AB968: Bill Text

AB968, s. 31 Section 31. 77.60 (5) of the statutes is amended to read:

AB968,19,16 77.60 (5) If Subject to s. 73.14 (6), if a person fails to file a return when due or files a false or fraudulent return with intent in either case to defeat or evade the tax imposed by this subchapter, a penalty of 50% shall be added to the tax required to be paid, exclusive of interest and other penalties.

AB968, s. 32 Section 32. 77.96 (5) of the statutes is amended to read:

AB968,19,23 77.96 (5) Each person subject to a surcharge under s. 77.93 shall, on or before the due date, including extensions, for filing under ch. 71, file an accurate statement of its gross tax liability or net business income. Payments made after the due date under sub. (2) and on or before the due date under this subsection are not delinquent but are subject to interest at the rate of 12% determined under s. 73.14 (7) (a) per year.

AB968, s. 33 Section 33. 78.68 (1) of the statutes is amended to read:

AB968,20,5 78.68 (1) Unpaid taxes shall bear interest at the rate of 12% per year from the due date of the tax until paid or deposited with the department, and all refunded taxes bear interest at the rate of 9% determined under s. 73.14 (7) (a) per year from the due date of the return to the date on which the refund is certified on the refund rolls.

AB968, s. 34 Section 34. 78.68 (2) (intro.) of the statutes is amended to read:

AB968,20,11 78.68 (2) (intro.) Delinquent tax returns are subject to a $10 late filing fee. Delinquent motor vehicle fuel, alternate fuels and general aviation fuel taxes bear interest at the rate of 1.5% a rate that is equal to one-twelfth of the rate determined under s. 73.14 (7) (b) per month until paid. The taxes imposed by this chapter are delinquent if not paid as follows:

AB968, s. 35 Section 35. 78.68 (3) of the statutes is amended to read:

AB968,20,16 78.68 (3) If Subject to s. 73.14 (6), if due to neglect an incorrect return is filed, the entire tax finally determined is subject to a penalty of 25% of the tax exclusive of interest or other penalty. A person filing an incorrect return has the burden of proving that the error or errors were due to good cause and not due to neglect.

AB968, s. 36 Section 36. 227.12 (3) of the statutes is amended to read:

AB968,20,23 227.12 (3) Within Except as provided in sub. (4), within a reasonable period of time after the receipt of a petition under this section, an agency shall either deny the petition in writing or proceed with the requested rule making. If the agency denies the petition, it shall promptly notify the petitioner of the denial, including a brief statement of the reason for the denial. If the agency proceeds with the requested rule making, it shall follow the procedures prescribed in this subchapter.

AB968, s. 37 Section 37. 227.12 (4) of the statutes is created to read:

AB968,21,14 227.12 (4) If a petition to the department of revenue alleges that the department has established a standard by which it is construing a state tax statute, but has not promulgated a rule to adopt the standard or published the standard in a manner that is available to the public, the department shall initiate rule making within 90 days from the date that the petition is received and submit a rule to the legislature pursuant to s. 227.19 (2) no later than 180 days from the date that the petition is received. The rule need not adhere to the standard established by the department, but shall address the same circumstances as the standard addresses. If the department fails to comply with this subsection, any of the petitioners may commence an action in circuit court to compel the department's compliance. If an action is commenced under this subsection, the court may compel the department to provide information to the court related to the degree to which the department is enforcing the standard, except that the information provided by the department shall not disclose the identity of any person who is not a party to the action.

AB968, s. 38 Section 38. 227.41 (1) of the statutes is amended to read:

AB968,21,22 227.41 (1) Any Except as provided in sub. (5), any agency may, on petition by any interested person, issue a declaratory ruling with respect to the applicability to any person, property or state of facts of any rule or statute enforced by it. Full opportunity for hearing shall be afforded to interested parties. A declaratory ruling shall bind the agency and all parties to the proceedings on the statement of facts alleged, unless it is altered or set aside by a court. A ruling shall be subject to review in the circuit court in the manner provided for the review of administrative decisions.

AB968, s. 39 Section 39. 227.41 (3) of the statutes is amended to read:

AB968,21,25 227.41 (3) The Except as provided in sub. (5) (b), the petition shall be filed with the administrative head of the agency or with a member of the agency's policy board.

AB968, s. 40 Section 40. 227.41 (4) of the statutes is amended to read:

AB968,22,6 227.41 (4) Within Except as provided in sub. (5) (c), within a reasonable time after receipt of a petition pursuant to this section, an agency shall either deny the petition in writing or schedule the matter for hearing. If the agency denies the petition, it shall promptly notify the person who filed the petition of its decision, including a brief statement of the reasons therefor.

AB968, s. 41 Section 41. 227.41 (5) of the statutes is created to read:

AB968,22,15 227.41 (5) (a) The department of revenue shall, on petition by any interested person, or any group or association of interested persons, issue a declaratory ruling with respect to the applicability to any person, property, or state of facts of any rule or statute enforced by it. Full opportunity for hearing shall be afforded to interested parties. A declaratory ruling shall bind the department and all parties to the proceedings on the statement of facts alleged, unless it is altered or set aside by the tax appeals commission or a court. A ruling, including the denial of the petition, shall be subject to review by the tax appeals commission as provided in ch. 73.

AB968,22,17 (b) A petition under par. (a) shall conform to the requirements under sub. (2) and be filed with the secretary of revenue.

AB968,22,24 (c) No later than 30 days after the day that the secretary of revenue receives a petition under this subsection, the department of revenue shall either deny the petition in writing or schedule the matter for hearing. The department may deny the petition only if the petition fails to comply with the requirements under sub. (2). If the department denies the petition, it shall promptly notify the person who filed the petition of its decision and include with the notice a brief statement of the reasons for denying the petition.

AB968,23,5 (d) If the department of revenue does not deny the petition, the department shall hold a hearing and issue a ruling on the petition no later than 90 days after the day that the secretary of revenue receives the petition, unless the deadline is extended by written agreement of all parties. Upon agreement of the parties, the department may rule on the petition based on facts stipulated by the parties.

AB968, s. 42 Section 42. 227.485 (2) (a) of the statutes is amended to read:

AB968,23,8 227.485 (2) (a) "Hearing examiner" means the agency , tax appeals commission, or hearing examiner conducting the hearing.

AB968, s. 43 Section 43. 227.485 (3) of the statutes is amended to read:

AB968,23,16 227.485 (3) In Except as provided under sub. (3m), in any contested case in which an individual, a small nonprofit corporation or a small business is the prevailing party and submits a motion for costs under this section, the hearing examiner shall award the prevailing party the costs incurred in connection with the contested case, unless the hearing examiner finds that the state agency which is the losing party was substantially justified in taking its position or that special circumstances exist that would make the award unjust.

AB968, s. 44 Section 44. 227.485 (3m) of the statutes is created to read:

AB968,23,24 227.485 (3m) In any proceeding before the tax appeals commission in which the department of revenue is not the prevailing party and the prevailing party submits a motion for costs under this section, the tax appeals commission shall award the prevailing party the costs incurred in connection with the proceeding unless the tax appeals commission determines that the department of revenue was substantially justified in taking its position or that special circumstances exist that would make the award unjust.

AB968, s. 45 Section 45. 227.485 (5) of the statutes is amended to read:

AB968,24,13 227.485 (5) If the hearing examiner awards costs under sub. (3) or (3m), he or she shall determine the costs under this subsection, except as modified under sub. (4). The decision on the merits of the case shall be placed in a proposed decision and submitted under ss. 227.47 and 227.48. The prevailing party shall submit, within 30 days after service of the proposed decision, to the hearing examiner and to the state agency which is the losing party an itemized application for fees and other expenses, including an itemized statement from any attorney or expert witness representing or appearing on behalf of the party stating the actual time expended and the rate at which fees and other expenses were computed. The state agency which is the losing party has 15 working days from the date of receipt of the application to respond in writing to the hearing examiner. The hearing examiner shall determine the amount of costs using the criteria specified in s. 814.245 (5) and include an order for payment of costs in the final decision.

AB968, s. 46 Section 46. 227.485 (7) of the statutes is amended to read:

AB968,24,20 227.485 (7) An individual is not eligible to recover costs under this section if the person's properly reported federal adjusted gross income was $150,000 or more in each of the 3 calendar years or corresponding fiscal years immediately prior to the commencement of the case. This subsection applies whether the person files the tax return individually or in combination with a spouse. This subsection does not apply to costs awarded under sub. (3m).

AB968, s. 47 Section 47. 227.485 (10) (intro.) of the statutes is amended to read:

AB968,24,25 227.485 (10) (intro.) If the examiner finds that the motion under sub. (3) or (3m) is frivolous, the examiner may award the state agency all reasonable costs in responding to the motion. In order to find a motion to be frivolous, the examiner must find one or more of the following:

AB968, s. 48 Section 48. 803.08 of the statutes is amended to read:

AB968,25,7 803.08 Class actions. When the question before the court is one of a common or general interest of many persons or when the parties are very numerous and it may be impracticable to bring them all before the court, one or more may sue or defend for the benefit of the whole, except that no claim may be maintained against the state or any other party under this section if the relief sought includes the refund of or damages associated with a tax administered by the state.

AB968, s. 49 Section 49. Initial applicability.

AB968,25,10 (1) The treatment of section 803.08 of the statutes first applies to lawsuits that are pending on the effective date of this subsection.

AB968,25,15 (2) The treatment of sections 71.83 (1) (a) 2. and 3., 73.01 (4) (e) 2., 73.03 (25), 73.14 (1) to (6) and (8), 77.59 (3m), (4) (a), and (8m), 77.60 (3), (4), and (5), 78.68 (3), and 227.485 (3), (3m), and (7) of the statutes first applies to audits, assessments, claims for refunds, and actions concerning any appeal that are pending on the effective date of this subsection.

AB968,25,20 (3) The treatment of sections 71.82 (1) (a), (b), and (c) and (2) (a), (b), (c), and (d), 71.84 (1) and (2) (a) and (c), 71.90 (1) and (2), 71.91 (6) (d) 1., (e) 3., (f) 5., and (g) 2., 73.14 (7), 77.60 (1) (a) and (b) and (2) (intro.), 77.96 (5), and 78.68 (1) and (2) (intro.) of the statutes first applies to audits and assessments that are issued, and claims for refunds that are filed, on January 1, 2007.

AB968, s. 50 Section 50. Effective date.

AB968,25,23 (1) This act takes effect on the first day of the 2nd month beginning after publication.

AB968,25,24 (End)