SB40: Bill Text

SB40,1080,13 77.51 (7) (a) "Lease or rental" means any transfer of possession or control of tangible personal property for a fixed or indeterminate term and for consideration and includes:

SB40,1080,14 1. A transfer that includes future options to purchase or extend.

SB40,1080,18 2. Agreements related to the transfer of possession or control of motor vehicles or trailers, if the amount of any consideration may be increased or decreased by reference to the amount realized on the sale or other disposition of such motor vehicles or trailers, consistent with section 7701 (h) (1) of the Internal Revenue Code.

SB40,1080,19 (b) "Lease or rental" does not include any of the following:

SB40,1080,23 1. A transfer of possession or control of tangible personal property under a security agreement or deferred payment plan, if such agreement or plan requires transferring title to the tangible personal property after making all required payments.

SB40,1081,2 2. A transfer of possession or control of tangible personal property under any agreement that requires transferring title to the tangible personal property after making all required payments and after paying an option price that does not exceed the greater of $100 or 1 percent of the total amount of the required payments.

SB40,1081,6 3. Providing tangible personal property along with an operator, if the operator is necessary for the tangible personal property to perform in the manner for which it is designed and if the operator does more than maintain, inspect, or set up the tangible personal property.

SB40,1081,10 (c) 1. Transfers described under par. (a) are considered a lease or rental, regardless of whether such transfer is considered a lease or rental under generally accepted accounting principles, or any provision of federal or local law, or any other provision of state law.

SB40,1081,14 2. Transfers described under par. (b) are not considered a lease or rental, regardless of whether such transfer is considered a lease or rental under generally accepted accounting principles, or any provision of federal or local law, or any other provision of state law.

SB40, s. 2207 Section 2207. 77.51 (7g) of the statutes is created to read:

SB40,1081,17 77.51 (7g) "Load-and-leave" means delivery to a purchaser by using a tangible storage media that is not physically transferred to the purchaser.

SB40, s. 2208 Section 2208. 77.51 (7k) of the statutes is created to read:

SB40,1081,23 77.51 (7k) "Mobile wireless service" means a telecommunications service for which the origination or termination points of the service's transmission, conveyance, or routing are not fixed, regardless of the technology used to transmit, convey, or route the service. "Mobile wireless service" includes a telecommunications service provided by a commercial mobile radio service provider.

SB40, s. 2209 Section 2209. 77.51 (7m) of the statutes is created to read:

SB40,1082,7 77.51 (7m) "Mobility-enhancing equipment" means equipment, including the repair parts and replacement parts for the equipment, that is primarily and customarily used to provide or increase the ability of a person to move from one place to another; that may be used in a home or motor vehicle; and that is generally not used by a person who has normal mobility. "Mobility-enhancing equipment" does not include a motor vehicle or any equipment on a motor vehicle that is generally provided by a motor vehicle manufacturer.

SB40, s. 2210 Section 2210. 77.51 (8m) of the statutes is created to read:

SB40,1082,16 77.51 (8m) "Nine hundred service" means an inbound toll telecommunications service purchased by a subscriber that allows the subscriber's customers to call the subscriber's prerecorded announcement or live service. "Nine hundred service" does not include any charge for collection services provided by the seller of the telecommunications services to the subscriber or for any product or service the subscriber sells to the subscriber's customers. A "nine hundred service" is designated with the "900" number or any other number designated by the federal communications commission.

SB40, s. 2211 Section 2211. 77.51 (9) (a) of the statutes is amended to read:

SB40,1083,3 77.51 (9) (a) Isolated and sporadic sales of tangible personal property, specified digital goods, additional digital goods, or taxable services where the infrequency, in relation to the other circumstances, including the sales price and the gross profit, support the inference that the seller is not pursuing a vocation, occupation or business or a partial vocation or occupation or part-time business as a vendor of personal property, specified digital goods, additional digital goods, or taxable services. No sale of any tangible personal property, specified digital goods, additional digital goods, or taxable service may be deemed an occasional sale if at the time of such sale the seller holds or is required to hold a seller's permit, except that this provision does not apply to an organization required to hold a seller's permit solely for the purpose of conducting bingo games and except as provided in par. (am).

SB40, s. 2212 Section 2212. 77.51 (9) (am) of the statutes is amended to read:

SB40,1083,10 77.51 (9) (am) The sale of personal property, other than inventory held for sale, previously used by a seller to conduct its trade or business at a location after that person has ceased actively operating in the regular course of business as a seller of tangible personal property, specified digital goods, additional digital goods, or taxable services at that location, even though the seller holds a seller's permit for one or more other locations.

