LRB-3293/1
JK:kmg:km
1999 - 2000 LEGISLATURE
September 2, 1999 - Introduced by Representatives Gunderson, Ladwig,
Grothman, Pettis, Musser, Klusman, Gundrum, Plouff, Kedzie, Gronemus,
Nass, Kelso, Hasenohrl, Owens, Olsen, Sykora, La Fave, Wasserman,
Petrowski, F. Lasee and Seratti, cosponsored by Senators Lazich and
Roessler. Referred to Committee on Ways and Means.
AB441,1,3
1An Act to amend 77.52 (1), 77.52 (2) (intro.) and 77.53 (1); and
to create 77.51
2(18g) and 77.52 (2p) of the statutes;
relating to: reducing the sales tax rate and
3the use tax rate.
Analysis by the Legislative Reference Bureau
Under current law, the state imposes a sales tax on all retailers at the rate of
5% of the gross receipts from the sale, lease or rental of tangible personal property
and the sale of services. Retailers generally pass on the sales tax to the consumer.
Under current law, the state imposes a use tax on all consumers, at the rate of 5%
of the sales price, for the consumption, use or storage of goods in this state that the
consumer purchases from an out-of-state retailer and the consumption or use of
services in this state that the consumer purchases from an out-of-state retailer.
Under this bill, the rate of the sales tax is 4.5% of the gross receipts from the
sale, lease or rental of tangible personal property and the sale of services. Under the
bill, the rate of the use tax is 4.5% of the sales price for the consumption, use or
storage of goods in this state that the consumer purchases from an out-of-state
retailer and 4.5% for the consumption or use of services in this state that the
consumer purchases from an out-of-state retailer.
Under the bill, by July 31, 2001, the department of revenue must determine if
there is a surplus of unappropriated general purpose revenues, for purposes of the
state budget. If there is a surplus of at least $153,000,000 but less than
$300,000,000, the sales tax and the use tax rates are 4.25% beginning on October 1,
2001. If there is a surplus of at least $300,000,000, the sales tax and the use tax rates
are 4% beginning on October 1, 2001. If the surplus is less than $153,000,000, the
sales tax and the use tax rates remain at 4.5%.
For further information see the state and local 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:
AB441, s. 1
1Section
1. 77.51 (18g) of the statutes is created to read:
AB441,2,62
77.51
(18g) "Surplus" means the amount obtained by subtracting the
3department's estimate of the amount of unappropriated general purpose revenues
4on July 1, 1999, from the department's estimate of the amount of unappropriated
5general purpose revenues on June 30, 2000, except that neither estimate may
6include the required general fund balance as described in s. 20.003 (4).
AB441, s. 2
7Section
2. 77.52 (1) of the statutes is amended to read:
AB441,2,138
77.52
(1) For the privilege of selling, leasing or renting tangible personal
9property, including accessories, components, attachments, parts, supplies and
10materials, at retail a tax is imposed upon all retailers at the rate of
5% 4.5%, except
11as provided under sub. (2p), of the gross receipts from the sale, lease or rental of
12tangible personal property, including accessories, components, attachments, parts,
13supplies and materials, sold, leased or rented at retail in this state.
AB441, s. 3
14Section
3. 77.52 (2) (intro.) of the statutes is amended to read:
AB441,2,1915
77.52
(2) (intro.) For the privilege of selling, performing or furnishing the
16services described under par. (a) at retail in this state to consumers or users, a tax
17is imposed upon all persons selling, performing or furnishing the services at the rate
18of
5% 4.5%, except as provided under sub. (2p), of the gross receipts from the sale,
19performance or furnishing of the services.
AB441, s. 4
20Section
4. 77.52 (2p) of the statutes is created to read:
AB441,3,6
177.52
(2p) By July 31, 2001, the department shall determine the surplus. If
2the surplus is at least $153,000,000 but less than $300,000,000, the rates under subs.
3(1) and (2) and under s. 77.53 (1) shall be 4.25% beginning on October 1, 2001. If the
4surplus is at least $300,000,000, the rates under subs. (1) and (2) and under s. 77.53
5(1) shall be 4% beginning on October 1, 2001. The department shall publish any
6change to the rates occurring as a result of this subsection by August 31, 2001.
AB441, s. 5
7Section
5. 77.53 (1) of the statutes is amended to read:
AB441,3,168
77.53
(1) Except as provided in sub. (1m)
and s. 77.52 (2p), an excise tax is
9levied and imposed on the use or consumption in this state of taxable services under
10s. 77.52 purchased from any retailer, at the rate of
5% 4.5% of the sales price of those
11services; on the storage, use or other consumption in this state of tangible personal
12property purchased from any retailer, at the rate of
5% 4.5% of the sales price of that
13property; and on the storage, use or other consumption of tangible personal property
14manufactured, processed or otherwise altered, in or outside this state, by the person
15who stores, uses or consumes it, from material purchased from any retailer, at the
16rate of
5% 4.5% of the sales price of that material.
AB441,3,1818
(1)
This act takes effect on July 1, 2000.
