Note to Revisor: In the third note at the end of Tax 11.41, delete the words “in sub. (5)."
SECTION 6. Tax 11.83(1) is renumbered Tax 11.83(1)(b) and amended to read:
Tax 11.83(1)(b) DEFINITION. In this section, “motor “Motor vehicle" means a self-propelled vehicle, such as an automobile, truck, truck-tractor or motorcycle, designed for and capable of transporting persons or property on a highway. In this section, “motor vehicle" does not include a self-propelled vehicle which is not designed or used primarily for transportation of persons or property, and is only incidentally operated on a public highway, such as a farm tractor, snowmobile, fork lift truck or road machinery as defined in s. 340.01(52), Stats. “Motor vehicle" does not include a vehicle which is not self-propelled, such as a trailer or semitrailer.
SECTION 7. Tax 11.83(1)(title), (intro.) and (a) are created to read:
Tax 11.83(1)(title) DEFINITIONS.
(intro.) In this section:
(a) “Actively participates" means the person performs services for the dealership, including selling, accounting, managing and consulting, for more than 500 hours in a taxable year for which the person receives compensation. “Actively participates" does not include services performed only in the capacity of an investor, including studying and reviewing financial statements or reports on the operation of the business, preparing or compiling summaries or analyses of the finances of the business for the investor's own use or monitoring the finances or operations of the activity in a nonmanagerial capacity.
SECTION 8. Tax 11.83(8)(b)1. is amended to read:
Tax 11.83(8)(b)1. Motor vehicles held for sale which are assigned to and used by a specific dealer employe subject to withholding from federal income tax on wages are subject to Wisconsin use tax on $96 $104 per motor vehicle registration plate per month. The $104 amount is effective January 1, 1999 and is subject to change annually as explained in the notes following sub. (8)(b).
Note to Revisor: Remove the note at the end of Tax 11.83(8)(b)1.
SECTION 9. Tax 11.83(8)(b)2. and 3. are renumbered Tax 11.83(8)(b)3. and 4. and as renumbered Tax 11.83(8)(b)3.(intro.) is amended to read:
Tax 11.83(8)(b)3.(intro.) Motor vehicles held for sale and not assigned to and used by a specific dealer employe subject to federal withholding on wages are subject to Wisconsin use tax on the lease value of the motor vehicle computed on a calendar month basis. If a motor vehicle is used by the dealer for a period of less than one calendar month, the amount subject to use tax is the daily lease value calculated by multiplying the applicable monthly lease value by a fraction, the numerator of which is the number of days used by the dealer for a purpose in addition to retention, demonstration or display and the denominator of which is the number of days in the calendar month. Lease value is computed using the internal revenue service lease value table contained in internal revenue service regulation s. 26 CFR 1.61-21(d)(2). In the lease value table, the “automobile fair market value" is one of the following:
SECTION 10. Tax 11.83(8)(b)2. is created to read:
Tax 11.83(8)(b)2. Motor vehicles held for sale which are assigned to and used by persons holding an ownership interest in Wisconsin licensed motor vehicle dealerships who are not subject to withholding for federal income tax purposes, but who actively participate in the day-to-day operation of the dealership, are subject to Wisconsin use tax on $104 per motor vehicle registration plate per month. The $104 amount is effective January 1, 1999 and is subject to change annually as explained in the notes below.
Note: As provided in s. 77.53(1m), Stats., the department will annually adjust the amount per plate to the nearest whole dollar to reflect the annual percentage change in the U.S. consumer price index for all urban customers, U.S. city average, as determined by the United States department of labor, for the 12 months ending on June 30 of the year before the change. The department will publicize any rate change in an issue of the Wisconsin Tax Bulletin prior to the January 1, that the change becomes effective.
Note: The amount per plate subject to use tax under par. (b)1. and 2. was $96 for the period September 1, 1995 through December 31, 1996, $99 for the period January 1, 1997 through December 31, 1997, and $102 for the period January 1, 1998 through December 31, 1998.
SECTION 11. Tax 11.83(8)(c)(intro.) and 2. and (d) are amended to read:
Tax 11.83(8)(c)(intro.) It is presumed that all dealer plates issued by the department of transportation to a licensed motor vehicle dealer are used each month on motor vehicles assigned to employes subject to withholding for federal income tax purposes or owners who actively participate in the day-to-day operations of the dealership for a purpose in addition to retention, demonstration or display and are subject to use tax as provided in par. (b)1. and 2., unless one of the following applies:
2. The motor vehicle to which the dealer plate is assigned is subject to use tax as computed in par.(b)2. or 3.or 4.
(d) Transitional provision. For motor vehicles, not assigned to employes or salespersons subject to federal withholding on wages or owners who actively participate in the day-to-day operations of the dealership, that are used by the dealer for a purpose in addition to retention, demonstration and display both prior to September 1, 1995, and on and after September 1, 1995, upon which a sales or use tax was paid on the purchase price of the motor vehicle by the dealer, the imposition of use tax as described in par.(b)2.
3. does not apply.
Note to Revisor: In the second note at the end of Tax 11.83, replace the portion of the note beginning with the word “and" before part (h), with the following:
(h) The measure of use tax on motor vehicles as described in sub. (8)(b)1., 3. and 4. became effective September 1, 1995, pursuant to 1995 Wis. Act 27; and (i) The use of the amount per plate rather than the lease value, as described in sub. (8)(b)2., as the measure of use tax for motor vehicles assigned to owners of a dealership became effective December 1, 1997, pursuant to 1997 Wis. Act 27.
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 rule reflects changes made in the sales and use tax treatment of refunded motor fuel taxes, manufactured buildings, and motor vehicles used by motor vehicle dealers by 1997 Wis. Act 27. It also clarifies existing rules and makes stylistic changes to conform to Legislative Council Rules Clearinghouse standards. It has 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 (9)(e), 77.52 (1) and 77.54, 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, it 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 rule.
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(9)(e), 77.52(1) and 77.54(7)(a) and (7m)
SECTION 1. Tax 11.33(4)(a) is amended, to include the condition that an auction sale must be held at other than regular intervals to qualify for exemption as an occasional sale.
Tax 11.33(4)(g) is amended, to remove nonprofit organizations from the provisions of that paragraph.
Text of Rule
SECTION 1. Tax 11.33(4)(a) and (g) are amended to read:
Tax 11.33(4)(a) Auction sales of tangible personal farm property and or household goods
which are not held at regular intervals.
(g) The sale of tangible personal property or taxable services by a person not otherwise required to hold a seller's permit, if the total taxable gross receipts from sales of tangible personal property and taxable services are less than $1,000 during the calendar year. However, purchases of tangible personal property or taxable services which when resold are exempt under this paragraph, are taxable purchases by that person ,except when the person is able to claim exemption under s. 77.54(9a), Stats. This paragraph does not apply to nonprofit organizations.
Note to Revisor: 1) In the example following sub. (5)(a), replace the word “operator" with “retailer."
2) Remove the note following sub. (5)(b).
3) Replace the first note at the end of Tax 11.33 with the following:
Note: Section Tax 11.33 interprets ss. 77.51(9), 77.52(1) and (2)(a)2. and 77.54(7) and (7m), Stats.
Initial Regulatory Flexibility Analysis
The proposed rule order does not have a significant economic impact on a substantial number of small businesses.
Fiscal Estimate
The rule updates the Wisconsin Administrative Code with respect to auction sales of personal farm property and household goods when the sales are held at irregular intervals. The rule also clarifies the tax treatment of nonprofit organizations.
These changes have no fiscal effect.
Notice of Submission of Proposed Rules to the Presiding Officer of each House of the Legislature, Under S. 227.19, Stats.
Please check the Bulletin of Proceedings for further information on a particular rule.
Ch. Comm 10 - Relating to flammable and combustible liquids.
S. Ins 3.39 (34) (b) - Relating to guarantee issue eligibility for Medicare Supplement insurance.
S. Ins 16.01 (6) (b) and (7) (a) - Relating to annual billings for the examination of domestic insurers.
Chs. RL 131 to 135 - Relating to the registration and regulation of home inspectors.
Administrative Rules Filed With The
Revisor Of Statutes Bureau
The following administrative rules have been filed with the Revisor of Statutes Bureau and are in the process of being published. The date assigned to each rule is the projected effective date. It is possible that the publication of these rules could be delayed. Contact the Revisor of Statutes Bureau at (608) 266-7275 for updated information on the effective dates for the listed rules.
An order creating ch. NR 167, relating to the land recycling loan program.
Effective 06-01-99.
An order repealing and recreating ch. NR 20 and amending s. NR 21.02 (16), relating to sport fishing regulations.
Effective 06-01-99.
An order amending ss. NR 25.06 (2) (e) 2. and 25.09 (2) (b) 2. a., relating to commercial fishing for whitefish in Green Bay and Lake Michigan.
Effective 05-01-99.
An order affecting s. Tax 11.12, relating to the sales and use tax treatment of certain items used in farming.
Effective 06-01-99.
An order affecting ss. Tax 11.09 and 11.28, relating to medicines and to gifts and other advertising specialties.
Effective 06-01-99.
Social Workers, Marriage and Family Therapists, and Professional Counselors Examining Board
(CR 98-53):
An order amending s. SFC 1.02 (intro.) and creating ch. SFC 8, relating to continuing education requirements for renewal of social worker certificates.
Effective 06-01-99.
