SB446: Bill Text

SB446,32,23 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:

SB446, s. 79 Section 79. 77.51 (13g) (c) of the statutes is created to read:

SB446,33,3 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.

SB446, s. 80 Section 80. 77.51 (13r) of the statutes is amended to read:

SB446,33,7 77.51 (13r) Any person purchasing from a retailer as defined in sub. (13) shall be deemed the consumer of the tangible personal property, items or property under s. 77.52 (1) (b) or (c), or services purchased.

SB446, s. 81 Section 81. 77.51 (13rm) of the statutes is created to read:

SB446,33,10 77.51 (13rm) "Retail sale" or "sale at retail" means any sale, lease, or rental for any purpose other than resale, sublease, or subrent.

SB446, s. 82 Section 82. 77.51 (13rn) of the statutes is created to read:

SB446,33,15 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.

SB446, s. 83 Section 83. 77.51 (14) (intro.) of the statutes is amended to read:

SB446,33,22 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, items or property under s. 77.52 (1) (b) or (c), or services for use or consumption but not for resale as tangible personal property, items or property under s. 77.52 (1) (b) or (c), or services and includes:

SB446, s. 84 Section 84. 77.51 (14) (a) of the statutes is amended to read:

SB446,34,4 77.51 (14) (a) Any sale at an auction in with respect to tangible personal property or items or property under s. 77.52 (1) (b) or (c) which is are sold to a successful bidder. The proceeds from, except the sale of property or items 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.

SB446, s. 85 Section 85. 77.51 (14) (b) of the statutes is amended to read:

SB446,34,8 77.51 (14) (b) The furnishing or distributing of tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services for a consideration by social clubs and fraternal organizations to their members or others.

SB446, s. 86 Section 86. 77.51 (14) (c) of the statutes is amended to read:

SB446,34,12 77.51 (14) (c) A transaction whereby the possession of tangible personal property is or items or property under s. 77.52 (1) (b) or (c) are transferred but the seller retains the title as security for the payment of the price.

SB446, s. 87 Section 87. 77.51 (14) (d) of the statutes is repealed.

SB446, s. 88 Section 88. 77.51 (14) (g) of the statutes is renumbered 77.51 (15a) (b) 4.

SB446, s. 89 Section 89. 77.51 (14) (h) of the statutes is amended to read:

SB446,34,19 77.51 (14) (h) A transfer for a consideration of the title or possession of tangible personal property or items or property under s. 77.52 (1) (b) or (c) which has have been produced, fabricated, or printed to the special order of the customer or of any publication.

SB446, s. 90 Section 90. 77.51 (14) (i) of the statutes is repealed.

SB446, s. 91 Section 91. 77.51 (14) (j) of the statutes is amended to read:

SB446,35,2 77.51 (14) (j) The granting of possession of tangible personal property or items or property under s. 77.52 (1) (b) or (c) 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.

SB446, s. 92 Section 92. 77.51 (14) (k) of the statutes is repealed.

SB446, s. 93 Section 93. 77.51 (14) (L) of the statutes is repealed.

SB446, s. 94 Section 94. 77.51 (14g) (a) of the statutes is amended to read:

SB446,35,8 77.51 (14g) (a) The transfer of property or items or property under s. 77.52 (1) (b) or (c) to a corporation upon its organization solely in consideration for the issuance of its stock;

SB446, s. 95 Section 95. 77.51 (14g) (b) of the statutes is amended to read:

SB446,35,12 77.51 (14g) (b) The contribution of property or items or property under s. 77.52 (1) (b) or (c) to a newly formed partnership solely in consideration for a partnership interest therein;

SB446, s. 96 Section 96. 77.51 (14g) (bm) of the statutes is amended to read:

SB446,35,16 77.51 (14g) (bm) The contribution of property or items or property under s. 77.52 (1) (b) or (c) to a limited liability company upon its organization solely in consideration for a membership interest;

SB446, s. 97 Section 97. 77.51 (14g) (c) of the statutes is amended to read:

SB446,35,20 77.51 (14g) (c) The transfer of property or items or property under s. 77.52 (1) (b) or (c) to a corporation, solely in consideration for the issuance of its stock, pursuant to a merger or consolidation;

SB446, s. 98 Section 98. 77.51 (14g) (cm) of the statutes is amended to read:

SB446,35,24 77.51 (14g) (cm) The transfer of property or items or property under s. 77.52 (1) (b) or (c) to a limited liability company, solely in consideration for a membership interest, pursuant to a merger;

SB446, s. 99 Section 99. 77.51 (14g) (d) of the statutes is amended to read:

SB446,36,3 77.51 (14g) (d) The distribution of property or items or property under s. 77.52 (1) (b) or (c) by a corporation to its stockholders as a dividend or in whole or partial liquidation;

SB446, s. 100 Section 100. 77.51 (14g) (e) of the statutes is amended to read:

SB446,36,6 77.51 (14g) (e) The distribution of property or items or property under s. 77.52 (1) (b) or (c) by a partnership to its partners in whole or partial liquidation;

SB446, s. 101 Section 101. 77.51 (14g) (em) of the statutes is amended to read:

SB446,36,10 77.51 (14g) (em) The distribution of property or items or property under s. 77.52 (1) (b) or (c) by a limited liability company to its members in whole or partial liquidation;

SB446, s. 102 Section 102. 77.51 (14g) (f) of the statutes is amended to read:

SB446,36,14 77.51 (14g) (f) Repossession of property or items or property under s. 77.52 (1) (b) or (c) 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;

SB446, s. 103 Section 103. 77.51 (14g) (g) of the statutes is amended to read:

SB446,36,18 77.51 (14g) (g) The transfer of property or items or property under s. 77.52 (1) (b) or (c) 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

SB446, s. 104 Section 104. 77.51 (14g) (h) of the statutes is amended to read:

SB446,37,3 77.51 (14g) (h) Any transfer of all or substantially all the property or items or property under s. 77.52 (1) (b) or (c) 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 items 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 items of the corporation or other entity. In this paragraph, "substantially similar" means 80% or more of ownership.

SB446, s. 105 Section 105. 77.51 (14r) of the statutes is repealed.

SB446, s. 106 Section 106. 77.51 (15) of the statutes, as affected by 2007 Wisconsin Act 11, is repealed.

SB446, s. 107 Section 107. 77.51 (15a) of the statutes is created to read:

SB446,37,15 77.51 (15a) (a) "Sales, lease, or rental for resale, sublease, or subrent" includes transfers of tangible personal property or items or property under s. 77.52 (1) (b) or (c) 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 or items or property under s. 77.52 (1) (b) or (c) 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).

SB446,37,17 (b) "Sales, lease, or rental for resale, sublease, or subrent" does not include any of the following:

SB446,37,21 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.

SB446,38,2 2. Any sale of tangible personal property or items or property under s. 77.52 (1) (b) or (c) to a purchaser even though such property or items may be used or consumed by some other person to whom such purchaser transfers the property or items without valuable consideration, such as gifts, and advertising specialties distributed at no charge and apart from the sale of other tangible personal property, items or property under s. 77.52 (1) (b) or (c), or service.

SB446,38,8 3. Transfers of tangible personal property or items or property under s. 77.52 (1) (b) or (c) 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 or items or property under s. 77.52 (1) (b) or (c) 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.

SB446, s. 108 Section 108. 77.51 (15b) of the statutes is created to read:

SB446,38,14 77.51 (15b) (a) "Sales price" means the total amount of consideration, including cash, credit, property, and services, for which tangible personal property, items or property under s. 77.52 (1) (b) or (c), or services are sold, leased, or rented, valued in money, whether received in money or otherwise, without any deduction for the following:

SB446,38,16 1. The seller's cost of the property or items or property under s. 77.52 (1) (b) or (c) sold.

SB446,38,19 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.

SB446,38,21 3. Charges by the seller for any services necessary to complete a sale, not including delivery and installation charges.

SB446,38,22 4. a. Delivery charges, except as provided in par. (b) 4.

SB446,39,4 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 that the seller allocates 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.

SB446,39,5 5. Installation charges.

SB446,39,6 (b) "Sales price" does not include:

SB446,39,9 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.

SB446,39,14 2. Interest, financing, and carrying charges from credit that is extended on a sale of tangible personal property, items or property under s. 77.52 (1) (b) or (c), 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.

SB446,39,17 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.

SB446,39,18 4. Delivery charges for direct mail.

SB446,39,22 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.

SB446,40,4 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.

SB446,40,10 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.

SB446,40,16 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.

SB446,40,18 (c) "Sales price" includes consideration received by the seller from a 3rd party, if:

SB446,40,21 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.

SB446,40,22 2. The seller is obliged to pass the price reduction or discount to the purchaser.

SB446,40,25 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.

SB446,41,1 4. Any of the following also applies:

SB446,41,6 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.

SB446,41,8 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.

SB446,41,11 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.

SB446, s. 109 Section 109. 77.51 (17) (intro.) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB446,41,18 77.51 (17) (intro.) "Seller" includes every person selling, leasing, or renting tangible personal property or items or property under s. 77.52 (1) (b) or (c) 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, regardless of all of the following:

SB446, s. 110 Section 110. 77.51 (17m) of the statutes is repealed and recreated to read:

SB446,41,20 77.51 (17m) "Service address" means any of the following:

SB446,41,24 (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.

SB446,42,6 (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.

SB446,42,8 (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.

SB446, s. 111 Section 111. 77.51 (17w) of the statutes is created to read: