This rule order does not have a significant effect on small business.
Fiscal Estimate
Assumptions used in arriving at fiscal estimate
The Department of Revenue (DOR) processes millions of reports, returns and refund claims every year. To improve the department's efficiency, modern technologies are continuing to be deployed to increase the use of electronic processing, and, as a result, reduce dependency on paper transactions requiring manual processing. For example, the portion of individual income tax returns filed electronically increased from 66.7% in 2009 to 74.4% in 2010 (as measured through May 2010). Similarly, the portion of sales and use tax returns filed electronically increased from 52.6% for the entirety of 2009 to 75.5% during the first five months of 2010.
Section
227.11 (2) (a) of the statutes allows the department to promulgate rules interpreting the provisions of any statute enforced or administered by the department, if it considers the rule necessary to effectuate the purpose of the statute.
Utilizing the authority provided by this statute, the proposed rule permits DOR to require additional tax reports, tax returns, and refund claims to be filed electronically. Specifically, the rule would allow DOR to require electronic filing of the following forms and returns:
•
Motor vehicle fuel, alternate fuel, and general aviation fuel tax returns and refund claim forms.
•
Fermented malt beverage tax returns and refund claim forms.
•
Intoxicating liquor reports, tax returns, and refund claim forms.
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Cigarette and tobacco products reports, tax returns, and refund claim forms.
•
Local exposition tax returns.
•
Premier resort area tax returns.
Consistent with certain forms for which the department may already require electronic filing, the proposed rule includes an exception which allows the DOR Secretary to waive the requirement to file electronically when the Secretary determines that the requirement causes an undue hardship.
Since the proposed rule will increase the number of transactions filed electronically, it will reduce paper based transactions and lead to a more efficient use of DOR's resources. Individuals and businesses submitting returns to DOR may also benefit by electronic increased electronic filling.
While cost savings will be achieved as various tax filings are shifted to electronic form, the timeline for these savings, will depend on the pace at which this shift is implemented. Some of these savings have already been realized as 64% of local exposition tax returns, 59% of premier resort area returns, and all liquor tax returns are already received electronically. In addition, DOR's cost savings will be reduced to the degree to which waivers from the proposed rule are granted.
Based on DOR estimates, the switch-over of certain excise tax forms from paper to electronic format will require the department to incur transitional costs of approximately $5, 000 per changeover (for form revisions, informational letters, and other one-time costs). These transitional costs are expected to be absorbed within existing expenditure authority and permit subsequent long-term savings.
State fiscal effect
Increase costs — may be possible to absorb within agency's budget.
Fund sources affected
GPR.
Affected Ch.
20 appropriations
Local government fiscal effect
None.
Anticipated costs incurred by private sector
This rule order does not have a significant fiscal effect on the private sector.
Text of Proposed Rule
SECTION 1. Tax 4.001 is created to read:
Tax 4.001 Motor vehicle, alternate fuels, and general aviation fuel tax return and refund claim forms. (1) FORMS. The department shall provide official forms for filing motor vehicle, alternate fuels, and general aviation fuel tax returns and refund claims. Except as approved by the department, tax returns and refund claims may only be filed using these official forms.
(2) FILING RETURNS. (a) Forms filed with the department shall be submitted by one of the following means:
1. Mailing them to the address specified by the department on the forms or in the instructions.
2. Delivering them to the department or to the destination that the department prescribes.
3. Filing them electronically by means prescribed by the department.
(b) The department may require motor vehicle, alternate fuels, and general aviation fuel tax returns and refund claims be filed electronically. The department shall notify a person at least 90 days prior to the due date of the first return required to be filed electronically of the requirement to file electronically.
(c) The secretary of revenue may waive the requirement to file electronically when the secretary determines that the requirement causes an undue hardship, if the person does all of the following:
1. Requests the waiver in writing.
Note: Written requests should be e-mailed to
excise@revenue.wi.gov, faxed to (608) 261-7049, or addressed to Mandate Waiver Request, Wisconsin Department of Revenue, Mail Stop 5-107, PO Box 8900, Madison WI 53708-8900.
2. Clearly indicates why the requirement causes an undue hardship.
(d) In determining whether the requirement to file electronically causes an undue hardship, the secretary of revenue may consider the following factors:
1. Unusual circumstances that may prevent the person from filing electronically.
Example: The person does not have access to a computer that is connected to the internet.
2. Any other factor that the secretary determines is pertinent.
SECTION 2. Tax 7.001 is created to read:
Tax 7.001 Fermented malt beverage tax return and refund claim forms. (1) FORMS. The department shall provide official forms for filing fermented malt beverage tax returns and refund claims. Except as approved by the department, tax returns and refund claims may only be filed using these official forms.
(2) FILING RETURNS. (a) Forms filed with the department shall be submitted by one of the following means:
1. Mailing them to the address specified by the department on the forms or in the instructions.
2. Delivering them to the department or to the destination that the department prescribes.
3. Filing them electronically by means prescribed by the department.
(b) The department may require fermented malt beverage tax returns and refund claims be filed electronically. The department shall notify a person at least 90 days prior to the due date of the first return required to be filed electronically of the requirement to file electronically.
(c) The secretary of revenue may waive the requirement to file electronically when the secretary determines that the requirement causes an undue hardship, if the person does all of the following:
1. Requests the waiver in writing.
Note: Written requests should be e-mailed to
excise@revenue.wi.gov, faxed to (608) 261-7049, or addressed to Mandate Waiver Request, Wisconsin Department of Revenue, Mail Stop 5-107, PO Box 8900, Madison WI 53708-8900.
2. Clearly indicates why the requirement causes an undue hardship.
(d) In determining whether the requirement to file electronically causes an undue hardship, the secretary of revenue may consider the following factors:
1. Unusual circumstances that may prevent the person from filing electronically.
Example: The person does not have access to a computer that is connected to the internet.
2. Any other factor that the secretary determines is pertinent.
SECTION 3. Tax 8.001 is created to read:
Tax 8.001 Intoxicating liquor report, tax return, and refund claim forms. (1) FORMS. The department shall provide official forms for filing intoxicating liquor reports, tax returns, and refund claims. Except as approved by the department, reports, tax returns, and refund claims may only be filed using these official forms.
(2) FILING FORMS. (a) Forms filed with the department shall be submitted by one of the following means:
1. Mailing them to the address specified by the department on the forms or in the instructions.
2. Delivering them to the department or to the destination that the department prescribes.
3. Filing them electronically by means prescribed by the department.
(b) The department may require intoxicating liquor reports, tax returns, and refund claims be filed electronically. The department shall notify a person at least 90 days prior to the due date of the first report or tax return required to be filed electronically of the requirement to file electronically.
(c) The secretary of revenue may waive the requirement to file electronically when the secretary determines that the requirement causes an undue hardship, if the person does all of the following:
1. Requests the waiver in writing.
Note: Written requests should be e-mailed to
excise@revenue.wi.gov, faxed to (608) 261-7049, or addressed to Mandate Waiver Request, Wisconsin Department of Revenue, Mail Stop 5-107, PO Box 8900, Madison WI 53708-8900.
2. Clearly indicates why the requirement causes an undue hardship.
(d) In determining whether the requirement to file electronically causes an undue hardship, the secretary of revenue may consider the following factors:
1. Unusual circumstances that may prevent the person from filing electronically.
Example: The person does not have access to a computer that is connected to the internet.
2. Any other factor that the secretary determines is pertinent.
SECTION 4. Tax 9.001 is created to read:
Tax 9.001 Cigarette and tobacco products report, tax return, and refund claim forms. (1) FORMS. The department shall provide official forms for filing cigarette and tobacco products reports, tax returns, and refund claims. Except as approved by the department, reports, tax returns, and refund claims may only be filed using these official forms.
(2) FILING FORMS. (a) Forms filed with the department shall be submitted by one of the following means:
1. Mailing them to the address specified by the department on the forms or in the instructions.
2. Delivering them to the department or to the destination that the department prescribes.
3. Filing them electronically by means prescribed by the department.
(b) The department may require cigarette and tobacco products reports, tax returns, and refund claims be filed electronically. The department shall notify a person at least 90 days prior to the due date of the first report or return required to be filed electronically of the requirement to file electronically.
(c) The secretary of revenue may waive the requirement to file electronically when the secretary determines that the requirement causes an undue hardship, if the person does all of the following:
1. Requests the waiver in writing.
Note: Written requests should be e-mailed to
excise@revenue.wi.gov, faxed to (608) 261-7049, or addressed to Mandate Waiver Request, Wisconsin Department of Revenue, Mail Stop 5-107, PO Box 8900, Madison WI 53708-8900.
2. Clearly indicates why the requirement causes an undue hardship.
(d) In determining whether the requirement to file electronically causes an undue hardship, the secretary of revenue may consider the following factors:
1. Unusual circumstances that may prevent the person from filing electronically.
Example: The person does not have access to a computer that is connected to the internet.
