Chapter 77

77.54(52) (52) The sales price from the sales of and the storage, use, or other consumption of products sold in a transaction that would be a bundled transaction, except that the transaction meets the conditions described in s. 77.51 (1f) (e).

77.54(54) (54) The sales price from the sale of and the storage, use, or other consumption of tangible personal property, and items and property under s. 77.52 (1) (b) and (c), and taxable services that are sold by a home exchange service that receives moneys from the appropriation account under s. 20.485 (1) (g) and is operated by the department of veterans affairs.

77.54(55) (55) The sales price from the 911 fee imposed under s. 196.025 (6).

77.54(56) (56) 

77.54(56)(a) (a) Beginning July 1, 2011, the sales price from the sale of and the storage, use, or other consumption of a product whose power source is wind energy, direct radiant energy received from the sun, or gas generated from anaerobic digestion of animal manure and other agricultural waste, if the product produces at least 200 watts of alternating current or 600 British thermal units per day, except that the exemption under this subsection does not apply to an uninterruptible power source that is designed primarily for computers.

77.54(56)(b) (b) Except for the sale of electricity or energy that is exempt from taxation under sub. (30), beginning on July 1, 2011, the sales price from the sale of and the storage, use, or other consumption of electricity or energy produced by a product described under par. (a).

77.54(57) (57) 

77.54(57)(a) (a) In this subsection:

77.54(57)(a)1d. 1d. “Animals” include bacteria, viruses, and other microorganisms.

77.54(57)(a)2. 2. “Machinery” has the meaning given in s. 70.11 (27) (a) 2.

77.54(57)(a)5. 5. “Qualified research” has the meaning given in sub. (57d) (a) 4.

77.54(57)(a)6. 6. “Used exclusively” has the meaning given in sub. (3) (b) 3.

77.54(57)(b) (b) The sales price from the sale of and the storage, use, or other consumption of all of the following:

77.54(57)(b)3. 3. Machines and specific processing equipment, including accessories, attachments, and parts for the machines or equipment, that are used exclusively and directly in raising animals that are sold primarily to a biotechnology business, a public or private institution of higher education, or a governmental unit for exclusive and direct use by any such entity in qualified research or manufacturing.

77.54(57)(b)4. 4. The items listed in sub. (3m) (a) to (m), drugs, semen for artificial insemination, fuel, and electricity that are used exclusively and directly in raising animals that are sold primarily to a biotechnology business, a public or private institution of higher education, or a governmental unit for exclusive and direct use by any such entity in qualified research or manufacturing.

77.54(57d) (57d) 

77.54(57d)(a) (a) In this subsection:

77.54(57d)(a)1. 1. “Building” has the meaning given in s. 70.111 (10) (a) 1.

77.54(57d)(a)2. 2. “Combined group” has the meaning given in s. 71.255 (1) (a).

77.54(57d)(a)3. 3. “Machinery” has the meaning given in s. 70.11 (27) (a) 2.

77.54(57d)(a)4. 4. “Qualified research” means qualified research as defined under section 41 (d) (1) of the Internal Revenue Code, except that it includes qualified research that is funded by a member of a combined group for another member of a combined group.

77.54(57d)(a)5. 5. “Used exclusively” has the meaning given in sub. (3) (b) 3.

77.54(57d)(b) (b) The sales price from the sale of and the storage, use, or other consumption of machinery and equipment, including attachments, parts, and accessories, and other tangible personal property or items or property under s. 77.52 (1) (b) or (c) that are sold to any of the following and that are consumed or destroyed or lose their identities while being used exclusively and directly in qualified research:

77.54(57d)(b)1. 1. A person engaged in manufacturing in this state on real property assessed under s. 70.995.

77.54(57d)(b)2. 2. A person engaged primarily in biotechnology in this state.

77.54(57d)(b)3. 3. A combined group member who is conducting qualified research for another combined group member and that other combined group member is a person described under subd. 1. or 2.

77.54(58) (58) The sales price from the sale of and the storage, use, or other consumption of snowmaking and snow-grooming machines and equipment, including accessories, attachments, and parts for the machines and equipment and the fuel and electricity used to operate such machines and equipment, that are used exclusively and directly for snowmaking and snow grooming at ski hills, ski slopes, and ski trails.

77.54(59) (59) The sales price from the sales of and the storage, use, or other consumption of advertising and promotional direct mail.

77.54(60) (60) 

77.54(60)(b) (b) The sales price from the sale of and the storage, use, or other consumption of products that are sold by a prime contractor as part of a construction contract, if the total sales price of all products is less than 10 percent of the total amount of the construction contract. Except as provided in par. (c), the prime contractor is the consumer of the products and shall pay the tax imposed under this subchapter on the products.

77.54(60)(bm) (bm)

77.54(60)(bm)1. 1. The sales price from the sale of and the storage, use, or other consumption of products that are sold by a subcontractor to a prime contractor, or to another subcontractor for eventual sale to the prime contractor, as part of a construction contract, if any of the following applies:

77.54(60)(bm)1.a. a. The total sales price of all products is less than 10 percent of the total amount of the construction contract.

77.54(60)(bm)1.b. b. The products will be sold by the prime contractor as part of a construction contract, and that sale is exempt under par. (b).

77.54(60)(bm)2. 2. Except as provided in par. (c), the subcontractor is the consumer of the products exempted under this paragraph and shall pay the tax imposed under this subchapter on the products.

77.54(60)(c) (c) If the construction contract under par. (b) is between a prime contractor and an entity that is exempt from taxation under sub. (9a), all of the following apply:

77.54(60)(c)1. 1. The prime contractor is the consumer of all products used by the prime contractor in real property construction activities, but the prime contractor may purchase without tax, for resale, products that are sold by the prime contractor to the entity as part of the construction contract and that are not consumed by the prime contractor in real property construction activities.

77.54(60)(c)2. 2. A subcontractor of the prime contractor is the consumer of all products used by the subcontractor in real property construction activities, but the subcontractor may purchase without tax, for resale, products that are sold by the subcontractor to the prime contractor or another subcontractor, as part of the subcontractor’s construction contract under par. (bm), for resale to the entity and that are not consumed by the subcontractor in real property construction activities.

77.54(60)(d) (d) In this subsection:

77.54(60)(d)1. 1. “Construction contract” means a contract to perform real property construction activities and to provide products.

77.54(60)(d)2. 2. “Prime contractor” means a contractor who enters into a construction contract with an owner or lessee of real property, except for leased property under s. 77.52 (1) (c), to perform real property construction activities on the real property.

77.54(60)(d)3. 3. “Subcontractor” means a contractor who enters into a construction contract with a prime contractor or another subcontractor.

77.54(61) (61) The sales price from the sale to, and the storage, use, or other consumption by, a person primarily engaged, as determined by the department, in commercial printing, book printing, or support activities for printing described under 323111, 323117, and 323120 of the North American Industry Classification System, of any of the following:

77.54(61)(a) (a) Computers and servers used primarily to store copies of the product that are sent to a digital printer, a platemaking machine, or a printing press or used primarily in prepress or postpress activities.

77.54(61)(b) (b) Tangible personal property purchased from out-of-state sellers that are temporarily stored, remain idle, and not used in this state and that are then delivered and used solely outside of this state.

77.54(61)(c) (c) In this subsection:

77.54(61)(c)1. 1. “Postpress activities” include paper bronzing, die-cutting, edging, embossing, folding, gilding, gluing, and indexing.

77.54(61)(c)2. 2. “Prepress activities” include making print-ready plates, typesetting, trade binding, and sample mounting.

77.54(61)(c)3. 3. “Temporarily” means not more than 180 days.

77.54(62) (62) The sales price from the sale of and the storage, use, or other consumption of farm-raised deer, as defined in s. 95.001 (1) (ag), sold to a person who is operating a hunting preserve or game farm in this state.

77.54(62m) (62m) The sales price from the sale of building materials, supplies, and equipment and the sale of services described in s. 77.52 (2) (a) 20. to; and the storage, use, or other consumption of the same property and services by; owners, lessees, contractors, subcontractors, or builders if that property or service is acquired solely for or used solely in, the construction or development of sports and entertainment arena facilities, as defined in s. 229.41 (11g), but not later than one year after the secretary of administration issues the certification under s. 229.42 (4e) (d).

77.54(63) (63) The sales price from the sale of and the storage, use, or other consumption of music sold in a tangible form to a person in the business of providing a taxable service through a jukebox if the music is used exclusively for the jukebox. For purposes of this subsection, music sold in a tangible form is a separate sale from the jukebox through which the music is played if the sales price of such property is separately indicated from the sales price of the jukebox on the invoice, bill of sale, or similar document that the seller gives to the purchaser.

77.54(64) (64) The sales price from the sale of and the storage, use, or other consumption of patient health care records that are sold to the patient or to a person that the patient authorizes to receive the records.

77.54(65) (65) The sales price from the sale of building materials, supplies, and equipment and the sale of services described in s. 77.52 (2) (a) 20. to; and the storage, use, or other consumption of the same property and services by; owners, lessees, contractors, subcontractors, or builders if that property or service is acquired solely for or used solely in, the construction or development of facilities located in an electronics and information technology manufacturing zone designated under s. 238.396 (1m) and if the capital expenditures for the construction or development of such facilities may be claimed as a credit under s. 71.07 (3wm) (bm) or 71.28 (3wm) (bm), as certified by the Wisconsin Economic Development Corporation.

77.54(65m) (65m) 

77.54(65m)(a) (a) The sales price from the sale of and the storage, use, or other consumption of the following:

77.54(65m)(a)1. 1. A video or electronic game sold in a tangible form to a person in the business of providing a taxable service through an amusement device if the video or electronic game is used exclusively for the amusement device. For purposes of this subdivision, a video or electronic game sold in a tangible form is a separate sale from the amusement device through which the video or electronic game is played if the sales price of the video or electronic game is separately indicated from the sales price of the amusement device on the invoice, bill of sale, or similar document that the seller gives to the purchaser.

77.54(65m)(a)2. 2. Tangible personal property sold to a person in the business of providing a taxable service through an amusement device if the tangible personal property is used exclusively as a prize awarded or transferred through the use of the amusement device.

77.54(65m)(a)3. 3. Tournament or league entrance fees advertised and set aside as prize money.

77.54(65m)(b) (b) For purposes of this subsection, “amusement device” means a single or multiplayer device, machine, or game played for amusement, the outcome of which depends at least in part on the skill, precision, dexterity, or knowledge of the person playing, but not predominantly on the element of chance. “Amusement device” includes a pinball machine, console machine, crane machine, claw machine, redemption game, stacker, arcade game, foosball or soccer table game, miniature racetrack or football machine, target or shooting gallery machine, basketball machine, shuffleboard table, kiddie ride game, Skee-Ball machine, air hockey machine, dart board, pool table, billiard table, or any other similar device, machine, or game. “Amusement device” does not include any device, machine, or game that is illegal to operate within this state.

77.54(66) (66) The sales price from the sale of and the storage, use, or other consumption of farm-raised fish, as defined in s. 95.001 (1) (ah), sold to a fish farm, as defined in s. 95.001 (1) (aj), that is registered with the department of agriculture, trade and consumer protection under s. 95.60 (3m), or to a person who holds a valid permit under s. 29.736 for the stocking of fish.

77.54(67) (67) 

77.54(67)(a) (a) In this subsection:

77.54(67)(a)1. 1. “Clothing” means any wearing apparel for humans that is suitable for general use, not including all of the following:

77.54(67)(a)1.a. a. Belt buckles sold separately.

77.54(67)(a)1.b. b. Costume masks sold separately.

77.54(67)(a)1.c. c. Patches and emblems sold separately.

77.54(67)(a)1.d. d. Sewing equipment and supplies, including knitting needles, patterns, pins, scissors, sewing machines, sewing needles, tape measures, and thimbles.

77.54(67)(a)1.e. e. Sewing materials that become part of clothing, including buttons, fabric, lace, thread, yarn, and zippers.

77.54(67)(a)1.f. f. Clothing accessories or equipment.

77.54(67)(a)1.g. g. Protective equipment.

77.54(67)(a)1.h. h. Sport or recreational equipment.

77.54(67)(a)2. 2. “Clothing accessories or equipment” means incidental items worn on a person or in conjunction with clothing, not including clothing, protective equipment, or sport or recreational equipment, but including all of the following:

77.54(67)(a)2.a. a. Briefcases.

77.54(67)(a)2.b. b. Cosmetics.

77.54(67)(a)2.c. c. Hair notions, including barrettes, hair bows, and hairnets.

77.54(67)(a)2.d. d. Handbags.

77.54(67)(a)2.e. e. Handkerchiefs.

77.54(67)(a)2.f. f. Jewelry.

77.54(67)(a)2.g. g. Nonprescription sunglasses.

77.54(67)(a)2.h. h. Umbrellas.

77.54(67)(a)2.i. i. Wallets.

77.54(67)(a)2.j. j. Watches.

77.54(67)(a)2.k. k. Wigs.

77.54(67)(a)2.L. L. Hairpieces.

77.54(67)(a)3. 3. “Computer” means a personal computer such as a laptop or desktop computer or a tablet, but not including a phone.

77.54(67)(a)4. 4. “Eligible property” means an item that qualifies for exemption under this subsection.

77.54(67)(a)5. 5. “Layaway sale” means a transaction in which property is set aside for future delivery to a customer who makes a deposit, agrees to pay the balance of the sales price over time, and, at the end of the payment period, receives the property. An order is accepted for layaway by the seller when the seller removes the property from inventory or clearly identifies the property as sold to the purchaser.

77.54(67)(a)6. 6. “Protective equipment” means items for human wear that are designed to protect the wearer against injury or disease or to protect property or other persons from damage or injury. “Protective equipment” does not include items suitable for general use, clothing, clothing accessories or equipment, or sport or recreational equipment. “Protective equipment” includes: