77.522 (1) (b) (intro.) Except as provided in par. (c) and subs. (2), (3), (4), and (5), the location of a sale is determined as follows:
77.522 (1) (b) 5. b. If the item sold is a digital good or computer software delivered electronically, the sale is sourced to the location from which the digital good or computer software was first available for transmission by the seller, not including any location that merely provided the digital transfer of the product sold.
28,1840fd
Section 1840fd. 77.522 (3) (a) of the statutes, as created by 2009 Wisconsin Act Wisconsin Act 2, is amended to read:
77.522 (3) (a) Except as provided in pars. (b) and (c), with regard to the first or only payment on the lease or rental, the lease or rental of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) is sourced to the location determined under sub. (1) (b). If the property, item, or good is moved from the place where the property, item, or good was initially delivered, the subsequent Subsequent periodic payments on the lease or rental are sourced to the property's, item's, or good's primary location as indicated by an address for the property, item, or good that is provided by the lessee and that is available to the lessor in records that the lessor maintains in the ordinary course of the lessor's business, if the use of such an address does not constitute bad faith. The location of a lease or rental as determined under this paragraph shall not be altered by any intermittent use of the property, item, or good at different locations.
77.522 (3) (d) A license of tangible personal property or items or, property, or goods under s. 77.52 (1) (b) or, (c), or (d) shall be treated as a lease or rental of such tangible personal property, items, property, or goods under this subsection.
77.53 (1) Except as provided in sub. (1m), an excise tax is levied and imposed on the use or consumption in this state of taxable services under s. 77.52 purchased from any retailer, at the rate of 5% of the purchase price of those services; on the storage, use or other consumption in this state of tangible personal property and items or property under s. 77.52 (1) (b) or (c) purchased from any retailer, at the rate of 5% of the purchase price of the property or items; on the storage, use, or other consumption of goods in this state under s. 77.52 (1) (d) purchased from any retailer, if the purchaser has the right to use the goods on a permanent or less than permanent basis and regardless of whether the purchaser is required to make continued payments for such right, at the rate of 5 percent of the sales purchase price of the goods; and on the storage, use or other consumption of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) manufactured, processed or otherwise altered, in or outside this state, by the person who stores, uses or consumes it, from material purchased from any retailer, at the rate of 5% of the purchase price of that material.
28,1841
Section
1841. 77.53 (16m) of the statutes is created to read:
77.53 (16m) If the purchase, rental, or lease of tangible personal property or service subject to the tax imposed by this section occurred on tribal lands and, prior to imposing the tax under this subchapter, was subject to a sales tax by a federally recognized American Indian tribe or band in this state, the amount of sales tax paid to the tribe or band may, as determined by an agreement between the department and the tribal council under s. 73.03 (65), be applied as a credit against and deducted from the tax, to the extent thereof, imposed by this section. In this subsection "sales tax" includes a use or excise tax imposed on the use of tangible personal property or taxable service by the tribe or band.
28,1841b
Section 1841b. 77.53 (16m) of the statutes, as created by 2009 Wisconsin Act .... (this act), is repealed and recreated to read:
77.53 (16m) If the purchase, rental, license, or lease of tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or service subject to the tax imposed by this section was sourced to tribal lands and, prior to imposing the tax under this subchapter, was subject to a sales tax by a federally recognized American Indian tribe or band in this state, the amount of sales tax paid to the tribe or band may, as determined by an agreement between the department and the tribal council under s. 73.03 (65), be applied as a credit against and deducted from the tax, to the extent thereof, imposed by this section. In this subsection "sales tax" includes a use or excise tax imposed on the use of tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or taxable service by the tribe or band.
77.54 (1) The sales price from the sale of and the storage, use or other consumption in this state of tangible personal property, and items, and property, and goods under s. 77.52 (1) (b), and (c), and (d), and services the sales price from the sale of which, or the storage, use or other consumption of which, this state is prohibited from taxing under the constitution or laws of the United States or under the constitution of this state.
28,1842
Section
1842. 77.54 (2) of the statutes is amended to read:
77.54 (2) The gross receipts from sales of and the storage, use or other consumption of tangible personal property becoming that is used exclusively and directly by a manufacturer in manufacturing an article of tangible personal property that is destined for sale and that becomes an ingredient or component part of an
the article of tangible personal property destined for sale or
which is consumed or destroyed or loses its identity in the manufacture manufacturing the article of tangible personal property in any form destined for sale, except as provided in sub. (30) (a) 6.
77.54 (2) The sales price from the sales of and the storage, use, or other consumption of tangible personal property or item under s. 77.52 (1) (b) that is used exclusively and directly by a manufacturer in manufacturing an article of tangible personal property or item or property under s. 77.52 (1) (b) or (c) that is destined for sale and that becomes an ingredient or component part of the article of tangible personal property or item or property under s. 77.52 (1) (b) or (c) destined for sale or is consumed or destroyed or loses its identity in manufacturing the article of tangible personal property or item or property under s. 77.52 (1) (b) or (c) destined for sale, except as provided in sub. (30) (a) 6.
28,1843
Section
1843. 77.54 (2m) of the statutes is amended to read:
77.54 (2m) The gross receipts from the sales of and the storage, use or other consumption of tangible personal property or services that are used exclusively and directly by a manufacturer in manufacturing shoppers guides, newspapers, or periodicals and that become an ingredient or component of shoppers guides, newspapers, or periodicals or that are consumed or lose their identity in the manufacture of shoppers guides, newspapers, or periodicals, whether or not the shoppers guides, newspapers, or periodicals are transferred without charge to the recipient. In this subsection, "shoppers guides",," "newspapers," and "periodicals" have the meanings under sub. (15). The exemption under this subdivision does not apply to advertising supplements that are not newspapers.
77.54 (2m) The sales price from the sales of and the storage, use, or other consumption of tangible personal property or services that are used exclusively and directly by a manufacturer in manufacturing shoppers guides, newspapers, or periodicals and that become an ingredient or component of shoppers guides, newspapers, or periodicals or that are consumed or lose their identity in the manufacture of shoppers guides, newspapers, or periodicals, whether or not the shoppers guides, newspapers, or periodicals are transferred without charge to the recipient. In this subsection, "shoppers guides," "newspapers," and "periodicals" have the meanings under sub. (15). The exemption under this subdivision does not apply to advertising supplements that are not newspapers.
77.54 (3) (a) The sales price from the sales of and the storage, use, or other consumption of tractors and machines, including accessories, attachments, and parts, lubricants, nonpowered equipment, and other tangible personal property, or items or property under s. 77.52 (1) (b) or (c), that are used exclusively and directly, or are consumed or lose their identities, in the business of farming, including dairy farming, agriculture, horticulture, floriculture, silviculture, and custom farming services, but excluding automobiles, trucks, and other motor vehicles for highway use; excluding personal property that is attached to, fastened to, connected to, or built into real property or that becomes an addition to, component of, or capital improvement of real property; and excluding tangible personal property, or items or property under s. 77.52 (1) (b) or (c), used or consumed in the erection of buildings or in the alteration, repair, or improvement of real property, regardless of any contribution that that personal property, or item or property under s. 77.52 (1) (b) or (c), makes to the production process in that building or real property and regardless of the extent to which that personal property, or item or property under s. 77.52 (1) (b) or (c), functions as a machine, except as provided in par. (c).
77.54 (4) The sales price from the sale of tangible personal property and items, and property, and goods under s. 77.52 (1) (b), and (c), and (d) and the storage, use or other consumption in this state of tangible personal property and items, and property
, and goods under s. 77.52 (1) (b), and (c), and (d), which is the subject of any such sale, by any elementary school or secondary school, exempted as such from payment of income or franchise tax under ch. 71, whether public or private.
28,1843f
Section 1843f. 77.54 (6) (a) of the statutes is amended to read:
77.54 (6) (a) Machines and specific processing equipment and repair parts or replacements thereof, exclusively and directly used by a manufacturer in manufacturing tangible personal property or items or property under s. 77.52 (1) (b) or (c) and safety attachments for those machines and equipment.
28,1843g
Section 1843g. 77.54 (6) (b) of the statutes is amended to read:
77.54 (6) (b) Containers, labels, sacks, cans, boxes, drums, bags or other packaging and shipping materials for use in packing, packaging or shipping tangible personal property or items or property under s. 77.52 (1) (b) or (c), if such items the containers, labels, sacks, cans, boxes, drums, bags, or other packaging and shipping materials are used by the purchaser to transfer merchandise to customers and meat.
(bm) Meat casing, wrapping paper, tape, containers, labels, sacks, cans, boxes, drums, bags or other packaging and shipping materials for use in packing, packaging or shipping meat or meat products regardless of whether such items are used to transfer merchandise to customers.
28,1844
Section
1844. 77.54 (6m) (intro.) of the statutes is renumbered 77.51 (7h) (a) (intro.) and amended to read:
77.51 (7h) (a) (intro.) For purposes of sub. (6) (a) "manufacturing" is "Manufacturing" means the production by machinery of a new article of tangible personal property with a different form, use, and name from existing materials, by a process popularly regarded as manufacturing, and that begins with conveying raw materials and supplies from plant inventory to the place where work is performed in the same plant and ends with conveying finished units of tangible personal property to the point of first storage in the same plant. "Manufacturing" includes but is not limited to:
28,1845
Section
1845. 77.54 (6m) (a) of the statutes is renumbered 77.51 (7h) (a) 1.
28,1846
Section
1846. 77.54 (6m) (b) of the statutes is renumbered 77.51 (7h) (a) 2. and amended to read:
77.51 (7h) (a) 2. Ore dressing, including the mechanical preparation, by crushing and other processes, and the concentration, by flotation and other processes, of ore, and beneficiation, including but not limited to the preparation of ore for smelting.
28,1846d
Section 1846d. 77.54 (7) (a) of the statutes is amended to read:
77.54 (7) (a) Except as provided in pars. (b) to (d), the occasional sales of tangible personal property, items and property under s. 77.52 (1) (b) and (c), and services and the storage, use or other consumption in this state of tangible personal property and items and property under s. 77.52 (1) (b) and (c) the transfer of which to the purchaser is an occasional sale.
77.54 (7m) Occasional sales of tangible personal property, or items, or property, or goods under s. 77.52 (1) (b), or (c), and (d), or services, including admissions or tickets to an event; by a neighborhood association, church, civic group, garden club, social club or similar nonprofit organization; not involving entertainment for which payment in the aggregate exceeds $500 for performing or as reimbursement of expenses unless access to the event may be obtained without payment of a direct or indirect admission fee; conducted by the organization if the organization is not engaged in a trade or business and is not required to have a seller's permit. For purposes of this subsection, an organization is engaged in a trade or business and is required to have a seller's permit if its sales of tangible personal property, and items, property, and goods under s. 77.52 (1) (b), (c), and (d), and services, not including sales of tickets to events, and its events occur on more than 20 days during the year, unless its receipts do not exceed $25,000 during the year. The exemption under this subsection does not apply to the sales price from the sale of bingo supplies to players or to the sale, rental or use of regular bingo cards, extra regular cards and special bingo cards.
77.54 (9a) (intro.) The sales price from sales to, and the storage by, use by or other consumption of tangible personal property, and items, and property, and goods under s. 77.52 (1) (b), and (c),
and (d), and taxable services by:
28,1847
Section
1847. 77.54 (9a) (a) of the statutes is amended to read:
77.54 (9a) (a) This state or any agency thereof, the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Wisconsin Quality Home Care Authority, and the Fox River Navigational System Authority.
28,1848
Section
1848. 77.54 (9a) (ed) of the statutes is created to read:
77.54 (9a) (ed) Any federally recognized American Indian tribe or band in this state.
28,1849
Section
1849. 77.54 (9a) (er) of the statutes is created to read:
77.54 (9a) (er) Any transit authority created under s. 59.58 (7)
, 66.1038, or 66.1039.
77.54 (18) When the sale, license, lease, or rental of a service or property, including items, property, and goods under s. 77.52 (1) (b), (c), and (d), that was previously exempt or not taxable under this subchapter becomes taxable, and the service or property is furnished under a written contract by which the seller is unconditionally obligated to provide the service or property for the amount fixed under the contract, the seller is exempt from sales or use tax on the sales price for services or property provided until the contract is terminated, extended, renewed or modified. However, from the time the service or property becomes taxable until the contract is terminated, extended, renewed or modified the user is subject to use tax, measured by the purchase price, on the service or property purchased under the contract.
77.54 (23m) The sales price from the sale, license, lease or rental of or the storage, use or other consumption of motion picture film or tape, and motion pictures or radio or television programs for listening, viewing, or broadcast, and advertising materials related thereto, sold, licensed, leased or rented to a motion picture theater or radio or television station.
28,1849d
Section 1849d. 77.54 (30) (a) 6. of the statutes is amended to read:
77.54 (30) (a) 6. Fuel and electricity consumed in manufacturing tangible personal property, or items or property under s. 77.52 (1) (b) or (c), in this state.
28,1849m
Section 1849m. 77.54 (30) (a) 7. of the statutes is created to read:
77.54 (30) (a) 7. Fuel sold for use in motorboats that are regularly employed in carrying persons for hire for sport fishing in and upon the outlying waters, as defined in s. 29.001 (63), and the rivers and tributaries specified in s. 29.2285 (2) (a) 1. and 2., if the owner and all operators are licensed under s. 29.514 to operate the boat for that purpose.
77.54 (35) The sales price from the sales of tangible personal property, or items, or property, or goods under s. 77.52 (1) (b), or (c), or (d), tickets, or admissions by any baseball team affiliated with the Wisconsin Department of American Legion baseball.
77.54 (37) The sales price from revenues collected under s. 256.35 (3) and the surcharge established by rule by the public service commission under s. 256.35 (3m) (f) for customers of wireless providers, as defined in s. 256.35 (3m) (a) 6.
