Wisconsin Senate Bill SB956

Wisconsin 2023-2024 Regular Session

• Introduced: 1/26/24
• Refer: 1/26/24
• Failed: 4/15/24

Caption

The sales and use tax exemption for personal farm property or household goods sold by auction on the Internet. (FE)

Impact

The implementation of SB956 could significantly enhance the tax landscape for individuals wishing to sell personal property or household goods through auctions, particularly those leveraging online platforms. By broadening the tax exemption criteria, the bill is designed to stimulate sales and make it more appealing for sellers to choose auctions over other sales methods. This change may increase auction participation, thereby impacting the auction industry positively within the state.

Summary

Senate Bill 956 proposes an amendment to the current sales and use tax exemption for personal farm property and household goods sold via auction, specifically one held on the Internet. The bill aims to clarify the definition of an 'auction event' and expands eligibility for tax exemptions to include five or fewer auctions by the same auctioneer at the same location within a year. It distinguishes between traditional and internet-based auctions and defines what constitutes a location for these events.

Contention

While the bill has received support, particularly from sellers and auctioneers who stand to benefit from increased exemptions, it may face scrutiny regarding potential revenue implications for state and local governments. Opponents might argue that expanding tax exemptions could lead to a decrease in tax income, creating a financial burden on public services that rely on stable funding. As such, discussions surrounding its efficacy and budgetary impacts are likely to be a focal point in legislative forums.