AB64,581,1119 77.51 (2) “Contractors" and “subcontractors" are the consumers of tangible
20personal property or items or goods under s. 77.52 (1) (b) or (d) used by them in real
21property construction activities, and the sales and use tax applies to the sale of
22tangible personal property or items or goods under s. 77.52 (1) (b) or (d) to them. A
23contractor engaged primarily in real property construction activities may use resale
24certificates only with respect to purchases of tangible personal property or items or
25goods under s. 77.52 (1) (b) or (d) which that the contractor has sound reason to

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1believe the contractor will sell to customers for whom the contractor will not perform
2real property construction activities involving the use of such tangible personal
3property or items or goods under s. 77.52 (1) (b) or (d). In this subsection, “real
4property construction activities" means activities that occur at a site where tangible
5personal property or items or goods under s. 77.52 (1) (b) or (d) that are applied or
6adapted to the use or purpose to which real property is devoted are affixed to that real
7property, if the intent of the person who affixes that property is to make a permanent
8accession to the real property. In this subsection, “real property construction
9activities" does not include affixing property subject to tax under s. 77.52 (1) (c) to
10real property or affixing to real property tangible personal property that remains
11tangible personal property after it is affixed.

AB64,581,2014 77.51 (9) (a) 2. For purposes of subd. 1., it is presumed that a seller is not
15pursuing a vocation, occupation, or business or a partial vocation or occupation or
16part-time business as a vendor of tangible personal property, or items, property, or
17goods under s. 77.52 (1) (b), (c), or (d), or taxable services if the seller's total taxable
18sales price from sales of tangible personal property, items, property, and goods under
19s. 77.52 (1) (b), (c), and (d), and taxable services is less than $2,000 during a calendar
20year.

AB64,581,2522 77.51 (11d) For purposes of subs. (1ag), (1f), (3pf), and (9p) and ss. 77.52 (20)
23and (21), 77.522, and 77.54 (51), (52), and (60), and 77.59 (5r), “product" includes
24tangible personal property, and items, property, and goods under s. 77.52 (1) (b), (c),
25and (d), and services.

AB64,582,92 77.51 (12t) “Real property construction activities" means activities that occur
3at a site where tangible personal property or items or goods under s. 77.52 (1) (b) or
4(d) that are applied or adapted to the use or purpose to which real property is devoted
5are affixed to that real property, if the intent of the person who affixes that property
6is to make a permanent accession to the real property. “Real property construction
7activities" does not include affixing property subject to tax under s. 77.52 (1) (c) to
8real property or affixing to real property tangible personal property that remains
9tangible personal property after it is affixed.

AB64,582,1511 77.51 (13) (am) Any person making any retail sale of a motor vehicle, aircraft,
12snowmobile, recreational vehicle, as defined in s. 340.01 (48r), trailer, semitrailer,
13all-terrain vehicle, utility terrain vehicle, off-highway motorcycle, as defined in s.
1423.335 (1) (q), or boat registered or titled, or required to be registered or titled, under
15the laws of this state or of the United States.

AB64,583,1517 77.52 (2) (a) 10. Except for the repair, service, alteration, fitting, cleaning,
18painting, coating, towing, inspection, and maintenance of any aircraft or aircraft
19parts; except for services provided by veterinarians; and except for installing or
20applying tangible personal property, or items or goods under sub. (1) (b) or (d), that,
21subject to par. (ag), when installed or applied, will constitute an addition or capital
22improvement of real property; the repair, service, alteration, fitting, cleaning,
23painting, coating, towing, inspection, and maintenance of all items of tangible
24personal property or items, property, or goods under sub. (1) (b), (c), or (d), unless, at
25the time of that repair, service, alteration, fitting, cleaning, painting, coating,

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1towing, inspection, or maintenance, a sale in this state of the type of property, item,
2or good repaired, serviced, altered, fitted, cleaned, painted, coated, towed, inspected,
3or maintained would have been exempt to the customer from sales taxation under
4this subchapter, other than the exempt sale of a motor vehicle or truck body to a
5nonresident under s. 77.54 (5) (a) and other than nontaxable sales under s. 77.522
6or unless the repair, service, alteration, fitting, cleaning, painting, coating, towing,
7inspection, or maintenance is provided under a contract that is subject to tax under
8subd. 13m. The tax imposed under this subsection applies to the repair, service,
9alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance of
10items listed in par. (ag), regardless of whether the installation or application of
11tangible personal property or items, property, or goods under sub. (1) (b), (c), or (d)
12related to the items is an addition to or a capital improvement of real property, except
13that the tax imposed under this subsection does not apply to the original installation
14or the complete replacement of an item listed in par. (ag), if that installation or
15replacement is a real property construction activity under s. 77.51 (2).

AB64,583,2317 77.52 (2m) (b) With respect to the services subject to tax under sub. (2) (a) 7.,
1810., 11., and 20. and except as provided in s. 77.54 (60) (b) and (bm) 2., all tangible
19personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d)
20physically transferred, or transferred electronically, to the customer in conjunction
21with the selling, performing, or furnishing of the service is a sale of tangible personal
22property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) separate from
23the selling, performing, or furnishing of the service.

AB64,584,21

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177.52 (11) If any person fails to comply with any provision of this subchapter
2relating to the sales tax or any rule of the department relating to the sales tax
3adopted under this subchapter, is delinquent in respect to any tax imposed by the
4department or fails timely to file any return or report in respect to any tax under ch.
571, 72, 76, 77, 78 or 139 after having been requested to file that return or report, the
6department upon hearing, after giving the person 10 days' notice in writing
7specifying the time and place of hearing and requiring the person to show cause why
8the permit should not be revoked or suspended, may revoke or suspend any one or
9more of the permits held by the person. The department shall give to the person
10written notice of the suspension or revocation of any of the permits. The notices
11required in this subsection may be served personally or by mail in the manner
12prescribed for service of notice of a deficiency determination as provided in s. 73.03
13(73). If the department suspends or revokes a permanent permit under this
14subsection, it may grant a temporary permit that is valid for one month and may then
15grant additional temporary permits if the person pays all amounts owed under this
16chapter for the month for which the previous temporary permit was issued. Persons
17who receive a temporary permit waive the notice requirement under s. 77.61 (2). The
18department shall not issue a new permanent permit after the revocation of a permit
19unless it is satisfied that the former holder of the permit will comply with the
20provisions of this subchapter, the rules of the department relating to the sales tax
21and the provisions relating to other taxes administered by the department.

AB64,585,923 77.52 (13) For the purpose of the proper administration of this section and to
24prevent evasion of the sales tax it shall be presumed that all receipts are subject to
25the tax until the contrary is established. The burden of proving that a sale of tangible

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1personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services
2is not a taxable sale at retail is upon the person who makes the sale unless that
3person takes from the purchaser an electronic or a paper certificate, in a manner
4prescribed by the department, to the effect that the property, item, good, or service
5is purchased for resale or is otherwise exempt, except that no certificate is required
6for the sale of tangible personal property, or items, property, or goods under sub. (1)
7(b), (c), or (d), or services that are exempt under s. 77.54 (5) (a) 3., (7), (7m), (8), (10),
8(11), (14), (15), (17), (20n), (21), (22b), (31), (32), (35), (36), (37), (42), (44), (45), (46),
9(51), and (52), and (64).

AB64,585,2411 77.52 (18) (bm) If the purchaser of a stock of goods fails to withhold from the
12purchase price as required, the purchaser becomes personally liable for the payment
13of the amount required to be withheld by the purchaser to the extent of the purchase
14price valued in money. Within 60 days after receiving a written request from the
15purchaser for a certificate, or within 60 days from the date the former owner's records
16are made available for audit, whichever period expires later, but in any event not
17later than 90 days after receiving the request, the department shall either issue the
18certificate or mail notice to the purchaser at the purchaser's address as it appears
19on the records of the department of the amount that must be paid as a condition of
20issuing the certificate. Failure of the department to mail send the notice will release
21the purchaser from any further obligation to withhold the purchase price as above
22provided. The obligation of the successor may be enforced within 4 years of the time
23the retailer sells out the retailer's business or stock of goods or at the time that the
24determination against the retailer becomes final, whichever event occurs later.

AB64,586,13

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177.53 (10) For the purpose of the proper administration of this section and to
2prevent evasion of the use tax and the duty to collect the use tax, it is presumed that
3tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or
4(d), or taxable services sold by any person for delivery in this state is sold for storage,
5use, or other consumption in this state until the contrary is established. The burden
6of proving the contrary is upon the person who makes the sale unless that person
7takes from the purchaser an electronic or paper certificate, in a manner prescribed
8by department, to the effect that the property, or items, property, or goods under s.
977.52 (1) (b), (c), or (d), or taxable service is purchased for resale, or otherwise exempt
10from the tax, except that no certificate is required for the sale of tangible personal
11property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services that
12are exempt under s. 77.54 (7), (7m), (8), (10), (11), (14), (15), (17), (20n), (21), (22b),
13(31), (32), (35), (36), (37), (42), (44), (45), (46), (51), and (52), and (64).

AB64,586,2515 77.53 (17) This section does not apply to tangible personal property or items,
16property, or goods under s. 77.52 (1) (b), (c), or (d) purchased outside this state, as
17determined under s. 77.522, other than motor vehicles, boats, snowmobiles,
18recreational vehicles, as defined in s. 340.01 (48r), trailers, semitrailers, all-terrain
19vehicles, utility terrain vehicles, off-highway motorcycles, as defined in s. 23.335 (1)
20(q), and airplanes registered or titled or required to be registered or titled in this
21state, which is brought into this state by a nondomiciliary for the person's own
22storage, use or other consumption while temporarily within this state when such
23property, item, or good is not stored, used or otherwise consumed in this state in the
24conduct of a trade, occupation, business or profession or in the performance of
25personal services for wages or fees.

AB64,587,102 77.53 (18) This section does not apply to the storage, use or other consumption
3in this state of household goods or items, property, or goods under s. 77.52 (1) (b), (c),
4or (d) for personal use or to aircraft, motor vehicles, boats, snowmobiles, mobile
5homes, manufactured homes, as defined in s. 101.91 (2), recreational vehicles, as
6defined in s. 340.01 (48r), trailers, semitrailers, all-terrain vehicles, and utility
7terrain vehicles, and off-highway motorcycles, as defined in s. 23.335 (1) (q), for
8personal use, purchased by a nondomiciliary of this state outside this state, as
9determined under s. 77.522, 90 days or more before bringing the goods, items, or
10property into this state in connection with a change of domicile to this state.

AB64,587,1812 77.54 (7) (b) (intro.) If the item transferred is a motor vehicle, snowmobile,
13recreational vehicle, as defined in s. 340.01 (48r), trailer, semitrailer, all-terrain
14vehicle, utility terrain vehicle, off-highway motorcycle, as defined in s. 23.335 (1) (q),
15or aircraft and the item is registered or titled, or required to be registered or titled,
16in this state or if the item is a boat that is registered or titled, or required to be
17registered or titled, in this state or under the laws of the United States, the
18exemption under par. (a) applies only if all of the following conditions are fulfilled:

AB64,587,2220 77.54 (20n) (d) The sales price from the sale of and the storage, use, or other
21consumption of prepared food that is sold by a retailer and that meets all of the
22following conditions:

AB64,587,2523 1. The prepared food is manufactured by the retailer in a building assessed as
24manufacturing property under s. 70.995, or that would be assessed as
25manufacturing property under s. 70.995 if the building was located in this state.

AB64,588,2

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12. The retailer makes no retail sales of prepared food at the building described
2in subd. 1.

AB64,588,33 3. The retailer freezes the prepared food prior to its sale.

AB64,588,44 4. The retailer sells the prepared food at retail in a frozen state.

AB64,588,65 5. The prepared food is not sold with eating utensils that are provided by the
6retailer, as described in s. 77.51 (10m) (a) 3.

AB64,588,77 6. The prepared food is not candy, soft drinks, or dietary supplements.

AB64,588,1010 77.54 (60) (d) (intro.) In this subsection,“ lump sum:

AB64,588,19 111. “Construction contract" means a contract to perform real property
12construction activities and to provide tangible personal property, items or property
13under s. 77.52 (1) (b) or (c), or taxable services and for which the contractor quotes
14the charge for labor, services of subcontractors, tangible personal property, items and
15property under s. 77.52 (1) (b) and (c), and taxable services as one price, including
16a contract for which the contractor itemizes the charges for labor, services of
17subcontractors, tangible personal property, items and property under s. 77.52 (1) (b)
18and (c), and taxable services as part of a schedule of values or similar document
19products.

AB64,589,321 77.54 (60) (b) The sales price from the sale of and the storage, use, or other
22consumption of tangible personal property, items and property under s. 77.52 (1) (b)
23and (c), and taxable services products that are sold by a prime contractor as part of
24a lump sum construction contract, if the total sales price of all such taxable products
25is less than 10 percent of the total amount of the lump sum construction contract.

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1Except as provided in par. (c), the prime contractor is the consumer of such taxable
2the products and shall pay the tax imposed under this subchapter on the taxable
3products.

AB64,589,85 77.54 (60) (bm) 1. The sales price from the sale of and the storage, use, or other
6consumption of products that are sold by a subcontractor to a prime contractor, or to
7another subcontractor for eventual sale to the prime contractor, as part of a
8construction contract, if any of the following applies:

AB64,589,109 a. The total sales price of all products is less than 10 percent of the total amount
10of the construction contract.

AB64,589,1211 b. The products will be sold by the prime contractor as part of a construction
12contract, and that sale is exempt under par. (b).

AB64,589,1513 2. Except as provided in par. (c), the subcontractor is the consumer of the
14products exempted under this paragraph and shall pay the tax imposed under this
15subchapter on the products.

AB64,589,2018 77.54 (60) (c) (intro.) If the lump sum construction contract under par. (b) is
19entered into with between a prime contractor and an entity that is exempt from
20taxation under sub. (9a), the all of the following apply:

AB64,590,2 211. The prime contractor is the consumer of all taxable products used by the
22prime contractor in real property construction activities, but the prime contractor
23may purchase without tax, for resale, tangible personal property, items and property
24under s. 77.52 (1) (b) and (c), and taxable services products that are sold by the prime
25contractor to the entity as part of the lump sum construction contract with the entity

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1and that are not consumed by the prime contractor in real property construction
2activities.

AB64,590,94 77.54 (60) (c) 2. A subcontractor of the prime contractor is the consumer of all
5products used by the subcontractor in real property construction activities, but the
6subcontractor may purchase without tax, for resale, products that are sold by the
7subcontractor to the prime contractor or another subcontractor, as part of the
8subcontractor's construction contract under par. (bm), for resale to the entity and
9that are not consumed by the subcontractor in real property construction activities.

AB64,590,1411 77.54 (60) (d) 2. “Prime contractor" means a contractor who enters into a
12construction contract with an owner or lessee of real property, except for leased
13property under s. 77.52 (1) (c), to perform real property construction activities on the
14real property.

AB64,590,1615 3. “Subcontractor" means a contractor who enters into a construction contract
16with a prime contractor or another subcontractor.

AB64,590,1818 77.54 (64) (a) In this subsection:

AB64,590,2019 1. “Clothing" means any wearing apparel for humans that is suitable for
20general use, not including all of the following:

AB64,590,2121 a. Belt buckles sold separately.

AB64,590,2222 b. Costume masks sold separately.

AB64,590,2323 c. Patches and emblems sold separately.

AB64,590,2524 d. Sewing equipment and supplies, including knitting needles, patterns, pins,
25scissors, sewing machines, sewing needles, tape measures, and thimbles.

AB64,591,2

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1e. Sewing materials that become part of clothing, including buttons, fabric,
2lace, thread, yarn, and zippers.

AB64,591,33 f. Clothing accessories or equipment.

AB64,591,44 g. Protective equipment.

AB64,591,55 h. Sport or recreational equipment.

AB64,591,86 2. “Clothing accessories or equipment" means incidental items worn on a
7person or in conjunction with clothing, not including clothing, protective equipment,
8or sport or recreational equipment, but including all of the following:

AB64,591,99 a. Briefcases.

AB64,591,1010 b. Cosmetics.

AB64,591,1111 c. Hair notions, including barrettes, hair bows, and hair nets.

AB64,591,1212 d. Handbags.

AB64,591,1313 e. Handkerchiefs.

AB64,591,1414 f. Jewelry.

AB64,591,1515 g. Nonprescription sunglasses.

AB64,591,1616 h. Umbrellas.

AB64,591,1717 i. Wallets.

AB64,591,1818 j. Watches.

AB64,591,1919 k. Wigs.

AB64,591,2020 L. Hair pieces.

AB64,591,2221 3. “Eligible property” means an item that qualifies for exemption under this
22subsection.

AB64,592,223 4. “Layaway sale” means a transaction in which property is set aside for future
24delivery to a customer who makes a deposit, agrees to pay the balance of the sales
25price over time, and, at the end of the payment period, receives the property. An order

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1is accepted for layaway by the seller when the seller removes the property from
2inventory or clearly identifies the property as sold to the purchaser.

AB64,592,73 5. “Protective equipment” means items for human wear that are designed to
4protect the wearer against injury or disease or to protect property or other persons
5from damage or injury. “Protective equipment” does not include items suitable for
6general use, clothing, clothing accessories or equipment, or sport or recreational
7equipment. “Protective equipment” includes:

AB64,592,88 a. Breathing masks.

AB64,592,99 b. Clean room apparel and equipment.

AB64,592,1010 c. Ear and hearing protectors.

AB64,592,1111 d. Face shields.

AB64,592,1212 e. Hard hats.

AB64,592,1313 f. Helmets.