Amendment MR8 SA1-AB1

AB1-SA1,36,25 71.26 (3) (x) Sections 1501 to 1505, 1551, 1552, 1563 and 1564 (relating to consolidated returns) are excluded, except as provided under section 1502 of the U.S. treasury regulations as it relates to deferred gain or loss from an intercompany transaction under s. 71.255 (4) (a) 6.

AB1-SA1, s. 9dg Section 9dg. 71.27 (1) of the statutes is amended to read:

AB1-SA1,37,3 71.27 (1) The taxes to be assessed, levied and collected upon Wisconsin net incomes of corporations shall be computed at the rate of 7.9% 7.8 percent.

AB1-SA1, s. 9dh Section 9dh. 71.27 (2) of the statutes is amended to read:

AB1-SA1,37,6 71.27 (2) The corporation franchise tax imposed under s. 71.23 (2) and measured by Wisconsin net income shall be computed at the rate of 7.9% 7.8 percent.

AB1-SA1, s. 9di Section 9di. 71.28 (5e) (b) of the statutes is amended to read:

AB1-SA1,37,15 71.28 (5e) (b) Filing claims. Subject to the limitations provided in this subsection and subject to 2005 Wisconsin Act 479, section 17, beginning in the first taxable year following the taxable year in which the claimant claims an exemption a deduction under s. 77.54 (48) 77.585 (9), a claimant may claim as a credit against the taxes imposed under s. 71.23, up to the amount of those taxes, in each taxable year for 2 years, the amount certified by the department of commerce that resulted from the claimant claimed as an exemption claiming a deduction under s. 77.54 (48) 77.585 (9).

AB1-SA1, s. 9dj Section 9dj. 71.28 (5e) (c) 1. of the statutes is amended to read:

AB1-SA1,37,18 71.28 (5e) (c) 1. No credit may be allowed under this subsection unless the claimant satisfies the requirements under s. 77.54 (48) 77.585 (9).

AB1-SA1, s. 9dk Section 9dk. 71.28 (5e) (c) 3. of the statutes is amended to read:

AB1-SA1,37,23 71.28 (5e) (c) 3. The total amount of the credits and exemptions the sales and use tax resulting from the deductions claimed under s. 77.585 (9) that may be claimed by all claimants under this subsection and ss. 71.07 (5e), 71.47 (5e), and 77.54 (48) 77.585 (9) is $7,500,000, as determined by the department of commerce.

AB1-SA1, s. 9dL Section 9dL. 71.45 (1t) (j) of the statutes is created to read:

AB1-SA1,37,25 71.45 (1t) (j) Those issued under s. 59.58 (6) (f).

AB1-SA1, s. 9dm Section 9dm. 71.46 (1) of the statutes is amended to read:

AB1-SA1,38,3 71.46 (1) The taxes to be assessed, levied and collected upon Wisconsin net incomes of corporations shall be computed at the rate of 7.9% 7.8 percent.

AB1-SA1, s. 9dn Section 9dn. 71.46 (2) of the statutes is amended to read:

AB1-SA1,38,6 71.46 (2) The corporation franchise tax imposed under s. 71.43 (2) and measured by Wisconsin net income shall be computed at the rate of 7.9% 7.8 percent.

AB1-SA1, s. 9do Section 9do. 71.46 (3) of the statutes is amended to read:

AB1-SA1,38,15 71.46 (3) The tax imposed under this subchapter on each domestic insurer on or measured by its entire net income attributable to lines of insurance in this state may not exceed 2% 2 percent of the gross premiums, as defined in s. 76.62, received during the taxable year by the insurer on all policies on those lines of insurance if the subject of that insurance was resident, located or to be performed in this state plus 7.9% 7.8 percent of the income that is realized from the sale of or purchase and subsequent sale or redemption of lottery prizes if the winning tickets were originally bought in this state.

AB1-SA1, s. 9dp Section 9dp. 71.47 (5e) (b) of the statutes is amended to read:

AB1-SA1,38,24 71.47 (5e) (b) Filing claims. Subject to the limitations provided in this subsection and subject to 2005 Wisconsin Act 479, section 17, beginning in the first taxable year following the taxable year in which the claimant claims an exemption a deduction under s. 77.54 (48) 77.585 (9), a claimant may claim as a credit against the taxes imposed under s. 71.43, up to the amount of those taxes, in each taxable year for 2 years, the amount certified by the department of commerce that resulted from the claimant claimed as an exemption claiming a deduction under s. 77.54 (48) 77.585 (9).

AB1-SA1, s. 9dq Section 9dq. 71.47 (5e) (c) 1. of the statutes is amended to read:

AB1-SA1,39,2 71.47 (5e) (c) 1. No credit may be allowed under this subsection unless the claimant satisfies the requirements under s. 77.54 (48) 77.585 (9).

AB1-SA1, s. 9dr Section 9dr. 71.47 (5e) (c) 3. of the statutes is amended to read:

AB1-SA1,39,7 71.47 (5e) (c) 3. The total amount of the credits and exemptions the sales and use tax resulting from the deductions claimed under s. 77.585 (9) that may be claimed by all claimants under this subsection and ss. 71.07 (5e), 71.28 (5e), and 77.54 (48) 77.585 (9) is $7,500,000, as determined by the department of commerce.

AB1-SA1, s. 9ds Section 9ds. 73.03 (28e) of the statutes is created to read:

AB1-SA1,39,16 73.03 (28e) To participate as a member state of the streamlined sales tax governing board which administers the agreement, as defined in s. 77.65 (2) (a), and includes having the governing board enter into contracts that are necessary to implement the agreement on behalf of the member states, and to allocate a portion of the amount collected under ch. 77 through the agreement to the appropriation under s. 20.566 (1) (ho) to pay the dues necessary to participate in the governing board. The department shall allocate the remainder of such collections to the general fund.

AB1-SA1, s. 9dt Section 9dt. 73.03 (50) (d) of the statutes is amended to read:

AB1-SA1,39,25 73.03 (50) (d) In the case of a sole proprietor, signs the form or, in the case of other persons, has an individual who is authorized to act on behalf of the person sign the form, or, in the case of a single-owner entity that is disregarded as a separate entity under section 7701 of the Internal Revenue Code, the person is the owner. Any person who may register under this subsection may designate an agent, as defined in s. 77.524 (1) (ag), to register with the department under this subsection in the manner prescribed by the department. In this paragraph, "sign" has the meaning given in s. 77.51 (17r).

AB1-SA1, s. 9dv Section 9dv. 73.03 (50b) of the statutes is created to read:

AB1-SA1,40,5 73.03 (50b) To waive the fee established under sub. (50) for applying for and renewing the business tax registration certificate, if the person who is applying for or renewing the certificate is not required for purposes of ch. 77 to hold such a certificate.

AB1-SA1, s. 9eb Section 9eb. 73.03 (61) of the statutes is created to read:

AB1-SA1,40,8 73.03 (61) To do all of the following related to the Uniform Sales and Use Tax Administration Act:

AB1-SA1,40,9 (a) Certify compliance with the agreement, as defined in s. 77.65 (2) (a).

AB1-SA1,40,12 (b) Pursuant to the agreement, as defined in s. 77.65 (2) (a), certify certified service providers, as defined in s. 77.51 (1g), and certified automated systems, as defined in s. 77.524 (1) (am).

AB1-SA1,40,24 (c) Consistent with the agreement, as defined in s. 77.65 (2) (a), establish performance standards and eligibility criteria for a seller that sells tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services in at least 5 states that are signatories to the agreement, as defined in s. 77.65 (2) (a); that has total annual sales revenue of at least $500,000,000; that has a proprietary system that calculates the amount of tax owed to each taxing jurisdiction in which the seller sells tangible personal property or taxable services; and that has entered into a performance agreement with the states that are signatories to the agreement, as defined in s. 77.65 (2) (a). For purposes of this paragraph, "seller" includes an affiliated group of sellers using the same proprietary system to calculate the amount of tax owed in each taxing jurisdiction in which the sellers sell tangible personal property or taxable services.

AB1-SA1,41,4 (d) Issue a tax identification number to a person who claims an exemption under subch. III or V of ch. 77 and who is not required to register with the department for the purposes of subch. III or V of ch. 77 and establish procedures for the registration of such a person.

AB1-SA1,41,8 (e) Maintain a database that is accessible to sellers and certified service providers, as defined in s. 77.51 (1g), that indicates whether items defined in accordance with the Uniform Sales and Use Tax Administration Act are taxable or nontaxable.

AB1-SA1,41,13 (f) Maintain a database that is accessible to sellers and certified service providers, as defined in s. 77.51 (1g), and available in a downloadable format, that indicates tax rates, taxing jurisdiction boundaries, and zip code or address assignments related to the administration of taxes imposed under subchs. III and V of ch. 77.

AB1-SA1,41,16 (g) Set forth the information that the seller shall provide to the department for tax exemptions claimed by purchasers and establish the manner in which a seller shall provide such information to the department.

AB1-SA1,41,20 (h) Provide monetary allowances, in addition to the retailer's discount provided under s. 77.61 (4) (c), to certified service providers, as defined in s. 77.51 (1g), and sellers that use certified automated systems, as defined in s. 77.524 (1) (am), or proprietary systems, pursuant to the agreement as defined in s. 77.65 (2) (a).

AB1-SA1, s. 9ec Section 9ec. 76.07 (4g) (b) 8. of the statutes is amended to read:

AB1-SA1,42,3 76.07 (4g) (b) 8. Determine transport-related revenue by adding public service revenue allocated to this state on the basis of routes for which the company is authorized to receive subsidy payments, mutual aid allocated to this state on the basis of the ratio of transport revenues allocated to this state to transport revenues everywhere in the previous year, in-flight sales allocated to this state as they are allocated under s. 77.51 (14r) 77.522 and all other transport-related revenues from sales made in this state.

AB1-SA1, s. 9ed Section 9ed. 77.51 (1) of the statutes is renumbered 77.51 (1fd) and amended to read:

AB1-SA1,42,11 77.51 (1fd) "Business" includes any activity engaged in by any person or caused to be engaged in by any person with the object of gain, benefit or advantage, either direct or indirect, and includes also the furnishing and distributing of tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services for a consideration by social clubs and fraternal organizations to their members or others.

AB1-SA1, s. 9ee Section 9ee. 77.51 (1b) of the statutes is created to read:

AB1-SA1,42,14 77.51 (1b) "Alcoholic beverage" means a beverage that is suitable for human consumption and that contains 0.5 percent or more of alcohol by volume.

AB1-SA1, s. 9ef Section 9ef. 77.51 (1ba) of the statutes is created to read:

AB1-SA1,42,19 77.51 (1ba) "Ancillary services" means services that are associated with or incidental to providing telecommunications services, including detailed telecommunications billing, directory assistance, vertical service, and voice mail services.

AB1-SA1, s. 9eg Section 9eg. 77.51 (1f) of the statutes is created to read:

AB1-SA1,42,24 77.51 (1f) "Bundled transaction" means the retail sale of 2 or more products, not including real property and services to real property, if the products are distinct and identifiable products and sold for one nonitemized price. "Bundled transaction" does not include any of the following:

AB1-SA1,43,2 (a) The sale of any products for which the sales price varies or is negotiable based on the purchaser's selection of the products included in the transaction.

AB1-SA1,43,5 (b) 1. The retail sale of tangible personal property and a service, if the tangible personal property is essential to the use of the service, and provided exclusively in connection with the service, and if the true object of the transaction is the service.

AB1-SA1,43,9 2. The retail sale of a service and items or property under s. 77.52 (1) (b) or (c), if such property or items are essential to the use of the service, and provided exclusively in connection with the service, and if the true object of the transaction is the service.

AB1-SA1,43,12 (c) The retail sale of services, if one of the services is essential to the use or receipt of another service, and provided exclusively in connection with the other service, and if the true object of the transaction is the other service.

AB1-SA1,43,18 (d) A transaction that includes taxable and nontaxable products, if the seller's purchase price or the sales price of the taxable products is no greater than 10 percent of the seller's total purchase price or sales price of all the bundled products, as determined by the seller using either the seller's purchase price or sales price, but not a combination of both, or, in the case of a service contract, the full term of the service contract.

AB1-SA1,44,4 (e) The retail sale of taxable tangible personal property or items or property under s. 77.52 (1) (b) or (c) and tangible personal property or items or property under s. 77.52 (1) (b) or (c) that is exempt from the taxes imposed under this subchapter, if the transaction includes food and food ingredients, drugs, durable medical equipment, mobility-enhancing equipment, prosthetic devices, or medical supplies and if the seller's purchase price or the sales price of the taxable tangible personal property or items or property under s. 77.52 (1) (b) or (c) is no greater than 50 percent of the seller's total purchase price or sales price of all the tangible personal property or items or property under s. 77.52 (1) (b) or (c) included in what would otherwise be a bundled transaction, as determined by the seller using either the seller's purchase price or the sales price, but not a combination of both.

AB1-SA1, s. 9eh Section 9eh. 77.51 (1fm) of the statutes is created to read:

AB1-SA1,44,9 77.51 (1fm) "Candy" means a preparation of sugar, honey, or other natural or artificial sweetener combined with chocolate, fruit, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces. "Candy" does not include a preparation that contains flour or that requires refrigeration.

AB1-SA1, s. 9ei Section 9ei. 77.51 (1n) of the statutes is created to read:

AB1-SA1,44,13 77.51 (1n) "Computer" means an electronic device that accepts information in digital or similar form and that manipulates such information to achieve a result based on a sequence of instructions.

AB1-SA1, s. 9ej Section 9ej. 77.51 (1p) of the statutes is created to read:

AB1-SA1,44,16 77.51 (1p) "Computer software" means a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task.

AB1-SA1, s. 9ek Section 9ek. 77.51 (1r) of the statutes is created to read:

AB1-SA1,44,21 77.51 (1r) "Conference bridging service" means an ancillary service that links 2 or more participants of an audio or video conference call and may include providing a telephone number, but does not include the telecommunications services used to reach the conference bridge.

AB1-SA1, s. 9eL Section 9eL. 77.51 (2k) of the statutes is created to read:

AB1-SA1,44,24 77.51 (2k) "Delivered electronically" means delivered to a purchaser by means other than by tangible storage media.

AB1-SA1, s. 9em Section 9em. 77.51 (2m) of the statutes is created to read:

AB1-SA1,45,5 77.51 (2m) "Delivery charges" means charges by a seller to prepare and deliver tangible personal property, items or property under s. 77.52 (1) (b) or (c), or services to a location designated by the purchaser of the tangible personal property, items or property under s. 77.52 (1) (b) or (c), or services, including charges for transportation, shipping, postage, handling, crating, and packing.

AB1-SA1, s. 9en Section 9en. 77.51 (3c) of the statutes is created to read:

AB1-SA1,45,9 77.51 (3c) "Detailed telecommunications billing service" means an ancillary service that separately indicates information pertaining to individual calls on a customer's billing statement.

AB1-SA1, s. 9eo Section 9eo. 77.51 (3n) of the statutes is created to read:

AB1-SA1,45,12 77.51 (3n) "Dietary supplement" means a product, other than tobacco, that is intended to supplement a person's diet, if all of the following apply:

AB1-SA1,45,14 (a) The product contains any of the following ingredients or any combination of any of the following ingredients:

AB1-SA1,45,15 1. A vitamin.

AB1-SA1,45,16 2. A mineral.

AB1-SA1,45,17 3. An herb or other botanical.

AB1-SA1,45,18 4. An amino acid.

AB1-SA1,45,20 5. A dietary substance that is intended for human consumption to supplement the diet by increasing total dietary intake.

AB1-SA1,45,21 6. A concentrate, metabolite, constituent, or extract.

AB1-SA1,45,25 (b) The product is intended for ingestion in tablet, capsule, powder, soft-gel, gel-cap, or liquid form, or, if not intended for ingestion in such forms, is not represented as conventional food and is not represented for use as the sole item of a meal or diet.

AB1-SA1,46,2 (c) The product is required to be labeled as a dietary supplement as required under 21 CFR 101.36.

AB1-SA1, s. 9ep Section 9ep. 77.51 (3pd) of the statutes is created to read:

AB1-SA1,46,14 77.51 (3pd) "Direct mail" means printed material that is delivered by the U.S. postal service or other delivery service to a mass audience or to addressees on a mailing list provided by or at the direction of the purchaser of the printed material, if the cost of the printed material or any tangible personal property or items or property under s. 77.52 (1) (b) or (c) included with the printed material is not billed directly to the recipients of the printed material. "Direct mail" includes any tangible personal property or items or property under s. 77.52 (1) (b) or (c) provided directly or indirectly by the purchaser of the printed material to the seller of the printed material for inclusion in any package containing the printed material, including billing invoices, return envelopes, and additional marketing materials. "Direct mail" does not include multiple items of printed material delivered to a single address.

AB1-SA1, s. 9eq Section 9eq. 77.51 (3pe) of the statutes is created to read:

AB1-SA1,46,17 77.51 (3pe) "Directory assistance" means an ancillary service that provides telephone numbers or addresses.

AB1-SA1, s. 9er Section 9er. 77.51 (3pf) of the statutes is created to read:

AB1-SA1,46,20 77.51 (3pf) "Distinct and identifiable product" does not include any of the following:

AB1-SA1,46,23 (a) Packaging, including containers, boxes, sacks, bags, bottles, and envelopes; and other materials, including wrapping, labels, tags, and instruction guides; that accompany, and are incidental or immaterial to, the retail sale of any product.