SB40-SSA1,1140,76 77.54 (47) (intro.) The gross receipts sales price from the sale of and the storage,
7use, or other consumption of all of the following:

SB40-SSA1,1140,109 77.54 (47) (b) 1. The shooting facility is required to pay the tax imposed under
10s. 77.52 on its gross receipts the sales price from charges for shooting at the facility.

SB40-SSA1,1140,1411 2. The shooting facility is a nonprofit organization that charges for shooting at
12the facility, but is not required to pay the tax imposed under s. 77.52 on its gross
13receipts the sales price from such charges because the charges are for occasional
14sales, as provided under sub. (7m).

SB40-SSA1,1140,2517 77.585 (9) (a) Subject to 2005 Wisconsin Act 479, section 17, the gross receipts
18from the sale of and the storage, use, or other consumption a purchaser may claim
19as a deduction that portion of its purchase price of Internet equipment used in the
20broadband market for which the tax was imposed under this subchapter, if the
21purchaser certifies to the department of commerce, in the manner prescribed by the
22department of commerce, that the purchaser will, within 24 months after July 1,
232007, make an investment that is reasonably calculated to increase broadband
24Internet availability in this state. The purchaser shall claim the deduction in the
25same reporting period as the purchaser paid the tax imposed under this subchapter.

SB40-SSA1,1141,163 77.54 (49) The gross receipts sales price from the sale of and the storage, use,
4or other consumption of taxable services and tangible personal property or item or
5property under s. 77.52 (1) (b) or (c) that is physically transferred to the purchaser
6as a necessary part of services that are subject to the taxes imposed under s. 77.52
7(2) (a) 7., 10., 11., and 20., if the seller and the purchaser of such services and property
8or item are members of the same affiliated group under section 1504 of the Internal
9Revenue Code and are eligible to file a single consolidated return for federal income
10tax purposes. For purposes of this subsection, if a seller purchases a taxable service,
11item or property under s. 77.52 (1) (b) or (c), or tangible personal property, as
12described in the subsection, that is subsequently sold to a member of the seller's
13affiliated group and the sale is exempt under this subsection from the taxes imposed
14under this subchapter, the original purchase of the taxable service , item or property
15under s. 77.52 (1) (b) or (c), or tangible personal property by the seller is not
16considered a sale for resale or exempt under this subsection.

SB40-SSA1,1141,2218 77.54 (50) The sales price from the sale of and the storage, use, or other
19consumption of specified digital goods or additional digital goods that are transferred
20electronically to the purchaser, if the sale of and the storage, use, or other
21consumption of such goods sold in a tangible form is exempt from taxation under this
22subchapter.

SB40-SSA1,1142,324 77.54 (51) The sales price from the sales of and the storage, use, or other
25consumption of products sold in a transaction that would be a bundled transaction,

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1except that it contains taxable and nontaxable products as described in s. 77.51 (1f)
2(d), and except that the first person combining the products shall pay the tax imposed
3under this subchapter on the person's purchase price of the taxable items.

SB40-SSA1,1142,75 77.54 (52) The sales price from the sales of and the storage, use, or other
6consumption of products sold in a transaction that would be a bundled transaction,
7except that the transaction meets the conditions described in s. 77.51 (1f) (e).

SB40-SSA1,1142,99 77.54 (53) (a) In this subsection:

SB40-SSA1,1142,1010 1. "Animals" include bacteria, viruses, and other microorganisms.

SB40-SSA1,1142,1111 2. "Manufacturing" has the meaning given in sub. (6m).

SB40-SSA1,1142,1712 3. "Qualified research" means qualified research as defined under section 41
13(d) (1) of the Internal Revenue Code, except that research conducted by a public or
14private institution of higher education or by a governmental unit is "qualified
15research" if applying the research is intended to be useful in developing a new or
16improved product or service and the research satisfies section 41 (d) (1) (B) (i) and
17(C) of the Internal Revenue Code.

SB40-SSA1,1142,1918 (b) The gross receipts from the sale of and the storage, use, or other
19consumption of:

SB40-SSA1,1142,2420 1. Machines and specific processing equipment, including accessories,
21attachments, and parts for the machines or equipment, that are used exclusively and
22directly in raising animals that are sold primarily to a biotechnology business, a
23public or private institution of higher education, or a governmental unit for exclusive
24and direct use by any such entity in qualified research or manufacturing.

SB40-SSA1,1143,7

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12. The items listed in sub. (3m) (a) to (m), medicines, semen for artificial
2insemination, fuel, and electricity that are used exclusively and directly in raising
3animals that are sold primarily to a biotechnology business, a public or private
4institution of higher education, or a governmental unit for exclusive and direct use
5by any such entity in qualified research or manufacturing. Subsection (30) (c), as it
6applies to the sale of fuel and electricity under sub. (30), applies to the sale of fuel and
7electricity under this subdivision.

SB40-SSA1,1143,118 3. Machines and specific processing equipment, including accessories,
9attachments, and parts for the machines or equipment, that are sold to a
10biotechnology business and used exclusively and directly in qualified research in
11biotechnology.

SB40-SSA1,1143,1612 4. Tangible personal property that is sold to a biotechnology business, if the
13property is consumed or destroyed or loses its identity while being used exclusively
14and directly in qualified research in biotechnology. Subsection (30) (c), as it applies
15to the sale of fuel and electricity under sub. (30), applies to the sale of fuel and
16electricity under this subdivision.

SB40-SSA1,1143,1817 5. Animals that are sold to a biotechnology business and used exclusively and
18directly in qualified research in biotechnology.

SB40-SSA1,1143,2219 (c) A person who claims an exemption under par. (b) 1. and 2. shall obtain
20written documentation from the person's customers related to each customer's use
21of animals, including the percentage of animals sold to the customer that are used
22exclusively and directly in qualified research.

SB40-SSA1,1143,2423 (d) The department shall publish on the department's Internet site a list of all
24biotechnology businesses certified by the department.

SB40-SSA1,1144,43 77.54 (53) (b) (intro.) The sales price from the sale of and the storage, use, or
4other consumption of:

SB40-SSA1,1144,117 77.54 (53) (b) 2. The items listed in sub. (3m) (a) to (m), drugs, semen for
8artificial insemination, fuel, and electricity that are used exclusively and directly in
9raising animals that are sold primarily to a biotechnology business, a public or
10private institution of higher education, or a governmental unit for exclusive and
11direct use by any such entity in qualified research or manufacturing.

SB40-SSA1,1144,1613 77.54 (54) The gross receipts from the sale of and the storage, use, or other
14consumption of tangible personal property and taxable services that are sold by a
15home exchange service that receives moneys from the appropriation account under
16s. 20.485 (1) (g) and is operated by the department of veterans affairs.

SB40-SSA1,1144,2219 77.54 (54) The sales price from the sale of and the storage, use, or other
20consumption of tangible personal property and taxable services that are sold by a
21home exchange service that receives moneys from the appropriation account under
22s. 20.485 (1) (g) and is operated by the department of veterans affairs.

SB40-SSA1,1145,3

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177.55 (1) (intro.) There are is exempted from the computation of the amount
2of the sales tax the gross receipts sales price from the sale of any tangible personal
3property, items or property under s. 77.52 (1) (b) or (c), or services to:

SB40-SSA1,1145,115 77.55 (2) There are is exempted from the computation of the amount of the sales
6tax the gross receipts sales price from sales of tangible personal property, and items
7and property under s. 77.52 (1) (b) and (c), to a common or contract carrier, shipped
8by the seller via the purchasing carrier under a bill of lading whether the freight is
9paid in advance, or the shipment is made freight charges collect, to a point outside
10this state and the property or item is actually transported to the out-of-state
11destination for use by the carrier in the conduct of its business as a carrier.

SB40-SSA1,1145,2113 77.55 (2m) There are is exempted from the computation of the amount of sales
14tax the gross receipts sales price from sales of railroad crossties to a common or
15contract carrier, shipped wholly or in part by way of the purchasing carrier under a
16bill of lading, whether the freight is paid in advance or the shipment is made freight
17charges collect, to a point outside this state if the property is transported to the
18out-of-state destination for use by the carrier in the conduct of its business as a
19carrier. Interruption of the shipment for storage, drying, processing or creosoting of
20the railroad crossties in this state does not invalidate the exemption under this
21subsection.

