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2023 - 2024 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 1,
TO SENATE BILL 835
February 7, 2024 - Offered by Senator Feyen.
SB835-SSA1,1,5 1An Act to renumber 139.75 (1); to amend 139.75 (12), 139.76 (1), 139.78 (1),
2139.82 (1), 139.82 (2) (a), 139.82 (6) and 139.82 (8); and to create 139.75 (1d),
3139.75 (1p), 139.75 (5u), 139.75 (6c), 139.75 (6g), 139.76 (1p), 139.78 (1p),
4139.795 and 139.815 of the statutes; relating to: remote sellers of cigars and
5pipe tobacco.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB835-SSA1,1 6Section 1. 139.75 (1) of the statutes is renumbered 139.75 (1h).
SB835-SSA1,2 7Section 2. 139.75 (1d) of the statutes is created to read:
SB835-SSA1,2,88 139.75 (1d) “Actual cost” means the total price of cigars or pipe tobacco charged
9by the manufacturer or other seller to an unrelated distributor or remote retail seller.
10The toal price includes all charges by the manufacturer or other seller that are
11necessary to complete the sale. The total price does not include a reduction for any

1cost or expense, regardless of whether the cost or expense is separately stated on an
2invoice, that is incurred by the manufacturer or other seller, including fees, delivery,
3freight, transportation, packaging, handling, or marketing costs, federal excise
4taxes, import fees, or duties. The total price does not include a reduction for the value
5or cost of discounts or free promotional or sample products. For purposes of this
6subsection, a manufacturer or other seller is related to a distributor or remote retail
7seller if the 2 parties have significant common purposes and substantial common
8membership or, directly or indirectly, substantial common direction or control.
SB835-SSA1,3 9Section 3. 139.75 (1p) of the statutes is created to read:
SB835-SSA1,2,1110 139.75 (1p) “Cigar” means any roll of tobacco wrapped in leaf tobacco or in any
11substance containing tobacco but does not include a cigarette.
SB835-SSA1,4 12Section 4. 139.75 (5u) of the statutes is created to read:
SB835-SSA1,2,1513 139.75 (5u) “Pipe tobacco” means any tobacco that, because of its appearance,
14type, packaging, or labeling, is suitable for use and likely to be offered to or purchased
15by consumers as tobacco to be smoked in a pipe.
SB835-SSA1,5 16Section 5. 139.75 (6c) of the statutes is created to read:
SB835-SSA1,2,1817 139.75 (6c) “Remote retail sale” means any sale of cigars or pipe tobacco to a
18consumer that satisfies any of the following:
SB835-SSA1,2,2219 (a) The consumer submits the order for the sale by telephone, a method of voice
20transmission, mail, or the Internet or other online service, or the seller is otherwise
21not in the physical presence of the consumer when the order or request for purchase
22is made.
SB835-SSA1,3,223 (b) The cigars or pipe tobacco are delivered to the consumer by common carrier,
24private delivery service, or other method of remote delivery, or the seller is not in the

1physical presence of the consumer when the consumer obtains possession of the
2cigars or pipe tobacco.
SB835-SSA1,6 3Section 6. 139.75 (6g) of the statutes is created to read:
SB835-SSA1,3,54 139.75 (6g) “Remote retail seller” means a person located inside or outside of
5this state who makes remote retail sales.
SB835-SSA1,7 6Section 7. 139.75 (12) of the statutes is amended to read:
SB835-SSA1,3,147 139.75 (12) “Tobacco products" means cigars; pipe tobacco; cheroots; stogies;
8periques; granulated, plug cut, crimp cut, ready-rubbed and other smoking tobacco;
9snuff, including moist snuff; snuff flour; cavendish; plug and twist tobacco; fine cut
10and other chewing tobaccos; shorts; refuse scraps, clippings, cuttings and sweepings
11of tobacco and other kinds and forms of tobacco prepared in such manner as to be
12suitable for chewing or smoking in a pipe or otherwise, or both for chewing and
13smoking; but “tobacco products" does not include cigarettes, as defined under s.
14139.30 (1m).
SB835-SSA1,8 15Section 8. 139.76 (1) of the statutes is amended to read:
SB835-SSA1,4,1116 139.76 (1) An Except as provided in sub. (1p), an excise tax is imposed upon the
17sale, offering or exposing for sale, possession with intent to sell or removal for
18consumption or sale or other disposition for any purpose of tobacco products by any
19person engaged as a distributor of them at the rate, for tobacco products, not
20including moist snuff and, vapor products, cigars, and pipe tobacco, of 71 percent of
21the manufacturer's established list price to distributors without diminution by
22volume or other discounts on domestic products and, for moist snuff, at the rate of
23100 percent of the manufacturer's established list price to distributors without
24diminution by volume or other discounts on domestic products. The tax imposed
25under this subsection on cigars shall not exceed an amount equal to 50 cents for each

1cigar.
On products imported from another country, not including moist snuff and,
2vapor products, cigars, and pipe tobacco, the rate of tax is 71 percent of the amount
3obtained by adding the manufacturer's list price to the federal tax, duties and
4transportation costs to the United States. On moist snuff imported from another
5country, the rate of the tax is 100 percent of the amount obtained by adding the
6manufacturer's list price to the federal tax, duties, and transportation costs to the
7United States. The Except as provided in sub. (1p), the tax attaches at the time the
8tobacco products are received by the distributor in this state. The tax shall be passed
9on to the ultimate consumer of the tobacco products. All tobacco products received
10in this state for sale or distribution within this state, except tobacco products actually
11sold as provided in sub. (2), shall be subject to such tax.
SB835-SSA1,9 12Section 9. 139.76 (1p) of the statutes is created to read:
SB835-SSA1,4,2513 139.76 (1p) An excise tax is imposed upon the sale, offering or exposing for sale,
14possession with intent to sell, or removal for consumption or sale or other disposition
15for any purpose of cigars and pipe tobacco by any person engaged as a distributor or
16remote retail seller of them at the rate of 71 percent of the actual cost to the
17distributor or remote retail seller. The tax imposed under this subsection on cigars
18shall not exceed an amount equal to 50 cents for each cigar. The tax attaches at the
19time the cigars or pipe tobacco are received by the distributor in this state, except
20that for cigars and pipe tobacco sold by a remote retail seller, the tax attaches at the
21time the remote retail seller makes a remote retail sale of cigars or pipe tobacco to
22a consumer. The tax shall be passed on to the ultimate consumer of the cigars and
23pipe tobacco. All cigars and pipe tobacco received in this state for sale or distribution
24within this state, except tobacco products actually sold as provided in sub. (2), shall
25be subject to such tax.
SB835-SSA1,10
1Section 10. 139.78 (1) of the statutes is amended to read:
SB835-SSA1,5,112 139.78 (1) A Except as provided in sub. (1p), a tax is imposed upon the use or
3storage by consumers of tobacco products in this state at the rate, for tobacco
4products, not including moist snuff and, vapor products, cigars, and pipe tobacco, of
571 percent of the cost of the tobacco products and, for moist snuff, at the rate of 100
6percent of the manufacturer's established list price to distributors without
7diminution by volume or other discounts on domestic products. The tax imposed
8under this subsection on cigars shall not exceed an amount equal to 50 cents for each
9cigar. The tax does not apply if the tax imposed by s. 139.76 (1) on the tobacco
10products has been paid or if the tobacco products are exempt from the tobacco
11products tax under s. 139.76 (2).
SB835-SSA1,11 12Section 11. 139.78 (1p) of the statutes is created to read:
SB835-SSA1,5,1613 139.78 (1p) A tax is imposed upon the use or storage by consumers of cigars
14and pipe tobacco in this state at the rate and basis under s. 139.76 (1p). The tax does
15not apply if the tax imposed by s. 139.76 (1p) on the cigars or pipe tobacco has been
16paid or if the cigars or pipe tobacco are exempt from the tax under s. 139.76 (2).
SB835-SSA1,12 17Section 12. 139.795 of the statutes is created to read:
SB835-SSA1,5,22 18139.795 Permits; remote retail seller. (1) No person may engage in the
19business of a remote retail seller at any place of business, including a legal location
20in any state at which records are kept or accessed by the remote retail seller, unless
21that person has filed an application for and obtained a permit from the department
22to engage in that business at such place.
SB835-SSA1,5,23 23(2) Section 139.34 (1) (b) to (f) and (9) applies to the permit under this section.
SB835-SSA1,13 24Section 13. 139.815 of the statutes is created to read:
SB835-SSA1,6,2
1139.815 Remote retail sales. No person may make remote retail sales to
2consumers unless all of the following apply:
SB835-SSA1,6,3 3(1) The person obtains a remote retail seller permit under s. 139.795.
SB835-SSA1,6,5 4(2) The person registers with the department and collects the taxes
5administered or imposed under s. 77.52 or 77.53.
SB835-SSA1,6,6 6(3) The person collects and remits the tax under s. 139.76.
SB835-SSA1,6,13 7(4) The person uses an independent, 3rd-party age verification service that
8compares information available from a commercially available database or
9aggregate of databases that are regularly used by government agencies and business
10for age and identity verification to determine whether a prospective consumer has
11attained the minimum age for purchasing a tobacco product under the federal Food,
12Drug, and Cosmetic Act based on the personal information provided by the
13prospective consumer during the ordering process.
SB835-SSA1,14 14Section 14. 139.82 (1) of the statutes is amended to read:
SB835-SSA1,7,215 139.82 (1) Every manufacturer located out of the state shall keep records of all
16sales of tobacco products and vapor products shipped into this state. Every
17manufacturer located in this state shall keep records of production, sales and
18withdrawals of tobacco products and vapor products. Every distributor and remote
19retail seller
shall keep records of purchases and sales of tobacco products and vapor
20products. Every subjobber shall keep records of all purchases and disposition of
21tobacco products and vapor products. Every warehouse operator shall keep records
22of receipts and withdrawals of tobacco products and vapor products. All records shall
23be accurate and complete and be kept in a manner prescribed by the department.
24These records shall be preserved on the premises described in the permit in such a

1manner as to ensure permanency and accessibility for inspection at reasonable hours
2by authorized personnel of the department.
SB835-SSA1,15 3Section 15. 139.82 (2) (a) of the statutes is amended to read:
SB835-SSA1,7,94 139.82 (2) (a) Except as provided in par. (b), every permittee shall render a true
5and correct invoice of every sale of tobacco products and vapor products at wholesale,
6or, if the permittee is a remote retail seller, at retail,
and shall on or before the 15th
7day of each calendar month file a verified report of all tobacco products and vapor
8products purchased, sold, received, warehoused or withdrawn during the preceding
9calendar month.
SB835-SSA1,16 10Section 16. 139.82 (6) of the statutes, as affected by 2023 Wisconsin Act 73,
11is amended to read:
SB835-SSA1,7,2012 139.82 (6) Sections 71.78 (1), (1m), and (4) to (9) and 71.83 (2) (a) 3. and 3m.,
13relating to confidentiality of income and franchise tax returns, apply to any
14information obtained from any person on a cigarette tax return, report, schedule,
15exhibit, or other document or from an audit report pertaining to the return, report,
16schedule, exhibit, or document, except that the department shall publish on its
17Internet site, at least quarterly, a current list of permits issued to remote retail
18sellers,
distributors, and jobbers under s. 139.34 and include on the list the name and
19address of the permit holder and the date on which the department issued the
20permit.
SB835-SSA1,17 21Section 17. 139.82 (8) of the statutes is amended to read:
SB835-SSA1,7,2422 139.82 (8) Each distributor and remote retail seller shall collect and remit the
23excise tax imposed by s. 139.76 on tobacco products and vapor products not exempt
24from tax under s. 139.76 (2), with the reports required to be filed under this section.
SB835-SSA1,18 25Section 18. Effective date.
SB835-SSA1,8,1
1(1) This act takes effect on January 1, 2025.
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