Senate Bill 865 proposes the creation of a tax credit for individuals who pay sales and use taxes on services purchased through amusement devices, which are defined as single or multiplayer machines or games played for amusement. The bill allows claimants to receive a credit against their income and franchise taxes for the total amount of the additional Milwaukee County sales and use tax and any municipal sales and use tax paid on these services. The credit is applicable for taxable years beginning after December 31, 2024, and is limited to individuals, as partnerships, tax-option corporations, and limited liability companies are excluded from claiming the credit directly.

The bill also includes several amendments to existing statutes, specifically adding new sections related to the amusement device sales tax credit and updating references to include the new credit in various tax calculations. Notably, it amends sections 71.05, 71.21, 71.26, 71.34, and 71.45 to incorporate the new credit, while also creating new sections 71.07, 71.28, 71.30, 71.47, and 71.49 that outline the definitions, filing claims, limitations, and administration of the credit. The overall aim of the bill is to provide financial relief to individuals engaging with amusement devices in Milwaukee County and to ensure that the tax credits are properly accounted for in the state's tax code.