Amendment SSA1-SB40

SB40-SSA1, s. 2272 Section 2272. 77.51 (17x) of the statutes is created to read:

SB40-SSA1,1091,2 77.51 (17x) "Specified digital goods" means digital audio works, digital audiovisual works, and digital books. For purposes of this subchapter, the sale of or the storage, use, or other consumption of a digital code is treated the same as the sale of or the storage, use, or other consumption of any specified digital goods for which the digital code relates.

SB40-SSA1, s. 2273 Section 2273. 77.51 (18) of the statutes is amended to read:

SB40-SSA1,1091,7 77.51 (18) "Storage" includes any keeping or retention in this state of tangible personal property, items or property under s. 77.52 (1) (b) or (c), specified digital goods, or additional digital goods purchased from a retailer for any purpose except sale in the regular course of business.

SB40-SSA1, s. 2274 Section 2274. 77.51 (20) of the statutes is amended to read:

SB40-SSA1,1091,19 77.51 (20) "Tangible personal property" means all tangible personal property of every kind and description that can be seen, weighed, measured, felt, or touched, or that is in any other manner perceptible to the senses, and includes electricity, natural gas, steam and, water, and also leased property affixed to realty if the lessor has the right to remove the property upon breach or termination of the lease agreement, unless the lessor of the property is also the lessor of the realty to which the property is affixed. "Tangible personal property" also includes coins and stamps of the United States sold or traded as collectors' items above their face value and computer programs except custom computer programs prewritten computer software, but does not include items or property under s. 77.52 (1) (b) or (c), specified digital goods, or additional digital goods.

SB40-SSA1, s. 2275 Section 2275. 77.51 (21) of the statutes is amended to read:

SB40-SSA1,1091,23 77.51 (21) "Taxpayer" means the person who is required to pay, collect, or account for or who is otherwise directly interested in the taxes imposed by this subchapter, including a certified service provider.

SB40-SSA1, s. 2276 Section 2276. 77.51 (21m) of the statutes is amended to read:

SB40-SSA1,1092,10 77.51 (21m) "Telecommunications and Internet access services" means sending messages and information transmitted through the use of local, toll and wide-area telephone service; channel services; telegraph services; teletypewriter; computer exchange services; cellular mobile telecommunications service; specialized mobile radio; stationary two-way radio; paging service; or any other form of mobile and portable one-way or two-way communications; or any other transmission of messages or information by electronic or similar means between or among points by wire, cable, fiber optics, laser, microwave, radio, satellite or similar facilities. "Telecommunications services" does not include sending collect telecommunications that are received outside of the state.

SB40-SSA1, s. 2276m Section 2276m. 77.51 (21m) of the statutes, as affected by 2007 Wisconsin Act ... (this act), is renumbered 77.51 (5g) and amended to read:

SB40-SSA1,1092,24 77.51 (5g) "Telecommunications and Internet access services" means sending messages and information transmitted through the use of local, toll and wide-area telephone service; channel services; telegraph services; teletypewriter; computer exchange services; cellular mobile telecommunications service; specialized mobile radio; stationary two-way radio; paging service; or any other form of mobile and portable one-way or two-way communications; or any other transmission of messages or information by electronic or similar means between or among points by wire, cable, fiber optics, laser, microwave, radio, satellite or similar facilities. "Telecommunications services" does not include sending collect telecommunications that are received outside of the state. "Internet access services" does not include telecommunications services to the extent that such services are taxable under s. 77.52 (2) (a) 5. am.

SB40-SSA1, s. 2277 Section 2277. 77.51 (21n) of the statutes is created to read:

SB40-SSA1,1093,9 77.51 (21n) "Telecommunications services" means electronically transmitting, conveying, or routing voice, data, audio, video, or other information or signals to a point or between or among points. "Telecommunications services" includes the transmission, conveyance, or routing of such information or signals in which computer processing applications are used to act on the content's form, code, or protocol for transmission, conveyance, or routing purposes, regardless of whether the service is referred to as a voice over Internet protocol service or classified by the federal communications commission as an enhanced or value-added service. "Telecommunications services" does not include any of the following:

SB40-SSA1,1093,13 (a) Data processing and information services that allow data to be generated, acquired, stored, processed, or retrieved and delivered to a purchaser by an electronic transmission, if the purchaser's primary purpose for the underlying transaction is the processed data.

SB40-SSA1,1093,14 (b) Installing or maintaining wiring or equipment on a customer's premises.

SB40-SSA1,1093,15 (c) Tangible personal property.

SB40-SSA1,1093,16 (d) Advertising, including directory advertising.

SB40-SSA1,1093,17 (e) Billing and collection services provided to 3rd parties.

SB40-SSA1,1093,18 (f) Internet access service.

SB40-SSA1,1093,23 (g) Radio and television audio and video programming services, regardless of the medium in which the services are provided, including cable service, as defined in 47 USC 522 (6), audio and video programming services delivered by commercial mobile radio service providers, as defined in 47 CFR 20.3, and the transmitting, conveying, or routing of such services by the programming service provider.

SB40-SSA1,1093,24 (h) Ancillary services.

SB40-SSA1,1094,2 (i) Digital products delivered electronically, including software, music, video, reading materials, or ringtones.

SB40-SSA1, s. 2278 Section 2278. 77.51 (21p) of the statutes is created to read:

SB40-SSA1,1094,5 77.51 (21p) "Tobacco" means cigarettes, cigars, chewing tobacco, pipe tobacco, and any other item that contains tobacco.

SB40-SSA1, s. 2279 Section 2279. 77.51 (21q) of the statutes is created to read:

SB40-SSA1,1094,8 77.51 (21q) "Transferred electronically" means accessed or obtained by the purchaser by means other than tangible storage media.

SB40-SSA1, s. 2280 Section 2280. 77.51 (22) (a) of the statutes is amended to read:

SB40-SSA1,1094,18 77.51 (22) (a) "Use" includes the exercise of any right or power over tangible personal property, items or property under s. 77.52 (1) (b) or (c), specified digital goods, additional digital goods, or taxable services incident to the ownership, possession or enjoyment of the property, goods, or services, or the results produced by the services, including installation or affixation to real property and including the possession of, or the exercise of any right or power over tangible personal property, items or property under s. 77.52 (1) (b) or (c), specified digital goods, or additional digital goods by a lessee under a lease, except that "use" does not include the activities under sub. (18).

SB40-SSA1, s. 2281 Section 2281. 77.51 (22) (b) of the statutes is amended to read:

SB40-SSA1,1095,3 77.51 (22) (b) In this subsection "enjoyment" includes a purchaser's right to direct the disposition of property, items or property under s. 77.52 (1) (b) or (c), specified digital goods, or additional digital goods, whether or not the purchaser has possession of the property, items, or goods. "Enjoyment" also includes, but is not limited to, having shipped into this state by an out-of-state supplier printed material which is designed to promote the sale of property, items or property under s. 77.52 (1) (b) or (c), specified digital goods, additional digital goods, or services, or which is otherwise related to the business activities, of the purchaser of the printed material or printing service.

SB40-SSA1, s. 2282 Section 2282. 77.51 (22) (bm) of the statutes is created to read:

SB40-SSA1,1095,13 77.51 (22) (bm) In this subsection, "exercise of any right or power over tangible personal property, items or property under s. 77.52 (1) (b) or (c), specified digital goods, additional digital goods, or taxable services" includes distributing, selecting recipients, determining mailing schedules, or otherwise directing the distribution, dissemination, or disposal of tangible personal property, items or property under s. 77.52 (1) (b) or (c), specified digital goods, additional digital goods, or taxable services, regardless of whether the purchaser of such property, items, goods, or services owns or physically possesses, in this state, the property, items, goods, or services.

