Register

SECTION 7. Tax 11.11(3)(intro.) is created to read:

Tax 11.11(3)(intro.) Tangible personal property which becomes a component or ingredient part of the following municipal facilities that treat waste qualifies for exemption from Wisconsin sales and use tax under s. 77.54(26), Stats.:

SECTION 8. Tax 11.11(3)(a), (b), (c) and (d) and (4) are renumbered Tax 11.11(3)(a)1., 2. and 3., (4) and (5), and as renumbered, Tax 11.11(4) and (5)(c) are amended to read:

Tax 11.11(4)(title) REPAIR, SERVICE AND OPERATION. The repair, service, alteration, cleaning, painting and maintenance of an industrial waste treatment facility described in sub.(2) and a municipal central waste treatment facility described in sub.(3), the repair parts and replacements therefor, for those types of facilities and chemicals and, supplies and utilities used or consumed in operating a waste treatment facility those types of facilities are exempt from the sales and use tax.

(5)(c) Determining exemptions. Contractors shall ascertain whether the industrial waste treatment facility they are constructing has been properly approved by the department for a property tax exemption under s. 70.11(21), Stats. If there has been no “approval"," the contractor or subcontractor may be liable for the sales or use tax on its purchases. Approvals are not required for municipal waste treatment facilities and, therefore, contractors may purchase without tax construction materials which become a component part of the exempt facility.

Note to Revisor: Change the note following Tax 11.11(5)(a) to read as follows:

Note: Form S-207 may be obtained by writing or calling Wisconsin Department of Revenue, P.O. Box 8902, Madison, WI 53708-8902, telephone [phone].

SECTION 9. Tax 11.11(3)(a)(title), (b), (c) and (d) are created to read:

Tax 11.11(3)(a)(title) Wastewater treatment facility.

(b) Material recovery facility. 1. A facility constructed by a municipality to meet mandates of ch. 287, Stats., regarding the reuse, recycling and recovery of waste material to reduce the need for waste disposal is exempt if the activities include all of the following:

a. Sorting recyclable materials delivered from municipalities.

b. Processing recyclable materials which may include removing contaminants, baling paper, shredding paper, pelletizing plastics and crushing glass.

c. Storing processed recyclable materials for sale to others.

2. The exemption does not apply if the only activities performed are sorting and storing and no processing of the materials takes place.

(c) Sanitary landfill. A sanitary landfill, including the treatment equipment, such as the collection and burner system, laboratory equipment, maintenance buildings, garages, office buildings, fences and gates, qualifies for exemption.

(d) Groundwater facilities. 1. A municipal facility constructed to treat hazardous or contaminated groundwater, including oil and water separators, air strippers, aerators, blowers, filters, carbon units, controls, thermal oxidizers and pumps, qualifies for exemption.

2. The collection system used to bring the hazardous or contaminated water to the facility and the distribution system used to carry the treated water away from the facility are not exempt.

Note to Revisor: Move the first note at the end of Tax 11.11, to follow the third note.

Note to Revisor: Replace the second note at the end of Tax 11.11 with the following:

Note: Contractors and others may determine whether an industrial waste treatment facility has been approved by the department as follows:

a. Public utility facilities, including railroads, airlines and pipelines: Write or call Wisconsin Department of Revenue, Bureau of Utility and Special Taxes, P.O. Box 8933, Madison, WI 53708-8933; telephone [phone].

b. Other commercial and industrial facilities: Write or call Wisconsin Department of Revenue, Bureau of Manufacturing and Telco Assessment, P.O. Box 8933, Madison, WI 53708-8933; telephone [phone].

Initial Regulatory Flexibility Analysis

This proposed rule order does not have a significant economic impact on a substantial number of small businesses.

Fiscal Estimate

There is no fiscal effect.

Notice of Proposed Rule

Revenue

[CR 99-76]

Notice is hereby given that pursuant to s. 227.11 (2) (a), Stats., and interpreting ss. 77.51 (4) (cm), 77.52 (1) and 77.54 (15) and (20), 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 June 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.

Analysis by the Dept. of Revenue

Statutory authority: s. 227.11 (2) (a)

Statutes interpreted: ss. 77.51 (4) (cm), 77.52 (1) and 77.54 (15) and (20)

SECTION 1. Tax 11.51 (1) is revised, to reflect the renumbering of sub. (2) (c), as explained below.

Tax 11.51 (2) (a) and (b) are revised, to list additional items of taxable and exempt sales by grocery stores, to reflect current Department policy relating to fruit juices, to reflect the treatment of “sandwiches" and to reference each of the paragraphs in sub. (3), as renumbered from sub. (2) (c) or as newly created.

SECTIONS 2 TO 5 AND 7. Tax 11.51 (2) (c) (title) and 1. to 5. are renumbered Tax 11.51 (3) (title) and (a), (b), (c), (d) and (g) 1., Tax 11.51 (2) (c) (intro.) is repealed and Tax 11.51 (3) (intro.) is created, to place the contents of the paragraph in a separate subsection. The material in sub. (2) (c) is not a guidelist, as the title to sub. (2) suggests.

Tax 11.51 (3) (c) as renumbered is revised, to reflect current Department policy relating to fruit juices.

Tax 11.51 (3) (d) as renumbered is revised, to conform style to Legislative Council Rules Clearinghouse standards.

Tax 11.51 (3) (g) 1. as renumbered is revised and sub. (3) (g) 2. is created, to provide separate subdivisions for taxable and exempt deli sales and to remove language relating to sandwiches and meals, due to the creation of sub. (3) (e) and (f) as explained below.

Tax 11.51 (3) (e) and (f) are created, to provide definitions of “meal" and “sandwich," respectively, as a result of the creation of s. 77.54 (20) (bg) 1. and 2., Stats., by 1997 Wis. Act 237.

Tax 11.51 (3) (h) is created, to provide that gross receipts from sales of certain prepackaged food combinations are not taxable, as a result of the creation of s. 77.51 (4) (cm), Stats., by 1997 Wis. Act 237.

SECTION 6. Tax 11.51 (3) is renumbered Tax 11.51 (4), due to the renumbering of Tax 11.51 (2) (c) to Tax 11.51 (3).

Text of Rule

SECTION 1. Tax 11.51 (1) and (2) (a) and (b) are amended to read:

Tax 11.51 (1) GENERAL. All sales of tangible personal property are taxable except when a specific exemption applies. One of the exemptions is for “food, food products and beverages," which generally exempts all basic food items for human consumption off the premises of the grocer. This exemption, however, does not include many items normally available in grocery and food stores, such as soda water beverages, including bases or concentrates to produce soft drinks and fruit drinks, beer, intoxicating liquors, candy, paper products and detergents. The lists in sub. (2)(a) and (b) shall serve as a guide to grocers to determine the kinds of items that are taxable and exempt.

  Note to Revisor: Amend only the following portions of the alphabetical lists in sub. (2)(a) and (b):

  (2) (a) …

Deli items, see par. (c)5. as explained in sub. (3) (g) 2.

…

Fruit drinks, liquid and powdered, see par. (c) 2. if not pure fruit juice, as explained in sub. (3) (b).

…

Greeting cards.

Grilling supplies.

Grooming aids.

…

Heated foods and beverages, see par. (c) 1. as explained in sub. (3) (a).

…

Household equipment and supplies.

Hygiene products.

Ice, cube and block.

…

Matches.

Meals, as explained in sub. (3) (e).

Medicinal preparations.

…

Powdered fruit drinks, see par. (e)2. as explained in sub. (3) (b).

…

Sandwiches, hot or cold, but not frozen, as explained in sub. (3) (f).

…

Soaps.

Soda fountain items.

Soda water beverages, see par. (c)2. as explained in sub. (3) (b).

Soft drinks, see par. (c)2. as explained in sub. (3) (b).

…

  (b) …

Cream.

Deli items, as explained in sub. (3) (g) 1.

Desserts and toppings.

Dietary foods, see par. (c)4. as explained in sub. (3) (d).

…

Frozen fruit juices, see par. (c)3. as explained in sub. (3) (c).

…

Juices, pure fruit, see par. (c)3. as explained in sub. (3) (c).

…

Potato salad, see par. (c) 5. as explained in sub. (3) (g) 1.

Poultry and poultry products.

Prepackaged food combinations, as explained sub. (3) (h).

Preserves.