SB40-SSA1,1146,423 77.55 (3) There are is exempted from the computation of the amount of the sales
24tax the gross receipts sales price from sales of tangible personal property, and items
25and property under s. 77.52 (1) (b) and (c), purchased for use solely outside this state

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1and delivered to a forwarding agent, export packer, or other person engaged in the
2business of preparing goods for export or arranging for their exportation, and
3actually delivered to a port outside the continental limits of the United States prior
4to making any use thereof.

SB40-SSA1,1146,96 77.56 (1) The storage, use or other consumption in this state of property,
7including items and property under s. 77.52 (1) (b) and (c), the gross receipts sales
8price from the sale of which are is reported to the department in the measure of the
9sales tax, is exempted from the use tax.

SB40-SSA1,1146,23 1177.57 Liability of purchaser. If a purchaser certifies in writing to a seller
12that the property, items or property under s. 77.52 (1) (b) or (c), specified digital goods,
13or additional digital goods purchased will be used in a manner or for a purpose
14entitling the seller to regard the gross receipts sales price from the sale as exempted
15by this subchapter from the computation of the amount of the sales tax and uses the
16property, items or property under s. 77.52 (1) (b) or (c), specified digital goods, or
17additional digital goods in some other manner or for some other purpose, the
18purchaser is liable for payment of the sales tax. The tax shall be measured by the
19sales price of the property, items or property under s. 77.52 (1) (b) or (c), specified
20digital goods, or additional digital goods to the purchaser, but if the taxable use first
21occurs more than 6 months after the sale to the purchaser, the purchaser may use
22as the measure of the tax either that sales price or the fair market value of the
23property at the time the taxable use first occurs.

SB40-SSA1,1147,12

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177.58 (3) (a) For purposes of the sales tax a return shall be filed by every seller.
2For purposes of the use tax a return shall be filed by every retailer engaged in
3business in this state and by every person purchasing tangible personal property,
4items or property under s. 77.52 (1) (b) or (c), specified digital goods, additional digital
5goods, or services, the storage, use, or other consumption of which is subject to the
6use tax, who has not paid the use tax due to a retailer required to collect the tax. If
7a qualified subchapter S subsidiary is not regarded as a separate entity under ch. 71,
8the owner of that subsidiary shall include the information for that subsidiary on the
9owner's return. Returns shall be signed by the person required to file the return or
10by a duly authorized agent but need not be verified by oath. If a single-owner entity
11is disregarded as a separate entity under ch. 71, the owner shall include the
12information from the entity on the owner's return.

SB40-SSA1,1147,2414 77.58 (3) (b) For purposes of the sales tax the return shall show the gross
15receipts of the seller during the preceding reporting period. For purposes of the use
16tax, in case of a return filed by a retailer, the return shall show the total sales price
17of the property or taxable services sold, the storage, use or consumption of which
18became subject to the use tax during the preceding reporting period. In case of a sales
19or use tax return filed by a purchaser, the return shall show the total sales price of
20the property and taxable services purchased, the storage, use or consumption of
21which became subject to the use tax during the preceding reporting period. The
22return shall also show the amount of the taxes for the period covered by the return
23and such other information as the department deems necessary for the proper
24administration of this subchapter.

SB40-SSA1,1148,4

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177.58 (6) For the purposes of the sales tax gross receipts, the sales price from
2rentals or leases of tangible personal property, items or property under s. 77.52 (1)
3(b) or (c), specified digital goods, or additional digital goods shall be reported and the
4tax paid in accordance with such rules as the department prescribes.

SB40-SSA1,1148,86 77.58 (6m) (a) The department may, in cases where it is satisfied that an undue
7hardship would otherwise result, permit the reporting of a sales price or purchase
8price on some basis other than the accrual basis.

SB40-SSA1,1148,129 (b) The entire sales price of credit transactions shall be reported in the period
10in which the sale is made without reduction in the amount of tax payable by the
11retailer by reason of the retailer's transfer at a discount of any open account, note,
12conditional sales contract, lease contract, or other evidence of indebtedness.

SB40-SSA1,1148,1514 77.58 (9) The department may require a filing fee for sales tax returns that are
15filed on paper.

SB40-SSA1,1148,2217 77.58 (9a) In addition to filing a return as provided in this section, a person
18described under s. 77.524 (3), (4), or (5) shall provide to the department any
19information that the department considers necessary for the administration of this
20subchapter, in the manner prescribed by the department, except that the
21department may not require that the person provide such information to the
22department more than once every 180 days.

SB40-SSA1,1149,8 2477.585 Return adjustments. (1) (a) In this subsection, "bad debt" means the
25portion of the sales price or purchase price that the seller has reported as taxable

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1under this subchapter and that the seller may claim as a deduction under section 166
2of the Internal Revenue Code. "Bad debt" does not include financing charges or
3interest, sales or use taxes imposed on the sales price or purchase price, uncollectible
4amounts on property, items or property under s. 77.52 (1) (b) or (c), specified digital
5goods, or additional digital goods that remain in the seller's possession until the full
6sales price or purchase price is paid, expenses incurred in attempting to collect any
7debt, debts sold or assigned to 3rd parties for collection, and repossessed property or
8items.

SB40-SSA1,1149,209 (b) A seller may claim as a deduction on a return under s. 77.58 the amount of
10any bad debt that the seller writes off as uncollectible in the seller's books and records
11and that is eligible to be deducted as a bad debt for federal income tax purposes,
12regardless of whether the seller is required to file a federal income tax return. A
13seller who claims a deduction under this paragraph shall claim the deduction on the
14return under s. 77.58 that is submitted for the period in which the seller writes off
15the amount of the deduction as uncollectible in the seller's books and records and in
16which such amount is eligible to be deducted as bad debt for federal income tax
17purposes. If the seller subsequently collects in whole or in part any bad debt for
18which a deduction is claimed under this paragraph, the seller shall include the
19amount collected in the return filed for the period in which the amount is collected
20and shall pay the tax with the return.

SB40-SSA1,1150,221 (c) For purposes of computing a bad debt deduction or reporting a payment
22received on a previously claimed bad debt, any payment made on a debt or on an
23account is applied first to the price of the property, items or property under s. 77.52
24(1) (b) or (c), specified digital goods, additional digital goods, or service sold, and the
25proportionate share of the sales tax on the property, items or property under s. 77.52

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1(1) (b) or (c), specified digital goods, additional digital goods, or service, and then to
2interest, service charges, and other charges related to the sale.

SB40-SSA1,1150,83 (d) A seller may obtain a refund of the tax collected on any bad debt amount
4deducted under par. (b) that exceeds the amount of the seller's taxable sales as
5provided under s. 77.59 (4), except that the period for making a claim as determined
6under s. 77.59 (4) begins on the date on which the return on which the bad debt could
7be claimed would have been required to be submitted to the department under s.
877.58.

SB40-SSA1,1150,149 (e) If a seller is using a certified service provider, the certified service provider
10may claim a bad debt deduction under this subsection on the seller's behalf if the
11seller has not claimed and will not claim the same deduction. A certified service
12provider who receives a bad debt deduction under this subsection shall credit that
13deduction to the seller and a certified service provider who receives a refund under
14this subsection shall submit that refund to the seller.

SB40-SSA1,1150,2015 (f) If a bad debt relates to the retail sales of tangible personal property, items
16or property under s. 77.52 (1) (b) or (c), specified digital goods, additional digital
17goods, or taxable services that occurred in this state and in one or more other states,
18as determined under s. 77.522, the total amount of such bad debt shall be
19apportioned among the states in which the underlying sales occurred in a manner
20prescribed by the department to arrive at the amount of the deduction under par. (b).

SB40-SSA1,1151,2 21(2) If a lessor of tangible personal property, items or property under s. 77.52
22(1) (b) or (c), specified digital goods, or additional digital goods has reimbursed the
23vendor for the sales tax on the sale of the property, items, or goods by the vendor to
24the lessor, the tax due from the lessor on the rental receipts may be offset by a credit
25equal to the tax otherwise due on the rental receipts from the property, items, or

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1goods for the reporting period. The credit shall expire when the cumulative rental
2receipts equal the sales price upon which the vendor paid sales taxes to this state.

