SB446: Bill Text

SB446, s. 233 Section 233. 77.54 (37) of the statutes is amended to read:

SB446,85,17 77.54 (37) The gross receipts sales price from revenues collected under s. 146.70 (3) and the surcharge established by rule by the public service commission under s. 146.70 (3m) (f) for customers of wireless providers, as defined in s. 146.70 (3m) (a) 6.

SB446, s. 234 Section 234. 77.54 (38) of the statutes is amended to read:

SB446,85,24 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).

SB446, s. 235 Section 235. 77.54 (39) of the statutes is amended to read:

SB446,86,7 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.

SB446, s. 236 Section 236. 77.54 (40) of the statutes is repealed.

SB446, s. 237 Section 237. 77.54 (41) of the statutes is amended to read:

SB446,86,14 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).

SB446, s. 238 Section 238. 77.54 (42) of the statutes is amended to read:

SB446,86,18 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).

SB446, s. 239 Section 239. 77.54 (43) of the statutes is amended to read:

SB446,86,23 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.

SB446, s. 240 Section 240. 77.54 (44) of the statutes, as affected by 2005 Wisconsin Act 141, is amended to read:

SB446,87,2 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).

SB446, s. 241 Section 241. 77.54 (45) of the statutes is amended to read:

SB446,87,11 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.

SB446, s. 242 Section 242. 77.54 (46) of the statutes is amended to read:

SB446,87,15 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.

SB446, s. 243 Section 243. 77.54 (46m) of the statutes is amended to read:

SB446,87,22 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.

SB446, s. 244 Section 244. 77.54 (47) (intro.) of the statutes is amended to read:

SB446,87,25 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:

SB446, s. 245 Section 245. 77.54 (47) (b) 1. of the statutes is amended to read:

SB446,88,3 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.

SB446, s. 246 Section 246. 77.54 (47) (b) 2. of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB446,88,10 77.54 (47) (b) 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 sales price from such charges because the charges are for occasional sales, as provided under sub. (7m), or because the charges satisfy the exemption under s. 77.52 (2) (a) 2. b.

SB446, s. 247 Section 247. 77.54 (48) (a) of the statutes, as created by 2005 Wisconsin Act 479, is renumbered 77.585 (9) (a) and amended to read:

SB446,88,21 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.

SB446, s. 248 Section 248. 77.54 (48) (b) of the statutes, as created by 2005 Wisconsin Act 479, is renumbered 77.585 (9) (b).

SB446, s. 249 Section 249. 77.54 (49) of the statutes is amended to read:

SB446,89,14 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 , or items or property under s. 77.52 (1) (b) or (c), 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 or item 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, item or property under s. 77.52 (1) (b) or (c), 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 , item or property under s. 77.52 (1) (b) or (c), or tangible personal property by the seller is not considered a sale for resale or exempt under this subsection.

SB446, s. 250 Section 250. 77.54 (51) of the statutes is created to read:

SB446,89,20 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.

SB446, s. 251 Section 251. 77.54 (52) of the statutes is created to read:

SB446,89,24 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).

SB446, s. 252 Section 252. 77.54 (54) of the statutes, as created by 2007 Wisconsin Act 20, is amended to read:

SB446,90,7 77.54 (54) The gross receipts sales price from the sale of and the storage, use, or other consumption of tangible personal property, items and property under s. 77.52 (1) (b) and (c), 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.

SB446, s. 253 Section 253. 77.54 (56) of the statutes, as created by 2007 Wisconsin Act 20, is amended to read:

SB446,90,16 77.54 (56) (a) The gross receipts sales price from the sale of and the storage, use, or other consumption of a product whose power source is wind energy, direct radiant energy received from the sun, or gas generated from anaerobic digestion of animal manure and other agricultural waste, if the product produces at least 200 watts of alternating current or 600 British thermal units per day, except that the exemption under this subsection does not apply to an uninterruptible power source that is designed primarily for computers.

SB446,90,20 (b) Except for the sale of electricity or energy that is exempt from taxation under sub. (30), the gross receipts sales price from the sale of and the storage, use, or other consumption of electricity or energy produced by a product described under par. (a).

SB446, s. 254 Section 254. 77.55 (1) (intro.) of the statutes is amended to read:

SB446,90,24 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, items or property under s. 77.52 (1) (b) or (c), or services to:

SB446, s. 255 Section 255. 77.55 (2) of the statutes is amended to read:

SB446,91,7 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, and items and property under s. 77.52 (1) (b) and (c), 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 or item is actually transported to the out-of-state destination for use by the carrier in the conduct of its business as a carrier.

SB446, s. 256 Section 256. 77.55 (2m) of the statutes is amended to read:

SB446,91,17 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.

SB446, s. 257 Section 257. 77.55 (3) of the statutes is amended to read:

SB446,91,25 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, and items and property under s. 77.52 (1) (b) and (c), 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.

SB446, s. 258 Section 258. 77.56 (1) of the statutes is amended to read:

SB446,92,5 77.56 (1) The storage, use or other consumption in this state of property, including items and property under s. 77.52 (1) (b) and (c), 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.

SB446, s. 259 Section 259. 77.57 of the statutes is amended to read:

SB446,92,17 77.57 Liability of purchaser. If a purchaser certifies in writing to a seller that the property or items or property under s. 77.52 (1) (b) or (c) 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 or items or property under s. 77.52 (1) (b) or (c) 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 or items or property under s. 77.52 (1) (b) or (c) 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.

SB446, s. 260 Section 260. 77.58 (3) (a) of the statutes is amended to read:

SB446,93,4 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, items or property under s. 77.52 (1) (b) or (c), 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.

SB446, s. 261 Section 261. 77.58 (3) (b) of the statutes is amended to read:

SB446,93,16 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.

SB446, s. 262 Section 262. 77.58 (6) of the statutes is amended to read:

SB446,93,21 77.58 (6) For the purposes of the sales tax gross receipts, the sales price from rentals or leases of tangible personal property or items or property under s. 77.52 (1) (b) or (c) shall be reported and the tax paid in accordance with such rules as the department prescribes.

SB446, s. 263 Section 263. 77.58 (6m) of the statutes is created to read:

SB446,93,25 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.

SB446,94,4 (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.

SB446, s. 264 Section 264. 77.58 (9a) of the statutes is created to read:

SB446,94,11 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.

SB446, s. 265 Section 265. 77.585 of the statutes is created to read:

SB446,94,21 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 or items or property under s. 77.52 (1) (b) or (c) 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.

SB446,95,8 (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.

SB446,95,14 (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, items or property under s. 77.52 (1) (b) or (c), or service sold, and the proportionate share of the sales tax on that property, items or property under s. 77.52 (1) (b) or (c), or service, and then to interest, service charges, and other charges related to the sale.

SB446,95,20 (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.

SB446,96,2 (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.

SB446,96,8 (f) If a bad debt relates to the retail sales of tangible personal property, items or property under s. 77.52 (1) (b) or (c), 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).

SB446,96,15 (2) If a lessor of tangible personal property or items or property under s. 77.52 (1) (b) or (c) has reimbursed the vendor for the sales tax on the sale of the property or items 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 items 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.

SB446,96,21 (3) If a purchaser of tangible personal property or items or property under s. 77.52 (1) (b) or (c) has reimbursed the vendor of the property or items for the sales tax on the sale and subsequently, before making any use of the property or items other than retention, demonstration, or display while holding it for sale or rental, makes a taxable sale of the property or items, the tax due on the taxable sale may be offset by the tax reimbursed.

SB446,97,5 (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 or items or property under s. 77.52 (1) (b) or (c) 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.

SB446,97,9 (5) No reduction in the amount of tax payable by the retailer is allowable in the event property or items or property under s. 77.52 (1) (b) or (c) 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).

SB446,97,13 (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.

SB446,97,17 (7) For sales tax purposes, if a retailer establishes to the department's satisfaction that the sales tax has been added to the total amount of the sales price and has not been absorbed by the retailer, the total amount of the sales price shall be the amount received exclusive of the sales tax imposed.

SB446,97,23 (8) A sale or purchase involving transfer of ownership of property or items or property under s. 77.52 (1) (b) or (c) is completed at the time when possession is transferred by the seller or the seller's agent to the purchaser or the purchaser's agent, except that for purposes of sub. (1) a common carrier or the U.S. postal service shall be considered the agent of the seller, regardless of any f.o.b. point and regardless of the method by which freight or postage is paid.

SB446, s. 266 Section 266. 77.59 (2m) of the statutes is created to read:

SB446,98,3 77.59 (2m) The department may audit, or may authorize others to audit, sellers and certified service providers who are registered with the department pursuant to the agreement, as defined in s. 77.65 (2) (a).

SB446, s. 267 Section 267. 77.59 (5m) of the statutes is amended to read:

SB446,98,23 77.59 (5m) A seller who receives a refund under sub. (4) (a) or (b) of taxes that the seller has collected from buyers, who collects amounts as taxes erroneously from buyers, but who does not remit such amounts to the state, or who is entitled to a refund under sub. (4) (a) or (b) that is offset under sub. (5), shall submit the taxes and related interest to the buyers from whom the taxes were collected, or to the department if the seller cannot locate the buyers, within 90 days after the date of the refund, after the date of the offset, or after discovering that the seller has collected taxes erroneously from the buyers. If the seller does not submit the taxes and related interest to the department or the buyers within that period, the seller shall submit to the department any part of a refund or taxes that the seller does not submit to a buyer or to the department along with a penalty of 25% of the amount not submitted or, in the case of fraud, a penalty equal to the amount not submitted. A person who collects amounts as taxes erroneously from buyers for a real property construction activity or nontaxable service may reduce the taxes and interest that he or she is required to submit to the buyer or to the department under this subsection for that activity or service by the amount of tax and interest subsequently due and paid on the sale of or the storage, use, or other consumption of tangible personal property or items or property under s. 77.52 (1) (b) or (c) that is are used by the person in that activity or service and transferred to the buyer.

SB446, s. 268 Section 268. 77.59 (9) of the statutes is amended to read:

SB446,99,14 77.59 (9) If any person fails to file a return, the department shall make an estimate of the amount of the gross receipts sales price of the person person's sales, or, as the case may be, of the amount of the total sales purchase price of tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable service sold or purchased by the person, the sale by or the storage, use, or other consumption of which in this state is subject to sales or use tax. The estimate shall be made for the period in respect to which the person failed to make a return and shall be based upon any information which is in the department's possession or may come into its possession. Upon the basis of this estimate the department shall compute and determine the amount required to be paid to the state, adding to the sum thus arrived at a penalty equal to 25% thereof. One or more such determinations may be made for one or for more than one period. When a business is discontinued a determination may be made at any time thereafter, within the periods specified in sub. (3), as to liability arising out of that business.

SB446, s. 269 Section 269. 77.59 (9n) of the statutes is created to read:

SB446,99,19 77.59 (9n) (a) Notwithstanding s. 73.03 (47), no seller or certified service provider is liable for tax, interest, or penalties imposed on a transaction under this subchapter in the circumstances covered under sections 306, 328, and 502 of the agreement, as defined in s. 77.65 (2) (a).

SB446,99,22 (b) A purchaser is not liable for the tax, interest, or penalties imposed on a transaction under this subchapter in the circumstances covered by section 331 of the agreement, as defined in s. 77.65 (2) (a).

SB446, s. 270 Section 270. 77.59 (9p) (b) of the statutes is created to read:

SB446,99,25 77.59 (9p) (b) If a customer purchases a service that is not subject to 4 USC 116 to 126, as amended by P.L. 106-252, tangible personal property, or items or property under s. 77.52 (1) (b) or (c), and if the customer believes that the amount of the tax assessed for the sale of the service, property, or items, under this subchapter is erroneous, the customer may request that the seller correct the alleged error by sending a written notice to the seller. The notice shall include a description of the alleged error and any other information that the seller reasonably requires to process the request. Within 60 days from the date that a seller receives a request under this paragraph, the seller shall review its records to determine the validity of the customer's claim. If the review indicates that there is no error as alleged, the seller shall explain the findings of the review in writing to the customer. If the review indicates that there is an error as alleged, the seller shall correct the error and shall refund the amount of any tax collected erroneously, along with the related interest, as a result of the error from the customer, consistent with s. 77.59 (4). A customer may take no other action against the seller, or commence any action against the seller, to correct an alleged error in the amount of the tax assessed under this subchapter on a service that is not subject to 4 USC 116 to 126, as amended by P.L. 106-252, tangible personal property, or items or property under s. 77.52 (1) (b) or (c) unless the customer has exhausted his or her remedies under this paragraph.