SB40, s. 2213 Section 2213. 77.51 (9p) of the statutes is created to read:

SB40,1083,16 77.51 (9p) "One nonitemized price" does not include a price that is separately identified by product on a binding sales document, or other sales-related document, that is made available to the customer in paper or electronic form, including an invoice, a bill of sale, a receipt, a contract, a service agreement, a lease agreement, a periodic notice of rates and services, a rate card, or a price list.

SB40, s. 2214 Section 2214. 77.51 (9s) of the statutes is created to read:

SB40,1083,19 77.51 (9s) "Paging service" means a telecommunications service that transmits coded radio signals to activate specific pagers and may include messages or sounds.

SB40, s. 2215 Section 2215. 77.51 (10) of the statutes is amended to read:

SB40,1084,4 77.51 (10) "Person" includes any natural person, firm, partnership, limited liability company, joint venture, joint stock company, association, public or private corporation, the United States, the state, including any unit or division of the state, any county, city, village, town, municipal utility, municipal power district or other governmental unit, cooperative, unincorporated cooperative association, estate, trust, receiver, personal representative, any other fiduciary, any other legal entity, and any representative appointed by order of any court or otherwise acting on behalf of others. "Person" also includes the owner of a single-owner entity that is disregarded as a separate entity under ch. 71.

SB40, s. 2216 Section 2216. 77.51 (10d) of the statutes is created to read:

SB40,1084,10 77.51 (10d) "Prepaid calling service" means the right to exclusively access telecommunications services, if that right is paid for in advance of providing such services, requires using an access number or authorization code to originate calls, and is sold in predetermined units or dollars that decrease with use in a known amount.

SB40, s. 2217 Section 2217. 77.51 (10f) of the statutes is created to read:

SB40,1084,17 77.51 (10f) "Prepaid wireless calling service" means a telecommunications service that provides the right to utilize mobile wireless service as well as other nontelecommunications services, including the download of digital products delivered electronically, content, and ancillary services, and that is paid for prior to use and sold in predetermined dollar units whereby the number of units declines with use in a known amount.

SB40, s. 2218 Section 2218. 77.51 (10m) of the statutes is created to read:

SB40,1084,19 77.51 (10m) (a) "Prepared food" means:

SB40,1084,20 1. Food and food ingredients sold in a heated state.

SB40,1084,22 2. Food and food ingredients heated by the retailer, except as provided in par. (b).

SB40,1085,2 3. Food and food ingredients sold with eating utensils that are provided by the retailer of the food and food ingredients, including plates, knives, forks, spoons, glasses, cups, napkins, or straws. In this subdivision, "plate" does not include a container or packaging used to transport food and food ingredients. For purposes of this subdivision, a retailer provides utensils if any of the following applies:

SB40,1085,6 a. The utensils are available to purchasers and the retailer's sales of prepared food under subds. 1. and 2., soft drinks, and alcoholic beverages at an establishment are more than 75 percent of the retailer's total sales at that establishment, as determined under par. (c).

SB40,1085,10 b. For retailers not described under subd. 3. a., the retailer's customary practice is to physically give or hand the utensils to the purchaser, not including plates, glasses, or cups that are necessary for the purchaser to receive the food and food ingredients and that the retailer makes available to the purchaser.

SB40,1085,12 4. Except as provided in par. (b), 2 or more food ingredients mixed or combined by a retailer for sale as a single item.

SB40,1085,13 (b) "Prepared food" under par. (a) 2. and 4. does not include:

SB40,1085,18 1. Two or more food ingredients mixed or combined by a retailer for sale as a single item, if the retailer'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, not including bakeries and tortilla manufacturing under industry group number 3118.

SB40,1085,20 2. Two or more food ingredients mixed or combined by a retailer for sale as a single item, sold unheated, and sold by volume or weight.

SB40,1085,23 3. Bakery items made by a retailer, including breads, rolls, pastries, buns, biscuits, bagels, croissants, donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, and tortillas.

SB40,1085,25 4. Food and food ingredients that are only sliced, repackaged, or pasteurized by a retailer.

SB40,1086,4 5. Eggs, fish, meat, and poultry, and foods containing any of them in raw form, that require cooking by the consumer, as recommended by the food and drug administration in chapter 3, part 401.11 of its food code to prevent food-borne illnesses.

SB40,1086,6 (c) 1. The percentage specified under par. (a) 3. a. shall be determined using the following:

SB40,1086,9 a. A numerator that includes sales of prepared food, as defined in par. (a) 1. and 2. and food for which plates, bowls, glasses, or cups are necessary to receive the food, but not including alcoholic beverages.

SB40,1086,12 b. A denominator that includes all food and food ingredients, including prepared food, candy, dietary supplements, and soft drinks, but not including alcoholic beverages.

SB40,1086,17 2. a. If the percentage determined under subd. 1. is 75 percent or less, utensils are considered to be provided by the retailer if the retailer's customary practice is to physically give or hand the utensils to the purchaser or, in the case of plates, bowls, glasses, or cups that are necessary to receive the food, to make such items available to the purchaser.

SB40,1086,20 b. If the percentage determined under subd. 1. is greater than 75 percent, utensils are considered to be provided by the retailer if the utensils are made available to the purchaser.

SB40,1087,3 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.

SB40,1087,6 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.

SB40,1087,11 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.

SB40,1087,24 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.

SB40, s. 2219 Section 2219. 77.51 (10n) of the statutes is created to read:

SB40,1088,3 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.

SB40, s. 2220 Section 2220. 77.51 (10r) of the statutes is created to read:

SB40,1088,5 77.51 (10r) "Prewritten computer software" means any of the following:

SB40,1088,7 (a) Computer software that is not designed and developed by the author or creator of the software according to a specific purchaser's specifications.

SB40,1088,9 (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.

SB40,1088,12 (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.

SB40,1088,14 (d) Any combination of computer software under pars. (a) to (c), including any combination with any portion of such software.

SB40,1088,19 (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.

SB40, s. 2221 Section 2221. 77.51 (10s) of the statutes is created to read:

SB40,1089,2 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.

SB40, s. 2222 Section 2222. 77.51 (11d) of the statutes is created to read:

SB40,1089,5 77.51 (11d) "Product" includes tangible personal property, specified digital goods, additional digital goods, and services.

SB40, s. 2223 Section 2223. 77.51 (11m) of the statutes is created to read:

SB40,1089,10 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.

SB40, s. 2224 Section 2224. 77.51 (12) (a) of the statutes is amended to read:

SB40,1089,15 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, specified digital goods, or additional digital goods for a consideration;

SB40, s. 2225 Section 2225. 77.51 (12) (b) of the statutes is amended to read:

SB40,1089,19 77.51 (12) (b) A transaction whereby the possession of property, specified digital goods, or additional digital goods is transferred but the seller retains the title as security for the payment of the price.

SB40, s. 2226 Section 2226. 77.51 (12m) of the statutes is created to read:

SB40,1089,25 77.51 (12m) (a) "Purchase price" means the total amount of consideration, including cash, credit, property, and services, for which tangible personal property, specified digital goods, additional digital goods, or services are sold, leased, or rented, valued in money, whether paid in money or otherwise, without any deduction for the following:

SB40,1090,2 1. The seller's cost of the property, specified digital goods, or additional digital goods sold.

SB40,1090,5 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.

SB40,1090,7 3. Charges by the seller for any services necessary to complete a sale, not including delivery and installation charges.

SB40,1090,8 4. a. Delivery charges, except as provided in par. (b) 4.

SB40,1090,15 b. If a shipment includes property that is subject to tax under this subchapter and property that is not subject to tax under this subchapter, the amount of the delivery charge allocated to the property that is subject to tax under this subchapter based on the total purchase price of the property that is subject to tax under this subchapter as compared to the total purchase price of all the property or on the total weight of the property that is subject to tax under this subchapter as compared to the total weight of all the property.

SB40,1090,16 5. Installation charges.

SB40,1090,17 (b) "Purchase price" does not include:

SB40,1090,20 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.

SB40,1090,24 2. Interest, financing, and carrying charges from credit that is extended on a sale of personal property, specified digital goods, additional digital goods, 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.

SB40,1091,3 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.

SB40,1091,4 4. Delivery charges for direct mail.

SB40,1091,8 5. In all transactions in which an article of tangible personal property is traded toward the purchase of an article of greater value, the amount of the purchase price that represents the amount allowed for the article traded, except that this subdivision does not apply to any transaction to which subd. 7. or 8. applies.

SB40,1091,15 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.

SB40,1091,21 7. Thirty-five percent of the purchase price, excluding trade-ins, of a new mobile home, as defined in s. 340.01 (29), that is a primary housing unit or of a new mobile home, as defined in s. 340.01 (29), that is transported in 2 unattached sections if the total size of the combined sections, not including additions and attachments, is at least 984 square feet measured when the sections are ready for transport. This subdivision does not apply to a lease or rental.