AB1-SA1,54,33 1. Food and food ingredients sold in a heated state.
AB1-SA1,54,54 2. Food and food ingredients heated by the retailer, except as provided in par.
5(b).
AB1-SA1,54,106 3. Food and food ingredients sold with eating utensils that are provided by the
7retailer of the food and food ingredients, including plates, knives, forks, spoons,
8glasses, cups, napkins, or straws. In this subdivision, "plate" does not include a
9container or packaging used to transport food and food ingredients. For purposes of
10this subdivision, a retailer provides utensils if any of the following applies:
AB1-SA1,54,1411 a. The utensils are available to purchasers and the retailer's sales of prepared
12food under subds. 1. and 2., soft drinks, and alcoholic beverages at an establishment
13are more than 75 percent of the retailer's total sales at that establishment, as
14determined under par. (c).
AB1-SA1,54,1815 b. For retailers not described under subd. 3. a., the retailer's customary practice
16is to physically give or hand the utensils to the purchaser, not including plates,
17glasses, or cups that are necessary for the purchaser to receive the food and food
18ingredients and that the retailer makes available to the purchaser.
AB1-SA1,54,2019 4. Except as provided in par. (b), 2 or more food ingredients mixed or combined
20by a retailer for sale as a single item.
AB1-SA1,54,2121 (b) "Prepared food" does not include:
AB1-SA1,55,222 1. For purposes of par. (a) 2. and 4., 2 or more food ingredients mixed or
23combined by a retailer for sale as a single item, if the retailer's primary classification
24in the 2002 North American Industry Classification System, published by the federal

1office of management and budget, is manufacturing under subsector 311, not
2including bakeries and tortilla manufacturing under industry group number 3118.
AB1-SA1,55,53 2. For purposes of par. (a) 2. and 4., 2 or more food ingredients mixed or
4combined by a retailer for sale as a single item, sold unheated, and sold by volume
5or weight.
AB1-SA1,55,86 3. For purposes of par. (a) 2. and 4., bakery items made by a retailer, including
7breads, rolls, pastries, buns, biscuits, bagels, croissants, donuts, danish, cakes,
8tortes, pies, tarts, muffins, bars, cookies, and tortillas.
AB1-SA1,55,109 4. For purposes of par. (a) 4., food and food ingredients that are only sliced,
10repackaged, or pasteurized by a retailer.
AB1-SA1,55,1411 5. For purposes of par. (a) 4., eggs, fish, meat, and poultry, and foods containing
12any of them in raw form, that require cooking by the consumer, as recommended by
13the food and drug administration in chapter 3, part 401.11 of its food code to prevent
14food-borne illnesses.
AB1-SA1,55,1615 (c) 1. The percentage specified under par. (a) 3. a. shall be determined using the
16following:
AB1-SA1,55,1917 a. A numerator that includes sales of prepared food, as defined in par. (a) 1. and
182. and food for which plates, bowls, glasses, or cups are necessary to receive the food,
19but not including alcoholic beverages.
AB1-SA1,55,2220 b. A denominator that includes all food and food ingredients, including
21prepared food, candy, dietary supplements, and soft drinks, but not including
22alcoholic beverages.
AB1-SA1,56,223 2. a. If the percentage determined under subd. 1. is 75 percent or less, utensils
24are considered to be provided by the retailer if the retailer's customary practice is to
25physically give or hand the utensils to the purchaser or, in the case of plates, bowls,

1glasses, or cups that are necessary to receive the food, to make such items available
2to the purchaser.
AB1-SA1,56,53 b. If the percentage determined under subd. 1. is greater than 75 percent,
4utensils are considered to be provided by the retailer if the utensils are made
5available to the purchaser.
