LRB-5462/1
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2017 - 2018 LEGISLATURE
February 12, 2018 - Introduced by Senator Fitzgerald. Referred to Committee on
Economic Development, Commerce and Local Government.
SB799,1,4 1An Act to amend 77.52 (13) and 77.53 (10); and to create 20.835 (2) (cb), 77.54
2(67) and 77.68 of the statutes; relating to: a sales and use tax rebate for certain
3dependent children, a sales tax holiday in August 2018, and making an
4appropriation.
Analysis by the Legislative Reference Bureau
This bill creates a onetime sales and use tax rebate to be paid by September 1,
2018, as an approximation of nonbusiness Wisconsin sales tax paid in 2017 for
raising children. An individual may claim a rebate equal to $100 for each qualifying
child of the individual. For purposes of claiming the rebate, a qualified child is an
individual who is under 18 years of age for the entire year of 2017, a United States
citizen, a resident of this state on December 31, 2017, and the claimant's dependent,
as determined under the Internal Revenue Code. An individual who is a full-year
resident, nonresident, or part-year resident is eligible to claim the rebate if he or she
completes an online application for the rebate on a form prepared by the Department
of Revenue. A nonresident or part-year resident may claim the rebate if the claimant
verifies his or her nonbusiness Wisconsin sales taxes paid in 2017, and the verified
amount is at least $100 for each qualified child.
The bill also creates a sales tax holiday in 2018. For the two-day period
beginning on the first Saturday in August 2018 and ending on the following Sunday,
the sale of any product sold at retail for which the sales price is no more than $100
is exempt from the sales and use tax. The exemption does not apply to the sale of
taxable services, prepared food, candy, soft drinks, dietary supplements, alcoholic

beverages, cigarettes, tobacco products, pornographic material, motor vehicles,
motor vehicle parts, tangible or intangible property used to access
telecommunications services, or tangible or intangible property provided by a utility.
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:
SB799,1 1Section 1. 20.835 (2) (cb) of the statutes is created to read:
SB799,2,32 20.835 (2) (cb) Qualified child sales and use tax rebate for 2018. A sum
3sufficient to pay the claims approved under s. 77.68.
SB799,2 4Section 2. 77.52 (13) of the statutes, as affected by 2017 Wisconsin Act 59, is
5amended to read:
SB799,2,176 77.52 (13) For the purpose of the proper administration of this section and to
7prevent evasion of the sales tax it shall be presumed that all receipts are subject to
8the tax until the contrary is established. The burden of proving that a sale of tangible
9personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services
10is not a taxable sale at retail is upon the person who makes the sale unless that
11person takes from the purchaser an electronic or a paper certificate, in a manner
12prescribed by the department, to the effect that the property, item, good, or service
13is purchased for resale or is otherwise exempt, except that no certificate is required
14for the sale of tangible personal property, or items, property, or goods under sub. (1)
15(b), (c), or (d), or services that are exempt under s. 77.54 (5) (a) 3., (7), (7m), (8), (10),
16(11), (14), (15), (17), (20n), (21), (22b), (31), (32), (35), (36), (37), (42), (44), (45), (46),
17(51), (52), and (66), and (67).
SB799,3 18Section 3. 77.53 (10) of the statutes is amended to read:
SB799,3,13
177.53 (10) For the purpose of the proper administration of this section and to
2prevent evasion of the use tax and the duty to collect the use tax, it is presumed that
3tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or
4(d), or taxable services sold by any person for delivery in this state is sold for storage,
5use, or other consumption in this state until the contrary is established. The burden
6of proving the contrary is upon the person who makes the sale unless that person
7takes from the purchaser an electronic or paper certificate, in a manner prescribed
8by department, to the effect that the property, or items, property, or goods under s.
977.52 (1) (b), (c), or (d), or taxable service is purchased for resale, or otherwise exempt
10from the tax, except that no certificate is required for the sale of tangible personal
11property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services that
12are exempt under s. 77.54 (7), (7m), (8), (10), (11), (14), (15), (17), (20n), (21), (22b),
13(31), (32), (35), (36), (37), (42), (44), (45), (46), (51), and (52), and (67).
SB799,4 14Section 4. 77.54 (67) of the statutes is created to read:
SB799,3,1515 77.54 (67) (a) In this subsection:
SB799,3,1716 1. “Eligible property” means an item that qualifies for exemption under this
17subsection.
SB799,3,2218 2. “Layaway sale” means a transaction in which property is set aside for future
19delivery to a customer who makes a deposit, agrees to pay the balance of the sales
20price over time, and, at the end of the payment period, receives the property. An order
21is accepted for layaway by the seller when the seller removes the property from
22inventory or clearly identifies the property as sold to the purchaser.
SB799,4,423 (b) For the 2-day period beginning on the first Saturday in August 2018 and
24ending on the following Sunday, the sales price from the sale of and the storage, use,
25or other consumption of any item of tangible personal property or an item described

1under s. 77.52 (1) (b) or (d), but not lease, licenses, or rentals of tangible personal
2property, sold at retail to a consumer for the consumer's personal use for which the
3sales price is no more than $100. This paragraph does not apply to the sale, storage,
4use, or other consumption of the following:
SB799,4,55 1. Services described under s. 77.52 (2).
SB799,4,66 2. Prepared food, candy, soft drinks, and dietary supplements.
SB799,4,77 3. Alcoholic beverages, cigarettes, and tobacco products.
SB799,4,88 4. Motor vehicles, motor vehicle parts, attachments, accessories, and supplies.
SB799,4,109 5. Tangible or intangible property used to access telecommunications services
10described under s. 77.52 (2) (a) 5. or 5m.
SB799,4,1111 6. Tangible or intangible property provided by a utility.
SB799,4,1312 7. Tangible personal property transferred with a service described under s.
1377.52 (2) (a) 7., 10., 11., or 20.
SB799,4,1414 8. Pornographic material.
SB799,4,1515 (c) The exemption under this subsection shall be administered as follows:
SB799,4,1716 1. A sale of eligible property under a layaway sale qualifies for exemption if
17either of the following applies:
SB799,4,1918 a. Final payment on a layaway order is made by, and the property is given to,
19the purchaser during the exemption period.
SB799,4,2220 b. The purchaser selects the property and the retailer accepts the order for the
21item during the exemption period, for immediate delivery upon full payment, even
22if delivery is made after the exemption period.
SB799,4,2523 2. The bundled transaction provisions under subs. (51) and (52) and ss. 77.51
24(1f) and (3pf) and 77.52 (20), (21), (22), and (23) apply in the same manner during the
25exemption period under this subsection as they apply in other periods.
SB799,5,9
13. A discount by the seller reduces the sales price of the property, and the
2discounted sales price determines whether the sales price is within the price
3threshold under par. (b). A coupon that reduces the sales price is treated as a
4discount if the seller is not reimbursed for the coupon amount by a 3rd party. If a
5discount applies to the total amount paid by a purchaser rather than to the sales
6price of a particular item and the purchaser has purchased both eligible property and
7taxable property, the seller shall allocate the discount based on the total sales prices
8of the taxable property compared to the total sales prices of all property sold in that
9same transaction.
SB799,5,1210 4. Products that are normally sold as a single unit shall be sold in that manner
11and may not be divided into multiple units and sold as individual items in order to
12obtain the exemption under this subsection.
SB799,5,1713 5. Eligible property that is purchased during the exemption period with the use
14of a rain check qualifies for the exemption regardless of when the rain check was
15issued. Items purchased after the exemption period with the use of a rain check are
16not eligible property under this subsection even if the rain check was issued during
17the exemption period.
SB799,5,1918 6. The procedure for an exchange with regard to the exemption under this
19subsection is as follows:
SB799,5,2320 a. If a purchaser purchases an item of eligible property during the exemption
21period, but later exchanges the item for a similar item of eligible property, even if
22different in size, color, or another feature, no additional tax is due even if the
23exchange is made after the exemption period.
SB799,6,224 b. If a purchaser purchases an item of eligible property during the exemption
25period, but after the exemption period has ended, the purchaser returns the item and

1receives credit on the purchase of a different item, the appropriate sales tax is due
2on the sale of the different item.
SB799,6,63 c. If a purchaser purchases an item of eligible property before the exemption
4period, but during the exemption period the purchaser returns the item and receives
5credit on the purchase of a different item of eligible property, no sales tax is due on
6the sale of the new item if the new item is purchased during the exemption period.
SB799,6,187 7. Delivery charges, including shipping, handling, and service charges, are part
8of the sales price of eligible property. For the purpose of determining the price
9threshold under par. (b), if all the property in a shipment qualifies as eligible
10property and the sales price for each item in the shipment is within the price
11threshold under par. (b), the shipment is considered a sale of eligible property and
12the seller does not have to allocate the delivery, handling, or service charge to
13determine if the price threshold under par. (b) is exceeded. If the shipment includes
14eligible property and taxable property, including an item of eligible property with a
15sales price in excess of the price threshold under par. (b), the seller shall allocate the
16delivery, handling, and service charge by using one of the following methods and
17shall apply the tax to the percentage of the delivery, handling, and service charge
18allocated to the taxable property:
SB799,6,2019 a. A percentage based on the total sales price of the taxable property compared
20to the total sales price of all property in the shipment.
SB799,6,2221 b. A percentage based on the total weight of the taxable property compared to
22the total weight of all property in the shipment.
SB799,6,2423 8. Eligible property qualifies for exemption under this subsection if either of
24the following applies:
SB799,7,2
1a. The item is both delivered to and paid for by the customer during the
2exemption period.
SB799,7,113 b. The purchaser orders and pays for the item and the seller accepts the order
4during the exemption period for immediate shipment, even if delivery is made after
5the exemption period. For purposes of this subd. 8. b., the seller accepts an order
6when the seller has taken action to fill the order for immediate shipment. Actions
7to fill an order include placement of a date stamp on a mail order or assignment of
8an order number to a telephone order. For purposes of this subd. 8. b., an order is
9for immediate shipment when the customer does not request delayed shipment and
10regardless of whether the shipment is delayed because of a backlog of orders or
11because stock is currently unavailable, or on back order, by the seller.
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