AB1125,32 10Section 32. 139.78 (1) of the statutes is amended to read:
AB1125,10,1911 139.78 (1) A tax is imposed upon the use or storage by consumers of tobacco
12products in this state at the rate, for tobacco products, not including moist snuff and
13vapor products electronic smoking devices, of 71 percent of the cost of the tobacco
14products and, for moist snuff, at the rate of 100 percent of the manufacturer's
15established list price to distributors without diminution by volume or other discounts
16on domestic products. The tax imposed under this subsection on cigars shall not
17exceed an amount equal to 50 cents for each cigar. The tax does not apply if the tax
18imposed by s. 139.76 (1) on the tobacco products has been paid or if the tobacco
19products are exempt from the tobacco products tax under s. 139.76 (2).
AB1125,33 20Section 33. 139.78 (1m) of the statutes is amended to read:
AB1125,11,321 139.78 (1m) A tax is imposed upon the use or storage by consumers of vapor
22products
electronic smoking devices in this state at the rate of 5 cents per milliliter
23of the liquid or other substance based on the volume as listed by the manufacturer
24and at a proportionate rate for any other quantity or fractional part thereof. The tax
25does not apply if the tax imposed by s. 139.76 (1m) on the vapor products electronic

1smoking devices
has been paid or if the vapor products electronic smoking devices
2are exempt from the vapor products electronic smoking devices tax under s. 139.76
3(2).
AB1125,34 4Section 34. 139.78 (2) of the statutes is amended to read:
AB1125,11,105 139.78 (2) On or before the 15th day of each month, every consumer who during
6the preceding month has acquired title to or possession for use or storage in this state
7of tobacco products or vapor products electronic smoking devices upon which the tax
8imposed by s. 139.76 has not been paid shall file a return showing the quantity of
9tobacco products and vapor products electronic smoking devices acquired. At the
10time when the return is filed, the consumer shall pay the tax.
AB1125,35 11Section 35. 139.79 (1) of the statutes is amended to read:
AB1125,11,1512 139.79 (1) No person may engage in the business of a distributor or subjobber
13of tobacco products or vapor products electronic smoking devices at any place of
14business unless that person has filed an application for and obtained a permit from
15the department to engage in that business at such place.
AB1125,36 16Section 36. 139.80 of the statutes is amended to read:
AB1125,11,24 17139.80 Refunds, credits. If tobacco products or vapor products electronic
18smoking devices
upon which the tax has been reported and paid are shipped or
19transported by the distributor to consumers to be consumed outside the state or to
20retailers or subjobbers outside the state to be sold by those retailers or subjobbers
21outside the state or are returned to the manufacturer by the distributor or destroyed
22by the distributor, the tax may be refunded or credited to the distributor, as
23prescribed by the department. Any overpayment of the tax imposed under s. 139.78
24may be refunded or credited to the taxpayer, as prescribed by the department.
AB1125,37 25Section 37. 139.801 (1) of the statutes is amended to read:
AB1125,12,8
1139.801 (1) In this section, “bad debt" means an amount that is equal to the
2purchase price of tobacco products and vapor products electronic smoking devices,
3if such amount may be claimed as a deduction under section 166 of the Internal
4Revenue Code. “Bad debt" does not include financing charges, interest on the
5wholesale price of tobacco products and vapor products electronic smoking devices,
6uncollectible amounts on property that remains in the seller's possession until the
7full purchase price is paid, expenses incurred in attempting to collect any debt, debts
8sold or assigned to 3rd parties for collection, and repossessed property.
AB1125,38 9Section 38. 139.801 (3) (a) of the statutes is amended to read:
AB1125,12,1110 139.801 (3) (a) A copy of the original invoice for the sale of tobacco products or
11vapor products electronic smoking devices that represents bad debt.
AB1125,39 12Section 39. 139.801 (3) (b) of the statutes is amended to read:
AB1125,12,1513 139.801 (3) (b) Evidence that the tobacco products or vapor products electronic
14smoking devices
described in the invoice under par. (a) were delivered to the person
15who ordered them.
AB1125,40 16Section 40. 139.801 (3) (c) of the statutes is amended to read:
AB1125,12,1917 139.801 (3) (c) Evidence that the person who ordered and received the tobacco
18products or vapor products electronic smoking devices did not pay the distributor for
19them.
AB1125,41 20Section 41. 139.801 (4) of the statutes is amended to read:
AB1125,13,221 139.801 (4) Any person who possesses tobacco products or vapor products
22electronic smoking devices for which the taxes imposed under this subchapter have
23not been paid and have been claimed as a deduction under this section shall file a
24report as prescribed by the department, pay the taxes imposed under this subchapter
25on tobacco products and vapor products electronic smoking devices, and be subject

1to this subchapter in the same manner as is provided for persons who hold valid
2permits under this subchapter.
AB1125,42 3Section 42. 139.802 of the statutes is amended to read:
AB1125,13,14 4139.802 Preferred claims. If the property of any purchaser of tobacco
5products or vapor products electronic smoking devices from any permittee under this
6subchapter is seized upon any intermediate or final process of any court in this state,
7or if the business of any purchaser of tobacco products or vapor products electronic
8smoking devices
from any permittee under this subchapter is suspended by the
9action of creditors or put into the hands of any assignee, receiver, or trustee, all
10amounts that are due from the purchaser to any permittee for taxes imposed under
11this subchapter that the permittee has paid to the state for tobacco products or vapor
12products
electronic smoking devices purchased from the permittee shall be
13considered preferred claims, and shall be paid in full, and the permittee shall be a
14preferred creditor.
AB1125,43 15Section 43. 139.803 (4) of the statutes is amended to read:
AB1125,13,1816 139.803 (4) The tobacco products or vapor products electronic smoking devices
17were not delivered by the retailer to the buyer by means of a common carrier, a
18contract carrier, or the U.S. postal service.
AB1125,44 19Section 44. 139.803 (5) of the statutes is amended to read:
AB1125,13,2120 139.803 (5) The retailer has not sold the tobacco products or vapor products
21electronic smoking devices to another retailer or to a subjobber.
AB1125,45 22Section 45. 139.805 of the statutes is amended to read:
AB1125,14,6 23139.805 Agreements with Indian tribes. The department may enter into
24agreements with Indian tribes to provide for the refunding of the tax imposed under
25s. 139.76. If the department enters into an agreement with an Indian tribe, the

1agreement may provide for refunding 100 percent of that tax on tobacco products and
2vapor products electronic smoking devices sold on the tribal reservation to enrolled
3members of the tribe residing on the tribal reservation and may provide for refunding
450 percent of that tax on tobacco products and vapor products electronic smoking
5devices
sold on the tribal reservation to persons who are not enrolled members of the
6tribe residing on the tribal reservation.
AB1125,46 7Section 46. 139.81 (1) of the statutes is amended to read:
AB1125,14,208 139.81 (1) No person may sell or take orders for tobacco products or vapor
9products
electronic smoking devices for resale in this state for any manufacturer or
10permittee unless the person has filed an application for and obtained a valid
11certificate under s. 73.03 (50) and a salesperson's permit from the department. No
12manufacturer or permittee shall authorize any person to sell or take orders for
13tobacco products or vapor products electronic smoking devices in this state unless the
14person has filed an application for and obtained a valid certificate under s. 73.03 (50)
15and a salesperson's permit. Each application for a permit shall disclose the name and
16address of the employer and shall remain effective only while the salesperson
17represents the named employer. If the salesperson is thereafter employed by another
18manufacturer or permittee the salesperson shall obtain a new salesperson's permit.
19Each manufacturer and permittee shall notify the department within 10 days after
20the resignation or dismissal of any salesperson holding a permit.
AB1125,47 21Section 47. 139.82 (1) of the statutes is amended to read:
AB1125,15,922 139.82 (1) Every manufacturer located out of the state shall keep records of all
23sales of tobacco products and vapor products electronic smoking devices shipped into
24this state. Every manufacturer located in this state shall keep records of production,
25sales and withdrawals of tobacco products and vapor products electronic smoking

1devices
. Every distributor shall keep records of purchases and sales of tobacco
2products and vapor products electronic smoking devices. Every subjobber shall keep
3records of all purchases and disposition of tobacco products and vapor products
4electronic smoking devices. Every warehouse operator shall keep records of receipts
5and withdrawals of tobacco products and vapor products electronic smoking devices.
6All records shall be accurate and complete and be kept in a manner prescribed by the
7department. These records shall be preserved on the premises described in the
8permit in such a manner as to ensure permanency and accessibility for inspection at
9reasonable hours by authorized personnel of the department.
AB1125,48 10Section 48. 139.82 (2) of the statutes is amended to read:
AB1125,15,1611 139.82 (2) (a) Except as provided in par. (b), every permittee shall render a true
12and correct invoice of every sale of tobacco products and vapor products electronic
13smoking devices
at wholesale and shall on or before the 15th day of each calendar
14month file a verified report of all tobacco products and vapor products electronic
15smoking devices
purchased, sold, received, warehoused or withdrawn during the
16preceding calendar month.
AB1125,15,2317 (b) The department may allow any subjobber permittee who does not sell
18tobacco products or vapor products electronic smoking devices, except for those on
19which the tax under this subchapter is paid, to file a quarterly report. The quarterly
20report shall be filed on or before the 15th day of the next month following the close
21of each calendar quarter. The report shall specify the value of tobacco products and
22vapor products electronic smoking devices purchased and sold during the preceding
23calendar quarter.
AB1125,49 24Section 49. 139.82 (8) of the statutes is amended to read:
AB1125,16,4
1139.82 (8) Each distributor shall collect and remit the excise tax imposed by
2s. 139.76 on tobacco products and vapor products electronic smoking devices not
3exempt from tax under s. 139.76 (2), with the reports required to be filed under this
4section.
AB1125,50 5Section 50 . Nonstatutory provisions.
AB1125,16,106 (1) Electronic smoking devices enforcement. The authorized FTE positions
7for the department of revenue are increased by 2.0 GPR positions on January 1, 2022,
8to be funded from the appropriation under s. 20.566 (1) (am), for the purpose of
9administering and enforcing the taxes imposed on the sale of electronic smoking
10devices.
AB1125,51 11Section 51. Fiscal changes.
AB1125,16,2012 (1) Investigators; retail sales. In the schedule under s. 20.005 (3) for the
13appropriation to the department of health services under s. 20.435 (1) (a), the dollar
14amount for fiscal year 2022-23 is increased by $164,800 to increase the authorized
15FTE positions for the department by 2.0 GPR positions to conduct investigations of
16retail sales of cigarettes, electronic smoking devices, and tobacco products. In the
17schedule under s. 20.005 (3) for the appropriation to the department of health
18services under s. 20.435 (1) (a), the dollar amount for fiscal year 2022-23 is increased
19by $40,000 to provide supplies and services for the positions authorized under this
20subsection.
AB1125,16,2521 (2) Local investigations of retail sales. In the schedule under s. 20.005 (3)
22for the appropriation to the department of health services under s. 20.435 (1) (a), the
23dollar amount for fiscal year 2022-23 is increased by $357,500 to support local
24investigations of places where cigarettes, nicotine products, or tobacco products are
25sold under s. 254.916.
AB1125,17,6
1(3) Special education aid. In the schedule under s. 20.005 (3) for the
2appropriation to the department of public instruction under s. 20.255 (2) (b), the
3dollar amount for fiscal year 2021-22 is increased by $130,000 to increase funding
4for aids for special education under s. 115.88 and the dollar amount for fiscal year
52022-23 is increased by $510,000 to increase funding for aids for special education
6under s. 115.88.
AB1125,17,117 (4) UW System. In the schedule under s. 20.005 (3) for the appropriation to the
8Board of Regents of the University of Wisconsin System under s. 20.285 (1) (a), the
9dollar amount for fiscal year 2021-22 is increased by $24,000 for the purpose for
10which the appropriation is made and the dollar amount for fiscal year 2022-23 is
11increased by $96,000 for the purpose for which the appropriation is made.
AB1125,17,1612 (5) State aids for technical colleges. In the schedule under s. 20.005 (3) for
13the appropriation to the technical college system board under s. 20.292 (1) (d), the
14dollar amount for fiscal year 2021-22 is increased by $6,000 and the dollar amount
15for fiscal year 2022-23 is increased by $24,000 for the purpose for which the
16appropriation is made.
AB1125,52 17Section 52 . Effective date.
AB1125,17,1818 (1) This act takes effect on the 90th day after the day of publication.
AB1125,17,1919 (End)
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