AB1-SA1,56,136 3. For a retailer whose percentage determined under subd. 1. is greater than
775 percent, an item sold by the retailer that contains 4 or more servings packaged
8as 1 item and sold for a single price does not become prepared food simply because
9the retailer makes utensils available to the purchaser of the item, but does become
10prepared food if the retailer physically gives or hands utensils to the purchaser of the
11item. For purposes of this subdivision 3. a., serving sizes are based on the
12information contained on the label of each item sold, except that, if the item has no
13label, the serving size is based on the retailer's reasonable determination.
AB1-SA1,56,1614 4. a. Except as provided in subd. 4. b., if a retailer sells food items that have a
15utensil placed in a package by a person other than the retailer, the utensils are
16considered to be provided by the retailer.
AB1-SA1,56,2117 b. Except as provided in subds. 2. and 3., if a retailer sells food items that have
18a utensil placed in a package by a person other than the retailer and the person's
19primary classification in the 2002 North American Industry Classification System,
20published by the federal office of management and budget, is manufacturing under
21subsector 311, the utensils are not considered to be provided by the retailer.
AB1-SA1,57,922 5. For purposes of par. (a) 3., a retailer shall determine the percentage for the
23retailer's tax year or business fiscal year, based on the retailer's data from the
24retailer's prior tax year or business fiscal year, as soon as practical after the retailer's
25accounting records are available, but not later than 90 days after the day on which

1the retailer's tax year or business fiscal year begins. For retailer's with more than
2one establishment in this state, a single determination under subd. 1. that combines
3the information for all of the retailer's establishments in this state shall be made
4annually, as provided in this subdivision, and apply to each of the retailer's
5establishments in this state. A retailer that has no prior tax year or business fiscal
6year shall make a good faith estimate of its percentage for purposes of par. (a) 3. for
7the retailer's first tax year or business fiscal year and shall adjust the estimate
8prospectively after the first 3 months of the retailer's operations if the actual
9percentage is materially different from the estimated percentage.
AB1-SA1, s. 9gf 10Section 9gf. 77.51 (10n) of the statutes is created to read:
AB1-SA1,57,1311 77.51 (10n) "Prescription" means an order, formula, or recipe that is issued by
12any oral, written, electronic, or other means of transmission and by a person who is
13authorized by the laws of this state to issue such an order, formula, or recipe.
AB1-SA1, s. 9gg 14Section 9gg. 77.51 (10r) of the statutes is created to read:
AB1-SA1,57,1515 77.51 (10r) "Prewritten computer software" means any of the following:
AB1-SA1,57,1716 (a) Computer software that is not designed and developed by the author or
17creator of the software according to a specific purchaser's specifications.
AB1-SA1,57,1918 (b) Computer software upgrades that are not designed and developed by the
19author or creator of the software according to a specific purchaser's specifications.
AB1-SA1,57,2220 (c) Computer software that is designed and developed by the author or creator
21of the software according to a specific purchaser's specifications and that is sold to
22another purchaser.
AB1-SA1,57,2423 (d) Any combination of computer software under pars. (a) to (c), including any
24combination with any portion of such software.
AB1-SA1,58,5
1(e) Computer software as described under pars. (a) to (d), and any portion of
2such software, that is modified or enhanced by any degree to a specific purchaser's
3specifications, except such modification or enhancement that is reasonably and
4separately indicated on an invoice, or other statement of the price, provided to the
5purchaser.
AB1-SA1, s. 9gh 6Section 9gh. 77.51 (10s) of the statutes is created to read:
AB1-SA1,58,127 77.51 (10s) "Private communication service" means a telecommunications
8service that entitles the customer to exclusive or priority use of a communications
9channel or group of communications channels, regardless of the manner in which the
10communications channel or group of communications channels is connected, and
11includes switching capacity, extension lines, stations, and other associated services
12that are provided in connection with the use of such channel or channels.
AB1-SA1, s. 9gi 13Section 9gi. 77.51 (11d) of the statutes is created to read:
AB1-SA1,58,1514 77.51 (11d) "Product" includes tangible personal property, items or property
15under s. 77.52 (1) (b) and (c), and services.
AB1-SA1, s. 9gj 16Section 9gj. 77.51 (11m) of the statutes is created to read:
AB1-SA1,58,2017 77.51 (11m) "Prosthetic device" means a device, including the repair parts and
18replacement parts for the device, that is placed in or worn on the body to artificially
19replace a missing portion of the body; to prevent or correct a physical deformity or
20malfunction; or to support a weak or deformed portion of the body.
AB1-SA1, s. 9gk 21Section 9gk. 77.51 (12) (a) of the statutes, as affected by 2007 Wisconsin Act
2220
, is repealed and recreated to read:
AB1-SA1,59,523 77.51 (12) (a) Any transfer of title, possession, ownership, enjoyment, or use
24by: cash or credit transaction, exchange, barter, lease or rental, conditional or
25otherwise, in any manner or by any means whatever of tangible personal property

1or items or property under s. 77.52 (1) (b) or (c) for a consideration, including any
2transaction for which a person's books and records show the transaction created,
3with regard to the transferee, an obligation to pay a certain amount of money or an
4increase in accounts payable or, with regard to the transferor, a right to receive a
5certain amount of money or an increase in accounts receivable;
AB1-SA1, s. 9gL 6Section 9gL. 77.51 (12) (b) of the statutes is amended to read:
AB1-SA1,59,97 77.51 (12) (b) A transaction whereby the possession of property or items or
8property under s. 77.52 (1) (b) or (c)
is transferred but the seller retains the title as
9security for the payment of the price.
AB1-SA1, s. 9gm 10Section 9gm. 77.51 (12m) of the statutes is created to read:
AB1-SA1,59,1511 77.51 (12m) (a) "Purchase price" means the total amount of consideration,
12including cash, credit, property, and services, for which tangible personal property,
13items or property under s. 77.52 (1) (b) or (c), or services are sold, leased, or rented,
14valued in money, whether paid in money or otherwise, without any deduction for the
15following:
AB1-SA1,59,1716 1. The seller's cost of the property or items or property under s. 77.52 (1) (b) or
17(c) sold.
AB1-SA1,59,2018 2. The cost of materials used, labor or service cost, interest, losses, all costs of
19transportation to the seller, all taxes imposed on the seller, and any other expense
20of the seller.
AB1-SA1,59,2221 3. Charges by the seller for any services necessary to complete a sale, not
22including delivery and installation charges.
AB1-SA1,59,2323 4. a. Delivery charges, except as provided in par. (b) 4.
AB1-SA1,60,824 b. If a shipment includes property or items that are subject to tax under this
25subchapter and property or items that are not subject to tax under this subchapter,

1the amount of the delivery charge that the seller allocates to the property or items
2that are subject to tax under this subchapter is based either on the total purchase
3price of the property or items that are subject to tax under this subchapter as
4compared to the total purchase price of all the property or items or on the total weight
5of the property or items that are subject to tax under this subchapter as compared
6to the total weight of all the property or items, except that if the seller does not make
7the allocation under this subd. 4. b., the purchaser shall allocate the delivery charge
8amount, consistent with this subd. 4. b.
AB1-SA1,60,99 5. Installation charges.
AB1-SA1,60,1010 (b) "Purchase price" does not include:
AB1-SA1,60,1311 1. Discounts, including cash, terms, or coupons, that are not reimbursed by a
123rd party, except as provided in par. (c); that are allowed by a seller; and that are
13taken by a purchaser on a sale.
AB1-SA1,60,1814 2. Interest, financing, and carrying charges from credit that is extended on a
15sale of tangible personal property, items or property under s. 77.52 (1) (b) or (c), or
16services, if the amount of the interest, financing, or carrying charges is separately
17stated on the invoice, bill of sale, or similar document that the seller gives to the
18purchaser.
AB1-SA1,60,2119 3. Any taxes legally imposed directly on the purchaser that are separately
20stated on the invoice, bill of sale, or similar document that the seller gives to the
21purchaser.
AB1-SA1,60,2222 4. Delivery charges for direct mail.
