Amendment MR8 SA1-AB1

AB1-SA1,56,13 3. For a retailer whose percentage determined under subd. 1. is greater than 75 percent, an item sold by the retailer that contains 4 or more servings packaged as 1 item and sold for a single price does not become prepared food simply because the retailer makes utensils available to the purchaser of the item, but does become prepared food if the retailer physically gives or hands utensils to the purchaser of the item. For purposes of this subdivision 3. a., serving sizes are based on the information contained on the label of each item sold, except that, if the item has no label, the serving size is based on the retailer's reasonable determination.

AB1-SA1,56,16 4. a. Except as provided in subd. 4. b., if a retailer sells food items that have a utensil placed in a package by a person other than the retailer, the utensils are considered to be provided by the retailer.

AB1-SA1,56,21 b. Except as provided in subds. 2. and 3., if a retailer sells food items that have a utensil placed in a package by a person other than the retailer and the person's primary classification in the 2002 North American Industry Classification System, published by the federal office of management and budget, is manufacturing under subsector 311, the utensils are not considered to be provided by the retailer.

AB1-SA1,57,9 5. For purposes of par. (a) 3., a retailer shall determine the percentage for the retailer's tax year or business fiscal year, based on the retailer's data from the retailer's prior tax year or business fiscal year, as soon as practical after the retailer's accounting records are available, but not later than 90 days after the day on which the retailer's tax year or business fiscal year begins. For retailer's with more than one establishment in this state, a single determination under subd. 1. that combines the information for all of the retailer's establishments in this state shall be made annually, as provided in this subdivision, and apply to each of the retailer's establishments in this state. A retailer that has no prior tax year or business fiscal year shall make a good faith estimate of its percentage for purposes of par. (a) 3. for the retailer's first tax year or business fiscal year and shall adjust the estimate prospectively after the first 3 months of the retailer's operations if the actual percentage is materially different from the estimated percentage.

AB1-SA1, s. 9gf Section 9gf. 77.51 (10n) of the statutes is created to read:

AB1-SA1,57,13 77.51 (10n) "Prescription" means an order, formula, or recipe that is issued by any oral, written, electronic, or other means of transmission and by a person who is authorized by the laws of this state to issue such an order, formula, or recipe.

AB1-SA1, s. 9gg Section 9gg. 77.51 (10r) of the statutes is created to read:

AB1-SA1,57,15 77.51 (10r) "Prewritten computer software" means any of the following:

AB1-SA1,57,17 (a) Computer software that is not designed and developed by the author or creator of the software according to a specific purchaser's specifications.

AB1-SA1,57,19 (b) Computer software upgrades that are not designed and developed by the author or creator of the software according to a specific purchaser's specifications.

AB1-SA1,57,22 (c) Computer software that is designed and developed by the author or creator of the software according to a specific purchaser's specifications and that is sold to another purchaser.

AB1-SA1,57,24 (d) Any combination of computer software under pars. (a) to (c), including any combination with any portion of such software.

AB1-SA1,58,5 (e) Computer software as described under pars. (a) to (d), and any portion of such software, that is modified or enhanced by any degree to a specific purchaser's specifications, except such modification or enhancement that is reasonably and separately indicated on an invoice, or other statement of the price, provided to the purchaser.

AB1-SA1, s. 9gh Section 9gh. 77.51 (10s) of the statutes is created to read:

AB1-SA1,58,12 77.51 (10s) "Private communication service" means a telecommunications service that entitles the customer to exclusive or priority use of a communications channel or group of communications channels, regardless of the manner in which the communications channel or group of communications channels is connected, and includes switching capacity, extension lines, stations, and other associated services that are provided in connection with the use of such channel or channels.

AB1-SA1, s. 9gi Section 9gi. 77.51 (11d) of the statutes is created to read:

AB1-SA1,58,15 77.51 (11d) "Product" includes tangible personal property, items or property under s. 77.52 (1) (b) and (c), and services.

AB1-SA1, s. 9gj Section 9gj. 77.51 (11m) of the statutes is created to read:

AB1-SA1,58,20 77.51 (11m) "Prosthetic device" means a device, including the repair parts and replacement parts for the device, that is placed in or worn on the body to artificially replace a missing portion of the body; to prevent or correct a physical deformity or malfunction; or to support a weak or deformed portion of the body.

AB1-SA1, s. 9gk Section 9gk. 77.51 (12) (a) of the statutes, as affected by 2007 Wisconsin Act 20, is repealed and recreated to read:

AB1-SA1,59,5 77.51 (12) (a) Any transfer of title, possession, ownership, enjoyment, or use by: cash or credit transaction, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatever of tangible personal property or items or property under s. 77.52 (1) (b) or (c) for a consideration, including any transaction for which a person's books and records show the transaction created, with regard to the transferee, an obligation to pay a certain amount of money or an increase in accounts payable or, with regard to the transferor, a right to receive a certain amount of money or an increase in accounts receivable;

AB1-SA1, s. 9gL Section 9gL. 77.51 (12) (b) of the statutes is amended to read:

AB1-SA1,59,9 77.51 (12) (b) A transaction whereby the possession of property or items or property under s. 77.52 (1) (b) or (c) is transferred but the seller retains the title as security for the payment of the price.

AB1-SA1, s. 9gm Section 9gm. 77.51 (12m) of the statutes is created to read:

AB1-SA1,59,15 77.51 (12m) (a) "Purchase price" means the total amount of consideration, including cash, credit, property, and services, for which tangible personal property, items or property under s. 77.52 (1) (b) or (c), or services are sold, leased, or rented, valued in money, whether paid in money or otherwise, without any deduction for the following:

AB1-SA1,59,17 1. The seller's cost of the property or items or property under s. 77.52 (1) (b) or (c) sold.

AB1-SA1,59,20 2. The cost of materials used, labor or service cost, interest, losses, all costs of transportation to the seller, all taxes imposed on the seller, and any other expense of the seller.

AB1-SA1,59,22 3. Charges by the seller for any services necessary to complete a sale, not including delivery and installation charges.

AB1-SA1,59,23 4. a. Delivery charges, except as provided in par. (b) 4.

AB1-SA1,60,8 b. If a shipment includes property or items that are subject to tax under this subchapter and property or items that are not subject to tax under this subchapter, the amount of the delivery charge that the seller allocates to the property or items that are subject to tax under this subchapter is based either on the total purchase price of the property or items that are subject to tax under this subchapter as compared to the total purchase price of all the property or items or on the total weight of the property or items that are subject to tax under this subchapter as compared to the total weight of all the property or items, except that if the seller does not make the allocation under this subd. 4. b., the purchaser shall allocate the delivery charge amount, consistent with this subd. 4. b.

AB1-SA1,60,9 5. Installation charges.

AB1-SA1,60,10 (b) "Purchase price" does not include:

AB1-SA1,60,13 1. Discounts, including cash, terms, or coupons, that are not reimbursed by a 3rd party, except as provided in par. (c); that are allowed by a seller; and that are taken by a purchaser on a sale.

AB1-SA1,60,18 2. Interest, financing, and carrying charges from credit that is extended on a sale of tangible personal property, items or property under s. 77.52 (1) (b) or (c), or services, if the amount of the interest, financing, or carrying charges is separately stated on the invoice, bill of sale, or similar document that the seller gives to the purchaser.

AB1-SA1,60,21 3. Any taxes legally imposed directly on the purchaser that are separately stated on the invoice, bill of sale, or similar document that the seller gives to the purchaser.

AB1-SA1,60,22 4. Delivery charges for direct mail.

AB1-SA1,61,2 5. In all transactions in which an article of tangible personal property, an item under s. 77.52 (1) (b), or property under s. 77.52 (1) (c) is traded toward the purchase of an article, item, or property of greater value, the amount of the purchase price that represents the amount allowed for the article, item, or property traded, except that this subdivision does not apply to any transaction to which subd. 7. or 8. applies.

AB1-SA1,61,9 6. If a person who purchases a motor vehicle presents a statement issued under s. 218.0171 (2) (cq) to the seller at the time of purchase, and the person presents the statement to the seller within 60 days from the date of receiving a refund under s. 218.0171 (2) (b) 2. b., the trade-in amount specified in the statement issued under s. 218.0171 (2) (cq), but not to exceed the purchase price from the sale of the motor vehicle. This subdivision applies only to the first motor vehicle purchased by a person after receiving a refund under s. 218.0171 (2) (b) 2. b.

AB1-SA1,61,12 7. Thirty-five percent of the purchase price, excluding trade-ins, of a new manufactured home, as defined in s. 101.91 (11). This subdivision does not apply to a lease or rental.

AB1-SA1,61,17 8. At the retailer's option; except that after the retailer chooses an option the retailer may not use the other option for other sales without the department's written approval; either 35 percent of the purchase price of a modular home, as defined in s. 101.71 (6), or an amount equal to the purchase price of the home minus the cost of materials that become an ingredient or component part of the home.

AB1-SA1,61,19 (c) "Purchase price" includes consideration received by the seller from a 3rd party, if:

AB1-SA1,61,22 1. The seller actually receives consideration from a 3rd party, other than the purchaser, and the consideration is directly related to a price reduction or discount on a sale.

AB1-SA1,61,23 2. The seller is obliged to pass the price reduction or discount to the purchaser.

AB1-SA1,62,3 3. The amount of the consideration that is attributable to the sale is a fixed amount and the seller is able to determine that amount at the time of the sale to the purchaser.

AB1-SA1,62,4 4. One of the following also applies:

AB1-SA1,62,9 a. The purchaser presents a coupon, certificate, or other documentation to the seller to claim the price reduction or discount, if the coupon, certificate, or other documentation is authorized, distributed, or granted by the 3rd party with the understanding that the 3rd party will reimburse the seller for the amount of the price reduction or discount.

AB1-SA1,62,11 b. The purchaser identifies himself or herself to the seller as a member of a group or organization that may claim the price reduction or discount.

AB1-SA1,62,14 c. The seller provides an invoice to the purchaser, or the purchaser presents a coupon, certificate, or other documentation to the seller, that identifies the price reduction or discount as a 3rd-party price reduction or discount.

AB1-SA1, s. 9gn Section 9gn. 77.51 (12p) of the statutes is created to read:

AB1-SA1,62,17 77.51 (12p) "Purchaser" means a person to whom a sale of tangible personal property is made or to whom a service is furnished.

AB1-SA1, s. 9go Section 9go. 77.51 (13) (a) of the statutes is amended to read:

AB1-SA1,62,21 77.51 (13) (a) Every seller who makes any sale, regardless of whether the sale is mercantile in nature, of tangible personal property, items or property under s. 77.52 (1) (b) or (c), or a service specified under s. 77.52 (2) (a).

AB1-SA1, s. 9gp Section 9gp. 77.51 (13) (b) of the statutes is amended to read:

AB1-SA1,63,2 77.51 (13) (b) Every person engaged in the business of making sales of tangible personal property or items or property under s. 77.52 (1) (b) or (c) for storage, use or consumption or in the business of making sales at auction of tangible personal property or items or property under s. 77.52 (1) (b) or (c) owned by the person or others for storage, use or other consumption.

AB1-SA1, s. 9gq Section 9gq. 77.51 (13) (c) of the statutes is amended to read:

AB1-SA1,63,12 77.51 (13) (c) When the department determines that it is necessary for the efficient administration of this subchapter to regard any salespersons, representatives, peddlers or canvassers as the agents of the dealers, distributors, supervisors or employers under whom they operate or from whom they obtain the tangible personal property or items or property under s. 77.52 (1) (b) or (c) sold by them, irrespective of whether they are making the sales on their own behalf or on behalf of such dealers, distributors, supervisors or employers, the department may so regard them and may regard the dealers, distributors, supervisors or employers as retailers for purposes of this subchapter.

AB1-SA1, s. 9gr Section 9gr. 77.51 (13) (d) of the statutes is amended to read:

AB1-SA1,63,17 77.51 (13) (d) Every wholesaler to the extent that the wholesaler sells tangible personal property or items or property under s. 77.52 (1) (b) or (c) to a person other than a seller as defined in sub. (17) provided such wholesaler is not expressly exempt from the sales tax on such sale or from collecting the use tax on such sale.

AB1-SA1, s. 9gs Section 9gs. 77.51 (13) (e) of the statutes is amended to read:

AB1-SA1,63,24 77.51 (13) (e) A person selling tangible personal property or items or property under s. 77.52 (1) (b) or (c) to a service provider who transfers the property in conjunction with the selling, performing or furnishing of any service and the property is or items are incidental to the service, unless the service provider is selling, performing or furnishing services under s. 77.52 (2) (a) 7., 10., 11. and 20. This subsection does not apply to sub. (2).

AB1-SA1, s. 9gt Section 9gt. 77.51 (13) (f) of the statutes is amended to read:

AB1-SA1,64,5 77.51 (13) (f) A service provider who transfers tangible personal property or items or property under s. 77.52 (1) (b) or (c) in conjunction with but not incidental to the selling, performing or furnishing of any service and a service provider selling, performing or furnishing services under s. 77.52 (2) (a) 7., 10., 11. and 20. This subsection does not apply to sub. (2).

AB1-SA1, s. 9gv Section 9gv. 77.51 (13) (k) of the statutes is amended to read:

AB1-SA1,64,9 77.51 (13) (k) As respects With respect to a lease, any person deriving rentals from a lease of tangible personal property or items or property under s. 77.52 (1) (b) or (c) situated in this state.

AB1-SA1, s. 9gw Section 9gw. 77.51 (13) (m) of the statutes is amended to read:

AB1-SA1,64,14 77.51 (13) (m) A person selling tangible personal property or items or property under s. 77.52 (1) (b) or (c) to a veterinarian to be used or furnished by the veterinarian in the performance of services in some manner related to domestic animals, including pets or poultry.

AB1-SA1, s. 9hb Section 9hb. 77.51 (13) (n) of the statutes is amended to read:

AB1-SA1,64,19 77.51 (13) (n) A person selling household furniture, furnishings, equipment, appliances or other items of tangible personal property or items or property under s. 77.52 (1) (b) or (c) to a landlord for use by tenants in leased or rented living quarters.

AB1-SA1, s. 9hc Section 9hc. 77.51 (13) (o) of the statutes is amended to read:

AB1-SA1,64,22 77.51 (13) (o) A person selling medicine drugs for animals to a veterinarian. As used in this paragraph, "animal" includes livestock, pets and poultry.

AB1-SA1, s. 9hd Section 9hd. 77.51 (13g) (intro.) of the statutes is amended to read:

AB1-SA1,65,3 77.51 (13g) (intro.) Except as provided in sub. (13h), "retailer engaged in business in this state", unless otherwise limited by federal statute, for purposes of the use tax, means any of the following:

AB1-SA1, s. 9he Section 9he. 77.51 (13g) (a) of the statutes is amended to read:

AB1-SA1,65,10 77.51 (13g) (a) Any retailer owning any real property in this state or leasing or renting out any tangible personal property, or items or property under s. 77.52 (1) (b) or (c), located in this state or maintaining, occupying or using, permanently or temporarily, directly or indirectly, or through a subsidiary, or agent, by whatever name called, an office, place of distribution, sales or sample room or place, warehouse or storage place or other place of business in this state.

AB1-SA1, s. 9hf Section 9hf. 77.51 (13g) (b) of the statutes is amended to read:

AB1-SA1,65,16 77.51 (13g) (b) Any retailer having any representative, agent, salesperson, canvasser or solicitor operating in this state under the authority of the retailer or its subsidiary for the purpose of selling, delivering or the taking of orders for any tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services.

AB1-SA1, s. 9hg Section 9hg. 77.51 (13g) (c) of the statutes is created to read:

AB1-SA1,65,20 77.51 (13g) (c) Any retailer selling tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services for storage, use, or other consumption in this state, unless otherwise limited by federal law.

AB1-SA1, s. 9hh Section 9hh. 77.51 (13r) of the statutes is amended to read:

AB1-SA1,65,24 77.51 (13r) Any person purchasing from a retailer as defined in sub. (13) shall be deemed the consumer of the tangible personal property, items or property under s. 77.52 (1) (b) or (c), or services purchased.

AB1-SA1, s. 9hi Section 9hi. 77.51 (13rm) of the statutes is created to read:

AB1-SA1,66,2 77.51 (13rm) "Retail sale" or "sale at retail" means any sale, lease, or rental for any purpose other than resale, sublease, or subrent.

AB1-SA1, s. 9hj Section 9hj. 77.51 (13rn) of the statutes is created to read:

AB1-SA1,66,7 77.51 (13rn) "Ringtones" means digitized sound files that are downloaded onto a device and that may be used to alert the customer with regard to a communication. "Ringtones" includes MP3 or musical tones, polyphonic tones, and synthetic music mobile application format tones, but does not include ring-back tones.

AB1-SA1, s. 9hk Section 9hk. 77.51 (14) (intro.) of the statutes is amended to read:

AB1-SA1,66,14 77.51 (14) (intro.) "Sale", "sale, lease or rental", "retail sale", "sale at retail", or equivalent terms include includes any one or all of the following: the transfer of the ownership of, title to, possession of, or enjoyment of tangible personal property, items or property under s. 77.52 (1) (b) or (c), or services for use or consumption but not for resale as tangible personal property, items or property under s. 77.52 (1) (b) or (c), or services and includes:

AB1-SA1, s. 9hL Section 9hL. 77.51 (14) (a) of the statutes is amended to read:

AB1-SA1,66,21 77.51 (14) (a) Any sale at an auction in with respect to tangible personal property or items or property under s. 77.52 (1) (b) or (c) which is are sold to a successful bidder. The proceeds from, except the sale of property or items sold at auction which is are bid in by the seller and on which title does not pass to a new purchaser shall be deducted from the gross proceeds of the sale and the tax paid only on the net proceeds.

AB1-SA1, s. 9hm Section 9hm. 77.51 (14) (b) of the statutes is amended to read: