LRB-3374/1
JK:cmh&jlg:mrc
1999 - 2000 LEGISLATURE
October 28, 1999 - Introduced by Senators Grobschmidt, Breske, Drzewiecki,
Burke, Darling and
Moore, cosponsored by Representatives Sinicki, F. Lasee,
Brandemuehl, Richards, Musser, Plale, Stone, Colon, Pettis, Albers,
Miller, Sykora, Ryba and Hasenohrl. Referred to Committee on Economic
Development, Housing and Government Operations.
SB266,1,4
1An Act to renumber 77.51 (4) (b) 3. and 77.51 (15) (b) 4.; and
to create 77.51 (4)
2(b) 3. b. and 77.51 (15) (b) 4. b. of the statutes;
relating to: changing the
3definition of gross receipts to exclude insurance settlement proceeds used to
4purchase a motor vehicle to replace a stolen motor vehicle.
Analysis by the Legislative Reference Bureau
Under current law, the state imposes a sales tax on retailers that sell goods or
services in this state. The state also imposes a use tax on goods or services purchased
outside of this state that are used in this state. The sales tax rate is 5% of the gross
receipts from the sale of goods or services. The use tax rate is 5% of the sales price
of goods or services. The consumer pays the use tax and the retailer, generally, passes
the sales tax onto the consumer.
Under current law, if a person purchases an automobile to replace an
automobile that has been stolen, the person pays a sales or use tax based on the full
purchase price of the replacement automobile.
Under this bill, if a person purchases an automobile to replace an automobile
that has been stolen, the person pays a sales tax or a use tax only on that part of the
purchase price that is the difference between the full purchase price of the
automobile and the amount received from an insurer as a settlement related to the
stolen automobile.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB266, s. 1
1Section
1. 77.51 (4) (b) 3. of the statutes is renumbered 77.51 (4) (b) 3. a.
SB266, s. 2
2Section
2. 77.51 (4) (b) 3. b. of the statutes is created to read:
SB266,2,73
77.51
(4) (b) 3. b. If a person purchases a motor vehicle to replace the person's
4stolen motor vehicle, and the person purchases the motor vehicle using proceeds from
5a settlement with an insurer related to the person's stolen motor vehicle, the gross
6receipts shall be that portion of the purchase price that is the difference between the
7full purchase price of the motor vehicle and the amount of the settlement proceeds.
SB266, s. 3
8Section
3. 77.51 (15) (b) 4. of the statutes is renumbered 77.51 (15) (b) 4. a.
SB266, s. 4
9Section
4. 77.51 (15) (b) 4. b. of the statutes is created to read:
SB266,2,1410
77.51
(15) (b) 4. b. If a person purchases a motor vehicle to replace the person's
11stolen motor vehicle, and the person purchases the motor vehicle using proceeds from
12a settlement with an insurer related to the person's stolen motor vehicle, the gross
13receipts shall be that portion of the purchase price that is the difference between the
14full purchase price of the motor vehicle and the amount of the settlement proceeds.
SB266,2,1716
(1)
This act takes effect on first day of the 2nd month beginning after
17publication.
