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SB 865

Relating to: a tax credit for certain sales and use taxes paid on services sold through an amusement device. (FE)

2025-2026 Regular Session Introduced by Cory Tomczyk

The bill creates a tax credit to offset sales and use taxes paid on services sold through amusement devices.

Failed to pass pursuant to Senate Joint Resolution 1
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WeVote Research Nonpartisan
Bill Summary · SB 865

Summary of Wisconsin Senate Bill 865 (Session 2025)

Title

Relating to: a tax credit for certain sales and use taxes paid on services sold through an amusement device. (FE)

Purpose and Intent

SB 865 proposes creating a state tax credit aimed at offsetting a portion of sales and use taxes paid on services that are sold through amusement devices. The bill appears to target operators and customers involved in amusements that generate service-based transactions subject to Wisconsin sales and use tax.

Key Provisions and Changes (as described)

  • Tax Credit Mechanism: Establishes a tax credit format designed to reduce the burden of sales and use taxes paid on services provided through an amusement device. The bill text (as of the available materials) indicates a credit is intended to apply to taxes paid on specific services linked to amusement devices.
  • Eligible Tax Base: Applies to sales and use taxes paid on services sold through an amusement device. It is not clear from the provided materials whether the credit applies to all such services, a subset, or under certain conditions (e.g., caps, eligibility thresholds, or device types).
  • Administration and Eligibility: The materials do not include detailed administration rules, such as how taxpayers claim the credit, any documentation required, or whether the credit would be refundable or nonrefundable. Additional fiscal notes and administrative provisions would typically be in the bill language or fiscal estimate.
  • Related Provisions or Amendments: There is mention of a Senate Substitute Amendment (SSA1) offered by Senator Tomczyk, indicating the bill may have undergone at least one revision to address scope, definitions, or administrative details.

Affected Parties

  • Primary Beneficiaries: Operators and businesses that sell services through amusement devices (e.g., arcade-style devices, pinball, or other automated entertainment devices) and pay Wisconsin sales and use taxes on the services they provide.
  • Customers/Consumers: Individuals who purchase services via amusement devices may indirectly benefit if the credit reduces costs passed through to consumers.
  • State Revenue/Tax Administration: Department of Revenue (or its successors) would administer the credit, establish eligibility criteria, and ensure compliance, though specific administration details are not disclosed in the available documents.

Procedural and Timeline Aspects

  • Introduction and Referral: Introduced January 23, 2026, by Senator Tomczyk; cosponsored by Representatives Wittke, Green, and Knodl; referred to the Committee on Agriculture and Revenue.
  • Public Hearing and Amendments: Public hearing held March 10, 2026; Senate Substitute Amendment 1 offered March 4, 2026.
  • Action Status: The action history indicates an attempt to pass pursuant to Senate Joint Resolution 1 on March 23, 2026, which did not succeed (as indicated by “Failed to pass pursuant to Senate Joint Resolution 1” entry).
  • Fiscal Note: A fiscal estimate was received on February 12, 2026, suggesting an analysis of revenue impact, cost to administer, and potential economic effects.

Practical Considerations

  • Impact on State Revenue: The credit would reduce general fund revenue to the extent it is claimed, depending on eligible taxes and the credit cap (if any). The exact fiscal impact would be detailed in the fiscal estimate and final bill text.
  • Implementation: Without the full text, it is unclear how the credit interacts with existing tax credits, whether it operates as a refundable or nonrefundable credit, and what documentation is required to claim it.
  • Policy Implications: The bill targets a niche segment of the tax code related to amusement-device-based services, potentially stimulating attendance/consumption in amusement venues but also affecting tax equity and the overall tax structure.

If you want, I can tailor this summary to focus on a particular audience (e.g., business owners in the amusement industry, tax policymakers, or general residents) or wait for the final enacted language to provide more precise provisions, eligibility criteria, and numeric details.

Compiled from official sources — confirm details with the bill’s official record.

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