SB40: Bill Text

SB40, s. 2399 Section 2399. 77.54 (38) of the statutes is amended to read:

SB40,1149,25 77.54 (38) The gross receipts sales price from the sale of and the storage, use or other consumption of snowmobile trail groomers and attachments for them that are purchased, stored, used or consumed by a snowmobile club that meets at least 3 times a year, that has at least 10 members, that promotes snowmobiling and that participates in the department of natural resources' snowmobile program under s. 350.12 (4) (b).

SB40, s. 2400 Section 2400. 77.54 (39) of the statutes is amended to read:

SB40,1150,8 77.54 (39) The gross receipts sales price from the sale of and the storage, use or other consumption of off-highway, heavy mechanical equipment such as feller bunchers, slashers, delimbers, chippers, hydraulic loaders, loaders, skidder-forwarders, skidders, timber wagons and tractors used exclusively and directly in the harvesting or processing of raw timber products in the field by a person in the logging business. In this subsection, "heavy mechanical equipment" does not include hand tools such as axes, chains, chain saws and wedges.

SB40, s. 2401 Section 2401. 77.54 (40) of the statutes is repealed.

SB40, s. 2402 Section 2402. 77.54 (41) of the statutes is amended to read:

SB40,1150,15 77.54 (41) The gross receipts sales price from the sale of building materials, supplies and equipment to; and the storage, use or other consumption of those kinds of property by; owners, contractors, subcontractors or builders if that property is acquired solely for or used solely in, the construction, renovation or development of property that would be exempt under s. 70.11 (36).

SB40, s. 2403 Section 2403. 77.54 (42) of the statutes is amended to read:

SB40,1150,19 77.54 (42) The gross receipts sales price from the sale of and the storage, use or other consumption of animal identification tags provided under s. 93.06 (1h) and standard samples provided under s. 93.06 (1s).

SB40, s. 2404 Section 2404. 77.54 (43) of the statutes is amended to read:

SB40,1150,24 77.54 (43) The gross receipts sales price from the sale of and the storage, use or other consumption of raw materials used for the processing, fabricating or manufacturing of, or the attaching to or incorporating into, printed materials that are transported and used solely outside this state.

SB40, s. 2405 Section 2405. 77.54 (44) of the statutes, as affected by 2005 Wisconsin Act 141, is amended to read:

SB40,1151,4 77.54 (44) The gross receipts sales price from the collection of low-income assistance fees that are charged under s. 16.957 (4) (a) or (5) (a).

SB40, s. 2406 Section 2406. 77.54 (45) of the statutes is amended to read:

SB40,1151,13 77.54 (45) The gross receipts sales price from the sale of and the use or other consumption of a onetime license or similar right to purchase admission to professional football games at a football stadium, as defined in s. 229.821 (6), that is granted by a municipality; a local professional football stadium district; or a professional football team or related party, as defined in s. 229.821 (12); if the person who buys the license or right is entitled, at the time the license or right is transferred to the person, to purchase admission to at least 3 professional football games in this state during one football season.

SB40, s. 2407 Section 2407. 77.54 (46) of the statutes is amended to read:

SB40,1151,17 77.54 (46) The gross receipts sales price from the sale of and the storage, use, or other consumption of the U.S. flag or the state flag. This subsection does not apply to a representation of the U.S. flag or the state flag.

SB40, s. 2408 Section 2408. 77.54 (46m) of the statutes is amended to read:

SB40,1151,24 77.54 (46m) The gross receipts sales price from the sale of and the storage, use, or other consumption of telecommunications services, if the telecommunications services are obtained by using the rights to purchase telecommunications services, including purchasing reauthorization numbers, by paying in advance and by using an access number and authorization code; and if the tax imposed under s. 77.52 or 77.53 was previously paid on the sale or purchase of such rights.

SB40, s. 2409 Section 2409. 77.54 (47) (intro.) of the statutes is amended to read:

SB40,1152,2 77.54 (47) (intro.) The gross receipts sales price from the sale of and the storage, use, or other consumption of all of the following:

SB40, s. 2410 Section 2410. 77.54 (47) (b) 1. and 2. of the statutes are amended to read:

SB40,1152,5 77.54 (47) (b) 1. The shooting facility is required to pay the tax imposed under s. 77.52 on its gross receipts the sales price from charges for shooting at the facility.

SB40,1152,9 2. The shooting facility is a nonprofit organization that charges for shooting at the facility, but is not required to pay the tax imposed under s. 77.52 on its gross receipts the sales price from such charges because the charges are for occasional sales, as provided under sub. (7m).

SB40, s. 2411 Section 2411. 77.54 (48) (a) of the statutes is renumbered 77.585 (9) (a) and amended to read:

SB40,1152,20 77.585 (9) (a) Subject to 2005 Wisconsin Act 479, section 17, the gross receipts from the sale of and the storage, use, or other consumption a purchaser may claim as a deduction that portion of its purchase price of Internet equipment used in the broadband market for which the tax was imposed under this subchapter, if the purchaser certifies to the department of commerce, in the manner prescribed by the department of commerce, that the purchaser will, within 24 months after July 1, 2007, make an investment that is reasonably calculated to increase broadband Internet availability in this state. The purchaser shall claim the deduction in the same reporting period as the purchaser paid the tax imposed under this subchapter.

SB40, s. 2412 Section 2412. 77.54 (48) (b) of the statutes is renumbered 77.585 (9) (b).

SB40, s. 2413 Section 2413. 77.54 (49) of the statutes is amended to read:

SB40,1153,9 77.54 (49) The gross receipts sales price from the sale of and the storage, use, or other consumption of taxable services and tangible personal property that is physically transferred to the purchaser as a necessary part of services that are subject to the taxes imposed under s. 77.52 (2) (a) 7., 10., 11., and 20., if the seller and the purchaser of such services and property are members of the same affiliated group under section 1504 of the Internal Revenue Code and are eligible to file a single consolidated return for federal income tax purposes. For purposes of this subsection, if a seller purchases a taxable service or tangible personal property, as described in the subsection, that is subsequently sold to a member of the seller's affiliated group and the sale is exempt under this subsection from the taxes imposed under this subchapter, the original purchase of the taxable service or tangible personal property by the seller is not considered a sale for resale or exempt under this subsection.

SB40, s. 2414 Section 2414. 77.54 (50) of the statutes is created to read:

SB40,1153,15 77.54 (50) The sales price from the sale of and the storage, use, or other consumption of specified digital goods or additional digital goods that are transferred electronically to the purchaser, if the sale of and the storage, use, or other consumption of such goods sold in a tangible form is exempt from taxation under this subchapter.

SB40, s. 2415 Section 2415. 77.54 (51) of the statutes is created to read:

SB40,1153,21 77.54 (51) The sales price from the sales of and the storage, use, or other consumption of products sold in a transaction that would be a bundled transaction, except that it contains taxable and nontaxable products as described in s. 77.51 (1f) (d), and except that the first person combining the products shall pay the tax imposed under this subchapter on the person's purchase price of the taxable items.

SB40, s. 2416 Section 2416. 77.54 (52) of the statutes is created to read:

SB40,1153,25 77.54 (52) The sales price from the sales of and the storage, use, or other consumption of products sold in a transaction that would be a bundled transaction, except that the transaction meets the conditions described in s. 77.51 (1f) (e).

SB40, s. 2417 Section 2417. 77.54 (53) of the statutes is created to read:

SB40,1154,2 77.54 (53) (a) In this subsection:

SB40,1154,3 1. "Animals" include bacteria, viruses, and other microorganisms.

SB40,1154,4 2. "Manufacturing" has the meaning given in sub. (6m).

SB40,1154,10 3. "Qualified research" means qualified research as defined under section 41 (d) (1) of the Internal Revenue Code, except that research conducted by a public or private institution of higher education or by a governmental unit is "qualified research" if applying the research is intended to be useful in developing a new or improved product or service and the research satisfies section 41 (d) (1) (B) (i) and (C) of the Internal Revenue Code.

SB40,1154,12 (b) The gross receipts from the sale of and the storage, use, or other consumption of:

SB40,1154,17 1. Machines and specific processing equipment, including accessories, attachments, and parts for the machines or equipment, that are used exclusively and directly in raising animals that are sold primarily to a biotechnology business, a public or private institution of higher education, or a governmental unit for exclusive and direct use by any such entity in qualified research or manufacturing.

SB40,1154,22 2. The items listed in sub. (3m) (a) to (m), medicines, semen for artificial insemination, fuel, and electricity that are used exclusively and directly in raising animals that are sold primarily to a biotechnology business, a public or private institution of higher education, or a governmental unit for exclusive and direct use by any such entity in qualified research or manufacturing.

SB40,1155,2 3. Machines and specific processing equipment, including accessories, attachments, and parts for the machines or equipment, that are sold to a biotechnology business and used exclusively and directly in qualified research in biotechnology.

SB40,1155,5 4. Tangible personal property that is sold to a biotechnology business, if the property is consumed or destroyed or loses its identity while being used exclusively and directly in qualified research in biotechnology.

SB40,1155,7 5. Animals that are sold to a biotechnology business and used exclusively and directly in qualified research in biotechnology.

SB40,1155,11 (c) A person who claims an exemption under par. (b) 1. and 2. shall obtain written documentation from the person's customers related to each customer's use of animals, including the percentage of animals sold to the customer that are used exclusively and directly in qualified research.

SB40,1155,13 (d) The department shall publish on the department's Internet site a list of all biotechnology businesses certified by the department.

SB40, s. 2418 Section 2418. 77.54 (53) (b) (intro.) of the statutes, as created by 2007 Wisconsin Act .... (this act), is repealed and recreated to read:

SB40,1155,17 77.54 (53) (b) (intro.) The sales price from the sale of and the storage, use, or other consumption of:

SB40, s. 2419 Section 2419. 77.54 (54) of the statutes, as created by 2007 Wisconsin Act .... (this act), is repealed and recreated to read:

SB40,1155,23 77.54 (54) The sales price from the sale of and the storage, use, or other consumption of tangible personal property and taxable services that are sold by a home exchange service that receives moneys from the appropriation account under s. 20.485 (1) (g) and is operated by the department of veterans affairs.

SB40, s. 2420 Section 2420. 77.55 (1) (intro.) of the statutes is amended to read:

SB40,1156,3 77.55 (1) (intro.) There are is exempted from the computation of the amount of the sales tax the gross receipts sales price from the sale of any tangible personal property or services to:

SB40, s. 2421 Section 2421. 77.55 (2) of the statutes is amended to read:

SB40,1156,11 77.55 (2) There are is exempted from the computation of the amount of the sales tax the gross receipts sales price from sales of tangible personal property to a common or contract carrier, shipped by the seller via the purchasing carrier under a bill of lading whether the freight is paid in advance, or the shipment is made freight charges collect, to a point outside this state and the property is actually transported to the out-of-state destination for use by the carrier in the conduct of its business as a carrier.

SB40, s. 2422 Section 2422. 77.55 (2m) of the statutes is amended to read:

SB40,1156,21 77.55 (2m) There are is exempted from the computation of the amount of sales tax the gross receipts sales price from sales of railroad crossties to a common or contract carrier, shipped wholly or in part by way of the purchasing carrier under a bill of lading, whether the freight is paid in advance or the shipment is made freight charges collect, to a point outside this state if the property is transported to the out-of-state destination for use by the carrier in the conduct of its business as a carrier. Interruption of the shipment for storage, drying, processing or creosoting of the railroad crossties in this state does not invalidate the exemption under this subsection.

SB40, s. 2423 Section 2423. 77.55 (3) of the statutes is amended to read:

SB40,1157,3 77.55 (3) There are is exempted from the computation of the amount of the sales tax the gross receipts sales price from sales of tangible personal property purchased for use solely outside this state and delivered to a forwarding agent, export packer, or other person engaged in the business of preparing goods for export or arranging for their exportation, and actually delivered to a port outside the continental limits of the United States prior to making any use thereof.

SB40, s. 2424 Section 2424. 77.56 (1) of the statutes is amended to read:

SB40,1157,7 77.56 (1) The storage, use or other consumption in this state of property, the gross receipts sales price from the sale of which are is reported to the department in the measure of the sales tax, is exempted from the use tax.

SB40, s. 2425 Section 2425. 77.57 of the statutes is amended to read:

SB40,1157,19 77.57 Liability of purchaser. If a purchaser certifies in writing to a seller that the property, specified digital goods, or additional digital goods purchased will be used in a manner or for a purpose entitling the seller to regard the gross receipts sales price from the sale as exempted by this subchapter from the computation of the amount of the sales tax and uses the property, specified digital goods, or additional digital goods in some other manner or for some other purpose, the purchaser is liable for payment of the sales tax. The tax shall be measured by the sales price of the property, specified digital goods, or additional digital goods to the purchaser, but if the taxable use first occurs more than 6 months after the sale to the purchaser, the purchaser may use as the measure of the tax either that sales price or the fair market value of the property at the time the taxable use first occurs.

SB40, s. 2426 Section 2426. 77.58 (3) (a) of the statutes is amended to read:

SB40,1158,6 77.58 (3) (a) For purposes of the sales tax a return shall be filed by every seller. For purposes of the use tax a return shall be filed by every retailer engaged in business in this state and by every person purchasing tangible personal property, specified digital goods, additional digital goods, or services, the storage, use, or other consumption of which is subject to the use tax, who has not paid the use tax due to a retailer required to collect the tax. If a qualified subchapter S subsidiary is not regarded as a separate entity under ch. 71, the owner of that subsidiary shall include the information for that subsidiary on the owner's return. Returns shall be signed by the person required to file the return or by a duly authorized agent but need not be verified by oath. If a single-owner entity is disregarded as a separate entity under ch. 71, the owner shall include the information from the entity on the owner's return.

SB40, s. 2427 Section 2427. 77.58 (3) (b) of the statutes is amended to read:

SB40,1158,18 77.58 (3) (b) For purposes of the sales tax the return shall show the gross receipts of the seller during the preceding reporting period. For purposes of the use tax, in case of a return filed by a retailer, the return shall show the total sales price of the property or taxable services sold, the storage, use or consumption of which became subject to the use tax during the preceding reporting period. In case of a sales or use tax return filed by a purchaser, the return shall show the total sales price of the property and taxable services purchased, the storage, use or consumption of which became subject to the use tax during the preceding reporting period. The return shall also show the amount of the taxes for the period covered by the return and such other information as the department deems necessary for the proper administration of this subchapter.

SB40, s. 2428 Section 2428. 77.58 (6) of the statutes is amended to read:

SB40,1158,23 77.58 (6) For the purposes of the sales tax gross receipts, the sales price from rentals or leases of tangible personal property, specified digital goods, or additional digital goods shall be reported and the tax paid in accordance with such rules as the department prescribes.

SB40, s. 2429 Section 2429. 77.58 (6m) of the statutes is created to read:

SB40,1159,3 77.58 (6m) (a) The department may, in cases where it is satisfied that an undue hardship would otherwise result, permit the reporting of a sales price or purchase price on some basis other than the accrual basis.

SB40,1159,7 (b) The entire sales price of credit transactions shall be reported in the period in which the sale is made without reduction in the amount of tax payable by the retailer by reason of the retailer's transfer at a discount of any open account, note, conditional sales contract, lease contract, or other evidence of indebtedness.

SB40, s. 2430 Section 2430. 77.58 (9) of the statutes is created to read:

SB40,1159,10 77.58 (9) The department may require a filing fee for sales tax returns that are filed on paper.

SB40, s. 2431 Section 2431. 77.58 (9a) of the statutes is created to read:

SB40,1159,17 77.58 (9a) In addition to filing a return as provided in this section, a person described under s. 77.524 (3), (4), or (5) shall provide to the department any information that the department considers necessary for the administration of this subchapter, in the manner prescribed by the department, except that the department may not require that the person provide such information to the department more than once every 180 days.

SB40, s. 2432 Section 2432. 77.585 of the statutes is created to read:

SB40,1160,2 77.585 Return adjustments. (1) (a) In this subsection, "bad debt" means the portion of the sales price or purchase price that the seller has reported as taxable under this subchapter and that the seller may claim as a deduction under section 166 of the Internal Revenue Code. "Bad debt" does not include financing charges or interest, sales or use taxes imposed on the sales price or purchase price, uncollectible amounts on property, specified digital goods, or additional digital goods that remain in the seller's possession until the full sales price or purchase price is paid, expenses incurred in attempting to collect any debt, debts sold or assigned to 3rd parties for collection, and repossessed property.

SB40,1160,14 (b) A seller may claim as a deduction on a return under s. 77.58 the amount of any bad debt that the seller writes off as uncollectible in the seller's books and records and that is eligible to be deducted as a bad debt for federal income tax purposes, regardless of whether the seller is required to file a federal income tax return. A seller who claims a deduction under this paragraph shall claim the deduction on the return under s. 77.58 that is submitted for the period in which the seller writes off the amount of the deduction as uncollectible in the seller's books and records and in which such amount is eligible to be deducted as bad debt for federal income tax purposes. If the seller subsequently collects in whole or in part any bad debt for which a deduction is claimed under this paragraph, the seller shall include the amount collected in the return filed for the period in which the amount is collected and shall pay the tax with the return.

SB40,1160,20 (c) For purposes of computing a bad debt deduction or reporting a payment received on a previously claimed bad debt, any payment made on a debt or on an account is applied first to the price of the property, specified digital goods, additional digital goods, or service sold, and the proportionate share of the sales tax on that property, specified digital goods, additional digital goods, or service, and then to interest, service charges, and other charges related to the sale.

SB40,1161,2 (d) A seller may obtain a refund of the tax collected on any bad debt amount deducted under par. (b) that exceeds the amount of the seller's taxable sales as provided under s. 77.59 (4), except that the period for making a claim as determined under s. 77.59 (4) begins on the date on which the return on which the bad debt could be claimed would have been required to be submitted to the department under s. 77.58.

SB40,1161,8 (e) If a seller is using a certified service provider, the certified service provider may claim a bad debt deduction under this subsection on the seller's behalf if the seller has not claimed and will not claim the same deduction. A certified service provider who receives a bad debt deduction under this subsection shall credit that deduction to the seller and a certified service provider who receives a refund under this subsection shall submit that refund to the seller.

SB40,1161,14 (f) If a bad debt relates to the retail sales of tangible personal property, specified digital goods, additional digital goods, or taxable services that occurred in this state and in one or more other states, as determined under s. 77.522, the total amount of such bad debt shall be apportioned among the states in which the underlying sales occurred in a manner prescribed by the department to arrive at the amount of the deduction under par. (b).

SB40,1161,21 (2) If a lessor of tangible personal property, specified digital goods, or additional digital goods has reimbursed the vendor for the sales tax on the sale of the property or goods by the vendor to the lessor, the tax due from the lessor on the rental receipts may be offset by a credit equal to the tax otherwise due on the rental receipts from the property or goods for the reporting period. The credit shall expire when the cumulative rental receipts equal the sales price upon which the vendor paid sales taxes to this state.

SB40,1162,2 (3) If a purchaser of tangible personal property, specified digital goods, or additional digital goods has reimbursed the vendor of the property or goods for the sales tax on the sale and subsequently, before making any use of the property or goods other than retention, demonstration, or display while holding it for sale or rental, makes a taxable sale of the property or goods, the tax due on the taxable sale may be offset by the tax reimbursed.

SB40,1162,11 (4) A seller may claim a deduction on any part of the sales price or purchase price that the seller refunds in cash or credit as a result of returned property, specified digital goods, or additional digital goods or adjustments in the sales price or purchase price after the sale has been completed, if the seller has included the refunded price in a prior return made by the seller and has paid the tax on such price, and if the seller has returned to the purchaser in cash or in credit all tax previously paid by the purchaser on the amount of the refund at the time of the purchase. A deduction under this subsection shall be claimed on the return for the period in which the refund is paid.

SB40,1162,15 (5) No reduction in the amount of tax payable by the retailer is allowable in the event property, specified digital goods, or additional digital goods sold on credit are repossessed except where the entire consideration paid by the purchaser is refunded to the purchaser or where a credit for a worthless account is allowable under sub. (1).

SB40,1162,19 (6) A purchaser who is subject to the use tax on the storage, use, or other consumption of fuel may claim a deduction from the purchase price that is subject to the use tax for fuel taxes refunded by this state or the United States to the purchaser that is included in the purchase price of the fuel.