(6) Furnish data or return.
Any person who fails to furnish any return required to be made or who fails to furnish any data required by the department may be fined not more than $500 or imprisoned for not more than 30 days or both.
(7) Report or return verification.
Any person, including an officer of a corporation, who is required to make, render, sign or verify any report or return required by this subchapter and who makes a false or fraudulent report or return or who fails to furnish a report or return when due with the intent, in either case, to defeat or evade the tax imposed by this subchapter may be fined not more than $500 or imprisoned for not more than 30 days or both.
(8) Assisting false or fraudulent return.
No person may aid, abet or assist another in making any false or fraudulent return or false statement in any return required by this subchapter, with intent to defraud the state or evade payment of the tax, or any part thereof, imposed by this subchapter. Anyone who violates this subsection may be fined not more than $500 or imprisoned for not more than 30 days or both.
(9) Failure to keep records.
Failure to comply with s. 139.11 (1)
shall carry a penalty of revocation by the secretary of revenue of the license or permit.
Any person who violates any provision of ss. 139.01
for which specific penalty is not provided shall be fined not more than $500 nor less than $50, or imprisoned not more than 90 days nor less than 10 days or both, and any license or permit issued to that person shall be subject to revocation. The license or permit of any licensee or permittee convicted of evading payment of the tax on intoxicating liquor, or any attempt to evade payment of such tax, shall be deemed forfeited immediately upon conviction.
(11) Second offenses.
Any person convicted of a 2nd offense under the provisions of ss. 139.01
shall, in addition to the penalties provided in this section, forfeit all rights conferred upon him or her by any license issued to him or her by any city, village or town, without notice.
Prosecutions by attorney general.
Upon request by the secretary of revenue, the attorney general may represent this state or assist a district attorney in prosecuting any case arising under this subchapter.
History: 1985 a. 302
Cigarette tax; definitions.
In ss. 139.30
, unless the context otherwise requires:
"Cigarette" means any roll of tobacco wrapped in paper or any substance other than tobacco.
"Department" means the department of revenue.
"Distributor" means any person who acquires unstamped cigarettes from the manufacturer thereof, affixes stamps to the packages or other containers, stores them and sells them to other permittees or to retailers for resale or who acquires stamped cigarettes from another permittee for such sales.
"Enrolled member" means a person whose name appears on the tribal role of an Indian tribe or whose status as an enrolled member of a tribe is recognized by the tribal council of that tribe.
"Indian tribe" means a federally recognized Indian tribe in this state.
"Jobber" means any person who acquires stamped cigarettes from manufacturers or distributors, stores them and sells them to retailers for resale.
"Manufacturer" means any person who manufactures cigarettes for the purpose of sale.
"Multiple retailer" means any person who acquires stamped cigarettes from manufacturers or permittees, stores them and sells them to consumers through 10 or more retail outlets which he or she owns and operates within or without this state.
"Reservation" means all land within the boundaries of the Bad River, Forest County Potawatomi, Lac Courte Oreilles, Lac du Flambeau, Menominee, Mole Lake, Oneida, Red Cliff, St. Croix and Stockbridge-Munsee reservations and the Winnebago Indian communities.
"Retailer" means any person who sells, exposes for sale or possesses with intent to sell to consumers any cigarettes.
"Secretary" means the secretary of revenue.
"Sell" or "sale" includes the transfer, gift, barter, trade or exchange or any shift, device, scheme or transaction whereby cigarettes may be obtained and the solicitation of orders for, or the sale for, future delivery of cigarettes.
"Stamp" means the authorized indicia of cigarette tax payment including water transfer stamps and heat applied stamps.
"Vending machine" is any mechanical device which automatically dispenses cigarettes upon the deposit therein of specified coins in payment for such cigarettes.
"Vending machine operator" means a person who acquires stamped cigarettes from manufacturers or permittees, stores them and sells them through the medium of vending machines which he or she owns, operates or services and which are located on premises which are owned or under the control of other persons.
"Warehouse" means the premises where any person is lawfully engaged in the business of storing cigarettes for profit but shall not include the premises where common carriers store cigarettes which are received by them as common carriers and are in transit in interstate commerce.
Tax imposed; exceptions. 139.31(1)
An excise tax is imposed on the sale, offering or exposing for sale, possession with intent to sell or removal for consumption or sale of cigarettes or other disposition for any purpose whatsoever. The tax is imposed at the time and place of the first taxable event occurring in this state. The tax shall be passed on to the ultimate consumer of the cigarettes. All cigarettes received in this state for sale or distribution within this state, except cigarettes actually sold as provided in sub. (3)
, shall be subject to such tax. Any person licensed under ch. 100
and this chapter to have untaxed cigarettes in his or her possession which are lost, stolen, destroyed or which have mysteriously disappeared shall be liable for and shall pay the tax thereon. The tax shall be at the following rates:
On cigarettes weighing not more than 3 pounds per thousand, 22 mills on each cigarette.
On cigarettes weighing more than 3 pounds per thousand, 44 mills on each cigarette.
In addition to the rate under par. (a)
, on cigarettes weighing not more than 3 pounds per thousand, on each cigarette 8 mills minus the tax imposed on that cigarette under 26 USC 5701
, but not less than zero.
In addition to the rate under par. (b)
, on cigarettes weighing more than 3 pounds per thousand, on each cigarette, 16.8 mills minus the tax imposed on that cigarette under 26 USC 5701
, except that if the cigarette is more than 6.5 inches in length it shall be taxed at the rate under par. (c)
rather than at the rate under this paragraph, counting each 2.75 inches or fraction thereof of the length as one cigarette. The amount under this paragraph shall not be less than zero.
Cigarettes sold to post exchanges of the armed forces of the United States and to federally or state operated veterans hospitals in this state and cigarettes sold to an interstate carrier of passengers for hire to be resold to bona fide passengers actually being transported and cigarettes sold for shipment outside this state in interstate commerce are not subject to the tax.
State cigarette tax laws do not apply to Indian selling cigarettes on reservation. 68 Atty. Gen. 151.
Cigarette inventory tax imposed; procedures. 139.315(1)(1)
Inventory tax imposed.
On the effective date of any increase in the sum of the rates under s. 139.31 (1) (a)
or in the sum of the rates under s. 139.31 (1) (b)
, an inventory tax is imposed upon cigarettes held in inventory for sale or resale on which the cigarette tax has been paid at the prior rate and upon unaffixed stamps in the possession of distributors. Any person who is in possession of any such cigarettes or unaffixed stamps is liable for payment of the tax imposed under this section. Any person liable for this tax shall determine the number of cigarettes and unaffixed stamps in the person's possession on the effective date of the increase, and by the 15th day after the effective date of the increase the person shall file with the department a return on a form provided by the department and shall by that date pay to the department the tax due.
(2) Inventory tax computation.
The cigarette inventory tax under this section is computed by multiplying the number of cigarettes held in inventory for sale or resale by the difference between the prior tax rate and the new tax rate and adding to that amount an amount determined by multiplying the number of unaffixed stamps held by the difference between the prior tax rate and the new tax rate.
(3) Administration. Sections 71.74 (1)
, 71.75 (4)
, 71.80 (12)
, 71.82 (2)
, 71.83 (2) (b) 3.
, 71.88 (1) (a)
and (2) (a)
, 71.91 (1) (a)
apply to this section.
(4) Late filing fee.
Any person who fails to file a cigarette inventory tax return when due shall pay a late filing fee of $10. A return is timely filed if it is mailed in a properly addressed envelope with 1st class postage prepaid, if the envelope is postmarked on the due date and if the return is actually received by the department within 5 days of the due date.
(5) Interest on delinquent payments.
If any person does not timely pay the tax imposed under this section, that person is liable for interest at the rate of 1.5% per month or fraction of a month from the date the tax is due until the date when the tax is paid.
If any person who is liable for the tax under this section files a false or fraudulent return, that person is also liable, in addition to the tax due, for an amount equal to the amount of tax the person evaded or attempted to evade.
Payment of taxes. 139.32(1)(1)
The tax imposed by s. 139.31 (1)
shall be paid by purchase of stamps from the department. To evidence the payment, stamps of the proper denomination shall be affixed to each package in which cigarettes are packed, prior to the first sale within this state. First sale does not include a sale by a manufacturer to a distributor or by a distributor to a permittee who has obtained department approval as provided for in s. 139.321 (1) (a) 2.
The tax shall be paid only once on each package or container.
The secretary shall prepare and have available for sale stamps of such denominations and quantities as the secretary considers necessary for the payment of the taxes imposed by s. 139.31
. The stamps shall be of such designs and materials as to make the removal and reuse thereof impossible after being once affixed.
The secretary shall prepare and have available for sale distinctive stamps, which shall be affixed to all packages of cigarettes in respect to which a refund can be made under s. 139.323
and only to those packages.
Stamps shall be affixed in the manner prescribed by the secretary.
In lieu of stamps the secretary may authorize impressions applied by the use of meter machines. The secretary shall prescribe by rule the type of impression and the kind of machines which may be used.
Manufacturers and distributors having a permit from the secretary may purchase stamps at a discount of 2.0%.
Distributors and manufacturers shall pay to the department the cost of printing and shipping those stamps.
Manufacturers and distributors having a permit from the secretary may purchase stamps on credit. The secretary may require manufacturers and distributors who purchase stamps on credit to file under the conditions prescribed by the secretary by rule.
Beginning on September 1, 1993, the cost to print stamps is the actual cost to print stamps, adjusted to reflect the expenses incurred to print stamps during the previous year and the reimbursement received for that purpose during the previous year, as determined by the department. Beginning in 1994, the department shall annually determine that cost and shall make the new cost effective on July 1.
Unlawful possession of cigarettes. 139.321(1)
It is unlawful for any person to possess in excess of 400 cigarettes unless the required stamps are properly affixed as provided in ss. 139.32 (1)
and 139.33 (4)
This subsection shall not apply to the following:
Manufacturers, distributors or warehouse operators possessing valid permits issued by the secretary.
Any permittee under s. 139.34
having department approval or person authorized to acquire, possess or sell unstamped cigarettes under s. 139.31 (3)
provided that said permittee or person maintains a separate inventory thereof and records pertaining thereto in such manner and form as the department prescribes by rule.
Common carriers licensed by the interstate commerce commission to carry such commodities in interstate commerce who are in possession of proper bills of lading covering each such shipment. The department may by rule require that copies of all such bills of lading, clearly indicating thereon the quantities of cigarettes transported, be furnished to it.
No retailer may possess cigarettes purchased from any person except a manufacturer, distributor or jobber who holds a valid permit from the department.
History: 1993 a. 16
The secretary may require any person who has not paid the tax under s. 139.31 (1)
or who has failed timely to file a report for that tax to place with the department security in the amount that the secretary determines. That security may be a surety bond that is payable to this state and that is in the form prescribed by the secretary.
The secretary may refuse to issue a permit to, and may revoke the permit of, any person who is required to place security with the department under sub. (1)
and fails to do so.
The department may not pay interest on security placed with the department under sub. (1)
After giving 10 days' notice, the secretary may recover any tax, interest, penalties and other charges due the department from the security of any person who is delinquent under this subchapter.
History: 1993 a. 16
Refunds to Indian tribes.
The department shall refund 70% of the taxes collected under s. 139.31 (1)
in respect to sales on reservations or trust lands of an Indian tribe to the tribal council of the tribe having jurisdiction over the reservation or trust land on which the sale is made if all the following conditions are fulfilled:
The tribal council has filed a claim for the refund with the department.
The tribal council has approved the retailer.
The land on which the sale occurred was designated a reservation or trust land on or before January 1, 1983.
The cigarettes were not delivered by the retailer to the buyer by means of a common carrier, a contract carrier or the U.S. postal service.
The retailer has not sold the cigarettes to another retailer or to a jobber.
History: 1983 a. 27
; 1985 a. 29
Agreements with Indian tribes.
The department may enter into agreements with Indian tribes to provide for the refunding of the cigarette tax imposed under s. 139.31 (1)
on cigarettes sold on reservations to enrolled members of the tribe residing on the tribal reservation.
History: 1983 a. 27
A use tax is imposed and levied upon the use of cigarettes in this state by any person for any purpose if the excise tax imposed by s. 139.31
has not been paid on such cigarettes. Such tax is levied and shall be collected at the same rates as provided for in s. 139.31
. The tax imposed by this section is not applicable to cigarettes subject to the excise tax imposed by s. 139.31
nor to cigarettes exempt from that tax under s. 139.31 (3)
No person other than a licensed distributor may import into this state more than 400 cigarettes on which the excise tax imposed by s. 139.31
has not been paid and the container of which does not bear proper stamps. Within 15 days, any such person importing cigarettes shall file with the department a declaration of such cigarettes imported and shall remit therewith the tax on such cigarettes imposed by this section. Members of the armed forces shall not be required to report or pay the tax on cigarettes in their possession if such cigarettes are issued to them by the U.S. government or any of its subdivisions or were purchased in any armed forces post exchange or service store. If the use tax imposed by this section is not paid when due, it shall become delinquent and the person liable for it shall pay, in addition, a penalty of $25 for each 200 cigarettes. Interest on the delinquent tax and penalty shall accrue at the rate of 1.5% per month or each fraction of a month from the date the tax became due until paid.
(4) Sections 139.30
relating to enforcement of the excise tax imposed by s. 139.31
apply to enforcement of the use tax imposed by this section.
Permits required. 139.34(1)(a)(a)
It is unlawful for any person to manufacture cigarettes in this state or sell cigarettes in this state as a distributor, jobber, vending machine operator or multiple retailer and no person shall operate a warehouse in this state for the storage of cigarettes for another person without first obtaining the proper permit to perform such operations from the department of revenue. The application for a permit and the permit shall be in the form prescribed by the department and the application form shall require such information as is necessary to administer this section.