SB40-SSA1, s. 2283 Section 2283. 77.51 (24) of the statutes is created to read:

SB40-SSA1,1095,18 77.51 (24) "Value-added non-voice data service" means a service in which computer processing applications are used to act on the form, content, code, or protocol of the data provided by the service and are used primarily for a purpose other than for transmitting, conveying, or routing data.

SB40-SSA1, s. 2284 Section 2284. 77.51 (25) of the statutes is created to read:

SB40-SSA1,1095,23 77.51 (25) "Vertical service" means an ancillary service that is provided with one or more telecommunications services and allows customers to identify callers and to manage multiple calls and call connections, including conference bridging services.

SB40-SSA1, s. 2285 Section 2285. 77.51 (26) of the statutes is created to read:

SB40-SSA1,1096,3 77.51 (26) "Voice mail service" means an ancillary service that allows a customer to store, send, or receive recorded messages, not including any vertical service that the customer must have to use the voice mail service.

SB40-SSA1, s. 2286 Section 2286. 77.52 (1) of the statutes is renumbered 77.52 (1) (a) and amended to read:

SB40-SSA1,1096,11 77.52 (1) (a) For the privilege of selling, licensing, leasing or renting tangible personal property, including accessories, components, attachments, parts, supplies and materials, at retail a tax is imposed upon all retailers at the rate of 5% of the gross receipts sales price from the sale, license, lease or rental of tangible personal property, including accessories, components, attachments, parts, supplies and materials, sold, leased or rented at retail in this state, as determined under s. 77.522.

SB40-SSA1, s. 2287 Section 2287. 77.52 (1) (b) of the statutes is created to read:

SB40-SSA1,1096,16 77.52 (1) (b) For the privilege of selling at retail coins and stamps of the United States that are sold or traded as collectors' items above their face value, a tax is imposed on all retailers at the rate of 5 percent of the sales price from the sale of such coins and stamps.

SB40-SSA1, s. 2288 Section 2288. 77.52 (1) (c) of the statutes is created to read:

SB40-SSA1,1096,22 77.52 (1) (c) For the privilege of leasing property that is affixed to real property, a tax is imposed on all retailers at the rate of 5 percent of the sales price from the lease of such property, if the lessor has the right to remove the leased property upon breach or termination of the lease agreement, unless the lessor of the leased property is also the lessor of the real property to which the leased property is affixed.

SB40-SSA1, s. 2289 Section 2289. 77.52 (1) (d) of the statutes is created to read:

SB40-SSA1,1097,4 77.52 (1) (d) For the privilege of selling, licensing, leasing, or renting specified digital goods or additional digital goods at retail, regardless of whether the purchaser has the right to permanently use such goods or whether the purchaser's right to access or retain such goods is not permanent, a tax is imposed upon all retailers at the rate of 5 percent of the sales price from the sale, license, lease or rental of such goods.

SB40-SSA1, s. 2290 Section 2290. 77.52 (2) (intro.) of the statutes is amended to read:

SB40-SSA1,1097,10 77.52 (2) (intro.) For the privilege of selling, licensing, performing or furnishing the services described under par. (a) at retail in this state, as determined under s. 77.522, to consumers or users, a tax is imposed upon all persons selling, licensing, performing or furnishing the services at the rate of 5% of the gross receipts sales price from the sale, license, performance or furnishing of the services.

SB40-SSA1, s. 2290m Section 2290m. 77.52 (2) (a) 2. a. of the statutes is amended to read:

SB40-SSA1,1097,20 77.52 (2) (a) 2. a. Except as provided in subd. 2. b. and c., the sale of admissions to amusement, athletic, entertainment or recreational events or places except county fairs, the sale, rental or use of regular bingo cards, extra regular cards, special bingo cards and the sale of bingo supplies to players and the furnishing, for dues, fees or other considerations, the privilege of access to clubs or the privilege of having access to or the use of amusement, entertainment, athletic or recreational devices or facilities, including the sale or furnishing of use of recreational facilities on a periodic basis or other recreational rights, including but not limited to membership rights, vacation services and club memberships.

SB40-SSA1, s. 2290n Section 2290n. 77.52 (2) (a) 2. c. of the statutes is created to read:

SB40-SSA1,1098,3 77.52 (2) (a) 2. c. Taxable sales do not include the sale of admissions to performances and events produced by a nonprofit cultural arts organization, including events produced by the organization's affiliates or agents. In order to claim the exemption under this subd. 2. c., an organization must create, develop, and put on a public performance of the performance or event. This subd. 2. c. does not apply to the sale of admissions to performances and events for which the nonprofit cultural arts organization sponsors, but does not produce, the performance or event.

SB40-SSA1, s. 2291b Section 2291b. 77.52 (2) (a) 5. a. of the statutes is amended to read:

SB40-SSA1,1098,13 77.52 (2) (a) 5. a. The sale of telecommunications and Internet access services, except services subject to 4 USC 116 to 126, as amended by P.L. 106-252, that either originate or terminate in this state; except services that are obtained by means of a toll-free number, that originate outside this state and that terminate in this state; and are charged to a service address in this state, regardless of the location where that charge is billed or paid; and the sale of the rights to purchase telecommunications services, including purchasing reauthorization numbers, by paying in advance and by using an access number and authorization code, except sales that are subject to subd. 5. b.

SB40-SSA1, s. 2291c Section 2291c. 77.52 (2) (a) 5. a. of the statutes, as affected by 2007 Wisconsin Act ... (this act), is amended to read:

SB40-SSA1,1098,24 77.52 (2) (a) 5. a. The sale of telecommunications and Internet access services, except services subject to 4 USC 116 to 126, as amended by P.L. 106-252, that either originate or terminate in this state; except services that are obtained by means of a toll-free number, that originate outside this state and that terminate in this state; and are charged to a service address in this state, regardless of the location where that charge is billed or paid; and the sale of the rights to purchase telecommunications services, including purchasing reauthorization numbers, by paying in advance and by using an access number and authorization code, except sales that are subject to subd. 5. b.

SB40-SSA1, s. 2291p Section 2291p. 77.52 (2) (a) 5. am. of the statutes is created to read:

SB40-SSA1,1099,2 77.52 (2) (a) 5. am. The sale of intrastate, interstate, and international telecommunications services, except interstate 800 services.

SB40-SSA1, s. 2292 Section 2292. 77.52 (2) (a) 5. b. of the statutes is repealed.

SB40-SSA1, s. 2294 Section 2294. 77.52 (2) (a) 5. c. of the statutes is created to read:

SB40-SSA1,1099,6 77.52 (2) (a) 5. c. The sale of ancillary services, except detailed telecommunications billing services.

SB40-SSA1, s. 2295 Section 2295. 77.52 (2) (a) 5m. of the statutes is amended to read:

SB40-SSA1,1099,14 77.52 (2) (a) 5m. The sale of services that consist of recording telecommunications messages and transmitting them to the purchaser of the service or at that purchaser's direction, but not including those services if they are merely an that are taxable under subd. 5. or services that are incidental, as defined in s. 77.51 (5), element of to another service that is not taxable under this subchapter and sold to that the purchaser of the incidental service and is not taxable under this subchapter.

SB40-SSA1, s. 2296 Section 2296. 77.52 (2) (a) 10. of the statutes is amended to read:

SB40-SSA1,1100,13 77.52 (2) (a) 10. Except for services provided by veterinarians and except for installing or applying tangible personal property that, subject to par. (ag), when installed or applied, will constitute an addition or capital improvement of real property, the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, and maintenance of all items of tangible personal property , items and property under sub. (1) (b) and (c), specified digital goods, and additional digital goods, unless, at the time of that the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance, a sale in this state of the type of property, items, or goods repaired, serviced, altered, fitted, cleaned, painted, coated, towed, inspected, or maintained would have been exempt to the customer from sales taxation under this subchapter, other than the exempt sale of a motor vehicle or truck body to a nonresident under s. 77.54 (5) (a) and other than nontaxable sales under s. 77.51 (14r) juvenile 77.522 or unless the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance is provided under a contract that is subject to tax under subd. 13m. The tax imposed under this subsection applies to the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance of items listed in par. (ag), regardless of whether the installation or application of tangible personal property, items or property under sub. (1) (b) or (c), specified digital goods, or additional digital goods related to the items is an addition to or a capital improvement of real property, except that the tax imposed under this subsection does not apply to the original installation or the complete replacement of an item listed in par. (ag), if that the installation or replacement is a real property construction activity under s. 77.51 (2).

