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LRB-4969/1
JK:wlj/amn/ahe
2017 - 2018 LEGISLATURE
March 7, 2018 - Introduced by Senators Larson, L. Taylor, Johnson and
Carpenter, cosponsored by Representatives Brostoff, Crowley, Sinicki,
Anderson, Sargent, Spreitzer and Zepnick. Referred to Committee on
Revenue, Financial Institutions and Rural Issues.
SB863,1,6 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:
SB863,1 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
SB863,2 3Section 2. 20.566 (1) (gh) of the statutes is created to read:
SB863,2,84 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.
SB863,3 9Section 3. 20.835 (4) (gh) of the statutes is created to read:
SB863,2,1410 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.
1377.76 (3r), except that 1.75 percent of those tax revenues collected under that section
14shall be credited to the appropriation account under s. 20.566 (1) (gh).
SB863,4 15Section 4. Chapter 77 (title) of the statutes is amended to read:
SB863,3,1
1CHAPTER 77
SB863,3,122 TAXATION OF FOREST CROPLANDS;
3 REAL ESTATE TRANSFER FEES;
4 SALES AND USE TAXES; COUNTY,
5 Municipality,
AND SPECIAL DISTRICT
6 SALES AND USE TAXES; MANAGED
7 FOREST LAND; ECONOMIC DEVELOPMENT
8 SURCHARGE; LOCAL FOOD and BEVERAGE
9 TAX; LOCAL RENTAL CAR TAX;
10 PREMIER RESORT AREA TAXES;
11 STATE RENTAL VEHICLE
12 FEE; DRY CLEANING FEES
SB863,5 13Section 5. Subchapter V (title) of chapter 77 [precedes 77.70] of the statutes
14is amended to read:
SB863,3,1515 CHAPTER 77
SB863,3,1616 SUBCHAPTER V
SB863,3,1917 COUNTY, municipality, AND
18 SPECIAL DISTRICT SALES
19 AND USE TAXES
SB863,6 20Section 6. 77.70 of the statutes, as affected by 2017 Wisconsin Act 58, is
21renumbered 77.70 (1) and amended to read:
SB863,4,1322 77.70 (1) Any county desiring to impose county sales and use taxes under this
23subchapter may do so by the adoption of an ordinance, stating its purpose and
24referring to this subchapter. The Except as provided in sub. (2), the rate of the tax
25imposed under this section is 0.5 percent of the sales price or purchase price. Except

1as provided in s. 66.0621 (3m), the county sales and use taxes may be imposed only
2for the purpose of directly reducing the property tax levy and only in their entirety
3as provided in this subchapter. That ordinance shall be effective on the first day of
4January, the first day of April, the first day of July or the first day of October
January
51, April 1, July 1, or October 1
. A certified copy of that ordinance shall be delivered
6to the secretary of revenue at least 120 days prior to its effective date. The repeal
7of any such ordinance shall be effective on December 31. A certified copy of a repeal
8ordinance shall be delivered to the secretary of revenue at least 120 days before the
9effective date of the repeal. Except as provided under s. 77.60 (9), the department
10of revenue may not issue any assessment nor act on any claim for a refund or any
11claim for an adjustment under s. 77.585 after the end of the calendar year that is 4
12years after the year in which the county has enacted a repeal ordinance under this
13section subsection.
SB863,7 14Section 7. 77.70 (2) of the statutes is created to read:
SB863,5,415 77.70 (2) A county that has adopted an ordinance under sub. (1) may
16subsequently increase the tax rate by adopting an ordinance to increase the rate and
17having the ordinance approved by the electors of the county at a referendum held at
18the spring or general election. The county may increase the rate by an additional 0.1,
190.2, 0.3, 0.4, or 0.5 percent by holding a referendum pursuant to this subsection, but
20the overall rate of the tax imposed under this section may not exceed 1 percent. An
21ordinance adopted under this subsection shall be effective January 1, April 1, July
221, or October 1. A certified copy of that ordinance shall be delivered to the secretary
23of revenue at least 120 days prior to its effective date. The repeal of any such
24ordinance shall be effective on December 31. A certified copy of a repeal ordinance
25shall be delivered to the secretary of revenue at least 120 days before the effective

1date of the repeal. Except as provided under s. 77.60 (9), the department of revenue
2may not issue any assessment nor act on any claim for a refund or any claim for an
3adjustment under s. 77.585 after the end of the calendar year that is 4 years after
4the year in which the county has enacted a repeal ordinance under this subsection.
SB863,8 5Section 8. 77.701 of the statutes is created to read:
SB863,5,21 677.701 Adoption by municipal ordinance. (1) A municipality may impose
7a sales and use tax under this subchapter at the rate of 0.1, 0.2, 0.3, 0.4, or 0.5 percent
8of the sales price or purchase price if it adopts an ordinance to impose the tax, the
9ordinance specifies the rate of the tax imposed, and the ordinance is approved by the
10electors of the municipality at a referendum held at the spring or general election.
11The taxes imposed under this section may be imposed only in their entirety as
12provided under this subchapter. An ordinance adopted under this subsection shall
13be effective on January 1, April 1, July 1, or October 1. A certified copy of the
14ordinance shall be delivered to the secretary of revenue at least 120 days prior to its
15effective date. The repeal of any such ordinance shall be effective on December 31.
16A certified copy of a repeal ordinance shall be delivered to the secretary of revenue
17at least 120 days before the effective date of the repeal. Except as provided under
18s. 77.60 (9), the department of revenue may not issue any assessment nor act on any
19claim for a refund or any claim for an adjustment under s. 77.585 after the end of the
20calendar year that is 4 years after the year in which the municipality has adopted
21a repeal ordinance under this subsection.
SB863,6,12 22(2) A municipality that has adopted an ordinance under sub. (1) may
23subsequently increase the tax rate by adopting an ordinance to increase the rate and
24having the ordinance approved by the electors of the municipality at a referendum
25held at the spring or general election. The municipality may increase the rate by an

1additional 0.1, 0.2, 0.3, 0.4, or 0.5 percent by holding a referendum pursuant to this
2subsection, but the overall rate of the tax imposed under this section may not exceed
30.5 percent. An ordinance adopted under this subsection shall be effective January
41, April 1, July 1, or October 1. A certified copy of that ordinance shall be delivered
5to the secretary of revenue at least 120 days prior to its effective date. The repeal
6of any such ordinance shall be effective on December 31. A certified copy of a repeal
7ordinance shall be delivered to the secretary of revenue at least 120 days before the
8effective date of the repeal. Except as provided under s. 77.60 (9), the department
9of revenue may not issue any assessment nor act on any claim for a refund or any
10claim for an adjustment under s. 77.585 after the end of the calendar year that is 4
11years after the year in which the municipality has adopted a repeal ordinance under
12this subsection.
SB863,9 13Section 9. 77.71 of the statutes is amended to read:
SB863,6,17 1477.71 Imposition of county, municipality, and special district sales and
15use taxes.
Whenever a county sales and use tax an ordinance is adopted under s.
1677.70 or a special district resolution is adopted under s. 77.705 or 77.706, the
17following taxes are imposed:
SB863,7,3 18(1) For the privilege of selling, licensing, leasing, or renting tangible personal
19property and the items, property, and goods specified under s. 77.52 (1) (b), (c), and
20(d), and for the privilege of selling, licensing, performing, or furnishing services a
21sales tax is imposed upon retailers at the rates under s. 77.70 in the case of a county
22tax, at the rate under s. 77.701 in the case of a municipality tax, or at the rate under
23s. 77.705 or 77.706 in the case of a special district tax of the sales price from the sale,
24license, lease, or rental of tangible personal property and the items, property, and
25goods specified under s. 77.52 (1) (b), (c), and (d), except property taxed under sub.

1(4), sold, licensed, leased, or rented at retail in the county , municipality, or special
2district, or from selling, licensing, performing, or furnishing services described under
3s. 77.52 (2) in the county, municipality, or special district.
SB863,7,18 4(2) An excise tax is imposed at the rates under s. 77.70 in the case of a county
5tax, at the rate under s. 77.701 in the case of a municipality tax, or at the rate under
6s. 77.705 or 77.706 in the case of a special district tax of the purchase price upon every
7person storing, using, or otherwise consuming in the county, municipality, or special
8district tangible personal property, or items, property, or goods specified under s.
977.52 (1) (b), (c), or (d), or services if the tangible personal property, item, property,
10good, or service is subject to the state use tax under s. 77.53, except that a receipt
11indicating that the tax under sub. (1), (3), (4), or (5) has been paid relieves the buyer
12of liability for the tax under this subsection and except that if the buyer has paid a
13similar local tax in another state on a purchase of the same tangible personal
14property, item, property, good, or service that tax shall be credited against the tax
15under this subsection and except that for motor vehicles that are used for a purpose
16in addition to retention, demonstration, or display while held for sale in the regular
17course of business by a dealer the tax under this subsection is imposed not on the
18purchase price but on the amount under s. 77.53 (1m).
SB863,8,5 19(3) An excise tax is imposed upon a contractor engaged in construction
20activities within the county, municipality, or special district at the rates under s.
2177.70 in the case of a county tax, at the rate under s. 77.701 in the case of a
22municipality tax,
or at the rate under s. 77.705 or 77.706 in the case of a special
23district tax of the purchase price of tangible personal property or items, property, or
24goods under s. 77.52 (1) (b), (c), or (d) that are used in constructing, altering,
25repairing, or improving real property and that became a component part of real

1property in that county, municipality, or special district, except that if the contractor
2has paid the sales tax of a county, municipality, or special district in this state on that
3tangible personal property, item, property, or good, or has paid a similar local sales
4tax in another state on a purchase of the same tangible personal property, item,
5property, or good, that tax shall be credited against the tax under this subsection.
SB863,8,18 6(4) An excise tax is imposed at the rates under s. 77.70 in the case of a county
7tax, at the rate under s. 77.701 in the case of a municipality tax, or at the rate under
8s. 77.705 or 77.706 in the case of a special district tax of the purchase price upon every
9person storing, using, or otherwise consuming a motor vehicle, boat, recreational
10vehicle, as defined in s. 340.01 (48r), or aircraft if that property must be registered
11or titled with this state and if that property is to be customarily kept in a county that
12has in effect an ordinance under s. 77.70, in a municipality that has in effect an
13ordinance under s. 77.701,
or in a special district that has in effect a resolution under
14s. 77.705 or 77.706, except that if the buyer has paid a similar local sales tax in
15another state on a purchase of the same property, that tax shall be credited against
16the tax under this subsection. The lease or rental of a motor vehicle, boat,
17recreational vehicle, as defined in s. 340.01 (48r), or aircraft is not taxed under this
18subsection if the lease or rental does not require recurring periodic payments.
SB863,9,6 19(5) An excise tax is imposed on the purchase price for the lease or rental of a
20motor vehicle, boat, recreational vehicle, as defined in s. 340.01 (48r), or aircraft at
21the rates under s. 77.70 in the case of a county tax, at the rate under s. 77.701 in the
22case of a municipality tax,
or at the rate under s. 77.705 or 77.706 in the case of a
23special district tax upon every person storing, using, or otherwise consuming in the
24county, municipality, or special district the motor vehicle, boat, recreational vehicle,
25as defined in s. 340.01 (48r), or aircraft if that property must be registered or titled

1with this state and if the lease or rental does not require recurring periodic
2payments, except that a receipt indicating that the tax under sub. (1) had been paid
3relieves the purchaser of liability for the tax under this subsection and except that
4if the purchaser has paid a similar local tax in another state on the same lease or
5rental of such motor vehicle, boat, recreational vehicle, as defined in s. 340.01 (48r),
6or aircraft, that tax shall be credited against the tax under this subsection.
SB863,10 7Section 10. 77.73 of the statutes is amended to read:
SB863,9,16 877.73 Jurisdiction to tax. (2) Counties, municipalities, and special districts
9do not have jurisdiction to impose the tax under s. 77.71 (2) in regard to items,
10property, and goods under s. 77.52 (1) (b), (c), and (d), and tangible personal property,
11except snowmobiles, trailers, semitrailers, limited use off-highway motorcycles, as
12defined in s. 23.335 (1) (o), all-terrain vehicles, and utility terrain vehicles,
13purchased in a sale that is consummated in another county, municipality, or special
14district in this state that does not have in effect an ordinance or resolution imposing
15the taxes under this subchapter and later brought by the buyer into the county,
16municipality,
or special district that has imposed a tax under s. 77.71 (2).
SB863,9,23 17(2m) Counties, municipalities, and special districts do not have jurisdiction to
18impose the tax under s. 77.71 (5) with regard to the lease or rental of a motor vehicle,
19boat, recreational vehicle, as defined in s. 340.01 (48r), or aircraft if the lease or
20rental does not require recurring periodic payments and if the purchaser received the
21property in another county, municipality, or special district in this state and then
22brings the property into a county, municipality, or special district that imposes the
23tax under s. 77.71 (5).
SB863,9,25 24(3) Counties, municipalities, and special districts have jurisdiction to impose
25the taxes under this subchapter on retailers who file, or who are required to file, an

1application under s. 77.52 (7) or who register, or who are required to register, under
2s. 77.53 (9) or (9m), regardless of whether such retailers are engaged in business in
3the county, municipality, or special district, as provided in s. 77.51 (13g). A retailer
4who files, or is required to file, an application under s. 77.52 (7) or who registers, or
5is required to register, under s. 77.53 (9) or (9m) shall collect, report, and remit to the
6department the taxes imposed under this subchapter for all counties , municipalities,
7or special districts that have an ordinance or resolution imposing the taxes under
8this subchapter.
SB863,11 9Section 11. 77.75 of the statutes is amended to read:
SB863,10,14 1077.75 Reports. Every person subject to county, municipality, or special district
11sales and use taxes shall, for each reporting period, record that person's sales made
12in the county, municipality, or special district that has imposed those taxes
13separately from sales made elsewhere in this state and file a report as prescribed by
14the department of revenue.
SB863,12 15Section 12. 77.76 (1) of the statutes is amended to read:
SB863,10,2216 77.76 (1) The department of revenue shall have full power to levy, enforce, and
17collect county, municipality, and special district sales and use taxes and may take any
18action, conduct any proceeding, impose interest and penalties, and in all respects
19proceed as it is authorized to proceed for the taxes imposed by subch. III. The
20department of transportation and the department of natural resources may
21administer the county, municipality, and special district sales and use taxes in regard
22to items under s. 77.61 (1).
SB863,13 23Section 13. 77.76 (2) of the statutes is amended to read:
SB863,11,224 77.76 (2) Judicial and administrative review of departmental determinations
25shall be as provided in subch. III for state sales and use taxes, and no county or,

1municipality, nor
special district may intervene in any matter related to the levy,
2enforcement, and collection of the taxes under this subchapter.
SB863,14 3Section 14. 77.76 (3r) of the statutes is created to read:
SB863,11,194 77.76 (3r) From the appropriation under s. 20.835 (4) (gh), the department
5shall distribute 98.25 percent of the municipality taxes reported for each enacting
6municipality, minus the municipality portion of the retailers' discounts, to the
7municipality and shall indicate the taxes reported by each taxpayer, no later than
875 days following the last day of the calendar quarter in which such amounts were
9reported. In this subsection, the “municipality portion of the retailers' discount" is
10the amount determined by multiplying the total retailers' discount by a fraction the
11numerator of which is the gross municipality sales and use taxes payable and the
12denominator of which is the sum of the gross state and municipality sales and use
13taxes payable. The municipality taxes distributed shall be increased or decreased
14to reflect subsequent refunds, audit adjustments, and all other adjustments of the
15municipality taxes previously distributed. Interest paid on refunds of municipality
16sales and use taxes shall be paid from the appropriation under s. 20.835 (4) (gh) at
17the rate paid by this state under s. 77.60 (1) (a). Any municipality receiving a report
18under this subsection is subject to the duties of confidentiality to which the
19department of revenue is subject under s. 77.61 (5) and (6).
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