(8) COSTS TO INITIATE EFT. (a) ACH debit transfers shall occur at no cost to the payer.
(b) Payers using ACH credit transfers are liable for any fees charged by the payer's financial institution.
(9) EVIDENCE OF EFT PAYMENT. A payer receives a trace number for each EFT transaction. The trace number given to the payer during the EFT transaction and included as part of the ACH entry is the payer's confirmation of payment or deposit and shall provide proof of the date and amount of the payment or deposit.
(10) DUE DATE OF EFT PAYMENT. (a) In order for EFT payments and deposits to be considered received on or before the prescribed due date, EFT payments or deposits shall have a settlement date on or before the prescribed due date, or the revised due date as provided in par. (c), of the payment or deposit.
(b) Payments or deposits made by EFT with a settlement date later than the prescribed due date or revised due date of the payment or deposit shall be considered late and shall be subject to all applicable late fees, penalties and interest.
(c) When the prescribed due date falls on a weekend or legal holiday, the payment due date is revised to be the first business day immediately following the weekend or holiday.
Example: If the prescribed due date falls on a Monday which is also memorial day, an ACH debit transfer must be initiated on or before the preceding Friday so that it has a settlement date on or before the following Tuesday, when the payment is due. A payer using an ACH credit transfer must work with the financial institution to initiate the transfer in time to settle on or before the revised payment due date.
(11) EXCEPTION TO EFT REQUIREMENT. (a) The secretary of revenue may waive the requirement to use the EFT payment method when the secretary determines that the requirement causes an undue hardship, if the person otherwise required to use EFT does all of the following:
1. Requests the waiver in writing.
Note: Written waiver requests should be addressed to Electronic Funds Transfer, Wisconsin Department of Revenue, P.O. Box 8912, Madison, WI 53708-8912.
2. Clearly indicates why the requirement causes an undue hardship.
3. Is current in all return and report filings and tax payments.
(b) In determining whether the EFT requirement causes an undue hardship, the secretary of revenue may consider the following factors:
1. Unusual circumstances which may prevent the payer from using the EFT method.
Examples: Examples of unusual circumstances include:
1) The person does not have access to a touch tone telephone.
2) The person is physically unable to use a touch tone telephone.
3) The telephone system available to the person is incompatible with the department's telephone system used for EFT registration or payments, or both.
2. Any other factor which the secretary determines is pertinent.
Note: Section Tax 1.12 interprets ss. 71.01(8r), 71.42(3m), 71.63(1m) and (5m), 71.65(3)(a), 73.029, 77.58(1m), 77.61(14), 77.96(5m), 78.12(5), 78.55(5m), 139.01(5m), 139.30(8m) and 139.75(5m), Stats.
The rules contained in this order shall take effect on the first day of the month following publication in the Wisconsin administrative register as provided in s. 227.22(2)(intro.), 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
Tax 1.12 is created to permit the Department of Revenue (DOR) to require electronic funds transfer (EFT) to pay income, sales and excise taxes. In general, EFT could be required for persons or businesses with prior calendar year deposits of $40,000 or more. For income tax withholding and sales tax, EFT could be required for those prior calendar year deposits of $10,000 or more. EFT could be accomplished by debit transfers with costs paid by DOR or credit transfers with costs paid by the taxpayer. The department may waive the EFT requirement in specific cases.
In August 1998, approximately 30% of withholding collections came from voluntary use of EFT. It is not currently possible to use EFT for sales tax deposits. The rule would not have a significant effect on state tax collections. With increased EFT, state FPR investment income could increase by perhaps $1 million annually because funds would be available sooner than without EFT. Some of this increase would be from voluntary use of EFT, and some from required use.
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)3., (14r) and (15)(a)3., 77.52(2)(a) and 77.54(9a), (20)(c) and (20m), 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 15, 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(4)(a)3., (14r) and (15)(a)3., 77.52(2)(a)
and 77.54(9a), (20)(c) and (20m)
SECTION 1. Tax 11.05(2)(a) and the example following, sub. (2)(d) and sub. (3)(d) are revised, to provide additional information regarding the facilities to which admissions are taxable.
A note is added at the end of Tax 11.05(2)(b), to reference Tax 11.51 for a list of taxable food products.
