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LRB-5580/1
JK:wlj/amn/ahe
2017 Special Session
2017 - 2018 LEGISLATURE
Allowing a municipality to impose a sales and use tax and allowing a county
to increase the rate of its sales and use tax
Preliminary Draft - Not Ready For Introduction
March 13, 2018 - Introduced by Representatives Brostoff, Crowley, Sinicki,
Anderson, Sargent, Spreitzer and Zepnick, cosponsored by Senators Larson,
L. Taylor, Johnson and Carpenter. Referred to Committee on Local
Government.
AB1020,1,6 1An Act to renumber and amend 77.70; to amend chapter 77 (title), subchapter
2V (title) of chapter 77 [precedes 77.70], 77.71, 77.73, 77.75, 77.76 (1), 77.76 (2),
377.76 (4), 77.77 and 77.78; and to create 20.566 (1) (gh), 20.835 (4) (gh), 77.70
4(2), 77.701 and 77.76 (3r) of the statutes; relating to: allowing a municipality
5to impose a sales and use tax and allowing a county to increase the rate of its
6sales and use tax and making appropriations.
Analysis by the Legislative Reference Bureau
Under current law, a county may impose a sales and use tax at the rate of 0.5
percent of the sales price of tangible personal property, goods, and services sold or
used in the county. This bill allows a county, with the approval of the county electors
at a referendum, to increase the tax rate in 0.1 percent increments, as long as the
overall rate does not exceed 1 percent.
The bill also allows a municipality to impose a sales and use tax at the rate of
0.1, 0.2, 0.3, 0.4, or 0.5 percent of the sales price of tangible personal property, goods,
and services sold or used in the municipality if the municipality adopts an ordinance

to impose the tax and the ordinance is approved by the electors of the municipality
at a referendum held at a spring or general election. In addition, the bill allows a
municipality that has adopted such an ordinance to subsequently increase the rate
in 0.1 percent increments as long as the increase is approved by the electors of the
municipality at a referendum held at a spring or general election and as long as the
overall rate does not exceed 0.5 percent.
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:
AB1020,1 1Section 1 . 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated: - See PDF for table PDF
AB1020,2 3Section 2 . 20.566 (1) (gh) of the statutes is created to read:
AB1020,2,84 20.566 (1) (gh) Administration of municipality taxes. From the moneys
5transferred from the appropriation account under s. 20.835 (4) (gh), the amounts in
6the schedule for administering the municipality taxes imposed under s. 77.701.
7Notwithstanding s. 20.001 (3) (a), at the end of the fiscal year the unencumbered
8balance of this appropriation account lapses to the general fund.
AB1020,3 9Section 3 . 20.835 (4) (gh) of the statutes is created to read:
AB1020,3,210 20.835 (4) (gh) Municipality taxes. All moneys received from the taxes imposed
11under s. 77.701 for distribution to the municipalities that adopt an ordinance
12imposing taxes under that section and for interest payments on refunds under s.

177.76 (3r), except that 1.75 percent of those tax revenues collected under that section
2shall be credited to the appropriation account under s. 20.566 (1) (gh).
AB1020,4 3Section 4 . Chapter 77 (title) of the statutes is amended to read:
AB1020,3,44 CHAPTER 77
AB1020,3,155 TAXATION OF FOREST CROPLANDS;
6 REAL ESTATE TRANSFER FEES;
7 SALES AND USE TAXES; COUNTY,
8 Municipality,
AND SPECIAL DISTRICT
9 SALES AND USE TAXES; MANAGED
10 FOREST LAND; ECONOMIC DEVELOPMENT
11 SURCHARGE; LOCAL FOOD and BEVERAGE
12 TAX; LOCAL RENTAL CAR TAX;
13 PREMIER RESORT AREA TAXES;
14 STATE RENTAL VEHICLE
15 FEE; DRY CLEANING FEES
AB1020,5 16Section 5 . Subchapter V (title) of chapter 77 [precedes 77.70] of the statutes
17is amended to read:
AB1020,3,1818 CHAPTER 77
AB1020,3,1919 SUBCHAPTER V
AB1020,3,2220 COUNTY, municipality, AND
21 SPECIAL DISTRICT SALES
22 AND USE TAXES
AB1020,6 23Section 6 . 77.70 of the statutes, as affected by 2017 Wisconsin Act 58, is
24renumbered 77.70 (1) and amended to read:
AB1020,4,17
177.70 (1) Any county desiring to impose county sales and use taxes under this
2subchapter may do so by the adoption of an ordinance, stating its purpose and
3referring to this subchapter. The Except as provided in sub. (2), the rate of the tax
4imposed under this section is 0.5 percent of the sales price or purchase price. Except
5as provided in s. 66.0621 (3m), the county sales and use taxes may be imposed only
6for the purpose of directly reducing the property tax levy and only in their entirety
7as provided in this subchapter. That ordinance shall be effective on the first day of
8January, the first day of April, the first day of July or the first day of October
January
91, April 1, July 1, or October 1
. A certified copy of that ordinance shall be delivered
10to the secretary of revenue at least 120 days prior to its effective date. The repeal
11of any such ordinance shall be effective on December 31. A certified copy of a repeal
12ordinance shall be delivered to the secretary of revenue at least 120 days before the
13effective date of the repeal. Except as provided under s. 77.60 (9), the department
14of revenue may not issue any assessment nor act on any claim for a refund or any
15claim for an adjustment under s. 77.585 after the end of the calendar year that is 4
16years after the year in which the county has enacted a repeal ordinance under this
17section subsection.
AB1020,7 18Section 7 . 77.70 (2) of the statutes is created to read:
AB1020,5,819 77.70 (2) A county that has adopted an ordinance under sub. (1) may
20subsequently increase the tax rate by adopting an ordinance to increase the rate and
21having the ordinance approved by the electors of the county at a referendum held at
22the spring or general election. The county may increase the rate by an additional 0.1,
230.2, 0.3, 0.4, or 0.5 percent by holding a referendum pursuant to this subsection, but
24the overall rate of the tax imposed under this section may not exceed 1 percent. An
25ordinance adopted under this subsection shall be effective January 1, April 1, July

11, or October 1. A certified copy of that ordinance shall be delivered to the secretary
2of revenue at least 120 days prior to its effective date. The repeal of any such
3ordinance shall be effective on December 31. A certified copy of a repeal ordinance
4shall be delivered to the secretary of revenue at least 120 days before the effective
5date of the repeal. Except as provided under s. 77.60 (9), the department of revenue
6may not issue any assessment nor act on any claim for a refund or any claim for an
7adjustment under s. 77.585 after the end of the calendar year that is 4 years after
8the year in which the county has enacted a repeal ordinance under this subsection.
AB1020,8 9Section 8 . 77.701 of the statutes is created to read:
AB1020,5,25 1077.701 Adoption by municipal ordinance. (1) A municipality may impose
11a sales and use tax under this subchapter at the rate of 0.1, 0.2, 0.3, 0.4, or 0.5 percent
12of the sales price or purchase price if it adopts an ordinance to impose the tax, the
13ordinance specifies the rate of the tax imposed, and the ordinance is approved by the
14electors of the municipality at a referendum held at the spring or general election.
15The taxes imposed under this section may be imposed only in their entirety as
16provided under this subchapter. An ordinance adopted under this subsection shall
17be effective on January 1, April 1, July 1, or October 1. A certified copy of the
18ordinance shall be delivered to the secretary of revenue at least 120 days prior to its
19effective date. The repeal of any such ordinance shall be effective on December 31.
20A certified copy of a repeal ordinance shall be delivered to the secretary of revenue
21at least 120 days before the effective date of the repeal. Except as provided under
22s. 77.60 (9), the department of revenue may not issue any assessment nor act on any
23claim for a refund or any claim for an adjustment under s. 77.585 after the end of the
24calendar year that is 4 years after the year in which the municipality has adopted
25a repeal ordinance under this subsection.
AB1020,6,16
1(2) A municipality that has adopted an ordinance under sub. (1) may
2subsequently increase the tax rate by adopting an ordinance to increase the rate and
3having the ordinance approved by the electors of the municipality at a referendum
4held at the spring or general election. The municipality may increase the rate by an
5additional 0.1, 0.2, 0.3, 0.4, or 0.5 percent by holding a referendum pursuant to this
6subsection, but the overall rate of the tax imposed under this section may not exceed
70.5 percent. An ordinance adopted under this subsection shall be effective January
81, April 1, July 1, or October 1. A certified copy of that ordinance shall be delivered
9to the secretary of revenue at least 120 days prior to its effective date. The repeal
10of any such ordinance shall be effective on December 31. A certified copy of a repeal
11ordinance shall be delivered to the secretary of revenue at least 120 days before the
12effective date of the repeal. Except as provided under s. 77.60 (9), the department
13of revenue may not issue any assessment nor act on any claim for a refund or any
14claim for an adjustment under s. 77.585 after the end of the calendar year that is 4
15years after the year in which the municipality has adopted a repeal ordinance under
16this subsection.
AB1020,9 17Section 9 . 77.71 of the statutes is amended to read:
AB1020,6,21 1877.71 Imposition of county, municipality, and special district sales and
19use taxes.
Whenever a county sales and use tax an ordinance is adopted under s.
2077.70 or a special district resolution is adopted under s. 77.705 or 77.706, the
21following taxes are imposed:
AB1020,7,7 22(1) For the privilege of selling, licensing, leasing, or renting tangible personal
23property and the items, property, and goods specified under s. 77.52 (1) (b), (c), and
24(d), and for the privilege of selling, licensing, performing, or furnishing services a
25sales tax is imposed upon retailers at the rates under s. 77.70 in the case of a county

1tax, at the rate under s. 77.701 in the case of a municipality tax, or at the rate under
2s. 77.705 or 77.706 in the case of a special district tax of the sales price from the sale,
3license, lease, or rental of tangible personal property and the items, property, and
4goods specified under s. 77.52 (1) (b), (c), and (d), except property taxed under sub.
5(4), sold, licensed, leased, or rented at retail in the county, municipality, or special
6district, or from selling, licensing, performing, or furnishing services described under
7s. 77.52 (2) in the county, municipality, or special district.
AB1020,7,22 8(2) An excise tax is imposed at the rates under s. 77.70 in the case of a county
9tax, at the rate under s. 77.701 in the case of a municipality tax, or at the rate under
10s. 77.705 or 77.706 in the case of a special district tax of the purchase price upon every
11person storing, using, or otherwise consuming in the county, municipality, or special
12district tangible personal property, or items, property, or goods specified under s.
1377.52 (1) (b), (c), or (d), or services if the tangible personal property, item, property,
14good, or service is subject to the state use tax under s. 77.53, except that a receipt
15indicating that the tax under sub. (1), (3), (4), or (5) has been paid relieves the buyer
16of liability for the tax under this subsection and except that if the buyer has paid a
17similar local tax in another state on a purchase of the same tangible personal
18property, item, property, good, or service that tax shall be credited against the tax
19under this subsection and except that for motor vehicles that are used for a purpose
20in addition to retention, demonstration, or display while held for sale in the regular
21course of business by a dealer the tax under this subsection is imposed not on the
22purchase price but on the amount under s. 77.53 (1m).
AB1020,8,9 23(3) An excise tax is imposed upon a contractor engaged in construction
24activities within the county, municipality, or special district at the rates under s.
2577.70 in the case of a county tax, at the rate under s. 77.701 in the case of a

1municipality tax,
or at the rate under s. 77.705 or 77.706 in the case of a special
2district tax of the purchase price of tangible personal property or items, property, or
3goods under s. 77.52 (1) (b), (c), or (d) that are used in constructing, altering,
4repairing, or improving real property and that became a component part of real
5property in that county, municipality, or special district, except that if the contractor
6has paid the sales tax of a county, municipality, or special district in this state on that
7tangible personal property, item, property, or good, or has paid a similar local sales
8tax in another state on a purchase of the same tangible personal property, item,
9property, or good, that tax shall be credited against the tax under this subsection.
AB1020,8,22 10(4) An excise tax is imposed at the rates under s. 77.70 in the case of a county
11tax, at the rate under s. 77.701 in the case of a municipality tax, or at the rate under
12s. 77.705 or 77.706 in the case of a special district tax of the purchase price upon every
13person storing, using, or otherwise consuming a motor vehicle, boat, recreational
14vehicle, as defined in s. 340.01 (48r), or aircraft if that property must be registered
15or titled with this state and if that property is to be customarily kept in a county that
16has in effect an ordinance under s. 77.70, in a municipality that has in effect an
17ordinance under s. 77.701,
or in a special district that has in effect a resolution under
18s. 77.705 or 77.706, except that if the buyer has paid a similar local sales tax in
19another state on a purchase of the same property, that tax shall be credited against
20the tax under this subsection. The lease or rental of a motor vehicle, boat,
21recreational vehicle, as defined in s. 340.01 (48r), or aircraft is not taxed under this
22subsection if the lease or rental does not require recurring periodic payments.
AB1020,9,10 23(5) An excise tax is imposed on the purchase price for the lease or rental of a
24motor vehicle, boat, recreational vehicle, as defined in s. 340.01 (48r), or aircraft at
25the rates under s. 77.70 in the case of a county tax, at the rate under s. 77.701 in the

1case of a municipality tax,
or at the rate under s. 77.705 or 77.706 in the case of a
2special district tax upon every person storing, using, or otherwise consuming in the
3county, municipality, or special district the motor vehicle, boat, recreational vehicle,
4as defined in s. 340.01 (48r), or aircraft if that property must be registered or titled
5with this state and if the lease or rental does not require recurring periodic
6payments, except that a receipt indicating that the tax under sub. (1) had been paid
7relieves the purchaser of liability for the tax under this subsection and except that
8if the purchaser has paid a similar local tax in another state on the same lease or
9rental of such motor vehicle, boat, recreational vehicle, as defined in s. 340.01 (48r),
10or aircraft, that tax shall be credited against the tax under this subsection.
AB1020,10 11Section 10 . 77.73 of the statutes is amended to read:
AB1020,9,20 1277.73 Jurisdiction to tax. (2) Counties, municipalities, and special districts
13do not have jurisdiction to impose the tax under s. 77.71 (2) in regard to items,
14property, and goods under s. 77.52 (1) (b), (c), and (d), and tangible personal property,
15except snowmobiles, trailers, semitrailers, limited use off-highway motorcycles, as
16defined in s. 23.335 (1) (o), all-terrain vehicles, and utility terrain vehicles,
17purchased in a sale that is consummated in another county, municipality, or special
18district in this state that does not have in effect an ordinance or resolution imposing
19the taxes under this subchapter and later brought by the buyer into the county,
20municipality,
or special district that has imposed a tax under s. 77.71 (2).
AB1020,9,25 21(2m) Counties, municipalities, and special districts do not have jurisdiction to
22impose the tax under s. 77.71 (5) with regard to the lease or rental of a motor vehicle,
23boat, recreational vehicle, as defined in s. 340.01 (48r), or aircraft if the lease or
24rental does not require recurring periodic payments and if the purchaser received the
25property in another county, municipality, or special district in this state and then

1brings the property into a county, municipality, or special district that imposes the
2tax under s. 77.71 (5).
AB1020,10,12 3(3) Counties, municipalities, and special districts have jurisdiction to impose
4the taxes under this subchapter on retailers who file, or who are required to file, an
5application under s. 77.52 (7) or who register, or who are required to register, under
6s. 77.53 (9) or (9m), regardless of whether such retailers are engaged in business in
7the county, municipality, or special district, as provided in s. 77.51 (13g). A retailer
8who files, or is required to file, an application under s. 77.52 (7) or who registers, or
9is required to register, under s. 77.53 (9) or (9m) shall collect, report, and remit to the
10department the taxes imposed under this subchapter for all counties , municipalities,
11or special districts that have an ordinance or resolution imposing the taxes under
12this subchapter.
AB1020,11 13Section 11 . 77.75 of the statutes is amended to read:
AB1020,10,18 1477.75 Reports. Every person subject to county, municipality, or special district
15sales and use taxes shall, for each reporting period, record that person's sales made
16in the county, municipality, or special district that has imposed those taxes
17separately from sales made elsewhere in this state and file a report as prescribed by
18the department of revenue.
AB1020,12 19Section 12 . 77.76 (1) of the statutes is amended to read:
AB1020,11,220 77.76 (1) The department of revenue shall have full power to levy, enforce, and
21collect county, municipality, and special district sales and use taxes and may take any
22action, conduct any proceeding, impose interest and penalties, and in all respects
23proceed as it is authorized to proceed for the taxes imposed by subch. III. The
24department of transportation and the department of natural resources may

1administer the county, municipality, and special district sales and use taxes in regard
2to items under s. 77.61 (1).
AB1020,13 3Section 13 . 77.76 (2) of the statutes is amended to read:
AB1020,11,74 77.76 (2) Judicial and administrative review of departmental determinations
5shall be as provided in subch. III for state sales and use taxes, and no county or,
6municipality, nor
special district may intervene in any matter related to the levy,
7enforcement, and collection of the taxes under this subchapter.
AB1020,14 8Section 14 . 77.76 (3r) of the statutes is created to read:
AB1020,11,249 77.76 (3r) From the appropriation under s. 20.835 (4) (gh), the department
10shall distribute 98.25 percent of the municipality taxes reported for each enacting
11municipality, minus the municipality portion of the retailers' discounts, to the
12municipality and shall indicate the taxes reported by each taxpayer, no later than
1375 days following the last day of the calendar quarter in which such amounts were
14reported. In this subsection, the “municipality portion of the retailers' discount" is
15the amount determined by multiplying the total retailers' discount by a fraction the
16numerator of which is the gross municipality sales and use taxes payable and the
17denominator of which is the sum of the gross state and municipality sales and use
18taxes payable. The municipality taxes distributed shall be increased or decreased
19to reflect subsequent refunds, audit adjustments, and all other adjustments of the
20municipality taxes previously distributed. Interest paid on refunds of municipality
21sales and use taxes shall be paid from the appropriation under s. 20.835 (4) (gh) at
22the rate paid by this state under s. 77.60 (1) (a). Any municipality receiving a report
23under this subsection is subject to the duties of confidentiality to which the
24department of revenue is subject under s. 77.61 (5) and (6).
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