Amendment AA19-ASA2-AB50

AB50-ASA2-AA19,10,13 “Section 1. 77.52 (13) of the statutes is amended to read:

AB50-ASA2-AA19,11,2 77.52 (13) For the purpose of the proper administration of this section and to prevent evasion of the sales tax it shall be presumed that all receipts are subject to the tax until the contrary is established. The burden of proving that a sale of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services is not a taxable sale at retail is upon the person who makes the sale unless that person takes from the purchaser an electronic or a paper certificate, in a manner prescribed by the department, to the effect that the property, item, good, or service is purchased for resale or is otherwise exempt, except that no certificate is required for the sale of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services that are exempt under s. 77.54 (5) (a) 3., (7), (7m), (8), (10), (11), (14), (15), (17), (20n), (21), (22b), (31), (32), (35), (36), (37), (42), (44), (45), (46), (51), (52), (64), (66), (67), (71), and (72), and (76).

AB50-ASA2-AA19,2 Section 2. 77.53 (10) of the statutes is amended to read:

AB50-ASA2-AA19,11,17 77.53 (10) For the purpose of the proper administration of this section and to prevent evasion of the use tax and the duty to collect the use tax, it is presumed that tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or taxable services sold by any person for delivery in this state is sold for storage, use, or other consumption in this state until the contrary is established. The burden of proving the contrary is upon the person who makes the sale unless that person takes from the purchaser an electronic or paper certificate, in a manner prescribed by the department, to the effect that the property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or taxable service is purchased for resale, or otherwise exempt from the tax, except that no certificate is required for the sale of tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services that are exempt under s. 77.54 (7), (7m), (8), (10), (11), (14), (15), (17), (20n), (21), (22b), (31), (32), (35), (36), (37), (42), (44), (45), (46), (51), (52), (64), (66), (67), (71), and (72), and (76).

AB50-ASA2-AA19,3 Section 3. 77.54 (76) of the statutes is created to read:

AB50-ASA2-AA19,11,21 77.54 (76) (a) The sales price from the sale of and the storage, use, or other consumption of gun safes that are specifically designed for the storage of guns, but not other items used for gun storage, such as locking gun cabinets and racks.

AB50-ASA2-AA19,11,23 (b) The sales price from the sale of and the storage, use, or other consumption of trigger locks and gun barrel locks.

AB50-ASA2-AA19,9437 Section 9437. Effective dates; Revenue.

AB50-ASA2-AA19,12,3 (1) Gun safes, trigger locks, and barrel locks. The treatment of ss. 77.52 (13), 77.53 (10), and 77.54 (76) takes effect on the first day of the 3rd month beginning after publication.”.

AB50-ASA2-AA19,12,4 8. At the appropriate places, insert all of the following:

AB50-ASA2-AA19,12,5 “Section 20. 77.51 (11d) of the statutes is amended to read:

AB50-ASA2-AA19,12,9 77.51 (11d) For purposes of subs. (1ag), (1f), (3pf), (7j), and (9p), and (17g) and ss. 77.52 (20) and (21), 77.522, 77.54 (9g), (51), (52), and (60), and 77.59 (5r), “product” includes tangible personal property, and items, property, and goods under s. 77.52 (1) (b), (c), and (d), and services.

AB50-ASA2-AA19,21 Section 21. 77.51 (17g) of the statutes is created to read:

AB50-ASA2-AA19,12,12 77.51 (17g) “Separate and optional fee” means a fee charged to receive a distinct and identifiable product if either of the following applies:

AB50-ASA2-AA19,12,17 (a) The fee is in addition to fees that the seller charges for other distinct and identifiable products sold to the same buyer, the fee is separately set forth on the invoice given by the seller to the buyer, and the seller does not require the buyer to pay the fee if the buyer chooses not to receive the additional distinct and identifiable product for which the fee applies.

AB50-ASA2-AA19,13,2 (b) The seller charges a single amount for multiple distinct and identifiable products and offers the buyer the option of paying a lower amount if the buyer chooses not to receive one or more of the distinct and identifiable products. For purposes of this paragraph, the separate and optional fee is the single amount the seller charges for the multiple distinct and identifiable products less the reduced amount the seller charges to the buyer because the buyer chooses not to receive one or more of the products.

AB50-ASA2-AA19,22 Section 22. 77.52 (2) (a) 20. of the statutes is amended to read:

AB50-ASA2-AA19,13,11 77.52 (2) (a) 20. The sale of landscaping and lawn maintenance services including landscape planning and counseling, lawn and garden services such as planting, mowing, spraying and fertilizing, and shrub and tree services. For purposes of this subdivision, landscaping and lawn maintenance services do not include planning and counseling services for the restoration, reclamation, or revitalization of prairie, savanna, or wetlands to improve biodiversity, the quality of land, soils, or water, or other ecosystem functions if the planning and counseling services are provided for a separate and optional fee from any other services.

AB50-ASA2-AA19,23 Section 23. 77.52 (2m) (a) of the statutes is amended to read:

AB50-ASA2-AA19,13,18 77.52 (2m) (a) With respect to the services subject to tax under sub. (2), no part of the charge for the service may be deemed a sale or rental of tangible personal property or items, property, or goods under sub. (1) (b), (c), or (d) if the property, items, or goods transferred by the service provider are incidental to the selling, performing or furnishing of the service, except as provided in par. pars. (b) and (c).

AB50-ASA2-AA19,24 Section 24. 77.52 (2m) (c) of the statutes is created to read:

AB50-ASA2-AA19,14,4 77.52 (2m) (c) With respect to services subject to tax under sub. (2) (a) 7., 10., 11., and 20. that are provided for a separate and optional fee from the planning and counseling services described under sub. (2) (a) 20., all tangible personal property or items, property, or goods under sub. (1) (b), (c), or (d) physically transferred, or transferred electronically, to the customer in conjunction with the provision of the services subject to tax under sub. (2) (a) 7., 10., 11., and 20. is a sale of tangible personal property or items, property, or goods separate from the selling, performing, or furnishing of the services.

AB50-ASA2-AA19,9437 Section 9437. Effective dates; Revenue.

AB50-ASA2-AA19,14,8 (1) Prairie and wetland counseling services. The treatment of ss. 77.51 (11d) and (17g) and 77.52 (2) (a) 20. and (2m) (a) and (c) takes effect on the first day of the 3rd month beginning after publication.”.

AB50-ASA2-AA19,14,9 9. At the appropriate places, insert all of the following:

AB50-ASA2-AA19,14,10 “Section 25. 139.44 (4) of the statutes is amended to read:

AB50-ASA2-AA19,14,14 139.44 (4) Any person who refuses to permit the examination or inspection authorized in s. 139.39 (2) or 139.83 (1) may be fined not more than $500 or imprisoned not more than 90 days or both. Such refusal shall be cause for immediate suspension or revocation of permit by the secretary.

AB50-ASA2-AA19,26 Section 26. 139.75 (4t) of the statutes is created to read:

AB50-ASA2-AA19,14,17 139.75 (4t) “Little cigar” means a cigar that has an integrated cellulose acetate filter and is wrapped in a substance containing tobacco.

AB50-ASA2-AA19,27 Section 27. 139.75 (12) of the statutes is amended to read:

AB50-ASA2-AA19,15,3 139.75 (12) “Tobacco products” means cigars; little cigars; pipe tobacco; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready-rubbed and other smoking tobacco; snuff, including moist snuff; snuff flour; cavendish; plug and twist tobacco; fine cut and other chewing tobaccos; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco and other kinds and forms of tobacco prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and smoking; but “tobacco products” does not include cigarettes, as defined under s. 139.30 (1m).

AB50-ASA2-AA19,28 Section 28. 139.76 (1) of the statutes is amended to read:

AB50-ASA2-AA19,15,24 139.76 (1) Except as provided in sub. subs. (1p) and (1t), an excise tax is imposed upon the sale, offering or exposing for sale, possession with intent to sell or removal for consumption or sale or other disposition for any purpose of tobacco products by any person engaged as a distributor of them at the rate, for tobacco products, not including moist snuff, vapor products, cigars, little cigars, and pipe tobacco, of 71 percent of the manufacturer’s established list price to distributors without diminution by volume or other discounts on domestic products and, for moist snuff, at the rate of 100 percent of the manufacturer’s established list price to distributors without diminution by volume or other discounts on domestic products. On tobacco products imported from another country, not including moist snuff, vapor products, cigars, little cigars, and pipe tobacco, the rate of tax is 71 percent of the amount obtained by adding the manufacturer’s list price to the federal tax, duties and transportation costs to the United States. On moist snuff imported from another country, the rate of the tax is 100 percent of the amount obtained by adding the manufacturer’s list price to the federal tax, duties, and transportation costs to the United States. Except as provided in sub. (1p), the tax attaches at the time the tobacco products are received by the distributor in this state. The tax shall be passed on to the ultimate consumer of the tobacco products. All tobacco products received in this state for sale or distribution within this state, except tobacco products actually sold as provided in sub. (2), shall be subject to such tax.

AB50-ASA2-AA19,29 Section 29. 139.76 (1p) of the statutes is amended to read:

AB50-ASA2-AA19,16,15 139.76 (1p) An excise tax is imposed upon the sale, offering or exposing for sale, possession with intent to sell, or removal for consumption or sale or other disposition for any purpose of cigars, not including little cigars, and pipe tobacco by any person engaged as a distributor or remote retail seller of them at the rate of 71 percent of the actual cost to the distributor or remote retail seller. The tax imposed under this subsection on cigars, except little cigars, shall not exceed an amount equal to 50 cents for each cigar. The tax attaches at the time the cigars or pipe tobacco are received by the distributor in this state, except that for cigars and pipe tobacco sold by a remote retail seller, the tax attaches at the time the remote retail seller makes a remote retail sale of cigars or pipe tobacco to a consumer. The tax shall be passed on to the ultimate consumer of the cigars and pipe tobacco. All cigars, not including little cigars, and pipe tobacco received in this state for sale or distribution within this state, except tobacco products actually sold as provided in sub. (2), shall be subject to such tax.

AB50-ASA2-AA19,30 Section 30. 139.76 (1t) of the statutes is created to read:

AB50-ASA2-AA19,17,7 139.76 (1t) An excise tax is imposed upon the sale, offering or exposing for sale, possession with intent to sell, or removal for consumption or sale or other disposition for any purpose of little cigars by any person engaged as a distributor or remote retail seller of them at the rate of 126 mills on each little cigar, regardless of weight. The tax attaches at the time the little cigars are received by the distributor in this state, except that for little cigars sold by a remote retail seller, the tax attaches at the time the remote retail seller makes a remote retail sale of little cigars to a consumer. The tax shall be passed on to the ultimate consumer of the little cigars. All little cigars received in this state for sale or distribution within this state, except those actually sold as provided in sub. (2), shall be subject to such tax. To evidence payment of the tax imposed under this subsection on little cigars, the department shall provide stamps. A person who has paid the tax shall affix stamps of the proper denomination to each package in which little cigars are packed, prior to the first sale within this state. Section 139.32, as it applies to the tax under s. 139.31, applies to the tax imposed under this subsection on little cigars.

AB50-ASA2-AA19,31 Section 31. 139.78 (1) of the statutes is amended to read:

AB50-ASA2-AA19,17,18 139.78 (1) Except as provided in sub. subs. (1p) and (1t), a tax is imposed upon the use or storage by consumers of tobacco products in this state at the rate, for tobacco products, not including moist snuff, vapor products, cigars, little cigars, and pipe tobacco, of 71 percent of the cost of the tobacco products and, for moist snuff, at the rate of 100 percent of the manufacturer’s established list price to distributors without diminution by volume or other discounts on domestic products. The tax imposed under this subsection on cigars, except little cigars, shall not exceed an amount equal to 50 cents for each cigar. The tax does not apply if the tax imposed by s. 139.76 (1) on the tobacco products has been paid or if the tobacco products are exempt from the tobacco products tax under s. 139.76 (2).

AB50-ASA2-AA19,32 Section 32. 139.78 (1p) of the statutes is amended to read:

AB50-ASA2-AA19,17,24 139.78 (1p) A tax is imposed upon the use or storage by consumers of cigars, not including little cigars, and pipe tobacco in this state at the rate and basis under s. 139.76 (1p). The tax does not apply if the tax imposed by s. 139.76 (1p) on the cigars or pipe tobacco has been paid or if the cigars or pipe tobacco are exempt from the tax under s. 139.76 (2).

AB50-ASA2-AA19,33 Section 33. 139.78 (1t) of the statutes is created to read:

AB50-ASA2-AA19,18,6 139.78 (1t) A tax is imposed and levied upon the use or storage of little cigars in this state by any person for any purpose. The tax is levied and shall be collected at the same rate as provided for in s. 139.76 (1t). The tax under this subsection does not apply if the tax imposed by s. 139.76 (1t) has been paid or if the little cigars are exempt from tax under s. 139.76 (2).

AB50-ASA2-AA19,34 Section 34. 139.83 of the statutes is renumbered 139.83 (1).

AB50-ASA2-AA19,35 Section 35. 139.83 (2) of the statutes is created to read:

AB50-ASA2-AA19,18,12 139.83 (2) Sections 139.315, 139.32, 139.321, 139.322, 139.34, 139.35, 139.36, 139.362, 139.363, 139.38, 139.395, 139.41, 139.42, 139.43, and 139.44 (8), as they apply to the taxes under subch. II, apply to the administration and enforcement of this subchapter for little cigars.

AB50-ASA2-AA19,9437 Section 9437. Effective dates; Revenue.

AB50-ASA2-AA19,18,17 (1) Little cigars. The treatment of ss. 139.44 (4), 139.75 (4t) and (12), 139.76 (1), (1p), and (1t), and 139.78 (1), (1p), and (1t), the renumbering of s. 139.83, and the creation of s. 139.83 (2) take effect on the first day of the 3rd month beginning after publication.”.

AB50-ASA2-AA19,18,18 10. At the appropriate places, insert all of the following:

AB50-ASA2-AA19,18,19 “Section 36. 71.07 (9e) (aj) (intro.) of the statutes is amended to read:

AB50-ASA2-AA19,19,2 71.07 (9e) (aj) (intro.) For taxable years beginning after December 31, 2010, and before January 1, 2025, an individual may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the person is eligible for the taxable year under section 32 of the Internal Revenue Code:

AB50-ASA2-AA19,37 Section 37. 71.07 (9e) (ak) of the statutes is created to read:

AB50-ASA2-AA19,19,8 71.07 (9e) (ak) For taxable years beginning after December 31, 2024, an individual may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the individual is eligible for the taxable year under section 32 of the Internal Revenue Code:

AB50-ASA2-AA19,19,10 1. If the individual has one qualifying child who has the same principal place of abode as the individual, 16 percent.

AB50-ASA2-AA19,19,12 2. If the individual has 2 qualifying children who have the same principal place of abode as the individual, 25 percent.

AB50-ASA2-AA19,19,14 3. If the individual has 3 or more qualifying children who have the same principal place of abode as the individual, 34 percent.

AB50-ASA2-AA19,38 Section 38. 73.03 (73) (f) 1. of the statutes is amended to read:

AB50-ASA2-AA19,19,20 73.03 (73) (f) 1. Subject to subd. 2., for taxable years beginning after December 31, 2020, the department shall make the pilot program described under par. (b) permanent and applicable to all eligible claimants of the earned income tax credit under s. 71.07 (9e) (aj), based on the specifications described under pars. (b) and (c) 2.”.

AB50-ASA2-AA19,19,21 11. At the appropriate places, insert all of the following:

AB50-ASA2-AA19,19,22 “Section 39. 20.835 (1) (a) of the statutes is created to read:

AB50-ASA2-AA19,20,2 20.835 (1) (a) Property tax freeze incentive payments. A sum sufficient to make the payments under s. 79.06.

AB50-ASA2-AA19,40 Section 40. 79.015 of the statutes is amended to read:

AB50-ASA2-AA19,20,10 79.015 Statement of estimated payments. The department of revenue, on or before September 15 of each year, shall provide to each municipality and county a statement of estimated payments to be made in the next calendar year to the municipality or county under ss. 79.035, 79.036, 79.037, 79.038, 79.039, 79.04, and 79.05 and shall provide a statement of estimated payments to be made to the municipality or county under s. 79.06 if the municipality or county is eligible for a payment under s. 79.06 in the next calendar year.

AB50-ASA2-AA19,41 Section 41. 79.06 of the statutes is created to read:

AB50-ASA2-AA19,20,13 79.06 Property tax freeze incentive payments. (1) In this section, “political subdivision” means a city, village, town, or county.

AB50-ASA2-AA19,20,16 (2) (a) A political subdivision is eligible for a payment under sub. (3) if its property tax levy in a year is less than or equal to its property tax levy in the immediately preceding year.

AB50-ASA2-AA19,20,19 (b) For purposes of determining eligibility under par. (a), a political subdivision’s property tax levy excludes all of the following expenditures made by the political subdivision:

AB50-ASA2-AA19,20,20 1. Expenditures related to annexation or service consolidation.

AB50-ASA2-AA19,20,21 2. Unreimbursed emergency expenditures.

AB50-ASA2-AA19,20,24 (3) (a) Beginning in 2026, each political subdivision that is eligible under sub. (2) on the basis of its property tax levy imposed in the immediately preceding December shall receive a payment calculated as follows:

AB50-ASA2-AA19,21,2 1. Multiply the political subdivision’s property tax levy for the year of the payment by 0.03.

AB50-ASA2-AA19,21,4 2. If the political subdivision received a payment under this subsection in the immediately preceding year, multiply the amount of the payment by 1.03.

AB50-ASA2-AA19,21,5 3. Add the amounts determined under subds. 1. and 2.

AB50-ASA2-AA19,21,8 (b) For purposes of calculating the amount of a payment under par. (a), a political subdivision’s property tax levy excludes all expenditures excluded under sub. (2) (b).

AB50-ASA2-AA19,21,12 (c) The department of revenue shall certify the amount of the payment due each taxing jurisdiction under par. (a) to the department of administration, and the department of administration shall make the payment on or before the first Monday in May.

AB50-ASA2-AA19,21,14 (4) The department of revenue may promulgate rules to implement this section.”.

AB50-ASA2-AA19,21,15 12. At the appropriate places, insert all of the following:

AB50-ASA2-AA19,21,16 “Section 42. 71.05 (1) (j) of the statutes is created to read:

AB50-ASA2-AA19,21,18 71.05 (1) (j) Tips. Amounts received as cash tips by an employee from the customers of the employee’s employer.

AB50-ASA2-AA19,43 Section 43. 71.05 (6) (b) 19. cm. of the statutes is amended to read:

AB50-ASA2-AA19,22,8 71.05 (6) (b) 19. cm. For taxable years beginning after December 31, 2020, for a person who is a nonresident or a part-year resident of this state, modify the amount calculated under subd. 19. b. by multiplying the amount by a fraction the numerator of which is the person’s wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the person’s total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 19. cm., for married persons filing separately “wages, salary, tips, unearned income, and net earnings from a trade or business” means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income, and net earnings from a trade or business” means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.

AB50-ASA2-AA19,44 Section 44. 71.05 (6) (b) 19. dm. of the statutes is amended to read:

AB50-ASA2-AA19,22,13 71.05 (6) (b) 19. dm. For taxable years beginning after December 31, 2020, reduce the amount calculated under subd. 19. b. or cm. to the person’s aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.

AB50-ASA2-AA19,45 Section 45. 71.05 (6) (b) 28. e. of the statutes is amended to read:

AB50-ASA2-AA19,23,2 71.05 (6) (b) 28. e. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 28. a., am., b., c. or d. by a fraction the numerator of which is the individual’s wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual’s total wages, salary, tips, unearned income and net earnings from a trade or business. In this subd. 28. e., for married persons filing separately “wages, salary, tips, unearned income and net earnings from a trade or business” means the separate wages, salary, tips, unearned income and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income and net earnings from a trade or business” means the total wages, salary, tips, unearned income and net earnings from a trade or business of both spouses.

AB50-ASA2-AA19,46 Section 46. 71.05 (6) (b) 28. f. of the statutes is amended to read:

AB50-ASA2-AA19,23,6 71.05 (6) (b) 28. f. Reduce the amount calculated under subd. 28. a., am., b., c., d. or e. to the individual’s aggregate wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state.

AB50-ASA2-AA19,47 Section 47. 71.05 (6) (b) 32. b. of the statutes is amended to read:

AB50-ASA2-AA19,23,19 71.05 (6) (b) 32. b. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 32. a. by a fraction the numerator of which is the individual’s wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual’s total wages, salary, tips, unearned income and net earnings from a trade or business. In this subd. 32. b., for married persons filing separately “wages, salary, tips, unearned income and net earnings from a trade or business” means the separate wages, salary, tips, unearned income and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income and net earnings from a trade or business” means the total wages, salary, tips, unearned income and net earnings from a trade or business of both spouses.