LRB-6261/1
JK:cdc
2021 - 2022 LEGISLATURE
March 10, 2022 - Introduced by Representative Sinicki. Referred to Committee on
Rules.
AB1189,1,2
1An Act to create 77.51 (12m) (b) 9., 77.51 (15b) (b) 9. and 77.52 (5m) of the
2statutes;
relating to: the sales tax and the use tax on tips and gratuities.
Analysis by the Legislative Reference Bureau
Under current law, the state imposes a sales tax on all retailers at the rate of
5 percent of the sales price from the sale, lease, or rental of tangible personal property
and the sale of taxable services. In addition, the state imposes a use tax on all
consumers, at the rate of 5 percent of the purchase price, for the consumption, use,
or storage of goods in this state that the consumer purchases from an out-of-state
retailer or purchasers without paying the appropriate sales tax and the consumption
or use of taxable services in this state that the consumer purchases from an
out-of-state retailer or purchases without paying the appropriate sales tax.
This bill excludes from the definitions of “sales price” and “purchase price,” for
purposes of imposing the sales and use tax, any addition to the sale of tangible
personal property, including any addition charged to the customer that represents
or is in lieu of a tip or gratuity.
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:
AB1189,1
1Section
1. 77.51 (12m) (b) 9. of the statutes is created to read:
AB1189,2,52
77.51
(12m) (b) 9. Any addition to the sale of tangible personal property,
3including any fee, service charge, labor charge, or other addition to the purchase
4price charged a customer by the retailer that represents or is in lieu of a tip or
5gratuity.
AB1189,2
6Section 2
. 77.51 (15b) (b) 9. of the statutes is created to read:
AB1189,2,97
77.51
(15b) (b) 9. Any addition to the sale of tangible personal property,
8including any fee, service charge, labor charge, or other addition to the sales price
9charged a customer by the retailer that represents or is in lieu of a tip or gratuity.
AB1189,3
10Section 3
. 77.52 (5m) of the statutes is created to read:
AB1189,2,1311
77.52
(5m) A retailer shall list separately on a receipt for a service any fee,
12service charge, labor charge, or other addition to the price of the service charged to
13a customer by the retailer that represents or is in lieu of a tip or gratuity.
AB1189,2,1615
(1)
This act takes effect on the first day of the 3rd month beginning after
16publication.
