SB446: Bill Text

SB446,66,22 77.53 (2) Every person storing, using, or otherwise consuming in this state tangible personal property, items or property specified under s. 77.52 (1) (b) or (c), or taxable services purchased from a retailer is liable for the tax imposed by this section. The person's liability is not extinguished until the tax has been paid to this state, but a receipt with the tax separately stated from a retailer engaged in business in this state or from a retailer who is authorized by the department, under such rules as it prescribes, to collect the tax and who is regarded as a retailer engaged in business in this state for purposes of the tax imposed by this section given to the purchaser under sub. (3) relieves the purchaser from further liability for the tax to which the receipt refers.

SB446, s. 168 Section 168. 77.53 (3) of the statutes is amended to read:

SB446,67,7 77.53 (3) Every retailer engaged in business in this state and making sales of tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services for delivery into this state or with knowledge directly or indirectly that the property or service is intended for storage, use or other consumption in that are sourced to this state under s. 77.522, shall, at the time of making the sales or, if the storage, use or other consumption of the tangible personal property or taxable service is not then taxable under this section, at the time the storage, use or other consumption becomes taxable, collect the tax from the purchaser and give to the purchaser a receipt in the manner and form prescribed by the department.

SB446, s. 169 Section 169. 77.53 (4) of the statutes is repealed.

SB446, s. 170 Section 170. 77.53 (9) of the statutes is amended to read:

SB446,67,19 77.53 (9) Every retailer selling tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services for storage, use or other consumption in this state shall register with the department and obtain a certificate under s. 73.03 (50) and give the name and address of all agents operating in this state, the location of all distribution or sales houses or offices or other places of business in this state, the standard industrial code classification of each place of business in this state and the other information that the department requires. Any person who may register under this subsection may designate an agent, as defined in s. 77.524 (1) (ag), to register with the department under this subsection, in the manner prescribed by the department.

SB446, s. 171 Section 171. 77.53 (9m) of the statutes is renumbered 77.53 (9m) (a) and amended to read:

SB446,68,4 77.53 (9m) (a) Any person who is not otherwise required to collect any tax imposed by this subchapter and who makes sales to persons within this state of tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services the use of which is subject to tax under this subchapter may register with the department under the terms and conditions that the department imposes and shall obtain a valid certificate under s. 73.03 (50) and thereby be authorized and required to collect, report, and remit to the department the use tax imposed by this subchapter.

SB446, s. 172 Section 172. 77.53 (9m) (b) of the statutes is created to read:

SB446,68,8 77.53 (9m) (b) Any person who may register under par. (a) may designate an agent, as defined in s. 77.524 (1) (ag), to register with the department under par. (a), in the manner prescribed by the department.

SB446, s. 173 Section 173. 77.53 (9m) (c) of the statutes is created to read:

SB446,68,12 77.53 (9m) (c) The registration under par. (a) by a person who is not otherwise required to collect any tax imposed by this subchapter shall not be used as a factor in determining whether the seller has nexus with this state for any tax at any time.

SB446, s. 174 Section 174. 77.53 (10) of the statutes is amended to read:

SB446,69,7 77.53 (10) For the purpose of the proper administration of this section and to prevent evasion of the use tax and the duty to collect the use tax, it is presumed that tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services sold by any person for delivery in this state is sold for storage, use, or other consumption in this state until the contrary is established. The burden of proving the contrary is upon the person who makes the sale unless that person takes from the purchaser a an electronic or paper certificate, in a manner prescribed by department, to the effect that the property, items or property under s. 77.52 (1) (b) or (c), or taxable service is purchased for resale, or otherwise exempt from the tax;, except that no certificate is required for sales of cattle, sheep, goats, and pigs that are sold at an animal market, as defined in s. 95.68 (1) (ag), and no certificate is required for sales of commodities, as defined in 7 USC 2, that are consigned for sale in a warehouse in or from which the commodity is deliverable on a contract for future delivery subject to the rules of a commodity market regulated by the U.S. commodity futures trading commission if upon the sale the commodity is not removed from the warehouse the sale of tangible personal property, items or property under s. 77.52 (1) (b) or (c), and services that are exempt under s. 77.54 (7), (7m), (8), (10), (11), (14), (15), (17), (20n), (21), (22b), (30), (31), (32), (35), (36), (37), (42), (44), (45), (46), (51), and (52), except as provided in s. 77.54 (30) (e) and (f).

SB446, s. 175 Section 175. 77.53 (11) of the statutes is renumbered 77.53 (11) (a) and amended to read:

SB446,70,9 77.53 (11) (a) The certificate referred to in under sub. (10) relieves the person selling the property, items or property under s. 77.52 (1) (b) or (c), or service from the burden of proof of the tax otherwise applicable only if taken in good faith the seller obtains a fully completed exemption certificate, or the information required to prove the exemption, from a person who is engaged as a seller of tangible personal property or taxable services and who holds the permit provided for by s. 77.52 (9) and who, at the time of purchasing the purchaser no later than 90 days after the date of the sale of the tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable service, intends to sell it in the regular course of operations or is unable to ascertain at the time of purchase whether the property or service will be sold or will be used for some other purpose, or if taken in good faith from a person claiming exemption, except as provided in par. (b). The certificate under sub. (10) shall not relieve the seller of the tax otherwise applicable if the seller fraudulently fails to collect sales tax or solicits the purchaser to claim an unlawful exemption, accepts an exemption certificate from a purchaser who claims to be an entity that is not subject to the taxes imposed under this subchapter, if the subject of the transaction sought to be covered by the exemption certificate is received by the purchaser at a location operated by the seller in this state and the exemption certificate clearly and affirmatively indicates that the claimed exemption is not available in this state. The certificate shall be signed by and bear the name and address of provide information that identifies the purchaser and shall indicate the number of the permit issued to the purchaser, the general character of tangible personal property or taxable service sold by the purchaser and the basis for the claimed exemption and a paper certificate shall be signed by the purchaser. The certificate shall be substantially in the form that the department prescribes by rule.

SB446, s. 176 Section 176. 77.53 (11) (b) of the statutes is created to read:

SB446,70,16 77.53 (11) (b) If the seller has not obtained a fully completed exemption certificate or the information required to prove the exemption, as provided in par. (a), the seller may, no later than 120 days after the department requests that the seller substantiate the exemption, either provide proof of the exemption to the department by other means or obtain, in good faith, a fully completed exemption certificate from the purchaser.

SB446, s. 177 Section 177. 77.53 (12) of the statutes is amended to read:

SB446,70,22 77.53 (12) If a purchaser who gives a certificate makes any storage or use of the property, items or property under s. 77.52 (1) (b) or (c), or service other than retention, demonstration, or display while holding it for sale in the regular course of operations as a seller, the storage or use is taxable as of the time the property, items or property under s. 77.52 (1) (b) or (c), or service is first so stored or used.

SB446, s. 178 Section 178. 77.53 (14) of the statutes is amended to read:

SB446,71,3 77.53 (14) It is presumed that tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services shipped or brought to this state by the purchaser were purchased from or serviced by a retailer.

SB446, s. 179 Section 179. 77.53 (15) of the statutes is amended to read:

SB446,71,14 77.53 (15) It is presumed that tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services delivered outside this state to a purchaser known by the retailer to be a resident of this state were purchased from a retailer for storage, use, or other consumption in this state and stored, used, or otherwise consumed in this state. This presumption may be controverted by a written statement, signed by the purchaser or an authorized representative, and retained by the seller that the property or service was purchased for use at a designated point outside this state. This presumption may also be controverted by other evidence satisfactory to the department that the property, item, or service was not purchased for storage, use, or other consumption in this state.

SB446, s. 180 Section 180. 77.53 (16) of the statutes is amended to read:

SB446,72,4 77.53 (16) If the purchase, rental or lease of tangible personal property, items or property under s. 77.52 (1) (b) or (c), or service subject to the tax imposed by this section was subject to a sales tax by another state in which the purchase was made, the amount of sales tax paid the other state shall be applied as a credit against and deducted from the tax, to the extent thereof, imposed by this section , except no credit may be applied against and deducted from a sales tax paid on the purchase of direct mail, if the direct mail purchaser did not provide to the seller a direct pay permit, a direct mail form, or other information that indicates the appropriate taxing jurisdiction to which the direct mail is delivered to the ultimate recipients. In this subsection "sales tax" includes a use or excise tax imposed on the use of tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable service by the state in which the sale occurred and "state" includes the District of Columbia but does not include and the commonwealth of Puerto Rico or but does not include the several territories organized by congress.

SB446, s. 181 Section 181. 77.53 (17) of the statutes, as affected by 2007 Wisconsin Act 11, is amended to read:

SB446,72,16 77.53 (17) This section does not apply to tangible personal property or items or property under s. 77.52 (1) (b) or (c) purchased outside this state, as determined under s. 77.522, other than motor vehicles, boats, snowmobiles, recreational vehicles, as defined in s. 340.01 (48r), trailers, semitrailers, all-terrain vehicles and airplanes registered or titled or required to be registered or titled in this state, which is brought into this state by a nondomiciliary for the person's own storage, use or other consumption while temporarily within this state when such property or item is not stored, used or otherwise consumed in this state in the conduct of a trade, occupation, business or profession or in the performance of personal services for wages or fees.

SB446, s. 182 Section 182. 77.53 (17m) of the statutes is amended to read:

SB446,72,22 77.53 (17m) This section does not apply to a boat purchased in a state contiguous to this state, as determined under s. 77.522, by a person domiciled in that state if the boat is berthed in this state's boundary waters adjacent to the state of the domicile of the purchaser and if the transaction was an exempt occasional sale under the laws of the state in which the purchase was made.

SB446, s. 183 Section 183. 77.53 (17r) (a) of the statutes is amended to read:

SB446,72,24 77.53 (17r) (a) It is purchased in another state, as determined under s. 77.522.

SB446, s. 184 Section 184. 77.53 (18) of the statutes, as affected by 2007 Wisconsin Act 11, is amended to read:

SB446,73,10 77.53 (18) This section does not apply to the storage, use or other consumption in this state of household goods or items or property under s. 77.52 (1) (b) or (c) for personal use or to aircraft, motor vehicles, boats, snowmobiles, mobile homes, manufactured homes, as defined in s. 101.91 (2), recreational vehicles, as defined in s. 340.01 (48r), trailers, semitrailers and all-terrain vehicles, for personal use, purchased by a nondomiciliary of this state outside this state, as determined under s. 77.522, 90 days or more before bringing the goods, items, or property into this state in connection with a change of domicile to this state.

SB446, s. 185 Section 185. 77.54 (1) of the statutes is amended to read:

SB446,73,17 77.54 (1) The gross receipts sales price from the sale of and the storage, use or other consumption in this state of tangible personal property, items and property under s. 77.52 (1) (b) and (c) and services the gross receipts sales price from the sale of which, or the storage, use or other consumption of which, this state is prohibited from taxing under the constitution or laws of the United States or under the constitution of this state.

SB446, s. 186 Section 186. 77.54 (2) of the statutes is amended to read:

SB446,73,23 77.54 (2) The gross receipts sales price from sales of and the storage, use or other consumption of tangible personal property becoming an ingredient or component part of an article of tangible personal property or which is consumed or destroyed or loses its identity in the manufacture of tangible personal property in any form destined for sale, except as provided in sub. (30) (a) 6.

SB446, s. 187 Section 187. 77.54 (2m) of the statutes is amended to read:

SB446,74,9 77.54 (2m) The gross receipts sales price from the sales of and the storage, use or other consumption of tangible personal property or services that become an ingredient or component of shoppers guides, newspapers or periodicals or that are consumed or lose their identity in the manufacture of shoppers guides, newspapers or periodicals, whether or not the shoppers guides, newspapers or periodicals are transferred without charge to the recipient. In this subsection, "shoppers guides", "newspapers" and "periodicals" have the meanings under sub. (15). The exemption under this subdivision does not apply to advertising supplements that are not newspapers.

SB446, s. 188 Section 188. 77.54 (3) (a) of the statutes, as affected by 2005 Wisconsin Act 366, is amended to read:

SB446,74,25 77.54 (3) (a) The gross receipts sales price from the sales of and the storage, use, or other consumption of tractors and machines, including accessories, attachments, and parts, lubricants, nonpowered equipment, and other tangible personal property that are used exclusively and directly, or are consumed or lose their identities, in the business of farming, including dairy farming, agriculture, horticulture, floriculture, silviculture, and custom farming services, but excluding automobiles, trucks, and other motor vehicles for highway use; excluding personal property that is attached to, fastened to, connected to, or built into real property or that becomes an addition to, component of, or capital improvement of real property; and excluding tangible personal property used or consumed in the erection of buildings or in the alteration, repair or improvement of real property, regardless of any contribution that that personal property makes to the production process in that building or real property and regardless of the extent to which that personal property functions as a machine, except as provided in par. (c).

SB446, s. 189 Section 189. 77.54 (3m) (intro.) of the statutes, as affected by 2005 Wisconsin Act 366, is amended to read:

SB446,75,6 77.54 (3m) (intro.) The gross receipts sales price from the sale of and the storage, use or other consumption of the following items if they are used exclusively by the purchaser or user in the business of farming; including dairy farming, agriculture, horticulture, floriculture, silviculture, and custom farming services:

SB446, s. 190 Section 190. 77.54 (4) of the statutes is amended to read:

SB446,75,13 77.54 (4) Gross receipts The sales price from the sale of tangible personal property and items and property under s. 77.52 (1) (b) and (c), and the storage, use or other consumption in this state of tangible personal property and items and property under s. 77.52 (1) (b) and (c) which is the subject of any such sale, by any elementary school or secondary school, exempted as such from payment of income or franchise tax under ch. 71, whether public or private.

SB446, s. 191 Section 191. 77.54 (5) (intro.) of the statutes is amended to read:

SB446,75,16 77.54 (5) (intro.) The gross receipts sales price from the sale of and the storage, use or other consumption of:

SB446, s. 192 Section 192. 77.54 (6) (intro.) of the statutes is amended to read:

SB446,75,19 77.54 (6) (intro.) The gross receipts sales price from the sale of and the storage, use or other consumption of:

SB446, s. 193 Section 193. 77.54 (7m) of the statutes is amended to read:

SB446,76,10 77.54 (7m) Occasional sales of tangible personal property, items or property under s. 77.52 (1) (b) and (c), or services, including admissions or tickets to an event; by a neighborhood association, church, civic group, garden club, social club or similar nonprofit organization; not involving entertainment for which payment in the aggregate exceeds $500 for performing or as reimbursement of expenses unless access to the event may be obtained without payment of a direct or indirect admission fee; conducted by the organization if the organization is not engaged in a trade or business and is not required to have a seller's permit. For purposes of this subsection, an organization is engaged in a trade or business and is required to have a seller's permit if its sales of tangible personal property, items and property under s. 77.52 (1) (b) and (c), and services, not including sales of tickets to events, and its events occur on more than 20 days during the year, unless its receipts do not exceed $25,000 during the year. The exemption under this subsection does not apply to gross receipts the sales price from the sale of bingo supplies to players or to the sale, rental or use of regular bingo cards, extra regular cards and special bingo cards.

SB446, s. 194 Section 194. 77.54 (8) of the statutes is amended to read:

SB446,76,14 77.54 (8) Charges for interest, financing or insurance, not including contracts under s. 77.52 (2) (a) 13m., where such charges are separately set forth upon the invoice given by the seller to the purchaser.

SB446, s. 195 Section 195. 77.54 (9) of the statutes is amended to read:

SB446,76,18 77.54 (9) The gross receipts sales price from sales of tickets or admissions to public and private elementary and secondary school activities, where the entire net proceeds therefrom are expended for educational, religious or charitable purposes.

SB446, s. 196 Section 196. 77.54 (9a) (intro.) of the statutes is amended to read:

SB446,76,22 77.54 (9a) (intro.) The gross receipts sales price from sales to, and the storage by, use by or other consumption of tangible personal property, items and property under s. 77.52 (1) (b) and (c), and taxable services by:

SB446, s. 197 Section 197. 77.54 (10) of the statutes is amended to read:

SB446,77,2 77.54 (10) The gross receipts sales price from the sale of all admission fees, admission stickers or camping fees under s. 27.01 (7) to (11) and all admission fees to any museum operated by a nonprofit corporation under a lease agreement with the state historical society.

SB446, s. 198 Section 198. 77.54 (11) of the statutes is amended to read:

SB446,77,8 77.54 (11) The gross receipts sales price from the sales of and the storage, use or other consumption in this state of motor vehicle fuel, general aviation fuel or alternate fuel, subject to taxation under ch. 78, unless the motor vehicle fuel or alternate fuel tax is refunded under s. 78.75 because the buyer does not use the fuel in operating a motor vehicle upon the public highways.

SB446, s. 199 Section 199. 77.54 (12) of the statutes is amended to read:

SB446,77,13 77.54 (12) The gross receipts sales price from the sales of and the storage, use or other consumption in this state of rail freight or passenger cars, locomotives or other rolling stock used in railroad operations, or accessories, attachments, parts, lubricants or fuel therefor.

SB446, s. 200 Section 200. 77.54 (13) of the statutes is amended to read:

SB446,77,18 77.54 (13) The gross receipts sales price from the sales of and the storage, use or other consumption in this state of commercial vessels and barges of 50-ton burden or over primarily engaged in interstate or foreign commerce or commercial fishing, and the accessories, attachments, parts and fuel therefor.

SB446, s. 201 Section 201. 77.54 (14) (intro.) of the statutes is amended to read:

SB446,77,22 77.54 (14) (intro.) The gross receipts sales price from the sales of and the storage, use, or other consumption in this state of medicines drugs that are any of the following:

SB446, s. 202 Section 202. 77.54 (14) (a) of the statutes is amended to read:

SB446,78,3 77.54 (14) (a) Prescribed for the treatment of a human being by a person authorized to prescribe the medicines drugs, and dispensed on prescription filled by a registered pharmacist in accordance with law.

SB446, s. 203 Section 203. 77.54 (14) (b) of the statutes is amended to read:

SB446,78,6 77.54 (14) (b) Furnished by a licensed physician, surgeon, podiatrist, or dentist to a patient who is a human being for treatment of the patient.

SB446, s. 204 Section 204. 77.54 (14) (f) (intro.) of the statutes is amended to read:

SB446,78,9 77.54 (14) (f) (intro.) Furnished without charge to any of the following if the medicine drug may not be dispensed without a prescription:

SB446, s. 205 Section 205. 77.54 (14g) of the statutes is repealed.

SB446, s. 206 Section 206. 77.54 (14s) of the statutes is repealed.

SB446, s. 207 Section 207. 77.54 (15) of the statutes is amended to read:

SB446,79,4 77.54 (15) The gross receipts sales price from the sale of and the storage, use or other consumption of all newspapers, of periodicals sold by subscription and regularly issued at average intervals not exceeding 3 months, or issued at average intervals not exceeding 6 months by an educational association or corporation sales to which are exempt under sub. (9a) (f), of controlled circulation publications sold to commercial publishers for distribution without charge or mainly without charge or regularly distributed by or on behalf of publishers without charge or mainly without charge to the recipient and of shoppers guides which distribute no less than 48 issues in a 12-month period. In this subsection, "shoppers guide" means a community publication delivered, or attempted to be delivered, to most of the households in its coverage area without a required subscription fee, which advertises a broad range of products and services offered by several types of businesses and individuals. In this subsection, "controlled circulation publication" means a publication that has at least 24 pages, is issued at regular intervals not exceeding 3 months, that devotes not more than 75% of its pages to advertising and that is not conducted as an auxiliary to, and essentially for the advancement of, the main business or calling of the person that owns and controls it.

SB446, s. 208 Section 208. 77.54 (16) of the statutes is amended to read:

SB446,79,9 77.54 (16) The gross receipts sales price from the sale of and the storage, use or other consumption of fire trucks and fire fighting equipment, including accessories, attachments, parts and supplies therefor, sold to volunteer fire departments.

SB446, s. 209 Section 209. 77.54 (17) of the statutes is amended to read:

SB446,79,13 77.54 (17) The gross receipts sales price from the sales of and the storage, use or other consumption of water, that is not food and food ingredient, when delivered through mains.

SB446, s. 210 Section 210. 77.54 (18) of the statutes is amended to read:

SB446,79,24 77.54 (18) When the sale, lease or rental of a service or property, including items and property under s. 77.52 (1) (b) and (c), that was previously exempt or not taxable under this subchapter becomes taxable, and the service or property is furnished under a written contract by which the seller is unconditionally obligated to provide the service or property for the amount fixed under the contract, the seller is exempt from sales or use tax on the gross receipts sales price for services or property provided until the contract is terminated, extended, renewed or modified. However, from the time the service or property becomes taxable until the contract is terminated, extended, renewed or modified the user is subject to use tax, measured by the sales purchase price, on the service or property purchased under the contract.

SB446, s. 211 Section 211. 77.54 (20) of the statutes is repealed.

SB446, s. 212 Section 212. 77.54 (20m) of the statutes is repealed.

SB446, s. 213 Section 213. 77.54 (20n) of the statutes is created to read:

SB446,80,5 77.54 (20n) (a) The sales price from the sale of and the storage, use, or other consumption of food and food ingredients, except candy, soft drinks, dietary supplements, and prepared food.

SB446,80,14 (b) The sales price from the sale of and the storage, use, or other consumption of food and food ingredients, except soft drinks, sold by hospitals, sanatoriums, nursing homes, retirement homes, community-based residential facilities, as defined in s. 50.01 (1g), or day care centers registered under ch. 48, including prepared food that is sold to the elderly or handicapped by persons providing mobile meals on wheels. In this paragraph, "retirement home" means a nonprofit residential facility where 3 or more unrelated adults or their spouses have their principal residence and where support services, including meals from a common kitchen, are available to residents.