SB40-SSA1, s. 2297m Section 2297m. 77.52 (2) (a) 11. of the statutes is amended to read:

SB40-SSA1,1100,23 77.52 (2) (a) 11. The producing, fabricating, processing, printing or imprinting of tangible personal property, items and property under sub. (1) (b) and (c), specified digital goods, and additional digital goods for a consideration for consumers who furnish directly or indirectly the materials used in the producing, fabricating, processing, printing or imprinting. This subdivision does not apply to the printing or imprinting of tangible personal property, items and property under sub. (1) (b) and (c), specified digital goods, and additional digital goods which will be subsequently transported outside the state for use outside the state by the consumer for advertising purposes.

SB40-SSA1, s. 2297p Section 2297p. 77.52 (2) (a) 11. of the statutes, as affected by 2007 Wisconsin Act .... (this act), is repealed and recreated to read:

SB40-SSA1,1101,8 77.52 (2) (a) 11. The producing, fabricating, processing, printing or imprinting of tangible personal property, items and property under sub. (1) (b) and (c), specified digital goods, and additional digital goods for a consideration for consumers who furnish directly or indirectly the materials used in the producing, fabricating, processing, printing or imprinting. This subdivision does not apply to the printing or imprinting of tangible personal property, items and property under sub. (1) (b) and (c), specified digital goods, and additional digital goods that results in printed material, catalogs, or envelopes that are exempt under s. 77.54 (25) or (25m).

SB40-SSA1, s. 2298 Section 2298. 77.52 (2) (a) 13m. of the statutes is created to read:

SB40-SSA1,1101,16 77.52 (2) (a) 13m. The sale of contracts, including service contracts, maintenance agreements, and warranties, that provide, in whole or in part, for the future performance of or payment for the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance of tangible personal property, specified digital goods, and additional digital goods, unless the sale, lease, or rental in this state of the property, items, or digital goods to which the contract relates is or was exempt, to the purchaser of the contract, from taxation under this subchapter.

SB40-SSA1, s. 2299 Section 2299. 77.52 (2m) (a) of the statutes is amended to read:

SB40-SSA1,1101,23 77.52 (2m) (a) With respect to the services subject to tax under sub. (2), no part of the charge for the service may be deemed a sale or rental of tangible personal property, items or property under sub. (1) (b) or (c), specified digital goods, or additional digital goods, if the property, items, or digital goods transferred by the service provider is are incidental to the selling, performing or furnishing of the service, except as provided in par. (b).

SB40-SSA1, s. 2300 Section 2300. 77.52 (2m) (b) of the statutes is amended to read:

SB40-SSA1,1102,7 77.52 (2m) (b) With respect to the services subject to tax under sub. (2) (a) 7., 10., 11. and 20., all property, items or property under sub. (1) (b) or (c), specified digital goods, or additional digital goods, physically transferred , or transferred electronically, to the customer in conjunction with the selling, performing or furnishing of the service is a sale of tangible personal property, items or property under sub. (1) (b) or (c), specified digital goods, or additional digital goods separate from the selling, performing or furnishing of the service.

SB40-SSA1, s. 2301 Section 2301. 77.52 (3m) of the statutes is repealed.

SB40-SSA1, s. 2302 Section 2302. 77.52 (3n) of the statutes is repealed.

