AB301: Bill Text

CORRECTED COPY

LRB-1163/1

JK:kjf

2015 - 2016 LEGISLATURE

2015 Assembly BILL 301

August 6, 2015 - Introduced by Representative Zepnick. Referred to Committee on Transportation.

AB301,1,8 An Act to amend chapter 77 (title), 77.52 (1), 77.52 (2) (intro.), 77.53 (1), subchapter V (title) of chapter 77 [precedes 77.70], 77.71 (intro.), 77.71 (1), 77.71 (2), 77.71 (3), 77.71 (4), 77.73 (2), 77.73 (3), 77.75, 77.76 (1), 77.76 (2), 77.76 (4), 77.77 and 77.78; and to create 20.566 (1) (gh), 20.835 (4) (gh), 77.61 (21), 77.701 and 77.76 (3r) of the statutes; relating to: allowing municipalities to impose a sales and use tax for transportation purposes, lowering the state sales and use tax rates, using state sales and use tax revenue for transportation purposes, and making appropriations.

Analysis by the Legislative Reference Bureau

This bill allows a city, village, or town to impose a sales and use tax at the rate of 1.5 percent of the sales price of tangible personal property and taxable services purchased or used in the city, village, or town. The city, village, or town must use the sales and use tax revenue for transportation purposes.

The bill also lowers the state sales and use tax rate from 5 percent to 3 percent and requires that the sales and use tax collected on the sale of gasoline and diesel fuel be deposited into the transportation fund.

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:

AB301,1 Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

AB301,2 Section 2. 20.566 (1) (gh) of the statutes is created to read:

AB301,2,8 20.566 (1) (gh) Administration of municipality taxes. From the moneys transferred from the appropriation account under s. 20.835 (4) (gh), the amounts in the schedule for administering the municipality taxes imposed under s. 77.701. Notwithstanding s. 20.001 (3) (a), at the end of the fiscal year the unencumbered balance of this appropriation account lapses to the general fund.

AB301,3 Section 3. 20.835 (4) (gh) of the statutes is created to read:

AB301,2,14 20.835 (4) (gh) Municipality taxes. All moneys received from the taxes imposed under s. 77.701 for distribution to the municipalities that enact an ordinance imposing taxes under that section and for interest payments on refunds under s. 77.76 (3r), except that 1.75 percent of those tax revenues collected under that section shall be credited to the appropriation account under s. 20.566 (1) (gh).

AB301,4 Section 4. Chapter 77 (title) of the statutes is amended to read:

AB301,3,1 CHAPTER 77

AB301,3,3 TAXATION OF FOREST CROPLANDS; REAL ESTATE TRANSFER FEES;

AB301,3,5 SALES AND USE TAXES; COUNTY, Municipality, AND SPECIAL DISTRICT

AB301,3,12 SALES AND USE TAXES; MANAGED FOREST LAND; ECONOMIC DEVELOPMENT SURCHARGE; LOCAL FOOD and BEVERAGE TAX; LOCAL RENTAL CAR TAX; PREMIER RESORT AREA TAXES; STATE RENTAL VEHICLE FEE; DRY CLEANING FEES

AB301,5 Section 5. 77.52 (1) of the statutes is amended to read:

AB301,3,18 77.52 (1) (a) For the privilege of selling, licensing, leasing or renting tangible personal property at retail a tax is imposed upon all retailers at the rate of 5% 3 percent of the sales price from the sale, license, lease or rental of tangible personal property sold, licensed, leased or rented at retail in this state, as determined under s. 77.522.

AB301,3,23 (b) For the privilege of selling, licensing, leasing, or renting at retail coins and stamps of the United States that are sold, licensed, leased, rented, or traded as collectors' items above their face value, a tax is imposed on all retailers at the rate of 5 3 percent of the sales price from the sale, license, lease, or rental of such coins and stamps.

AB301,4,3 (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 3 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.

AB301,4,8 (d) A tax is imposed on all retailers at the rate of 5 3 percent of the sales price from the sale, lease, license, or rental of specified digital goods and additional digital goods at retail for the right to use the specified digital goods or additional digital goods on a permanent or less than permanent basis and regardless of whether the purchaser is required to make continued payments for such right.

AB301,6 Section 6. 77.52 (2) (intro.) of the statutes is amended to read:

AB301,4,17 77.52 (2) (intro.) For the privilege of selling, licensing, performing or furnishing the services described under par. (a) at retail in this state, as determined under s. 77.522, to consumers or users, regardless of whether the consumer or user has the right of permanent use or less than the right of permanent use and regardless of whether the service is conditioned on continued payment from the purchaser, a tax is imposed upon all persons selling, licensing, performing or furnishing the services at the rate of 5% 3 percent of the sales price from the sale, license, performance or furnishing of the services.

AB301,7 Section 7. 77.53 (1) of the statutes is amended to read:

AB301,5,8 77.53 (1) Except as provided in sub. (1m), an excise tax is levied and imposed on the use or consumption in this state of taxable services under s. 77.52 purchased from any retailer, at the rate of 5% 3 percent of the purchase price of those services; on the storage, use or other consumption in this state of tangible personal property and items or property under s. 77.52 (1) (b) or (c) purchased from any retailer, at the rate of 5% 3 percent of the purchase price of the property or items; on the storage, use, or other consumption of goods in this state under s. 77.52 (1) (d) purchased from any retailer, if the purchaser has the right to use the goods on a permanent or less than permanent basis and regardless of whether the purchaser is required to make continued payments for such right, at the rate of 5 3 percent of the purchase price of the goods; and on the storage, use or other consumption of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) manufactured, processed or otherwise altered, in or outside this state, by the person who stores, uses or consumes it, from material purchased from any retailer, at the rate of 5% 3 percent of the purchase price of that material.

AB301,8 Section 8. 77.61 (21) of the statutes is created to read:

AB301,5,12 77.61 (21) The taxes collected under this subchapter from the sale of gasoline, as defined in s. 78.005 (7), and diesel fuel, as defined in s. 78.005 (5), shall be deposited into the transportation fund.

AB301,9 Section 9. Subchapter V (title) of chapter 77 [precedes 77.70] of the statutes is amended to read:

AB301,5,15 CHAPTER 77

AB301,5,16 SUBCHAPTER V

AB301,5,17 COUNTY, municipality, AND

AB301,5,18 SPECIAL DISTRICT SALES AND USE TAXES

AB301,10 Section 10. 77.701 of the statutes is created to read:

AB301,6,5 77.701 Adoption by municipal ordinance. A municipality may, by ordinance, impose a sales and use tax under this subchapter at the rate of 1.5 percent of the sales price or the purchase price. The taxes imposed under this section may only be used for transportation purposes and may be imposed only in their entirety. Taxes imposed under this section take effect on the first January 1 that begins at least 120 days after the date on which the municipality enacts the ordinance. The municipality shall deliver a certified copy of the ordinance to the secretary of revenue at least 120 days prior to its effective date. If the municipality repeals the ordinance, the repeal is effective on December 31. The municipality shall deliver a certified copy of a repeal ordinance to the secretary of revenue at least 120 days before the effective date of the repeal. In this section, "municipality" means a city, village, or town.

AB301,11 Section 11. 77.71 (intro.) of the statutes is amended to read:

AB301,6,10 77.71 Imposition of county and special district sales and use taxes. (intro.) Whenever a county sales and use tax an ordinance is adopted enacted under s. 77.70 or 77.701, or a special district resolution is adopted under s. 77.705 or 77.706, the following taxes are imposed:

AB301,12 Section 12. 77.71 (1) of the statutes is amended to read:

AB301,6,22 77.71 (1) For the privilege of selling, licensing, leasing, or renting tangible personal property and the items, property, and goods specified under s. 77.52 (1) (b), (c), and (d), and for the privilege of selling, licensing, performing, or furnishing services a sales tax is imposed upon retailers at the rates under s. 77.70 in the case of a county tax, at the rate under s. 77.701 in the case of a municipality tax, or at the rate under s. 77.705 or 77.706 in the case of a special district tax of the sales price from the sale, license, lease, or rental of tangible personal property and the items, property, and goods specified under s. 77.52 (1) (b), (c), and (d), except property taxed under sub. (4), sold, licensed, leased, or rented at retail in the county, municipality, or special district, or from selling, licensing, performing, or furnishing services described under s. 77.52 (2) in the county, municipality, or special district.

AB301,13 Section 13. 77.71 (2) of the statutes is amended to read:

AB301,7,13 77.71 (2) An excise tax is imposed at the rates under s. 77.70 in the case of a county tax, at the rate under s. 77.701 in the case of a municipality tax, or at the rate under s. 77.705 or 77.706 in the case of a special district tax of the purchase price upon every person storing, using, or otherwise consuming in the county , municipality, or special district tangible personal property, or items, property, or goods specified under s. 77.52 (1) (b), (c), or (d), or services if the tangible personal property, item, property, good, or service is subject to the state use tax under s. 77.53, except that a receipt indicating that the tax under sub. (1), (3), or (4) has been paid relieves the buyer of liability for the tax under this subsection and except that if the buyer has paid a similar local tax in another state on a purchase of the same tangible personal property, item, property, good, or service that tax shall be credited against the tax under this subsection and except that for motor vehicles that are used for a purpose in addition to retention, demonstration, or display while held for sale in the regular course of business by a dealer the tax under this subsection is imposed not on the purchase price but on the amount under s. 77.53 (1m).

AB301,14 Section 14. 77.71 (3) of the statutes is amended to read:

AB301,8,2 77.71 (3) An excise tax is imposed upon a contractor engaged in construction activities within the county, municipality, or special district at the rates under s. 77.70 in the case of a county tax, at the rate under s. 77.701 in the case of a municipality tax, or at the rate under s. 77.705 or 77.706 in the case of a special district tax of the purchase price of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) that are used in constructing, altering, repairing, or improving real property and that became a component part of real property in that county, municipality, or special district, except that if the contractor has paid the sales tax of a county, municipality, or special district in this state on that tangible personal property, item, property, or good, or has paid a similar local sales tax in another state on a purchase of the same tangible personal property, item, property, or good, that tax shall be credited against the tax under this subsection.