AB64: Bill Text

AB64,586,13 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, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), 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 an electronic or paper certificate, in a manner prescribed by department, to the effect that the property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or taxable service is purchased for resale, or otherwise exempt from the tax, except that no certificate is required for the sale of tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services that are exempt under s. 77.54 (7), (7m), (8), (10), (11), (14), (15), (17), (20n), (21), (22b), (31), (32), (35), (36), (37), (42), (44), (45), (46), (51), and (52), and (64).

AB64,1184 Section 1184. 77.53 (17) of the statutes is amended to read:

AB64,586,25 77.53 (17) This section does not apply to tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) 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, utility terrain vehicles, off-highway motorcycles, as defined in s. 23.335 (1) (q), 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, item, or good 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.

AB64,1185 Section 1185. 77.53 (18) of the statutes is amended to read:

AB64,587,10 77.53 (18) This section does not apply to the storage, use or other consumption in this state of household goods or items, property, or goods under s. 77.52 (1) (b), (c), or (d) 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, all-terrain vehicles, and utility terrain vehicles, and off-highway motorcycles, as defined in s. 23.335 (1) (q), 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.

AB64,1186 Section 1186. 77.54 (7) (b) (intro.) of the statutes is amended to read:

AB64,587,18 77.54 (7) (b) (intro.) If the item transferred is a motor vehicle, snowmobile, recreational vehicle, as defined in s. 340.01 (48r), trailer, semitrailer, all-terrain vehicle, utility terrain vehicle, off-highway motorcycle, as defined in s. 23.335 (1) (q), or aircraft and the item is registered or titled, or required to be registered or titled, in this state or if the item is a boat that is registered or titled, or required to be registered or titled, in this state or under the laws of the United States, the exemption under par. (a) applies only if all of the following conditions are fulfilled:

AB64,1187 Section 1187. 77.54 (20n) (d) of the statutes is created to read:

AB64,587,22 77.54 (20n) (d) The sales price from the sale of and the storage, use, or other consumption of prepared food that is sold by a retailer and that meets all of the following conditions:

AB64,587,25 1. The prepared food is manufactured by the retailer in a building assessed as manufacturing property under s. 70.995, or that would be assessed as manufacturing property under s. 70.995 if the building was located in this state.

AB64,588,2 2. The retailer makes no retail sales of prepared food at the building described in subd. 1.

AB64,588,3 3. The retailer freezes the prepared food prior to its sale.

AB64,588,4 4. The retailer sells the prepared food at retail in a frozen state.

AB64,588,6 5. The prepared food is not sold with eating utensils that are provided by the retailer, as described in s. 77.51 (10m) (a) 3.

AB64,588,7 6. The prepared food is not candy, soft drinks, or dietary supplements.

AB64,1188 Section 1188 . 77.54 (60) (a) of the statutes is renumbered 77.54 (60) (d) (intro.) and amended to read:

AB64,588,10 77.54 (60) (d) (intro.) In this subsection,“ lump sum:

AB64,588,19 1. “Construction contract" means a contract to perform real property construction activities and to provide tangible personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services and for which the contractor quotes the charge for labor, services of subcontractors, tangible personal property, items and property under s. 77.52 (1) (b) and (c), and taxable services as one price, including a contract for which the contractor itemizes the charges for labor, services of subcontractors, tangible personal property, items and property under s. 77.52 (1) (b) and (c), and taxable services as part of a schedule of values or similar document products.

AB64,1189 Section 1189 . 77.54 (60) (b) of the statutes is amended to read:

AB64,589,3 77.54 (60) (b) The 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 products that are sold by a prime contractor as part of a lump sum construction contract, if the total sales price of all such taxable products is less than 10 percent of the total amount of the lump sum construction contract. Except as provided in par. (c), the prime contractor is the consumer of such taxable the products and shall pay the tax imposed under this subchapter on the taxable products.

AB64,1190 Section 1190 . 77.54 (60) (bm) of the statutes is created to read:

AB64,589,8 77.54 (60) (bm) 1. The sales price from the sale of and the storage, use, or other consumption of products that are sold by a subcontractor to a prime contractor, or to another subcontractor for eventual sale to the prime contractor, as part of a construction contract, if any of the following applies:

AB64,589,10 a. The total sales price of all products is less than 10 percent of the total amount of the construction contract.

AB64,589,12 b. The products will be sold by the prime contractor as part of a construction contract, and that sale is exempt under par. (b).

AB64,589,15 2. Except as provided in par. (c), the subcontractor is the consumer of the products exempted under this paragraph and shall pay the tax imposed under this subchapter on the products.

AB64,1191 Section 1191 . 77.54 (60) (c) of the statutes is renumbered 77.54 (60) (c) (intro.) and amended to read:

AB64,589,20 77.54 (60) (c) (intro.) If the lump sum construction contract under par. (b) is entered into with between a prime contractor and an entity that is exempt from taxation under sub. (9a), the all of the following apply:

AB64,590,2 1. The prime contractor is the consumer of all taxable products used by the prime contractor in real property construction activities, but the prime contractor may purchase without tax, for resale, tangible personal property, items and property under s. 77.52 (1) (b) and (c), and taxable services products that are sold by the prime contractor to the entity as part of the lump sum construction contract with the entity and that are not consumed by the prime contractor in real property construction activities.

AB64,1192 Section 1192 . 77.54 (60) (c) 2. of the statutes is created to read:

AB64,590,9 77.54 (60) (c) 2. A subcontractor of the prime contractor is the consumer of all products used by the subcontractor in real property construction activities, but the subcontractor may purchase without tax, for resale, products that are sold by the subcontractor to the prime contractor or another subcontractor, as part of the subcontractor's construction contract under par. (bm), for resale to the entity and that are not consumed by the subcontractor in real property construction activities.

AB64,1193 Section 1193 . 77.54 (60) (d) 2. and 3. of the statutes are created to read:

AB64,590,14 77.54 (60) (d) 2. “Prime contractor" means a contractor who enters into a construction contract with an owner or lessee of real property, except for leased property under s. 77.52 (1) (c), to perform real property construction activities on the real property.

AB64,590,16 3. “Subcontractor" means a contractor who enters into a construction contract with a prime contractor or another subcontractor.

AB64,1194 Section 1194. 77.54 (64) of the statutes is created to read:

AB64,590,18 77.54 (64) (a) In this subsection:

AB64,590,20 1. “Clothing" means any wearing apparel for humans that is suitable for general use, not including all of the following:

AB64,590,21 a. Belt buckles sold separately.

AB64,590,22 b. Costume masks sold separately.

AB64,590,23 c. Patches and emblems sold separately.

AB64,590,25 d. Sewing equipment and supplies, including knitting needles, patterns, pins, scissors, sewing machines, sewing needles, tape measures, and thimbles.

AB64,591,2 e. Sewing materials that become part of clothing, including buttons, fabric, lace, thread, yarn, and zippers.

AB64,591,3 f. Clothing accessories or equipment.

AB64,591,4 g. Protective equipment.

AB64,591,5 h. Sport or recreational equipment.

AB64,591,8 2. “Clothing accessories or equipment" means incidental items worn on a person or in conjunction with clothing, not including clothing, protective equipment, or sport or recreational equipment, but including all of the following:

AB64,591,9 a. Briefcases.

AB64,591,10 b. Cosmetics.

AB64,591,11 c. Hair notions, including barrettes, hair bows, and hair nets.

AB64,591,12 d. Handbags.

AB64,591,13 e. Handkerchiefs.

AB64,591,14 f. Jewelry.

AB64,591,15 g. Nonprescription sunglasses.

AB64,591,16 h. Umbrellas.

AB64,591,17 i. Wallets.

AB64,591,18 j. Watches.

AB64,591,19 k. Wigs.

AB64,591,20 L. Hair pieces.

AB64,591,22 3. “Eligible property” means an item that qualifies for exemption under this subsection.

AB64,592,2 4. “Layaway sale” means a transaction in which property is set aside for future delivery to a customer who makes a deposit, agrees to pay the balance of the sales price over time, and, at the end of the payment period, receives the property. An order is accepted for layaway by the seller when the seller removes the property from inventory or clearly identifies the property as sold to the purchaser.

AB64,592,7 5. “Protective equipment” means items for human wear that are designed to protect the wearer against injury or disease or to protect property or other persons from damage or injury. “Protective equipment” does not include items suitable for general use, clothing, clothing accessories or equipment, or sport or recreational equipment. “Protective equipment” includes:

AB64,592,8 a. Breathing masks.

AB64,592,9 b. Clean room apparel and equipment.

AB64,592,10 c. Ear and hearing protectors.

AB64,592,11 d. Face shields.

AB64,592,12 e. Hard hats.

AB64,592,13 f. Helmets.

AB64,592,14 g. Paint or dust respirators.

AB64,592,15 h. Protective gloves.

AB64,592,16 i. Safety glasses and goggles.

AB64,592,17 j. Safety belts.

AB64,592,18 k. Tool belts.

AB64,592,19 L. Welders gloves and masks.

AB64,592,21 6. “Rain check” means a seller allowing a purchaser to purchase an item at a certain price at a later time because the item was out-of-stock.

AB64,592,24 7. “School art supply” means any of the following items that are commonly used by a student in a course of study for artwork, but not including a school computer supply, school supply, or school instructional material:

AB64,592,25 a. Clay and glazes.

AB64,593,1 b. Acrylic, tempera, and oil paints.

AB64,593,2 c. Paintbrushes.

AB64,593,3 d. Sketch and drawing pads.

AB64,593,4 e. Watercolors.

AB64,593,7 8. “School computer supply" means any of the following items that are commonly used by a student in a course of study in which a computer is used, but not including a school art supply, school supply, or school instructional material:

AB64,593,8 a. Computer storage media, diskettes, and compact discs.

AB64,593,9 b. Handheld electronic schedulers, not including cellular phones.

AB64,593,10 c. Personal digital assistants, not including cellular phones.

AB64,593,11 d. Computer printers.

AB64,593,12 e. Printer supplies for computers, printer paper, and printer ink.

AB64,593,16 9. “School instructional material" means any of the following that is commonly used by a student in a course of study as a reference and to learn the subject being taught, but not including a school art supply, school computer supply, or school supply:

AB64,593,17 a. Reference books.

AB64,593,18 b. Reference maps and globes.

AB64,593,19 c. Textbooks.