LRB-2210/1
JK&DAK:jld:jf
2007 - 2008 LEGISLATURE
March 28, 2007 - Introduced by Senator Miller, cosponsored by Representatives
Bies, Zepnick, Albers, Benedict, Berceau, Black, Grigsby, Hebl, Molepske,
A. Ott, Pocan, Sheridan, Sherman, Soletski, Townsend, Turner, A. Williams

and Young. Referred to Committee on Health and Human Services.
SB117,1,6 1An Act to amend 20.435 (4) (o) and chapter 77 (title); and to create 20.435 (4)
2(xm), 20.435 (4) (xn), 25.17 (1) (cm), 25.771, 49.45 (3) (n), subchapter XIV of
3chapter 77 [precedes 77.9981] and 250.17 of the statutes; relating to: imposing
4a tax on the sale of soft drinks, creating a dental access trust fund, creating
5grants for dental public health and dental education projects, and making
6appropriations.
Analysis by the Legislative Reference Bureau
This bill imposes an excise tax on the sale at wholesale of soft drinks sold in this
state and creates the dental access trust fund. The tax is equal to: 1) $2 for each
gallon of soft drink syrup sold in this state in the taxable year; 2) 21 cents for each
gallon of bottled soft drinks sold in this state in the taxable year; and 3) on the sale
of a package or container of soft drink syrups, simple syrups, powders, or other base
products, 21 cents for each gallon of soft drink that may be produced from each
package or container according to the manufacturer's instructions. The revenue
generated from the tax is deposited into the dental access trust fund.
Under the bill, moneys deposited into the dental access trust fund are
appropriated, beginning January 1, 2009, to supplement reimbursement for
dentists' services provided to recipients under the Medical Assistance Program and
to fund grants from the Department of Health and Family Services for dental public
health and dental education projects.

For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB117, s. 1 1Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated: - See PDF for table PDF
SB117, s. 2 3Section 2. 20.435 (4) (o) of the statutes is amended to read:
SB117,2,74 20.435 (4) (o) Federal aid; medical assistance. All federal moneys received for
5meeting costs of medical assistance administered under ss. 46.284 (5), 49.45 and
649.665, to be used for those purposes and for transfer to the medical assistance
7Medical Assistance trust fund and to the dental access trust fund, for those purposes.
SB117, s. 3 8Section 3. 20.435 (4) (xm) of the statutes is created to read:
SB117,2,119 20.435 (4) (xm) Dental access trust fund; medical assistance dental services
10supplement.
From the dental access trust fund, biennially, the amounts in the
11schedule for supplementary payments under s. 49.45 (3) (n) for dentists' services.
SB117, s. 4 12Section 4. 20.435 (4) (xn) of the statutes is created to read:
SB117,3,4
120.435 (4) (xn) Dental access trust fund; dental public health and education
2projects.
From the dental access trust fund, all moneys received, less the moneys
3appropriated under par. (xm), for dental public health and education projects under
4s. 250.17.
SB117, s. 5 5Section 5. 25.17 (1) (cm) of the statutes is created to read:
SB117,3,66 25.17 (1) (cm) Dental access trust fund (s. 25.771);
SB117, s. 6 7Section 6. 25.771 of the statutes is created to read:
SB117,3,10 825.771 Dental access trust fund. There is created a separate nonlapsible
9trust fund, designated as the dental access trust fund, consisting of all of the
10following:
SB117,3,12 11(1) All moneys collected under subch. XIV of ch. 77 from the soft drink tax
12imposed under s. 77.9982.
SB117,3,16 13(2) All federal money received, including moneys that the department of health
14and family services may transfer from the appropriation under s. 20.435 (4) (o), that
15are related to supplementary payments under s. 49.45 (3) (n) for dentists' services
16provided as specified in ss. 49.46 (2) (b) 1. and 49.47 (6).
SB117, s. 7 17Section 7. 49.45 (3) (n) of the statutes is created to read:
SB117,3,2218 49.45 (3) (n) From the appropriation under s. 20.435 (4) (xm), the department
19shall supplement the rate of reimbursement for dental services otherwise paid under
20this subsection by an amount that increases the rate so as to equal the 75th
21percentile of the fees specified in the most recent American Dental Association fee
22schedule for the east north central region, as determined by the department.
SB117, s. 8 23Section 8. Chapter 77 (title) of the statutes is amended to read:
SB117,3,2424 CHAPTER 77
SB117,4,10
1TAXATION OF FOREST CROPLANDS;
2 REAL ESTATE TRANSFER FEES;
3 SALES AND USE TAXES; COUNTY
4 AND SPECIAL DISTRICT SALES and
5 USE TAXES; MANAGED FOREST land;
6 RECYCLINg SURCHARGE;
7 LOCAL FOOD AND BEVERAGE TAX;
8 LOCAL RENTAL CAR TAX; Premier
9 resort area taxes; state rental
10 vehicle fee; dry cleaning fees;
SB117,4,1211 Regional transit authority fee;
12 Soft drink tax

SB117, s. 9 14Section 9. Subchapter XIV of chapter 77 [precedes 77.9981] of the statutes is
15created to read:
SB117,4,1616 CHAPTER 77
SB117,4,1717 SUBCHAPTER XIV
SB117,4,1818 soft drink TAX
SB117,4,19 1977.9981 Definitions. In this subchapter:
SB117,4,21 20(1) "Bottled soft drink" means any complete and ready-to-consume soft drink
21sold in a container.
SB117,4,22 22(2) "Partnership" has the meaning given in s. 77.92 (4m).
SB117,4,25 23(3) "Soft drink" means a flavored nonalcoholic beverage that contains sugar,
24corn fructose, aspartame, or some other sweetener as an ingredient and includes all
25of the following:
SB117,5,2
1(a) Ginger ale, cola, or any other drink that is commonly referred to as a soft
2drink.
SB117,5,43 (b) Any fruit or vegetable drink that contains no more than 10 percent natural
4fruit or vegetable juice.
SB117,5,65 (c) Any package or container of powder, syrup, or other base product that, when
6mixed with a liquid, produces a soft drink that may be dispensed from a machine.
SB117,5,7 7(4) "Taxable year" has the meaning given in s. 71.22 (10).
SB117,5,10 8(5) "Wholesaler" means a person who receives, stores, manufactures, bottles,
9or sells any of the following for resale to retailers, distributors, or other wholesalers
10or manufacturers:
SB117,5,1111 (a) Bottled soft drinks.
SB117,5,1312 (b) Soft drink syrups, simple syrups, powders, or other base products, if any
13such items are used for making soft drinks.
SB117,5,16 1477.9982 Imposition. For taxable years beginning on or after January 1, 2008,
15an excise tax is imposed on every wholesaler doing business in this state in the
16following amounts:
SB117,5,18 17(1) Two dollars for each gallon of soft drink syrup sold in this state in the
18taxable year.
SB117,5,20 19(2) Twenty-one cents for each gallon of bottled soft drinks sold in this state in
20the taxable year.
SB117,5,24 21(3) On the sale of a package or container of soft drink syrups, simple syrups,
22powders, or other base products, 21 cents for each gallon of soft drink that may be
23produced from each package or container according to the manufacturer's
24instructions.
SB117,6,4
177.9983 Interest and penalties. The interest and penalty provisions under
2ss. 71.82 (1) (a) and (b) and (2) (a) and (b), 71.83 (1) (a) 1., 2., and 7. and (b) 1., (2) (a)
31. to 3. and (b) 1. to 3., and (3), and 71.85, as they apply to the taxes under ch. 71, apply
4to the tax imposed under this subchapter.
SB117,6,8 577.9984 Applicability. (1) With regards to a tax-option corporation, the tax
6imposed under this subchapter is imposed on the tax-option corporation, not its
7shareholders, except that, if the tax due from the tax-option corporation is
8delinquent, the shareholders are jointly and severally liable for the delinquent tax.
SB117,6,12 9(2) With regards to a partnership, the tax imposed under this subchapter is
10imposed on the partnership, not its partners, except that, if the tax due from the
11partnership is delinquent, the partners are jointly and severally liable for the
12delinquent tax.
SB117,6,16 1377.9985 Single-owner entities. A single-owner entity that is disregarded
14as a separate entity under ch. 71 is disregarded as a separate entity under this
15subchapter. The owner of that entity shall include the information from the entity
16on the owner's return under this subchapter.
SB117,6,19 1777.9986 Administration. (1) The revenue from the tax collected under this
18subchapter, including interest and penalties, shall be deposited into the dental
19access trust fund.
SB117,6,21 20(2) The tax imposed under this subchapter is due on the date on which the
21person's return under ch. 71 is due without regard to any extension.
SB117,6,23 22(3) The department of revenue shall levy, enforce, and collect the tax imposed
23under this subchapter.
SB117,7,2 24(4) Sections 71.74 (1) to (3), (6), (7), and (9) to (15), 71.75 (1), (2), (4), (5), and
25(6) to (10), 71.76, 71.77, 71.78 (1) to (8), 71.80 (1) (a) to (d), (3), (3m), (6), (8) to (12),

1(14), and (18), 71.87, 71.88, 71.89, 71.90, 71.91, and 71.93, as they apply to the taxes
2under ch. 71, apply to the tax imposed under this subchapter.
SB117,7,7 3(5) Each person subject to the tax imposed under this subchapter shall, on or
4before the due date, including extensions, for filing under ch. 71, file an accurate
5statement of the person's gross tax liability or net business income. Payments made
6after the due date under sub. (2) and on or before the due date under this subsection
7are not delinquent but are subject to interest at the rate of 12 percent per year.
SB117,7,11 8(6) Persons who owe amounts under this subchapter shall mail or deliver those
9amounts to the department of revenue or, if the department prescribes another
10method of submitting or another destination, those persons shall use that other
11method or submit those amounts to that other destination.
SB117, s. 10 12Section 10. 250.17 of the statutes is created to read:
SB117,7,16 13250.17 Grants for dental public health and dental education projects.
14From the appropriation under s. 20.435 (4) (xn), the department shall, upon
15application from qualified entities, award moneys in each fiscal year for all of the
16following:
SB117,7,17 17(1) Dental public health projects.
SB117,7,19 18(2) Dental education projects, including projects affiliated with the Marquette
19University School of Dentistry.
SB117, s. 11 20Section 11. Effective dates. This act takes effect on the day after publication,
21except as follows:
SB117,7,2322 (1) The treatment of sections 20.435 (4) (o), (xm), and (xn), 49.45 (3) (n), and
23250.17 of the statutes takes effect on January 1, 2009.
SB117,7,2424 (End)
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