AB438: Bill Text

LRB-3333/1

JK:jld:jf

2013 - 2014 LEGISLATURE

2013 Assembly BILL 438

October 17, 2013 - Introduced by Representatives Steineke, Kaufert, Hintz, Sinicki, Murphy, Kahl, Bies, A. Ott, Bernard Schaber, Pridemore, Sanfelippo, Kuglitsch, Tittl, Ohnstad, Wachs, Bernier and Thiesfeldt, cosponsored by Senators Ellis, Lasee, Gudex, Cowles, Grothman and Farrow. Referred to Committee on Ways and Means.

AB438,1,3 An Act to amend 77.52 (2) (a) 10. and 77.52 (13); and to repeal and recreate 77.54 (5) (a) of the statutes; relating to: the sales and use tax exemption for aircraft parts, maintenance, and labor.

Analysis by the Legislative Reference Bureau

Under current law, the sale of aircraft, including accessories, attachments, fuel, and parts, is exempt from the sales and use tax if the aircraft is sold to a person who uses the aircraft as a certified or licensed carrier in interstate or foreign commerce or sold to and used by a foreign government. Also, under current law, the sale of aircraft is exempt from the sales and use tax, if the aircraft is sold to persons who are not state residents and the aircraft is removed from this state. Repair and maintenance services performed on all such aircraft are also exempt from the sales and use tax.

This bill exempts the sale of aircraft parts from the sales and use tax, regardless of how the aircraft is used. In addition, the bill exempts the repair and maintenance of all aircraft and aircraft parts from the sales and use tax.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB438,1 Section 1. 77.52 (2) (a) 10. of the statutes is amended to read:

AB438,3,4 77.52 (2) (a) 10. Except for the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, and maintenance of any aircraft or aircraft parts; except for services provided by veterinarians; and except for installing or applying tangible personal property, or items or goods under sub. (1) (b) or (d), that, subject to par. (ag), when installed or applied, will constitute an addition or capital improvement of real property,; the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, and maintenance of all items of tangible personal property or items, property, or goods under sub. (1) (b), (c), or (d), unless, at the time of that repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance, a sale in this state of the type of property, item, or good repaired, serviced, altered, fitted, cleaned, painted, coated, towed, inspected, or maintained would have been exempt to the customer from sales taxation under this subchapter, other than the exempt sale of a motor vehicle or truck body to a nonresident under s. 77.54 (5) (a) and other than nontaxable sales under s. 77.522 or unless the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance is provided under a contract that is subject to tax under subd. 13m. The tax imposed under this subsection applies to the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance of items listed in par. (ag), regardless of whether the installation or application of tangible personal property or items, property, or goods under sub. (1) (b), (c), or (d) related to the items is an addition to or a capital improvement of real property, except that the tax imposed under this subsection does not apply to the original installation or the complete replacement of an item listed in par. (ag), if that installation or replacement is a real property construction activity under s. 77.51 (2).

AB438,2 Section 2. 77.52 (13) of the statutes is amended to read:

AB438,3,17 77.52 (13) For the purpose of the proper administration of this section and to prevent evasion of the sales tax it shall be presumed that all receipts are subject to the tax until the contrary is established. The burden of proving that a sale of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services is not a taxable sale at retail is upon the person who makes the sale unless that person takes from the purchaser an electronic or a paper certificate, in a manner prescribed by the department, to the effect that the property, item, good, or service is purchased for resale or is otherwise exempt, except that no certificate is required for the sale of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services that are exempt under s. 77.54 (5) (a) 3., (7), (7m), (8), (10), (11), (14), (15), (17), (20n), (21), (22b), (31), (32), (35), (36), (37), (42), (44), (45), (46), (51), and (52).

AB438,3 Section 3. 77.54 (5) (a) of the statutes is repealed and recreated to read:

AB438,3,23 77.54 (5) (a) 1. Aircraft, including accessories, attachments, and fuel for such aircraft, sold to persons using the aircraft as certified or licensed carriers of persons or property in interstate or foreign commerce under authority of the laws of the United States or any foreign government, or sold to any foreign government for use by such government outside this state.

AB438,4,3 2. Aircraft, including attachments for such aircraft, sold to persons who are not residents of this state and who will not use such aircraft in this state otherwise than in the removal of such aircraft from this state or in the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, and maintenance of such aircraft in this state.

AB438,4,4 3. Parts used to modify or repair aircraft.

AB438,4,8 4. Motor vehicles or truck bodies sold to persons who are not residents of this state and who will not use such motor vehicles or trucks for which the truck bodies were made in this state otherwise than in the removal of such motor vehicles or trucks from this state.

AB438,4 Section 4. Effective date.

AB438,4,11 (1) This act takes effect on first day of the 3rd month beginning after publication.

AB438,4,12 (End)