Amendment ASA1-AB646

LRBs0190/1

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2005 - 2006 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO 2005 ASSEMBLY BILL 646

September 6, 2005 - Offered by Committee on Agriculture.

AB646-ASA1,1,3 An Act to repeal 77.54 (34); and to amend 77.54 (3) (a) of the statutes; relating to: a sales tax and use tax exemption on tangible personal property used in the business of farming.

Analysis by the Legislative Reference Bureau

Under current law, tractors and other machines that are used exclusively and directly in the business of farming, including horticulture and floriculture, are exempt from the sales tax and the use tax.

Under this substitute amendment, tractors and other machines, lubricants, nonpowered equipment, and other tangible personal property that are used exclusively and directly, or are consumed or lose their identities, in the business of farming, including horticulture and floriculture, are exempt from the sales tax and the use tax.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB646-ASA1, s. 1 Section 1. 77.54 (3) (a) of the statutes is amended to read:

AB646-ASA1,2,12 77.54 (3) (a) The gross receipts from the sales of and the storage, use, or other consumption of tractors and machines, including accessories, attachments , and parts therefor,, lubricants, nonpowered equipment, and other tangible personal property that are used exclusively and directly, or are consumed or lose their identities, in the business of farming, including dairy farming, agriculture, horticulture, floriculture, 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 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 makes to the production process in that building or real property and regardless of the extent to which that personal property functions as a machine, except as provided in par. (c).

AB646-ASA1, s. 2 Section 2. 77.54 (34) of the statutes is repealed.

AB646-ASA1, s. 3 Section 3. Effective date.

AB646-ASA1,2,16 (1) This act takes effect on the first day of the 2nd month beginning after publication.

AB646-ASA1,2,17 (End)