AB390: Bill Text

LRB-2438/5

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1999 - 2000 LEGISLATURE

1999 Assembly BILL 390

June 24, 1999 - Introduced by Representatives M. Lehman and Wood, by request of Department of Revenue. Referred to Committee on Ways and Means.

AB390,1,2 An Act to amend 77.51 (20) of the statutes; relating to: the definition of tangible personal property that is subject to a sales or use tax.

Analysis by the Legislative Reference Bureau

Under current law, the state generally imposes a sales tax on all retailers at the rate of 5% of the gross receipts from the sale of tangible personal property. The state also generally imposes a use tax on all consumers, at the rate of 5% of the sales price, for the consumption, use or storage of tangible personal property in this state that the consumer purchases from out-of-state retailers.

This bill clarifies the current law by specifying that tangible personal property, which is subject to a sales or use tax, includes books, videotapes, newspapers, magazines, video game cartridges, audiotapes, compact disks, laser disks, photocopies, artwork, and data, information or intellectual property transferred in a tangible form.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

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

AB390, s. 1 Section 1. 77.51 (20) of the statutes is amended to read:

AB390,2,8 77.51 (20) "Tangible personal property" means all tangible personal property of every kind and description 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; data, information or intellectual property transferred in tangible forms, including books, videotapes, newspapers, magazines, video game cartridges, audiotapes, compact disks, laser disks, photocopies and artwork; and computer programs except custom computer programs.

AB390,2,9 (End)