SB40-SSA1, s. 2303 Section 2303. 77.52 (4) of the statutes is amended to read:

SB40-SSA1,1102,16 77.52 (4) It is unlawful for any retailer to advertise or hold out or state to the public or to any customer, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the retailer or that it will not be added to the selling price of the property, items or property under sub. (1) (b) or (c), specified digital goods, or additional digital goods sold or that if added it, or any part thereof, will be refunded. Any person who violates this subsection is guilty of a misdemeanor.

SB40-SSA1, s. 2304 Section 2304. 77.52 (6) of the statutes is repealed.

SB40-SSA1, s. 2305 Section 2305. 77.52 (7) of the statutes is amended to read:

SB40-SSA1,1103,7 77.52 (7) Every person desiring to operate as a seller within this state who holds a valid certificate under s. 73.03 (50) shall file with the department an application for a permit for each place of operations. Every application for a permit shall be made upon a form prescribed by the department and shall set forth the name under which the applicant intends to operate, the location of the applicant's place of operations, and the other information that the department requires. The Except as provided in sub. (7b), the application shall be signed by the owner if a sole proprietor; in the case of sellers other than sole proprietors, the application shall be signed by the person authorized to act on behalf of such sellers. A nonprofit organization that has gross receipts a sales price taxable under s. 77.54 (7m) shall obtain a seller's permit and pay taxes under this subchapter on all taxable gross receipts sales prices received after it is required to obtain that permit. If that organization becomes eligible later for the exemption under s. 77.54 (7m) except for its possession of a seller's permit, it may surrender that permit.

SB40-SSA1, s. 2306 Section 2306. 77.52 (7b) of the statutes is created to read:

SB40-SSA1,1103,11 77.52 (7b) Any person who may register under sub. (7) may designate an agent, as defined in s. 77.524 (1) (ag), to register with the department under sub. (7), in the manner prescribed by the department.

SB40-SSA1, s. 2307 Section 2307. 77.52 (12) of the statutes is amended to read:

SB40-SSA1,1103,24 77.52 (12) A person who operates as a seller in this state without a permit or after a permit has been suspended or revoked or has expired, unless the person has a temporary permit under sub. (11), and each officer of any corporation, partnership member, limited liability company member, or other person authorized to act on behalf of a seller who so operates, is guilty of a misdemeanor. Permits shall be held only by persons actively operating as sellers of tangible personal property, items or property under sub. (1) (b) or (c), specified digital goods, additional digital goods, or taxable services. Any person not so operating shall forthwith surrender that person's permit to the department for cancellation. The department may revoke the permit of a person found not to be actively operating as a seller of tangible personal property, items or property under sub. (1) (b) or (c), specified digital goods, additional digital goods, or taxable services.

SB40-SSA1, s. 2308 Section 2308. 77.52 (13) of the statutes is amended to read:

SB40-SSA1,1104,19 77.52 (13) For the purpose of the proper administration of this section and to prevent evasion of the sales tax it shall be presumed that all receipts are subject to the tax until the contrary is established. The burden of proving that a sale of tangible personal property, items or property under sub. (1) (b) or (c), specified digital goods, additional digital goods, or services is not a taxable sale at retail is upon the person who makes the sale unless that person takes from the purchaser a an electronic or a paper certificate, in a manner prescribed by the department, to the effect that the property, items or property under sub. (1) (b) or (c), digital good, or service is purchased for resale or is otherwise exempt;, except that no certificate is required for sales of cattle, sheep, goats, and pigs that are sold at an animal market, as defined in s. 95.68 (1) (ag), and no certificate is required for sales of commodities, as defined in 7 USC 2, that are consigned for sale in a warehouse in or from which the commodity is deliverable on a contract for future delivery subject to the rules of a commodity market regulated by the U.S. commodity futures trading commission if upon the sale the commodity is not removed from the warehouse the sale of tangible personal property, items and property under sub. (1) (b) and (c), specified digital goods, additional digital goods, and services that are exempt under s. 77.54 (7), (7m), (8), (10), (11), (14), (15), (17), (20n), (21), (22b), (30), (31), (32), (35), (36), (37), (42), (44), (45), (46), (51), and (52), except as provided in s. 77.54 (30) (e) and (f).