AB1-SA1,61,223 5. In all transactions in which an article of tangible personal property, an item
24under s. 77.52 (1) (b), or property under s. 77.52 (1) (c) is traded toward the purchase
25of an article, item, or property of greater value, the amount of the purchase price that

1represents the amount allowed for the article, item, or property traded, except that
2this subdivision does not apply to any transaction to which subd. 7. or 8. applies.
AB1-SA1,61,93 6. If a person who purchases a motor vehicle presents a statement issued under
4s. 218.0171 (2) (cq) to the seller at the time of purchase, and the person presents the
5statement to the seller within 60 days from the date of receiving a refund under s.
6218.0171 (2) (b) 2. b., the trade-in amount specified in the statement issued under
7s. 218.0171 (2) (cq), but not to exceed the purchase price from the sale of the motor
8vehicle. This subdivision applies only to the first motor vehicle purchased by a
9person after receiving a refund under s. 218.0171 (2) (b) 2. b.
AB1-SA1,61,1210 7. Thirty-five percent of the purchase price, excluding trade-ins, of a new
11manufactured home, as defined in s. 101.91 (11). This subdivision does not apply to
12a lease or rental.
AB1-SA1,61,1713 8. At the retailer's option; except that after the retailer chooses an option the
14retailer may not use the other option for other sales without the department's written
15approval; either 35 percent of the purchase price of a modular home, as defined in
16s. 101.71 (6), or an amount equal to the purchase price of the home minus the cost
17of materials that become an ingredient or component part of the home.
AB1-SA1,61,1918 (c) "Purchase price" includes consideration received by the seller from a 3rd
19party, if:
AB1-SA1,61,2220 1. The seller actually receives consideration from a 3rd party, other than the
21purchaser, and the consideration is directly related to a price reduction or discount
22on a sale.
AB1-SA1,61,2323 2. The seller is obliged to pass the price reduction or discount to the purchaser.
AB1-SA1,62,3
13. The amount of the consideration that is attributable to the sale is a fixed
2amount and the seller is able to determine that amount at the time of the sale to the
3purchaser.
AB1-SA1,62,44 4. One of the following also applies:
AB1-SA1,62,95 a. The purchaser presents a coupon, certificate, or other documentation to the
6seller to claim the price reduction or discount, if the coupon, certificate, or other
7documentation is authorized, distributed, or granted by the 3rd party with the
8understanding that the 3rd party will reimburse the seller for the amount of the price
9reduction or discount.
AB1-SA1,62,1110 b. The purchaser identifies himself or herself to the seller as a member of a
11group or organization that may claim the price reduction or discount.
AB1-SA1,62,1412 c. The seller provides an invoice to the purchaser, or the purchaser presents a
13coupon, certificate, or other documentation to the seller, that identifies the price
14reduction or discount as a 3rd-party price reduction or discount.
AB1-SA1, s. 9gn 15Section 9gn. 77.51 (12p) of the statutes is created to read:
AB1-SA1,62,1716 77.51 (12p) "Purchaser" means a person to whom a sale of tangible personal
17property is made or to whom a service is furnished.
AB1-SA1, s. 9go 18Section 9go. 77.51 (13) (a) of the statutes is amended to read:
AB1-SA1,62,2119 77.51 (13) (a) Every seller who makes any sale, regardless of whether the sale
20is mercantile in nature, of tangible personal property, items or property under s.
2177.52 (1) (b) or (c),
or a service specified under s. 77.52 (2) (a).
AB1-SA1, s. 9gp 22Section 9gp. 77.51 (13) (b) of the statutes is amended to read:
AB1-SA1,63,223 77.51 (13) (b) Every person engaged in the business of making sales of tangible
24personal property or items or property under s. 77.52 (1) (b) or (c) for storage, use or
25consumption or in the business of making sales at auction of tangible personal

1property or items or property under s. 77.52 (1) (b) or (c) owned by the person or others
2for storage, use or other consumption.
AB1-SA1, s. 9gq 3Section 9gq. 77.51 (13) (c) of the statutes is amended to read:
AB1-SA1,63,124 77.51 (13) (c) When the department determines that it is necessary for the
5efficient administration of this subchapter to regard any salespersons,
6representatives, peddlers or canvassers as the agents of the dealers, distributors,
7supervisors or employers under whom they operate or from whom they obtain the
8tangible personal property or items or property under s. 77.52 (1) (b) or (c) sold by
9them, irrespective of whether they are making the sales on their own behalf or on
10behalf of such dealers, distributors, supervisors or employers, the department may
11so regard them and may regard the dealers, distributors, supervisors or employers
12as retailers for purposes of this subchapter.
AB1-SA1, s. 9gr 13Section 9gr. 77.51 (13) (d) of the statutes is amended to read:
AB1-SA1,63,1714 77.51 (13) (d) Every wholesaler to the extent that the wholesaler sells tangible
15personal property or items or property under s. 77.52 (1) (b) or (c) to a person other
16than a seller as defined in sub. (17) provided such wholesaler is not expressly exempt
17from the sales tax on such sale or from collecting the use tax on such sale.
AB1-SA1, s. 9gs 18Section 9gs. 77.51 (13) (e) of the statutes is amended to read:
AB1-SA1,63,2419 77.51 (13) (e) A person selling tangible personal property or items or property
20under s. 77.52 (1) (b) or (c)
to a service provider who transfers the property in
21conjunction with the selling, performing or furnishing of any service and the
22property is or items are incidental to the service, unless the service provider is
23selling, performing or furnishing services under s. 77.52 (2) (a) 7., 10., 11. and 20.
24This subsection does not apply to sub. (2).
AB1-SA1, s. 9gt 25Section 9gt. 77.51 (13) (f) of the statutes is amended to read:
AB1-SA1,64,5
177.51 (13) (f) A service provider who transfers tangible personal property or
2items or property under s. 77.52 (1) (b) or (c)
in conjunction with but not incidental
3to the selling, performing or furnishing of any service and a service provider selling,
4performing or furnishing services under s. 77.52 (2) (a) 7., 10., 11. and 20. This
5subsection does not apply to sub. (2).
AB1-SA1, s. 9gv 6Section 9gv. 77.51 (13) (k) of the statutes is amended to read:
AB1-SA1,64,97 77.51 (13) (k) As respects With respect to a lease, any person deriving rentals
8from a lease of tangible personal property or items or property under s. 77.52 (1) (b)
9or (c)
situated in this state.
AB1-SA1, s. 9gw 10Section 9gw. 77.51 (13) (m) of the statutes is amended to read:
AB1-SA1,64,1411 77.51 (13) (m) A person selling tangible personal property or items or property
12under s. 77.52 (1) (b) or (c)
to a veterinarian to be used or furnished by the
13veterinarian in the performance of services in some manner related to domestic
14animals, including pets or poultry.
AB1-SA1, s. 9hb 15Section 9hb. 77.51 (13) (n) of the statutes is amended to read:
AB1-SA1,64,1916 77.51 (13) (n) A person selling household furniture, furnishings, equipment,
17appliances or other items of tangible personal property or items or property under
18s. 77.52 (1) (b) or (c)
to a landlord for use by tenants in leased or rented living
19quarters.
AB1-SA1, s. 9hc 20Section 9hc. 77.51 (13) (o) of the statutes is amended to read:
AB1-SA1,64,2221 77.51 (13) (o) A person selling medicine drugs for animals to a veterinarian.
22As used in this paragraph, "animal" includes livestock, pets and poultry.
AB1-SA1, s. 9hd 23Section 9hd. 77.51 (13g) (intro.) of the statutes is amended to read:
AB1-SA1,65,3
177.51 (13g) (intro.) Except as provided in sub. (13h), "retailer engaged in
2business in this state", unless otherwise limited by federal statute, for purposes of
3the use tax, means any of the following:
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