Tax 11.05(2)(d) is further revised, to update style per Legislative Council Rules Clearinghouse (Clearinghouse) standards.
Tax 11.05(2)(f) is revised, to reflect the renumbering of sub. (3)(p) as explained in section 2.
Tax 11.05(2)(i) is revised, to clarify that the paragraph applies to the rental of lodging facilities that are available to the public.
Tax 11.05(3)(L) is revised, to reflect the change to s. 77.54(20)(c)5., Stats., by 1997 Wis. Acts 27 and 41, regarding sales of food, food products and beverages by institutions of higher education.
SECTIONS 2 AND 3. Tax 11.05(3)(m) to (u) are renumbered Tax 11.05(3)(n) to (v) and new Tax 11.05(3)(m) is created, to reflect the change to s. 77.54(20)(c)5., Stats., by 1997 Wis. Acts 27 and 41, regarding sales of food, food products and beverages by institutions of higher education.
Tax 11.05(3)(w) and (x) are created, to list additional items which are not taxable.
SECTION 4. Tax 11.05(4)(a) is revised, to reflect the exemption for purchases of joint local water authorities, as a result of the creation of s. 77.54(9a)(em), Stats., by 1997 Wis. Act 184.
Tax 11.05(4)(b)2. and the note following are revised, to reflect the creation of a new multipurpose exemption certificate, Form S-211, which replaces various other exemption certificates.
SECTION 5. Tax 11.05(4)(b)3. is created, to reflect that a Wisconsin governmental unit may provide its certificate of exempt status number to a retailer to document that its purchases are exempt.
SECTION 6. Tax 11.87(1)(b) is revised, to include a reference to s. 77.54(20m), Stats., as created by 1997 Wis. Act 237.
SECTION 7. Tax 11.87(1)(e) and (f) are renumbered Tax 11.87(1)(f) and (e), to alphabetize definitions per Clearinghouse standards.
A note is added at the end of Tax 11.87(1)(h), to reference Tax 11.51 for lists of taxable and exempt items.
SECTION 8. Tax 11.87(2)(c) and the example are revised and a note is added, to clarify the taxability of meals.
Tax 11.87(3)(a) is revised, to clarify the exemption for food and beverages sold by health care facilities.
SECTION 9. Tax 11.87(3)(c) is revised, to reflect the change to s. 77.54(20)(c)5., Stats., by 1997 Wis. Acts 27 and 41, regarding sales of food, food products and beverages by institutions of higher education.
SECTIONS 10 AND 11. Tax 11.94(1)(d) and (2)(a) are revised, to update style per Clearinghouse standards.
Tax 11.94(2)(c) is revised, to reflect two Circuit Court decisions, Rhinelander Paper Company, Inc. vs. Wisconsin Department of Revenue (97CV 1051, December 18, 1997) and Trierweiler Construction and Supply Co., Inc. vs. Wisconsin Department of Revenue (97CV 1444, December 12, 1997). The Circuit Court held that sales price does not include transportation costs separately incurred by the buyer from a carrier independent of the retailer.
Consequently, Tax 11.94(2)(d) and the example following are repealed, because the answer may vary, depending on the facts. Taxability must be determined on a case-by-case basis.
Text of Rule
SECTION 1. Tax 11.05(2)(a), (d), (f) and (i) and (3)(d) and (L) are amended to read:
Tax 11.05(2)(a) Admissions to recreational facilities if the activity being conducted at the facility is amusement, athletic, entertainment or recreational in nature.
Note to Revisor: Replace the example at the end of sub. (2)(a) with the following:
Example: Green fees, campground fees, swimming fees, ice skating fees and park shelter house fees are taxable if the activity being conducted at the facility is amusement, athletic, entertainment or recreational in nature.
Note to Revisor: Add the following note at the end of Tax 11.05(2)(b):
Note: See s. Tax 11.51 for a list of food products subject to tax.
(d) Charges for access to or use of athletic facilities, such as baseball and softball diamonds, stadiums and gymnasiums, including entry fees and any charges for lights, heat, janitor fees and equipment, when used for activities which are amusement, athletic, entertainment or recreational in nature.
(f) Sales of maps, plat books, photocopies or other printed material, except as provided in sub. (3)(p)(q).
(i) Rental of lodging facilities, available to the public, to any person residing for a continuous period of less than one month, except that the tax does not apply to the receipts from accommodations furnished by any hospitals, sanatoriums, nursing homes, colleges or universities operated by governmental units.
(3)(d) Rental of buildings or space, such as offices, warehouses and meeting rooms, not used for activities which are amusement, athletic, entertainment or recreational in nature.
(L) Meals, food, food products or beverages, except soda water beverages, fermented malt beverages and intoxicating liquor, sold by hospitals, sanatoriums, nursing homes, retirement homes, community-based residential facilities as defined in s. 50.01(1g), Stats., and day care centers under ch. 48, Stats., on their premises to patients, employes, residents or guests; meals furnished in accordance with any contract or agreement by a public institution of higher education, including dormitory meals; and meals sold to the elderly or handicapped by “mobile meals on wheels."
SECTION 2. Tax 11.05(3)(m) to (u) are renumbered Tax 11.05(3)(n) to (v).
SECTION 3. Tax 11.05(3)(m), (w) and (x) are created to read:
Tax 11.05(3)(m) Meals, food, food products or beverages, except soda water beverages, fermented malt beverages and intoxicating liquor, furnished in accordance with any contract or agreement by a public or private institution of higher education, or paid for to a public or private institution of higher education through the use of an account of the institution and furnished by the institution, if either of the following conditions is met:
1. The meals, food, food products or beverages are furnished to an undergraduate student, a graduate student or a student enrolled in a professional school if the student is enrolled for credit at that institution, provided the items are consumed by that student.
2. The meals, food, food products or beverages are furnished to a national football league team.
(w) Parking tickets.
(x) Charges for lessons.
SECTION 4. Tax 11.05(4)(a) and (b)2. are amended to read:
Tax 11.05(4)(a) Section 77.54(9a), Stats., exempts sales to and the storage, use or other consumption of tangible personal property and services by Wisconsin or by any agency thereof
of Wisconsin, or any Wisconsin county, city, village, town, school district, county-city hospital established under s. 66.47, Stats., sewerage commission organized under s. 281.43(4), Stats., metropolitan sewerage district organized under ss. 66.20 to 66.26 or 66.88 to 66.918, Stats., local exposition district under subch. II of ch. 229, Stats., joint local water authority created under s. 66.0735, Stats., university of Wisconsin hospitals and clinics authority or any other unit of government, or any agency or instrumentality of one or more units of government within Wisconsin. However, the exemption does not apply to governmental units of other states or hospital service insurance corporations under s. 613.80, Stats.
(b)2. An A Wisconsin sales and use tax exemption certificate, form S-207 or S-209
S-211.
Note to Revisor: Replace the note at the end of sub. (4)(b)2. with the following:
Note: Form S-211 is available from any department of revenue office.
SECTION 5. Tax 11.05(4)(b)3. is created to read:
Tax 11.05(4)(b)3. Its certificate of exempt status number that the retailer should record on the invoice or other document it keeps as part of its records.
Note to Revisor: In the second note at the end of Tax 11.05, remove the word “and" before part (t) and add the following at the end of the note:
; and (u) The exemption for certain meals, food, food products and beverages furnished by institutions of higher education was revised to apply only if the items are furnished to an undergraduate student, a graduate student or a student enrolled in a professional school if the student is enrolled for credit at that institution and if the items are consumed by that student, or the items are furnished to a national football league team, effective for contracts or agreements entered into on or after October 14, 1997, pursuant to 1997 Wis. Act 27, and further revised to include certain meals, food, food products or beverages paid for to an institution of higher education through the use of an account of the institution, if the items are furnished by the institution, effective December 31, 1997, pursuant to 1997 Wis. Act 41.
SECTION 6. Tax 11.87(1)(b) is amended to read:
Tax 11.87(1)(b) “Exempt food" means food, food products and beverages not subject to the sales and use tax as provided in s. 77.54(20) and (20m), Stats.
SECTION 7. Tax 11.87(1)(e) and (f) are renumbered Tax 11.87(1)(f) and (e).
Note to Revisor: Add the following note at the end of Tax 11.87(1)(h):
