnished without charge to a physician, surgeon, nurse anesthetist, advanced practice nurse, osteopath, dentist who is licensed under ch. 447, podiatrist who is licensed under ch. 448 or optometrist who is licensed under ch. 449 if the medicine may not be dispensed without a prescription.

27,2393noo Section 2393noo. 77.54 (15) of the statutes is amended to read:

77.54 (15) The gross receipts from the sale of and the storage, use or other consumption of all newspapers, of periodicals sold by subscription and regularly issued at average intervals not exceeding 3 months, or issued at average intervals not exceeding 6 months by an educational association or corporation sales to which are exempt under sub. (9a) (f), of controlled circulation publications sold to commercial publishers for distribution without charge or mainly without charge or regularly distributed by or on behalf of publishers without charge or mainly without charge to the recipient and of shoppers guides which distribute no less than 48 issues in a 12-month period. In this subsection, “shoppers guide" means a community publication delivered, or attempted to be delivered, to most of the households in its coverage area without a required subscription fee, which advertises a broad range of products and services offered by several types of businesses and individuals. In this subsection, “controlled circulation publication" means a publication that has at least 24 pages, is issued at regular intervals not exceeding 3 months, that devotes not more than 75% of its pages to advertising and that is not conducted as an auxiliary to, and essentially for the advancement of, the main business or calling of the person that owns and controls it.

27,2393nq Section 2393nq. 77.54 (20) (c) 5. of the statutes is amended to read:

77.54 (20) (c) 5. Taxable sales shall not include meals, food, food products or beverages furnished in accordance with any contract or agreement by a public or private institution of higher education 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 goods are consumed by that student and meals, food, food products or beverages furnished to a national football league team under a contract or agreement entered into on or before January 1, 1998.

27,2393nv Section 2393nv. 77.54 (30) (d) of the statutes is amended to read:

77.54 (30) (d) In this subsection “residential use" means use in a structure or portion of a structure which is a person's permanent residence, but does not include use in transient accommodations, as specified in s. 77.52 (2) (a) 1.,; time-share property, as defined in s. 707.02 (32); motor homes,; or travel trailers or other recreational vehicles.

27,2393q Section 2393q. 77.54 (43) of the statutes is created to read:

77.54 (43) The gross receipts from the sale of and the storage, use or other consumption of raw materials used for the processing, fabricating or manufacturing of, or the attaching to or incorporating into, printed materials that are transported and used solely outside this state.

27,2394 Section 2394 . 77.58 (1m) of the statutes is created to read:

77.58 (1m) Persons who owe amounts under this subchapter shall pay them by mailing or delivering them to the department or, if the department prescribes another method of submitting or another destination, those persons shall pay those amounts in that other method or to that other destination.

27,2394g Section 2394g. 77.58 (3) (a) of the statutes is amended to read:

77.58 (3) (a) For purposes of the sales tax a return shall be filed by every seller. For purposes of the use tax a return shall be filed by every retailer engaged in business in this state and by every person purchasing tangible personal property or services, the storage, use or other consumption of which is subject to the use tax, who has not paid the use tax due to a retailer required to collect the tax. If a qualified subchapter S subsidiary is not regarded as a separate entity under ch. 71, the owner of that subsidiary shall include the information for that subsidiary on the owner's return. Returns shall be signed by the person required to file the return or by a duly authorized agent but need not be verified by oath. If a single-owner entity is disregarded as a separate entity under ch. 71, the owner shall include the information from the entity on the owner's return.

27,2397 Section 2397 . 77.61 (14) of the statutes is amended to read:

77.61 (14) Documents and payments required or permitted under this subchapter that are mailed are timely furnished, filed or made if they are mailed in a properly addressed envelope with the postage duly prepaid, if the envelope is postmarked before midnight of the due date and if the document or payment is received by the department, or at the destination that the department prescribes, within 5 days after the prescribed date. Documents and payments that are not mailed are timely if they are received on or before the due date by the department or at the destination that the department designates.

27,2399 Section 2399 . 77.75 of the statutes is amended to read:

77.75 Reports. Every person subject to county or special district sales and use taxes shall, for each reporting period, record that person's sales made in the county or special district that has imposed those taxes separately from sales made elsewhere in this state and file a report of the measure of the county or special district sales and use taxes and the tax due thereon separately to the department of revenue on forms to be provided by the department.

27,2399f Section 2399f. 77.76 (3) of the statutes is amended to read:

77.76 (3) From the appropriation under s. 20.835 (4) (g) the department shall distribute 98.5% 98.7% of the county taxes reported for each enacting county, minus the county portion of the retailers' discounts, to the county and shall indicate the taxes reported by each taxpayer, no later than the end of the 3rd month following the end of the calendar quarter in which such amounts were reported. In this subsection, the “county portion of the retailers' discount" is the amount determined by multiplying the total retailers' discount by a fraction the numerator of which is the gross county sales and use taxes payable and the denominator of which is the sum of the gross state and county sales and use taxes payable. The county taxes distributed shall be increased or decreased to reflect subsequent refunds, audit adjustments and all other adjustments of the county taxes previously distributed. Interest paid on refunds of county sales and use taxes shall be paid from the appropriation under s. 20.835 (4) (g) at the rate paid by this state under s. 77.60 (1) (a). The county may retain the amount it receives or it may distribute all or a portion of the amount it receives to the towns, villages, cities and school districts in the county. Any county receiving a report under this subsection is subject to the duties of confidentiality to which the department of revenue is subject under s. 77.61 (5).

27,2399fm Section 2399fm. 77.76 (4) of the statutes is amended to read:

77.76 (4) There shall be retained by the state 1.5% of the taxes collected under this subchapter for special districts and 1.3% of the taxes collected under this subchapter for counties to cover costs incurred by the state in administering, enforcing and collecting the tax. All interest and penalties collected shall be deposited and retained by this state in the general fund.

27,2399g Section 2399g. 77.82 (1) (b) 2. of the statutes is amended to read:

77.82 (1) (b) 2. A parcel that is developed for commercial recreation, for industry, human residence or for any other use determined by the department to be incompatible with the practice of forestry.

27,2399i Section 2399i. 77.82 (1) (b) 3. of the statutes is created to read:

77.82 (1) (b) 3. A parcel that is developed for a human residence.

27,2399k Section 2399k. 77.82 (1) (bn) of the statutes is created to read:

77.82 (1) (bn) For purposes of par. (b) 3., the department by rule shall define “human residence" to include a residence of the petitioner regardless of whether it is the petitioner's primary residence. The definition may also include up to one acre surrounding the residence for a residence that is not the petitioner's primary residence.

27,2400 Section 2400 . 77.92 (1m) of the statutes is created to read:

77.92 (1m) “File" means mail or deliver a document that the department prescribes to the department or, if the department prescribes another method of submitting or another destination, use that other method or submit to that other destination.

27,2401 Section 2401 . 77.92 (4) of the statutes is amended to read:

77.92 (4) “Net business income", with respect to a partnership or limited liability company, means taxable income as calculated under section 703 of the internal revenue code; plus the items of income and gain under section 702 of the internal revenue code; minus the items of loss and deduction under section 702 of the internal revenue code; plus payments treated as not made to partners under section 707 (a) of the internal revenue code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dr) and, (2ds) , (2dx) and (3s); but excluding income, gain, loss and deductions from farming. “Net business income", with respect to a natural person, estate or trust, means profit from a trade or business for federal income tax purposes and includes net income derived as an employe as defined in section 3121 (d) (3) of the internal revenue code.

27,2401m Section 2401m. 77.92 (4m) of the statutes is amended to read:

77.92 (4m) “Partnership" has the meaning given in section 761 (a) of the internal revenue code, except that “partnership" does not include entities that are excluded under the regulations interpreting section 761 (a) of the internal revenue code from the operation of all or part of subchapter K of chapter one of the internal revenue code. “Partnership" also includes an entity treated as a partnership under section 7701 of the Internal Revenue Code.

27,2401r Section 2401r. 77.93 (3m) of the statutes is repealed.

27,2401t Section 2401t. 77.93 (5) of the statutes is amended to read:

77.93 (5) All natural persons, estates, trusts , and partnerships and limited liability companies that are engaged in farming. The surcharge is imposed on the partnership or limited liability company, not on its partners or members, except that if a partnership's or company's surcharge is delinquent the partners or members are jointly and severally liable for it.

27,2401v Section 2401v. 77.935 of the statutes is created to read:

77.935 Single-owner entities. A single-owner entity that is disregarded as a separate entity under ch. 71 is disregarded as a separate entity under this subchapter. The owner of that entity shall include the information from the entity on the owner's return under this subchapter.

27,2402 Section 2402 . 77.96 (5) of the statutes is amended to read:

77.96 (5) Each person subject to a surcharge under s. 77.93 shall, on or before the due date, including extensions, for filing under ch. 71, file with the department of revenue, on a form prescribed by the department, an accurate statement of its gross tax liability or net business income. Payments made after the due date under sub. (2) and on or before the due date under this subsection are not delinquent but are subject to interest at the rate of 12% per year.

27,2403 Section 2403 . 77.96 (5m) of the statutes is created to read:

77.96 (5m) Persons who owe amounts under this subchapter shall mail or deliver those amounts to the department of revenue or, if that department prescribes another method of submitting or another destination, those persons shall use that other method or submit those amounts to that other destination.

27,2407 Section 2407 . 77.9815 of the statutes is created to read:

77.9815 Exemption. Any retailer whose liability for the tax under this subchapter would be less than $5 for a year is exempt from that tax for that year.

27,2410m Section 2410m. Subchapter X of chapter 77 [precedes 77.994] of the statutes is created to read:

Chapter 77

Subchapter X
Premier resort area taxes

77.994 Premier resort area tax. (1) Except as provided in sub. (2), a municipality or a county all of which is included in a premier resort area under s. 66.307 may, by ordinance, impose a tax at a rate of 0.5% of the gross receipts from the sale, lease or rental in the municipality or county of goods or services that are taxable under subch. III made by businesses that are classified in the standard industrial classification manual, 1987 edition, published by the U.S. office of management and budget, under the following industry numbers:

(a) 5331 — Variety stores.

(b) 5399 — Miscellaneous general merchandise stores.

(c) 5441 — Candy, nut and confectionary stores.

(d) 5451 — Dairy product stores.

(e) 5461 — Retail bakeries.

(f) 5541 — Gasoline service stations.

(g) 5812 — Eating places.

(h) 5813 — Drinking places.

(i) 5912 — Drug stores and proprietary stores.

(j) 5921 — Liquor stores.

(k) 5941 — Sporting goods stores and bicycle shops.

(L) 5946 — Camera and photographic supply stores.

(m) 5947 — Gift, novelty and souvenir shops.

(n) 7011 — Hotels and motels.

(o) 7032 — Sporting and recreational camps.