77.54
(49) The sales price from the sale of and the storage, use, or other consumption of taxable services and tangible personal property or items
, or property
, or goods under s. 77.52 (1) (b)
, or (c),
or (d), that are physically transferred to the purchaser as a necessary part of services that are subject to the taxes imposed under s. 77.52 (2) (a) 7., 10., 11., and 20., if the seller and the purchaser of such services and property
, or item
, or good are members of the same affiliated group under section
1504 of the Internal Revenue Code and are eligible to file a single consolidated return for federal income tax purposes. For purposes of this subsection, if a seller purchases a taxable service, or item
, or property
, or goods under s. 77.52 (1) (b)
, or (c),
or (d), or tangible personal property, as described in this subsection, that is subsequently sold to a member of the seller's affiliated group and the sale is exempt under this subsection from the taxes imposed under this subchapter, the original purchase of the taxable service, or item
, or property
, or goods under s. 77.52 (1) (b)
, or (c),
or (d), or tangible personal property by the seller is not considered a sale for resale or exempt under this subsection.
77.54 (50) The sales price from the sale, license, lease, or rental of and the storage, use, or other consumption of specified digital goods or additional digital goods, if the sale, license, lease, or rental of and the storage, use, or other consumption of such goods sold in a tangible form is exempt from, or not subject to, taxation under this subchapter.
77.54 (54) The sales price from the sale of and the storage, use, or other consumption of tangible personal property, and items, and property
, and goods under s. 77.52 (1) (b), and (c), and (d), and taxable services that are sold by a home exchange service that receives moneys from the appropriation account under s. 20.485 (1) (g) and is operated by the department of veterans affairs.
28,1850eb
Section 1850eb. 77.54 (55) of the statutes is created to read:
77.54 (55) The sales price from the police and fire protection fee imposed under s. 196.025 (6).
77.54 (56) (a) The Beginning July 1, 2011, the gross receipts from the sale of and the storage, use, or other consumption of a product whose power source is wind energy, direct radiant energy received from the sun, or gas generated from anaerobic digestion of animal manure and other agricultural waste, if the product produces at least 200 watts of alternating current or 600 British thermal units per day, except that the exemption under this subsection does not apply to an uninterruptible power source that is designed primarily for computers.
(b) Except for the sale of electricity or energy that is exempt from taxation under sub. (30), beginning on July 1, 2011, the gross receipts from the sale of and the storage, use, or other consumption of electricity or energy produced by a product described under par. (a).
77.54 (56) (a) Beginning July 1, 2011, the sales price from the sale of and the storage, use, or other consumption of a product whose power source is wind energy, direct radiant energy received from the sun, or gas generated from anaerobic digestion of animal manure and other agricultural waste, if the product produces at least 200 watts of alternating current or 600 British thermal units per day, except that the exemption under this subsection does not apply to an uninterruptible power source that is designed primarily for computers.
(b) Except for the sale of electricity or energy that is exempt from taxation under sub. (30), beginning on July 1, 2011, the sales price from the sale of and the storage, use, or other consumption of electricity or energy produced by a product described under par. (a).
28,1851
Section
1851. 77.54 (57) of the statutes is created to read:
77.54 (57) (a) In this subsection:
1d. "Animals" include bacteria, viruses, and other microorganisms.
1f. "Biotechnology" means the application of biotechnologies, including recombinant deoxyribonucleic acid techniques, biochemistry, molecular and cellular biology, genetics, genetic engineering, biological cell fusion, and other bioprocesses, that use living organisms or parts of an organism to produce or modify products to improve plants or animals or improve animal health, develop microorganisms for specific uses, identify targets for small molecule pharmaceutical development, or transform biological systems into useful processes and products.
1m. "Biotechnology business" means a business, as certified by the department in the manner prescribed by the department, that is primarily engaged in the application of biotechnologies that use a living organism or parts of an organism to produce or modify products to improve plants or animals, develop microorganisms for specific uses, identify targets for small molecule pharmaceutical development, or transform biological systems into useful processes and products.
2. "Machinery" has the meaning given in s. 70.11 (27) (a) 2.
4. "Primarily" means more than 50 percent.
5. "Qualified research" means qualified research as defined under section
41 (d) (1) of the Internal Revenue Code.
6. "Used exclusively" has the meaning given in sub. (3) (b) 3.
(b) The sales price from the sale of and the storage, use, or other consumption of all of the following:
1. Machinery and equipment, including attachments, parts, and accessories, that are sold to persons who are engaged primarily in manufacturing or biotechnology in this state and are used exclusively and directly in qualified research.
2. Tangible personal property or item or property under s. 77.52 (1) (b) or (c) that is sold to persons who are engaged primarily in manufacturing or biotechnology in this state, if the tangible personal property or item or property under s. 77.52 (1) (b) or (c) is consumed or destroyed or loses its identity while being used exclusively and directly in qualified research.
