SB1038,7,21 139.75 (9) “Sale" means any transfer, exchange , or barter for a consideration. It includes a gift by a person engaged in the business of selling tobacco products or vapor products electronic smoking devices for advertising or as a means of evading this subchapter or for any other purpose, and it includes solicitation of orders for, and the sale for, future delivery.

SB1038,26 Section 26. 139.75 (10) of the statutes is amended to read:

SB1038,7,24 139.75 (10) “Storage" means any keeping or retention of tobacco products or vapor products electronic smoking devices for use or consumption in this state.

SB1038,27 Section 27. 139.75 (11) of the statutes is amended to read:

SB1038,8,3 139.75 (11) “Subjobber" means any person, other than a manufacturer or distributor, who buys tobacco products or vapor products electronic smoking devices from a distributor and sells them to persons other than the ultimate consumers.

SB1038,28 Section 28. 139.75 (13) of the statutes is amended to read:

SB1038,8,6 139.75 (13) “Use" means the exercise of any right or power incidental to the ownership of tobacco products or vapor products electronic smoking devices.

SB1038,29 Section 29. 139.75 (14) of the statutes is repealed.

SB1038,30 Section 30. 139.76 of the statutes is amended to read:

SB1038,9,4 139.76 Imposition; exceptions. (1) 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 and vapor products electronic smoking devices, 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. The tax imposed under this subsection on cigars shall not exceed an amount equal to 50 cents for each cigar. On products imported from another country, not including moist snuff and vapor products electronic smoking devices, 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. 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.

SB1038,9,15 (1m) 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 vapor products electronic smoking devices by any person engaged as a distributor of them at the rate of 5 cents per milliliter of the liquid or other substance based on the volume as listed by the manufacturer and at a proportionate rate for any other quantity or fractional part thereof. The tax attaches at the time the vapor products electronic smoking devices are received by the distributor in this state. The tax shall be passed on to the ultimate consumer of the vapor products electronic smoking devices. All vapor products electronic smoking devices 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.

SB1038,9,22 (2) Tobacco products and vapor products electronic smoking devices sold to or by post exchanges of the U.S. armed forces, to or by federally operated veterans hospitals in this state, and tobacco products and vapor products electronic smoking devices sold to an interstate carrier of passengers for hire to be resold to bona fide passengers actually being transported and tobacco products and vapor products electronic smoking devices sold for shipment outside this state in interstate commerce are not subject to the tax.

SB1038,31 Section 31. 139.77 (1) of the statutes is amended to read:

SB1038,9,25 139.77 (1) On or before the 15th day of each month, every distributor with a place of business in this state shall file a return showing the quantity, including milliliters in the case of a vapor product an electronic smoking device, and taxable price of each tobacco product or vapor product electronic smoking device brought, or caused to be brought, into this state for sale; or made, manufactured or fabricated in this state for sale in this state, during the preceding month. Every distributor outside this state shall file a return showing the quantity, including milliliters in the case of a vapor product an electronic smoking device, and taxable price of each tobacco product or vapor product electronic smoking device shipped or transported to retailers in this state to be sold by those retailers during the preceding month. At the time that the return is filed, the distributor shall pay the tax.

SB1038,32 Section 32. 139.78 (1) of the statutes is amended to read:

SB1038,10,19 139.78 (1) 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 and vapor products electronic smoking devices, 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 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).

SB1038,33 Section 33. 139.78 (1m) of the statutes is amended to read:

SB1038,11,3 139.78 (1m) A tax is imposed upon the use or storage by consumers of vapor products electronic smoking devices in this state at the rate of 5 cents per milliliter of the liquid or other substance based on the volume as listed by the manufacturer and at a proportionate rate for any other quantity or fractional part thereof. The tax does not apply if the tax imposed by s. 139.76 (1m) on the vapor products electronic smoking devices has been paid or if the vapor products electronic smoking devices are exempt from the vapor products electronic smoking devices tax under s. 139.76 (2).

SB1038,34 Section 34. 139.78 (2) of the statutes is amended to read:

SB1038,11,10 139.78 (2) On or before the 15th day of each month, every consumer who during the preceding month has acquired title to or possession for use or storage in this state of tobacco products or vapor products electronic smoking devices upon which the tax imposed by s. 139.76 has not been paid shall file a return showing the quantity of tobacco products and vapor products electronic smoking devices acquired. At the time when the return is filed, the consumer shall pay the tax.

SB1038,35 Section 35. 139.79 (1) of the statutes is amended to read:

SB1038,11,15 139.79 (1) No person may engage in the business of a distributor or subjobber of tobacco products or vapor products electronic smoking devices at any place of business unless that person has filed an application for and obtained a permit from the department to engage in that business at such place.

SB1038,36 Section 36. 139.80 of the statutes is amended to read:

SB1038,11,24 139.80 Refunds, credits. If tobacco products or vapor products electronic smoking devices upon which the tax has been reported and paid are shipped or transported by the distributor to consumers to be consumed outside the state or to retailers or subjobbers outside the state to be sold by those retailers or subjobbers outside the state or are returned to the manufacturer by the distributor or destroyed by the distributor, the tax may be refunded or credited to the distributor, as prescribed by the department. Any overpayment of the tax imposed under s. 139.78 may be refunded or credited to the taxpayer, as prescribed by the department.

SB1038,37 Section 37. 139.801 (1) of the statutes is amended to read:

SB1038,12,8 139.801 (1) In this section, “bad debt" means an amount that is equal to the purchase price of tobacco products and vapor products electronic smoking devices, if such amount may be claimed as a deduction under section 166 of the Internal Revenue Code. “Bad debt" does not include financing charges, interest on the wholesale price of tobacco products and vapor products electronic smoking devices, uncollectible amounts on property that remains in the seller's possession until the full purchase price is paid, expenses incurred in attempting to collect any debt, debts sold or assigned to 3rd parties for collection, and repossessed property.

SB1038,38 Section 38. 139.801 (3) (a) of the statutes is amended to read:

SB1038,12,11 139.801 (3) (a) A copy of the original invoice for the sale of tobacco products or vapor products electronic smoking devices that represents bad debt.

SB1038,39 Section 39. 139.801 (3) (b) of the statutes is amended to read: