Note: Section Tax 11.14 interprets ss. 77.52(13) to (17), 77.53(10) to (13) and 77.77(3), Stats.
2)
In the second note at the end of Tax 11.14, remove the word “and" before part (b) and add the following at the end of the note:
; (c) The elimination of the exemption certificate requirement for sales of certain consigned commodities became effective December 1, 1997 as it relates to sales taxes on commodities consigned for resale, pursuant to 1997 Wis. Act 27, and June 17, 1998 as it relates to sales and use taxes on commodities consigned for sale, pursuant to 1997 Wis. Act 237; and (d) The multipurpose exemption certificate, form S-211, was created in November 1998 to replace various types of exemption certificates.
SECTION 17. Tax 11.53(1)(a) and (b) are repealed.
SECTION 18. Tax 11.53(1)(c) and (d) are renumbered Tax 11.53(1)(a) and (b) and as renumbered Tax 11.53(1)(a) is amended to read:
Tax 11.53(1)(a) "Mobile seller's permit" means a permit issued under s. 77.52(7) and (19), Stats., which is valid at any temporary event conducted by the permittee within Wisconsin but which is valid at only one event at a time. A mobile seller's permit may be used simultaneously at multiple locations that are not the retailer's fixed business locations. Except for its use at more than one place of operations, all provisions of s. ss.73.03(50) and 77.52(7), (8), (9), (10), (11) and (12), Stats., apply to it.
SECTION 19. Tax 11.53(1)(e) is repealed.
SECTION 20. Tax 11.53(2) is repealed and recreated to read:
Tax 11.53(2) PERMITS FOR TEMPORARY EVENTS. Except as provided in sub. (3), a person conducting business as a retailer at a temporary event shall hold one of the following permits:
(a) A mobile seller's permit, if the event is not held at the retailer's fixed business location.
(b) A seller's permit, if the event is held at the retailer's fixed business location.
SECTION 21. Tax 11.53(3) and (4) are amended to read:
Tax 11.53(3) EXCEPTION. Persons, other than nonprofit organizations, not otherwise required to hold a seller's permit who have total taxable gross receipts from sales of tangible personal property or taxable services of less than $1,000 during the calendar year are not required to hold any of the permits listed in sub. (2) a seller's permit or mobile seller's permit.
(4) SECURITY. Application for permits referred to in this section a seller's permit or mobile seller's permit shall be on forms as a form prescribed by the department. The applicant shall be subject to security requirements of s. 77.61(2), Stats., except that for events of 7 consecutive days or less retailers holding concessionaire permits shall deposit security of $25 per concession for each event and deposits for events which exceed 7 consecutive days shall be $50 per concession for each event and may be required to deposit security in an amount determined by the department, but not in excess of $15,000.
SECTION 22. Tax 11.53(5) is repealed and recreated to read:
Tax 11.53(5) RETURNS. Sales and use tax returns due from persons holding seller's permits and mobile seller's permits are subject to the provisions of s. 77.58, Stats. The returns shall report the tax due for the period of time or event covered by the returns and shall be due quarterly, on the last day of the next month following a calendar quarter unless notified by the department to file on some other basis under s. 77.52(19) or 77.58(1) and (2), Stats., and shall include on the return gross receipts from all temporary events and other taxable transactions of the permittee during the reporting period.
SECTION 23. Tax 11.53(6) is amended to read:
Tax 11.53(6) VIOLATION. Under s. 77.52(12), Stats., any person required to hold a seller's permit who operates without a permit is guilty of a misdemeanor and shall immediately cease selling when requested by a department representative.
Note to Revisor: Replace the first note at the end of Tax 11.53 with the following:
Note: Section Tax 11.53 interprets ss. 73.03(38) and (50), 77.52(7), (9), (11), (12) and (19), 77.58 and 77.61(2), Stats.
Initial Regulatory Flexibility Analysis
This proposed rule order does not have a significant economic impact on a substantial number of small businesses.
Fiscal Estimate
This order revises rules relating to exemption certificates to reflect the creation by the Department of Revenue of a multipurpose exemption certificate, Form S-211, which will replace several single-use exemption certificates. In addition, it reflects a change in exemption certificate requirements for sales of certain commodities enacted in 1997 Wis. Act 27 and 237, and makes several clarifications regarding the use of exemption certificates.
The order also reflects a change in department policy eliminating temporary seller's permits and concessionaire permits, and allowing the simultaneous use at multiple locations of mobile seller's permits. It also clarifies the conditions under which permit violation provisions apply.
These changes will have no fiscal effect.
Notice of Proposed Rule
Revenue
Notice is hereby given that pursuant to s. 227.11 (2)(a), Stats., and interpreting ss. 77.51 (4)(a)4., and (b)3., and 7., and (15)(a)4., and (b)4., and 6., 77.53 (1m)(a) and 77.54 (2), Stats., and according to the procedure set forth in s. 227.16 (2)(e), Stats., the Department of Revenue will adopt the following rules as proposed in this notice without public hearing unless, within 30 days after publication of this notice on May 1, 1999, is is petitioned for a public hearing by 25 natural persons who will be affected by the rule, a municipality which will be affected by the rule, or an association which is representative of a farm, labor, business or professional group which will be affected by the rules.
Contact Person
Please contact Mark Wipperfurth at (608) 266-8253, if you have any questions regarding this proposed rule order.
Analysis by the Department of Revenue
Statutory authority: s. 227.11(2)(a)
Statutes interpreted: ss. 77.51(4)(a)4. and (b)3. and 7. and (15)(a)4. and (b)4. and 6., 77.53(1m)(a) and 77.54(2)
SECTIONS 1 AND 3. Tax 11.26(2)(c) is amended and Tax 11.26(3)(c) is created, to reflect the amendment to s. 77.51(4)(a)4. and (15)(a)4., Stats., by 1997 Wis. Act 27, which excludes from gross receipts and sales price motor fuel taxes refunded.
Tax 11.26(2)(d) is amended, to reflect current terminology relating to alternate fuels tax.
SECTION 2. Tax 11.26(2)(h) is created, to add the federal gas guzzler tax not previously listed in the rule.
SECTION 4. Tax 11.32(9) is created, to provide the tax treatment of sales of manufactured buildings, as a result of amendments to s. 77.51(4)(b)3. and (15)(b)4., Stats., and the creation of s. 77.51(4)(b)7. and (15)(b)6., Stats., by 1997 Wis. Act 27.
SECTION 5. Tax 11.41(1)(b)2.b. is amended, to clarify that the property manufactured must be destined for sale as tangible personal property to qualify for the manufacturing exemption in s. 77.54(2), Stats.
Tax 11.41(3)(b) and (h) are amended, to reflect proper punctuation per Legislative Council Rules Clearinghouse standards.
SECTIONS 6 THROUGH 11. The following changes are made to reflect the amendment to s. 77.53(1m)(a), Stats., by 1997 Wis. Act 27, allowing the use of an amount per plate per month as the measure of use tax for vehicles assigned to owners of a dealership, and to reflect the increase from $96 to $104 per plate per month as the measure of use tax.
Tax 11.83(1) is renumbered Tax 11.83(1)(b) and amended, and Tax 11.83(1)(title), (intro.) and (a) are created, to add a definition of “actively participates."
Tax 11.83(8)(b)1. is amended, subds. 2. and 3. are renumbered 3. and 4. and as renumbered subd. 3.(intro.) is amended, and new subd. 2. is created.
Tax 11.83(8)(c)(intro.) and 2. and (d) are amended.
Text of Rule
SECTION 1. Tax 11.26(2)(c) and (d) are amended to read:
Tax 11.26(2)(c) Any federal stamp tax and manufacturer's or importer's excise tax. Federal excise taxes include excise taxes on alcohol, tobacco, motor and aviation fuel except motor fuel taxes refunded, tires, firearms, sporting goods and air or ship transportation.
(d) A federal, county or municipal fuel tax included in the price of special alternate fuels and general aviation fuel subject to sales tax.
SECTION 2. Tax 11.26(2)(h) is created to read:
Tax 11.26(2)(h) The federal gas guzzler tax imposed under s. 4064 of the internal revenue code.
Note to Revisor: Replace the examples following sub. (3)(b) with the following:
Examples. Taxes which are not included in a retailer's gross receipts include:
1) The room taxes imposed under s. 66.75, Stats., which municipalities or local exposition districts impose on persons furnishing lodging to transients.
2) The federal excise tax imposed on the first retail sale of heavy trucks and trailers under s. 4051 of the internal revenue code.
3) The county and stadium sales and use taxes imposed under s. 77.71, Stats.
4) The local exposition district food and beverage and rental car taxes imposed under ss. 77.98 and 77.99, Stats.
5) The premier resort area taxes imposed under s. 77.994, Stats.
6) The state rental vehicle fee imposed under s. 77.995, Stats.
7) The federal luxury tax imposed under ss. 4001 through 4007 of the internal revenue code.
SECTION 3. Tax 11.26(3)(c) is created to read:
Tax 11.26(3)(c) Federal and Wisconsin motor vehicle excise taxes refunded.
Note to Revisor: Replace the second note at the end of Tax 11.26 with the following:
Note: The interpretations in s. Tax 11.26 are effective under the general sales and use tax law on and after September 1, 1969, except: The exclusion for federal and Wisconsin motor vehicle excise taxes refunded became effective December 1, 1997, pursuant to 1997 Wis. Act 27.
SECTION 4. Tax 11.32(9) is created to read:
Tax 11.32(9) MANUFACTURED BUILDINGS. (a) Gross receipts and sales price from the sale of a “manufactured building," as defined in s. 101.71(6), Stats., that is tangible personal property when sold, may be reduced by one of the following:
1. 35% of the sales price.
2. An amount equal to the sales price minus the cost of the materials that become an ingredient or component part of the manufactured building.
(b) No credit is allowed for trade-ins if gross receipts or sales price are reduced under par. (a).
(c) Once a retailer reduces gross receipts or sales price by the amount in par. (a)1. or 2., the retailer shall continue to use that method of reduction for all sales of manufactured buildings, that are tangible personal property when sold, until such time as the department approves in writing the use of the other method.
Example: Building Manufacturer sells a manufactured building, as defined in s. 101.71(6), Stats., in Wisconsin to Dealer. Dealer will affix the manufactured building to real property in Wisconsin for Customer under a contract between Dealer and Customer. This is the first manufactured building, as defined in s. 101.71(6), Stats., sold by Building Manufacturer pursuant to a contract entered into on or after December 1, 1997. Additional facts are as follows:
•
$40,000 is the cost of materials purchased by Building Manufacturer that become an ingredient or component part of the manufactured building.
•
$65,000 is the sales price of the manufactured building by Building Manufacturer to Dealer.
The amount subject to sales tax on the sale of the manufactured building to Dealer is one of the following:
(1) $42,250, which is the $65,000 sales price reduced by $22,750 (35% of the sales price).
(2) $40,000, which is the $65,000 sales price reduced by $25,000 (the sales price minus the cost of materials).
If Building Manufacturer chooses the method under (1) for computing gross receipts from the sale of this manufactured building, it must use the method under (1) for computing gross receipts from all future sales of manufactured buildings, until the department approves in writing the use of the method under (2).
Note to Revisor: Replace the first note at the end of Tax 11.32 with the following:
Note: Section Tax 11.32 interprets ss. 77.51(4)(a)(intro.) and 4., (b)1., 3., 6. and 7. and (c) 2. and (15)(a)(intro.) and 4., (b)1., 4., 5. and 6. and (c)1. and 77.61(3), Stats.
Note to Revisor: In the second note at the end of Tax 11.32, remove the word “and" before part (c) and add the following at the end of the note:
; and (d) The reduction of gross receipts and sales price for sales of manufactured buildings, as defined in s. 101.71(6), Stats., became effective for sales of property pursuant to contracts entered into on or after December 1, 1997, pursuant to 1997 Wis. Act 27.
SECTION 5. Tax 11.41(1)(b)2.b. and (3)(b) and (h) are amended to read:
Tax 11.41(1)(b)2.b. The property manufactured is not destined for sale as tangible personal property.
Note to Revisor: Replace example 2 following sub. (2)(b) with the following:
2) A manufacturer-contractor is not entitled to the exemption when purchasing tangible personal property consumed, destroyed or losing its identity in the manufacture of building components which it, as a contractor, will affix to real property in a real property construction activity.
(3)(b) Milling cutters.
(h) Wearing apparel for the comfort or welfare of the employe or for the protection of the employe's clothing, such as helmets, hard hats, work gloves, aprons, coveralls, pants, coats, and fur-lined boots and jackets.
Note to Revisor: In the third note at the end of Tax 11.41, delete the words “in sub. (5)."
