139.322(1)(1) 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.
139.322(2)
(2) 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.
139.322(3)
(3) The department may not pay interest on security placed with the department under
sub. (1).
139.322(4)
(4) 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.
139.322 History
History: 1993 a. 16.
139.323
139.323
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:
139.323(1)
(1) The tribal council has filed a claim for the refund with the department.
139.323(2)
(2) The tribal council has approved the retailer.
139.323(3)
(3) The land on which the sale occurred was designated a reservation or trust land on or before January 1, 1983.
139.323(4)
(4) 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.
139.323(5)
(5) The retailer has not sold the cigarettes to another retailer or to a jobber.
139.323 History
History: 1983 a. 27;
1985 a. 29,
302.
139.325
139.325
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.
139.325 History
History: 1983 a. 27.
139.33(1)(1) 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).
139.33(3)
(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.
139.33(4)
(4) Sections 139.30 to
139.44 relating to enforcement of the excise tax imposed by
s. 139.31 apply to enforcement of the use tax imposed by this section.
139.34
139.34
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.
139.34(1)(b)
(b) This section applies to all officers, directors, agents and stockholders holding 5% or more of the stock of any corporation applying for a permit under this section.
139.34(1)(c)1.
1. The person has been convicted of a misdemeanor, not involving
chs. 340 to
349, at least 3 times.
139.34(1)(c)2.
2. The person has been convicted of a felony, unless pardoned.
139.34(1)(c)3.
3. The person is addicted to the use of a controlled substance or controlled substance analog under
ch. 961.
139.34(1)(c)4.
4. The person has income which comes principally from gambling or has been convicted of 2 or more gambling offenses.
139.34(1)(c)5.
5. The person has been guilty of crimes relating to prostitution.
139.34(1)(c)6.
6. The person has been guilty of crimes relating to loaning money or anything of value to persons holding licenses or permits pursuant to
ch. 125.
139.34(1)(d)
(d) Upon denial of a permit the department of revenue shall immediately notify such person in writing of the denial and the reasons therefor.
139.34(1)(e)
(e) A denial of a permit by the department of revenue shall be subject to judicial review under
ch. 227.
139.34(4)
(4) A separate permit shall be required of and issued to each class of permittee and the holder of any permit shall perform only the operations thereby authorized. Such permit shall not be transferable from one person to another or from one premises to another. A separate permit shall be required for each place where cigarettes are stamped or where cigarettes are stored for sale at wholesale or through vending machines or multiple retail outlets.
139.34(5)
(5) The ownership and operation of any retail outlet does not preclude a person from receiving a permit as a distributor or jobber, if more than 50% of that person's sales of cigarettes are at wholesale to retailers, vending machine operators or multiple retailers neither owned, controlled nor operated by that person.
139.34(6)
(6) A vending machine operator or a multiple retailer may acquire unstamped cigarettes from the manufacturers thereof and affix the stamps to packages or other containers only if the vending machine operator or multiple retailer also holds a permit as a distributor.
139.34(7)
(7) The secretary may require by rule that stamps affixed to cigarette packages be identified by a permit or code number assigned to the person affixing them.
139.34(8)
(8) The holder of a warehouse permit is entitled to store cigarettes on the premises described in the permit. The warehouse permit shall not authorize the holder to sell cigarettes. Unstamped cigarettes stored in a warehouse for a manufacturer or distributor may be delivered only to a person holding a permit as a manufacturer or distributor.
139.34(9)
(9) The applicant for a permit, if a nonresident, foreign corporation or foreign limited liability company, shall file proof that the applicant has appointed the department of financial institutions as agent for the service of process on any matter arising under
ss. 139.30 to
139.44. A foreign corporation without a place of business in this state need not obtain a certificate of authority under
ss. 180.1501 to
180.1505. If a foreign corporation has a certificate of authority under
ss. 180.1501 to
180.1505, the foreign corporation satisfies this subsection by filing the address of its registered office in this state and the name of its registered agent at that office and by promptly filing any changes to this information. A foreign limited liability company without a place of business in this state need not obtain a certificate of registration under
ss. 183.1002 to
183.1007. If a foreign limited liability company has a certificate of registration under
ss. 183.1002 to
183.1007, the foreign limited liability company satisfies this subsection by filing the address of its registered office in this state and the name of its registered agent at that office and by promptly filing any changes to this information.
139.34(10)
(10) Every vending machine operator shall in the vending machine operator's application for a permit list each county in which the vending machine operator operates such machines and state the number of such machines the vending machine operator is then operating in each such county.
139.35(1)(1)
Transfers. No person may give, sell or lend any stamps to another and no person may accept, purchase or borrow any stamps from another. All sales and transfers of stamps may be made only by the secretary to permit holding manufacturers and distributors.
139.35(2)
(2) Records. The secretary shall keep a record of the sale of all stamps including the names of the purchasers and the date of sale.
139.355 History
History: 1991 a. 39.
139.36
139.36
Refunds for unusable stamps. The secretary shall refund to any purchaser the money paid for any stamps returned unfit for use or otherwise unused or which have been affixed to packages which are unsalable. The secretary shall prescribe by rule the proof required to obtain such refund. The permittee shall pay the expenses of determining the amount of such refund.
139.36 History
History: 1991 a. 39;
1993 a. 482.
139.365
139.365
Other refunds. Section 71.75 (2),
(4) to
(7) and
(10) as it applies to the taxes under
ch. 71 applies to the taxes under this subchapter.
Section 71.74 (13) as it applies to the refund of taxes under
ch. 71 applies to the refund of taxes under this subchapter.
139.365 History
History: 1991 a. 39;
1993 a. 205.
139.37(1)(a)(a) No person shall sell or take orders for cigarettes for resale in this state for any manufacturer or permittee without first obtaining a salesperson's permit from the department of revenue. No manufacturer or permittee shall authorize any person to sell or take orders for cigarettes in this state without first having such person secure a salesperson's permit. The department shall issue the required number of permits to manufacturers and permittees who hold a valid certificate issued under
s. 73.03 (50). Each application for a permit shall disclose the name and address of the employer and such permit shall remain effective only while the salesperson represents such named employer. If such salesperson is thereafter employed by another manufacturer or permittee the salesperson shall obtain a new salesperson's permit. Each manufacturer and permittee shall notify the department within 10 days after the resignation or dismissal of any such salesperson holding a permit.
139.37(1)(c)1.
1. Has been convicted of a misdemeanor not involving
chs. 340 to
349, at least 3 times;
139.37(1)(c)3.
3. Is addicted to the use of a controlled substance or controlled substance analog under
ch. 961;
139.37(1)(c)4.
4. Has income which comes principally from gambling, or who has been convicted of 2 or more gambling offenses;
139.37(1)(c)5.
5. Has been guilty of crimes relating to prostitution; or
139.37(1)(c)6.
6. Has been guilty of crimes relating to loaning money or anything of value to persons holding licenses or permits pursuant to
ch. 125.
139.37(1)(d)
(d) The department of revenue shall immediately notify any person who is denied a permit in writing of the denial and the reasons therefor.
139.37(1)(e)
(e) A denial of a permit by the department of revenue is subject to judicial review under
ch. 227.
139.37(2)
(2) No representative of any manufacturer shall sell more than 3 cartons of any one kind of cigarettes to any retailer at one time.
139.38
139.38
Records, returns. 139.38(1)(1) Every manufacturer located out of the state shall keep records of all sales of cigarettes shipped into this state. Every manufacturer located in the state shall keep records of production, sales and withdrawals of cigarettes. Every distributor shall keep records of purchases and sales of cigarettes. Every manufacturer and distributor holding a permit from the secretary with the right to purchase and apply stamps shall also keep records of purchases and disposition of stamps. Every jobber, multiple retailer and vending machine operator shall keep records of all purchases and disposition of cigarettes. Every warehouse operator shall keep records of receipts and withdrawals of cigarettes. All such records shall be accurate and complete and be kept in a manner prescribed by the secretary. These records shall be preserved on the premises described in the permit or license in such a manner as to ensure permanency and accessibility for inspection at reasonable hours by authorized personnel of the department.
139.38(2)(a)(a) Except as provided in
par. (b), every permittee shall render a true and correct invoice of every sale of cigarettes at wholesale and shall on or before the 15th day of each calendar month make a verified report to the department of all cigarettes purchased, sold, received, warehoused or withdrawn during the preceding calendar month.
139.38(2)(b)
(b) The department may allow any jobber, multiple retailer or vending machine operator permittee who does not sell cigarettes, except for those on which the tax under this chapter is paid, to file a quarterly report. The quarterly report shall be filed on or before the 15th day of the next month following the close of each calendar quarter. The report shall specify the number of cigarettes purchased and sold during the preceding calendar quarter.
139.38(2m)
(2m) The provisions on timely filing under
s. 71.80 (18) apply to the tax under this subchapter.
139.38(3)
(3) The secretary shall prescribe reasonable and uniform methods of keeping records and making reports. The secretary shall prescribe and furnish the necessary report forms.
139.38(4)
(4) If the secretary finds that the records of any permittee are not kept in the prescribed form or are in such condition that an unusual amount of time is required to determine therefrom the amount of tax due, the secretary shall give notice of such fact to such permittee and, in such notice, require that the records be revised and kept in the prescribed form. If such permittee fails to comply within 30 days the permittee shall pay the expenses reasonably attributable to a proper examination and tax determination at the rate of $30 per day of each auditor. The secretary shall send a bill for such expenses and the permittee shall pay the amount of such bill within 10 days.
139.38(5)
(5) If any permittee fails to file a report when due the permittee shall be required to pay a late filing fee of $10. A report shall be considered filed in time if it is mailed in a properly addressed envelope with first class postage duly prepaid, which envelope is officially postmarked on the date due, and if the report is actually received by the secretary within 5 days of the due date.
139.38(6)
(6) Sections 71.78 (1) and
(4) to
(9) and
71.83 (2) (a) 3., relating to confidentiality of income, franchise and gift tax returns, apply to any information obtained from any person on a cigarette tax return, report, schedule, exhibit or other document or from an audit report pertaining to the same.
139.38(7)
(7) The department may inspect the business records of any retailer doing business on a reservation or on an Indian tribe's trust land.
139.39
139.39
Administration and enforcement. 139.39(1m)
(1m) The duly authorized employes of the department have all necessary police powers to prevent violations of this subchapter.
139.39(2)
(2) Authorized personnel of the department of justice and the department of revenue, and any sheriff, police officer, marshal or constable, within their respective jurisdictions, may at all reasonable hours enter the premises of any permittee or retailer and examine the books and records to determine whether the tax imposed by
s. 139.31 has been fully paid and may enter and inspect any premises where cigarettes are made, sold or stored to determine whether
ss. 139.30 to
139.44 are being complied with.
139.39(3)
(3) The secretary may suspend or revoke the permit of any permittee who violates
ss. 100.30 or
139.30 to
139.44 or any rules adopted under
sub. (1). The secretary shall revoke the permit of any permittee who violates
s. 100.30 3 or more times within a 5-year period.
139.39(4)
(4) No suit shall be maintained in any court to restrain or delay the collection or payment of the tax levied in
s. 139.31. The aggrieved taxpayer shall pay the tax when due and, if paid under protest, may at any time within 90 days from the date of payment, sue the state to recover the tax paid. If it is finally determined that any part of the tax was wrongfully collected, the department of administration shall issue a warrant on the state treasurer for the amount wrongfully collected, and the treasurer shall pay the same out of the general fund. A separate suit need not be filed for each separate payment made by any taxpayer, but a recovery may be had in one suit for as many payments as may have been made.
139.39(5)(a)(a) Any person may be compelled to testify in regard to any violation of
ss. 134.65 and
139.30 to
139.44 of which the person may have knowledge, even though such testimony may tend to incriminate the person, upon being granted immunity from prosecution in connection therewith, and upon the giving of such testimony, the person shall not be prosecuted because of the violation relative to which the person has testified.
139.39(6)
(6) Sections 71.74 (1),
(2),
(10),
(11) and
(14),
71.77,
71.80 (12),
71.91 (1) (a) and
(c) and
(2) to
(8) and
71.92 as they apply to the taxes under
ch. 71 apply to the taxes under this subchapter.
Section 71.74 (13) as it applies to the collection of the taxes under
ch. 71 applies to the collection of the taxes under this subchapter, except that the period during which notice of an additional assessment shall be given begins on the due date of the report under this subchapter.
139.39 Note
NOTE: Sub. (6) is shown as affected by 2 acts of the 1995 legislature and as merged by the revisor under s. 13.93 (2) (c).