SB40-SSA1,1151,9 3(3) If a purchaser of tangible personal property, items or property under s.
477.52 (1) (b) or (c), specified digital goods, or additional digital goods has reimbursed
5the vendor of the property, items, or goods for the sales tax on the sale and
6subsequently, before making any use of the property, items, or goods other than
7retention, demonstration, or display while holding it for sale or rental, makes a
8taxable sale of the property, items, or goods, the tax due on the taxable sale may be
9offset by the tax reimbursed.

SB40-SSA1,1151,18 10(4) A seller may claim a deduction on any part of the sales price or purchase
11price that the seller refunds in cash or credit as a result of returned property, items
12or property under s. 77.52 (1) (b) or (c), specified digital goods, or additional digital
13goods or adjustments in the sales price or purchase price after the sale has been
14completed, if the seller has included the refunded price in a prior return made by the
15seller and has paid the tax on such price, and if the seller has returned to the
16purchaser in cash or in credit all tax previously paid by the purchaser on the amount
17of the refund at the time of the purchase. A deduction under this subsection shall
18be claimed on the return for the period in which the refund is paid.

SB40-SSA1,1151,23 19(5) No reduction in the amount of tax payable by the retailer is allowable in the
20event property, items or property under s. 77.52 (1) (b) or (c), specified digital goods,
21or additional digital goods sold on credit are repossessed except where the entire
22consideration paid by the purchaser is refunded to the purchaser or where a credit
23for a worthless account is allowable under sub. (1).

SB40-SSA1,1152,2 24(6) A purchaser who is subject to the use tax on the storage, use, or other
25consumption of fuel may claim a deduction from the purchase price that is subject

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1to the use tax for fuel taxes refunded by this state or the United States to the
2purchaser that is included in the purchase price of the fuel.

SB40-SSA1,1152,6 3(7) For sales tax purposes, if a retailer establishes to the department's
4satisfaction that the sales tax has been added to the total amount of the sales price
5and has not been absorbed by the retailer, the total amount of the sales price shall
6be the amount received exclusive of the sales tax imposed.

SB40-SSA1,1152,13 7(8) A sale or purchase involving transfer of ownership of property, items or
8property under s. 77.52 (1) (b) or (c), specified digital goods, or additional digital
9goods is completed at the time when possession is transferred by the seller or the
10seller's agent to the purchaser or the purchaser's agent, except that for purposes of
11sub. (1) a common carrier or the U.S. postal service shall be considered the agent of
12the seller, regardless of any f.o.b. point and regardless of the method by which freight
13or postage is paid.

SB40-SSA1,1152,1715 77.59 (2m) The department may audit, or may authorize others to audit, sellers
16and certified service providers who are registered with the department pursuant to
17the agreement, as defined in s. 77.65 (2) (a).

SB40-SSA1,1153,1319 77.59 (5m) A seller who receives a refund under sub. (4) (a) or (b) of taxes that
20the seller has collected from buyers, who collects amounts as taxes erroneously from
21buyers, but who does not remit such amounts to the state, or who is entitled to a
22refund under sub. (4) (a) or (b) that is offset under sub. (5), shall submit the taxes and
23related interest to the buyers from whom the taxes were collected, or to the
24department if the seller cannot locate the buyers, within 90 days after the date of the
25refund, after the date of the offset, or after discovering that the seller has collected

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1taxes erroneously from the buyers. If the seller does not submit the taxes and related
2interest to the department or the buyers within that period, the seller shall submit
3to the department any part of a refund or taxes that the seller does not submit to a
4buyer or to the department along with a penalty of 25% of the amount not submitted
5or, in the case of fraud, a penalty equal to the amount not submitted. A person who
6collects amounts as taxes erroneously from buyers for a real property construction
7activity or nontaxable service may reduce the taxes and interest that he or she is
8required to submit to the buyer or to the department under this subsection for that
9activity or service by the amount of tax and interest subsequently due and paid on
10the sale of or the storage, use, or other consumption of tangible personal property,
11items or property under s. 77.52 (1) (b) or (c), specified digital goods, or additional
12digital goods that is are used by the person in that activity or service and transferred
13to the buyer.

SB40-SSA1,1154,215 77.59 (7) If the department believes that the collection of any tax imposed by
16this subchapter will be jeopardized by delay, it shall notify the person determined to
17owe the tax of its intention to proceed under s. 71.91 (5) for collection of the amount
18determined to be owing, including penalties and interest. Such notice shall be by
19certified or registered mail or by personal service and the warrant of the department
20shall not issue if the person, within 10 days after such notice furnishes a bond in such
21amount not exceeding double the amount determined to be owing and with such
22sureties as the department approves, conditioned upon the payment of so much of
23the taxes, interest, and penalties as shall finally be determined to be due. Nothing
24in this subsection shall affect the review of determinations of tax as provided in this
25subchapter and any amounts collected under this subsection shall be deposited with

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1the secretary of administration department and disbursed after final determination
2of the taxes as are amounts deposited under ss. 71.89 (1) and 71.90 (2).

SB40-SSA1,1154,184 77.59 (9) If any person fails to file a return, the department shall make an
5estimate of the amount of the gross receipts sales price of the person person's sales,
6or, as the case may be, of the amount of the total sales purchase price of tangible
7personal property, items or property under s. 77.52 (1) (b) or (c), specified digital
8goods, additional digital goods, or taxable service sold or purchased by the person,
9the sale by or the storage, use, or other consumption of which in this state is subject
10to sales or use tax. The estimate shall be made for the period in respect to which the
11person failed to make a return and shall be based upon any information which is in
12the department's possession or may come into its possession. Upon the basis of this
13estimate the department shall compute and determine the amount required to be
14paid to the state, adding to the sum thus arrived at a penalty equal to 25% thereof.
15One or more such determinations may be made for one or for more than one period.
16When a business is discontinued a determination may be made at any time
17thereafter, within the periods specified in sub. (3), as to liability arising out of that
18business.

SB40-SSA1,1154,2320 77.59 (9n) (a) Notwithstanding s. 73.03 (47), no seller or certified service
21provider is liable for tax, interest, or penalties imposed on a transaction under this
22subchapter in the circumstances covered under sections 306, 328, and 502 of the
23agreement, as defined in s. 77.65 (2) (a).

SB40-SSA1,1155,3

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1(b) A purchaser is not liable for the tax, interest, or penalties imposed on a
2transaction under this subchapter in the circumstances covered by section 331 of the
3agreement, as defined in s. 77.65 (2) (a).

SB40-SSA1,1155,245 77.59 (9p) (b) If a customer purchases a service that is not subject to 4 USC 116
6to 126, as amended by P.L. 106-252, or tangible personal property, items or property
7under s. 77.52 (1) (b) or (c), specified digital goods, or additional digital goods, and
8if the customer believes that the amount of the tax assessed for the sale of the service,
9property, items, or goods under this subchapter is erroneous, the customer may
10request that the seller correct the alleged error by sending a written notice to the
11seller. The notice shall include a description of the alleged error and any other
12information that the seller reasonably requires to process the request. Within 60
13days from the date that a seller receives a request under this paragraph, the seller
14shall review its records to determine the validity of the customer's claim. If the
15review indicates that there is no error as alleged, the seller shall explain the findings
16of the review in writing to the customer. If the review indicates that there is an error
17as alleged, the seller shall correct the error and shall refund the amount of any tax
18collected erroneously, along with the related interest, as a result of the error from the
19customer, consistent with s. 77.59 (4). A customer may take no other action against
20the seller, or commence any action against the seller, to correct an alleged error in
21the amount of the tax assessed under this subchapter on a service that is not subject
22to 4 USC 116 to 126, as amended by P.L. 106-252, or tangible personal property, items
23or property under s. 77.52 (1) (b) or (c), specified digital goods, or additional digital
24goods unless the customer has exhausted his or her remedies under this paragraph.