SB40: Bill Text

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SB40, s. 2265 Section 2265. 77.51 (14r) of the statutes is repealed.

SB40, s. 2266 Section 2266. 77.51 (15) of the statutes is repealed.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

SB40,1104,11 77.51 (17m) "Service address" means any of the following:

SB40,1104,15 (a) The location of the telecommunications equipment to which a customer's telecommunications service is charged and from which the telecommunications service originates or terminates, regardless of where the telecommunications service is billed or paid.

SB40,1104,21 (b) If the location described under par. (a) is not known by the seller who sells the telecommunications service, the location where the signal of the telecommunications service originates, as identified by the seller's telecommunications system or, if the signal is not transmitted by the seller's telecommunications system, by information that the seller received from the seller's service provider.

SB40,1104,23 (c) If the locations described under pars. (a) and (b) are not known by the seller who sells the telecommunications service, the customer's place of primary use.

SB40, s. 2271 Section 2271. 77.51 (17w) of the statutes is created to read:

SB40,1105,4 77.51 (17w) "Soft drink" means a beverage that contains less than 0.5 percent of alcohol and that contains natural or artificial sweeteners. "Soft drink" does not include a beverage that contains milk or milk products; soy, rice, or similar milk substitutes; or more than 50 percent vegetable or fruit juice by volume.

SB40, s. 2272 Section 2272. 77.51 (17x) of the statutes is created to read:

SB40,1105,10 77.51 (17x) "Specified digital goods" means digital audio works, digital audiovisual works, and digital books. For purposes of this subchapter, the sale of or the storage, use, or other consumption of a digital code is treated the same as the sale of or the storage, use, or other consumption of any specified digital goods for which the digital code relates.

SB40, s. 2273 Section 2273. 77.51 (18) of the statutes is amended to read:

SB40,1105,14 77.51 (18) "Storage" includes any keeping or retention in this state of tangible personal property, specified digital goods, or additional digital goods purchased from a retailer for any purpose except sale in the regular course of business.

SB40, s. 2274 Section 2274. 77.51 (20) of the statutes is amended to read:

SB40,1105,25 77.51 (20) "Tangible personal property" means all tangible personal property of every kind and description that can be seen, weighed, measured, felt, or touched, or that is in any other manner perceptible to the senses, and includes electricity, natural gas, steam and, water, and also leased property affixed to realty if the lessor has the right to remove the property upon breach or termination of the lease agreement, unless the lessor of the property is also the lessor of the realty to which the property is affixed. "Tangible personal property" also includes coins and stamps of the United States sold or traded as collectors' items above their face value and computer programs except custom computer programs prewritten computer software, but does not include specified digital goods.

SB40, s. 2275 Section 2275. 77.51 (21) of the statutes is amended to read:

SB40,1106,4 77.51 (21) "Taxpayer" means the person who is required to pay, collect, or account for or who is otherwise directly interested in the taxes imposed by this subchapter, including a certified service provider.

SB40, s. 2276 Section 2276. 77.51 (21m) of the statutes is amended to read:

SB40,1106,15 77.51 (21m) "Telecommunications Internet access services" means sending messages and information transmitted through the use of local, toll and wide-area telephone service; channel services; telegraph services; teletypewriter; computer exchange services; cellular mobile telecommunications service; specialized mobile radio; stationary two-way radio; paging service; or any other form of mobile and portable one-way or two-way communications; or any other transmission of messages or information by electronic or similar means between or among points by wire, cable, fiber optics, laser, microwave, radio, satellite or similar facilities. "Telecommunications services" does not include sending collect telecommunications that are received outside of the state.

SB40, s. 2277 Section 2277. 77.51 (21n) of the statutes is created to read:

SB40,1106,25 77.51 (21n) "Telecommunications services" means electronically transmitting, conveying, or routing voice, data, audio, video, or other information or signals to a point or between or among points. "Telecommunications services" includes the transmission, conveyance, or routing of such information or signals in which computer processing applications are used to act on the content's form, code, or protocol for transmission, conveyance, or routing purposes, regardless of whether the service is referred to as a voice over Internet protocol service or classified by the federal communications commission as an enhanced or value-added service. "Telecommunications services" does not include any of the following:

SB40,1107,4 (a) Data processing and information services that allow data to be generated, acquired, stored, processed, or retrieved and delivered to a purchaser by an electronic transmission, if the purchaser's primary purpose for the underlying transaction is the processed data.

SB40,1107,5 (b) Installing or maintaining wiring or equipment on a customer's premises.

SB40,1107,6 (c) Tangible personal property.

SB40,1107,7 (d) Advertising, including directory advertising.

SB40,1107,8 (e) Billing and collection services provided to 3rd parties.

SB40,1107,9 (f) Telecommunications Internet access service.

SB40,1107,14 (g) Radio and television audio and video programming services, regardless of the medium in which the services are provided, including cable service, as defined in 47 USC 522 (6), audio and video programming services delivered by commercial mobile radio service providers, as defined in 47 CFR 20.3, and the transmitting, conveying, or routing of such services by the programming service provider.

SB40,1107,15 (h) Ancillary services.

SB40,1107,17 (i) Digital products delivered electronically, including software, music, video, reading materials, or ringtones.

SB40, s. 2278 Section 2278. 77.51 (21p) of the statutes is created to read:

SB40,1107,20 77.51 (21p) "Tobacco" means cigarettes, cigars, chewing tobacco, pipe tobacco, and any other item that contains tobacco.

SB40, s. 2279 Section 2279. 77.51 (21q) of the statutes is created to read:

SB40,1107,23 77.51 (21q) "Transferred electronically" means accessed or obtained by the purchaser by means other than tangible storage media.

SB40, s. 2280 Section 2280. 77.51 (22) (a) of the statutes is amended to read:

SB40,1108,8 77.51 (22) (a) "Use" includes the exercise of any right or power over tangible personal property, specified digital goods, additional digital goods, or taxable services incident to the ownership, possession or enjoyment of the property, goods, or services, or the results produced by the services, including installation or affixation to real property and including the possession of, or the exercise of any right or power over tangible personal property, specified digital goods, or additional digital goods by a lessee under a lease, except that "use" does not include the activities under sub. (18).

SB40, s. 2281 Section 2281. 77.51 (22) (b) of the statutes is amended to read:

SB40,1108,16 77.51 (22) (b) In this subsection "enjoyment" includes a purchaser's right to direct the disposition of property, specified digital goods, or additional digital goods, whether or not the purchaser has possession of the property or goods. "Enjoyment" also includes, but is not limited to, having shipped into this state by an out-of-state supplier printed material which is designed to promote the sale of property, specified digital goods, additional digital goods, or services, or which is otherwise related to the business activities, of the purchaser of the printed material or printing service.

SB40, s. 2282 Section 2282. 77.51 (22) (bm) of the statutes is created to read:

SB40,1108,24 77.51 (22) (bm) In this subsection, "exercise of any right or power over tangible personal property, specified digital goods, additional digital goods, or taxable services" includes distributing, selecting recipients, determining mailing schedules, or otherwise directing the distribution, dissemination, or disposal of tangible personal property, specified digital goods, additional digital goods, or taxable services, regardless of whether the purchaser of such property, goods or services owns or physically possesses, in this state, the property, goods, or services.

SB40, s. 2283 Section 2283. 77.51 (24) of the statutes is created to read:

SB40,1109,4 77.51 (24) "Value-added non-voice data service" means a service in which computer processing applications are used to act on the form, content, code, or protocol of the data provided by the service and are used primarily for a purpose other than for transmitting, conveying, or routing data.

SB40, s. 2284 Section 2284. 77.51 (25) of the statutes is created to read:

SB40,1109,9 77.51 (25) "Vertical service" means an ancillary service that is provided with one or more telecommunications services and allows customers to identify callers and to manage multiple calls and call connections, including conference bridging services.

SB40, s. 2285 Section 2285. 77.51 (26) of the statutes is created to read:

SB40,1109,13 77.51 (26) "Voice mail service" means an ancillary service that allows a customer to store, send, or receive recorded messages, not including any vertical service that the customer must have to use the voice mail service.

SB40, s. 2286 Section 2286. 77.52 (1) of the statutes is renumbered 77.52 (1) (a) and amended to read:

SB40,1109,21 77.52 (1) (a) For the privilege of selling, licensing, leasing or renting tangible personal property, including accessories, components, attachments, parts, supplies and materials, at retail a tax is imposed upon all retailers at the rate of 5% of the gross receipts sales price from the sale, license, lease or rental of tangible personal property, including accessories, components, attachments, parts, supplies and materials, sold, leased or rented at retail in this state, as determined under s. 77.522.

SB40, s. 2287 Section 2287. 77.52 (1) (b) of the statutes is created to read:

SB40,1110,2 77.52 (1) (b) For the privilege of selling at retail coins and stamps of the United States that are sold or traded as collectors' items above their face value, a tax is imposed on all retailers at the rate of 5 percent of the sales price from the sale of such coins and stamps.

SB40, s. 2288 Section 2288. 77.52 (1) (c) of the statutes is created to read:

SB40,1110,8 77.52 (1) (c) For the privilege of leasing property that is affixed to real property, a tax is imposed on all retailers at the rate of 5 percent of the sales price from the lease of such property, if the lessor has the right to remove the leased property upon breach or termination of the lease agreement, unless the lessor of the leased property is also the lessor of the real property to which the leased property is affixed.

SB40, s. 2289 Section 2289. 77.52 (1) (d) of the statutes is created to read:

SB40,1110,15 77.52 (1) (d) For the privilege of selling, licensing, leasing, or renting specified digital goods or additional digital goods at retail, regardless of whether the purchaser has the right to permanently use such goods or whether the purchaser's right to access or retain such goods is not permanent, a tax is imposed upon all retailers at the rate of 5 percent of the sales price from the sale, license, lease or rental of such goods.

SB40, s. 2290 Section 2290. 77.52 (2) (intro.) of the statutes is amended to read: