SB40: Bill Text

SB40, s. 2236 Section 2236. 77.51 (13) (n) of the statutes is amended to read:

SB40,1095,2 77.51 (13) (n) A person selling household furniture, furnishings, equipment, appliances or other items of tangible personal property, specified digital goods, or additional digital goods to a landlord for use by tenants in leased or rented living quarters.

SB40, s. 2237 Section 2237. 77.51 (13) (o) of the statutes is amended to read:

SB40,1095,5 77.51 (13) (o) A person selling medicine drugs for animals to a veterinarian. As used in this paragraph, "animal" includes livestock, pets and poultry.

SB40, s. 2238 Section 2238. 77.51 (13g) (intro.) of the statutes is amended to read:

SB40,1095,9 77.51 (13g) (intro.) Except as provided in sub. (13h), "retailer engaged in business in this state", unless otherwise limited by federal statute, for purposes of the use tax, means any of the following:

SB40, s. 2239 Section 2239. 77.51 (13g) (c) of the statutes is created to read:

SB40,1095,13 77.51 (13g) (c) Any retailer selling tangible personal property or taxable services for storage, use, or other consumption in this state, unless otherwise limited by federal law.

SB40, s. 2240 Section 2240. 77.51 (13r) of the statutes is amended to read:

SB40,1095,17 77.51 (13r) Any person purchasing from a retailer as defined in sub. (13) shall be deemed the consumer of the tangible personal property, specified digital goods, additional digital goods, or services purchased.

SB40, s. 2241 Section 2241. 77.51 (13rm) of the statutes is created to read:

SB40,1095,20 77.51 (13rm) "Retail sale" or "sale at retail" means any sale, lease, or rental for any purpose other than resale, sublease, or subrent.

SB40, s. 2242 Section 2242. 77.51 (13rn) of the statutes is created to read:

SB40,1095,25 77.51 (13rn) "Ringtones" means digitized sound files that are downloaded onto a device and that may be used to alert the customer with regard to a communication. "Ringtones" includes MP3 or musical tones, polyphonic tones, and synthetic music mobile application format tones, but does not include ring-back tones.

SB40, s. 2243 Section 2243. 77.51 (14) (intro.) of the statutes is amended to read:

SB40,1096,7 77.51 (14) (intro.) "Sale", "sale, lease or rental", "retail sale", "sale at retail", or equivalent terms include includes any one or all of the following: the transfer of the ownership of, title to, possession of, or enjoyment of tangible personal property, specified digital goods, additional digital goods, or services for use or consumption but not for resale as tangible personal property, specified digital goods, additional digital goods, or services and includes:

SB40, s. 2244 Section 2244. 77.51 (14) (a) of the statutes is amended to read:

SB40,1096,14 77.51 (14) (a) Any sale at an auction in with respect to tangible personal property, specified digital goods, or additional digital goods which is are sold to a successful bidder. The proceeds from, except the sale of property or goods sold at auction which is are bid in by the seller and on which title does not pass to a new purchaser shall be deducted from the gross proceeds of the sale and the tax paid only on the net proceeds.

SB40, s. 2245 Section 2245. 77.51 (14) (b) of the statutes is amended to read:

SB40,1096,18 77.51 (14) (b) The furnishing or distributing of tangible personal property, specified digital goods, additional digital goods, or taxable services for a consideration by social clubs and fraternal organizations to their members or others.

SB40, s. 2246 Section 2246. 77.51 (14) (c) of the statutes is amended to read:

SB40,1096,22 77.51 (14) (c) A transaction whereby the possession of tangible personal property is, specified digital goods, or additional digital goods are transferred but the seller retains the title as security for the payment of the price.

SB40, s. 2247 Section 2247. 77.51 (14) (d) of the statutes is repealed.

SB40, s. 2248 Section 2248. 77.51 (14) (g) of the statutes is renumbered 77.51 (15a) (b) 4.

SB40, s. 2249 Section 2249. 77.51 (14) (h) of the statutes is amended to read:

SB40,1097,4 77.51 (14) (h) A transfer for a consideration of the title or possession of tangible personal property, specified digital goods, or additional digital goods which has have been produced, fabricated, or printed to the special order of the customer or of any publication.

SB40, s. 2250 Section 2250. 77.51 (14) (i) of the statutes is repealed.

SB40, s. 2251 Section 2251. 77.51 (14) (j) of the statutes is amended to read:

SB40,1097,12 77.51 (14) (j) The granting of possession of tangible personal property, specified digital goods, or additional digital goods by a lessor to a lessee, or to another person at the direction of the lessee. Such a transaction is deemed a continuing sale in this state by the lessor for the duration of the lease as respects any period of time the leased property is situated in this state, irrespective of the time or place of delivery of the property to the lessee or such other person.

SB40, s. 2252 Section 2252. 77.51 (14) (k) of the statutes is repealed.

SB40, s. 2253 Section 2253. 77.51 (14) (L) of the statutes is repealed.

SB40, s. 2254 Section 2254. 77.51 (14g) (a) of the statutes is amended to read:

SB40,1097,18 77.51 (14g) (a) The transfer of property, specified digital goods, or additional digital goods to a corporation upon its organization solely in consideration for the issuance of its stock;

SB40, s. 2255 Section 2255. 77.51 (14g) (b) of the statutes is amended to read:

SB40,1097,22 77.51 (14g) (b) The contribution of property, specified digital goods, or additional digital goods to a newly formed partnership solely in consideration for a partnership interest therein;

SB40, s. 2256 Section 2256. 77.51 (14g) (bm) of the statutes is amended to read:

SB40,1098,3 77.51 (14g) (bm) The contribution of property , specified digital goods, or additional digital goods to a limited liability company upon its organization solely in consideration for a membership interest;

SB40, s. 2257 Section 2257. 77.51 (14g) (c) of the statutes is amended to read:

SB40,1098,7 77.51 (14g) (c) The transfer of property, specified digital goods, or additional digital goods to a corporation, solely in consideration for the issuance of its stock, pursuant to a merger or consolidation;

SB40, s. 2258 Section 2258. 77.51 (14g) (cm) of the statutes is amended to read:

SB40,1098,11 77.51 (14g) (cm) The transfer of property, specified digital goods, or additional digital goods to a limited liability company, solely in consideration for a membership interest, pursuant to a merger;

SB40, s. 2259 Section 2259. 77.51 (14g) (d) of the statutes is amended to read:

SB40,1098,15 77.51 (14g) (d) The distribution of property, specified digital goods, or additional digital goods by a corporation to its stockholders as a dividend or in whole or partial liquidation;

SB40, s. 2260 Section 2260. 77.51 (14g) (e) of the statutes is amended to read:

SB40,1098,19 77.51 (14g) (e) The distribution of property, specified digital goods, or additional digital goods by a partnership to its partners in whole or partial liquidation;

SB40, s. 2261 Section 2261. 77.51 (14g) (em) of the statutes is amended to read:

SB40,1098,23 77.51 (14g) (em) The distribution of property, specified digital goods, or additional digital goods by a limited liability company to its members in whole or partial liquidation;

SB40, s. 2262 Section 2262. 77.51 (14g) (f) of the statutes is amended to read:

SB40,1099,4 77.51 (14g) (f) Repossession of property , specified digital goods, or additional digital goods by the seller from the purchaser when the only consideration is cancellation of the purchaser's obligation to pay the remaining balance of the purchase price;

SB40, s. 2263 Section 2263. 77.51 (14g) (g) of the statutes is amended to read:

SB40,1099,8 77.51 (14g) (g) The transfer of property, specified digital goods, or additional digital goods in a reorganization as defined in section 368 of the internal revenue code in which no gain or loss is recognized for franchise or income tax purposes; or

SB40, s. 2264 Section 2264. 77.51 (14g) (h) of the statutes is amended to read:

SB40,1099,18 77.51 (14g) (h) Any transfer of all or substantially all the property, specified digital goods, or additional digital goods held or used by a person in the course of an activity requiring the holding of a seller's permit, if after the transfer the real or ultimate ownership of the property or goods is substantially similar to that which existed before the transfer. For the purposes of this section, stockholders, bondholders, partners, members or other persons holding an interest in a corporation or other entity are regarded as having the real or ultimate ownership of the property or goods of the corporation or other entity. In this paragraph, "substantially similar" means 80% or more of ownership.

SB40, s. 2265 Section 2265. 77.51 (14r) of the statutes is repealed.

SB40, s. 2266 Section 2266. 77.51 (15) of the statutes is repealed.

SB40, s. 2267 Section 2267. 77.51 (15a) of the statutes is created to read:

SB40,1100,4 77.51 (15a) (a) "Sales, lease, or rental for resale, sublease, or subrent" includes transfers of tangible personal property, specified digital goods, or additional digital goods to a service provider that the service provider transfers in conjunction with but not incidental to the selling, performing, or furnishing of any service, and transfers of tangible personal property, specified digital goods, or additional digital goods to a service provider that the service provider physically transfers in conjunction with the selling, performing, or furnishing services under s. 77.52 (2) (a) 7., 10., 11., or 20. This paragraph does not apply to sub. (2).

SB40,1100,6 (b) "Sales, lease, or rental for resale, sublease, or subrent" does not include any of the following:

SB40,1100,10 1. The sale of building materials, supplies, and equipment to owners, contractors, subcontractors, or builders for use in real property construction activities or the alteration, repair, or improvement of real property, regardless of the quantity of such materials, supplies, and equipment sold.

SB40,1100,17 2. Any sale of tangible personal property, specified digital goods, or additional digital goods to a purchaser even though such property or goods may be used or consumed by some other person to whom such purchaser transfers the tangible personal property or goods without valuable consideration, such as gifts, and advertising specialties distributed at no charge and apart from the sale of other tangible personal property, specified digital goods, additional digital goods, or service.

SB40,1100,23 3. Transfers of tangible personal property, specified digital goods, or additional digital goods to a service provider that the service provider transfers in conjunction with the selling, performing, or furnishing of any service, if the tangible personal property, specified digital goods, or additional digital goods are incidental to the service, unless the service provider is selling, performing, or furnishing services under s. 77.52 (2) (a) 7., 10., 11., or 20.

SB40, s. 2268 Section 2268. 77.51 (15b) of the statutes is created to read:

SB40,1101,5 77.51 (15b) (a) "Sales 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 received in money or otherwise, without any deduction for the following:

SB40,1101,7 1. The seller's cost of the property, specified digital goods, or additional digital goods sold.

SB40,1101,10 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.

SB40,1101,12 3. Charges by the seller for any services necessary to complete a sale, not including delivery and installation charges.

SB40,1101,13 4. a. Delivery charges, except as provided in par. (b) 4.

SB40,1101,20 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 sales price of the property that is subject to tax under this subchapter as compared to the total sales 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.

SB40,1101,21 5. Installation charges.

SB40,1101,22 (b) "Sales price" does not include:

SB40,1101,25 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.

SB40,1102,5 2. Interest, financing, and carrying charges from credit that is extended on a sale of tangible 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.

SB40,1102,8 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.

SB40,1102,9 4. Delivery charges for direct mail.

SB40,1102,13 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 sales 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.

SB40,1102,20 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 sales 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.

SB40,1103,2 7. Thirty-five percent of the sales 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.

SB40,1103,8 8. At the retailer's option; except that after the retailer chooses an option the retailer may not use the other option for other sales without the department's written approval; either 35 percent of the sales price of a manufactured building, as defined in s. 101.71 (6), or an amount equal to the sales price of the manufactured building minus the cost of materials that become an ingredient or component part of the building.

SB40,1103,10 (c) "Sales price" includes consideration received by the seller from a 3rd party, if:

SB40,1103,13 1. The seller actually receives consideration from a 3rd party, other than the purchaser, and the consideration is directly related to a price reduction or discount on a sale.

SB40,1103,14 2. The seller is obliged to pass the price reduction or discount to the purchaser.

SB40,1103,17 3. The amount of the consideration that is attributable to the sale is a fixed amount and the seller is able to determine that amount at the time of the sale to the purchaser.

SB40,1103,18 4. Any of the following also applies:

SB40,1103,23 a. The purchaser presents a coupon, certificate, or other documentation to the seller to claim the price reduction or discount, if the coupon, certificate, or other documentation is authorized, distributed, or granted by the 3rd party with the understanding that the 3rd party will reimburse the seller for the amount of the price reduction or discount.

SB40,1103,25 b. The purchaser identifies himself or herself to the seller as a member of a group or organization that may claim the price reduction or discount.

SB40,1104,3 c. The seller provides an invoice to the purchaser, or the purchaser presents a coupon, certificate, or other documentation to the seller, that identifies the price reduction or discount as a 3rd-party price reduction or discount.

SB40, s. 2269 Section 2269. 77.51 (17) of the statutes is amended to read:

SB40,1104,9 77.51 (17) "Seller" includes every person selling, leasing, or renting tangible personal property, specified digital goods, or additional digital goods or selling, performing, or furnishing services of a kind the gross receipts sales price from the sale, lease, rental, performance, or furnishing of which are is required to be included in the measure of the sales tax.

SB40, s. 2270 Section 2270. 77.51 (17m) of the statutes is repealed and recreated to read: