SB518,15,23
19(7) Calculation of interest rates. (a) Annually, except as provided in par. (b),
20the department shall determine and publish an interest rate that is applicable to
21amounts owed to the department and to taxpayers during that calendar year and
22equal to the 2-year U.S. department of the treasury rate as of December 1 of the prior
23year, plus 4 percent.
SB518,16,224
(b) Annually, the department shall determine and publish an interest rate that
25is applicable to delinquent amounts owed to the department during that calendar
1year and equal to the 2-year U.S. department of the treasury rate as of December
21 of the prior year, plus 10 percent.
SB518,16,4
3(8) Applicability. Notwithstanding any other provision of law, this section
4applies to all taxes and fees administered by the department.
SB518, s. 23
5Section
23. 77.59 (3m) of the statutes is repealed.
SB518, s. 24
6Section
24. 77.59 (4) (a) of the statutes is amended to read:
SB518,17,57
77.59
(4) (a)
Except as provided in sub. (3m), at At any time within 4 years after
8the due date, or in the case of buyers the unextended due date, of a person's
9corresponding Wisconsin income or franchise tax return or, if exempt, within 4 years
10of the 15th day of the 4th month of the year following the close of the calendar or fiscal
11year for which that person files a claim, that person may, unless a determination by
12the department by office or field audit of a seller has been made and unless a
13determination by office audit of a buyer other than an audit in which the tax that is
14the subject of the refund claim was not adjusted has been made and unless a
15determination by field audit of the buyer has been made, file with the department
16a claim for refund of taxes paid to the department by that person.
If the amount of
17the claim is at least $50 or if either the seller has ceased doing business, the buyer
18is being field audited or the seller may no longer file a claim, the The buyer may,
19within the time period under this subsection, file a claim with the department for a
20refund of the taxes paid to the seller. A claim is timely if it fulfills the requirements
21under s. 77.61 (14). A buyer may claim a refund under this paragraph only on a form
22prescribed by the department, only by signing that form and only if the seller signs
23the form unless the department waives that requirement. If both a buyer and a seller
24file a valid claim for the same refund, the department may pay either claim. The
25claim for refund shall be regarded as a request for determination. The determination
1thus requested shall be made by the department within one year after the claim for
2refund is received by it unless the taxpayer has consented in writing to an extension
3of the one-year time period prior to its expiration.
All claims for refund shall be filed
4with the department. The seller shall not be liable to any buyer for amounts that the
5seller collected and paid to the department.
SB518, s. 25
6Section
25. 77.59 (8m) of the statutes is amended to read:
SB518,17,117
77.59
(8m) Within the time period under sub. (4), the department of revenue
8may refund excess taxes paid to it under this chapter, even if the person applying for
9the refund has been field audited in respect to those taxes, if the applicant's
10customers have filed valid claims for refunds with the
applicant department, and if
11the refund is passed along to those customers.
SB518, s. 26
12Section
26. 77.60 (1) (a) of the statutes is amended to read:
SB518,17,2213
77.60
(1) (a) Except as provided in par. (b), unpaid taxes shall bear interest at
14the rate
of 12% determined under s. 73.14 (7) (a) per year from the due date of the
15return until paid or deposited with the department. Taxes refunded to the seller
16shall bear interest at
9% the rate determined under s. 73.14 (7) (a) per year from the
17due date of the return to the date on which the refund is certified on the refund rolls.
18An extension of time within which to file a return shall not extend the due date of the
19return for purposes of interest computation. Taxes refunded to the buyer shall bear
20interest at
9% the rate determined under s. 73.14 (7) (a) per year from the last day
21of the month following the month during which the buyer paid the tax to the date on
22which the refund is certified on the refund rolls.
SB518, s. 27
23Section
27. 77.60 (1) (b) of the statutes is amended to read:
SB518,18,524
77.60
(1) (b) Any unpaid taxes for a calendar year or a fiscal year resulting from
25a field audit shall bear interest at the rate
of 12%
determined under s. 73.14 (7) (a)
1per year from the due date of the taxpayer's Wisconsin income or franchise tax return
2for that calendar or fiscal year or, if exempt, from the 15th day of the 4th month of
3the year after the close of the calendar or fiscal year for which the taxes are due to
4the date on which the taxes are paid or, if unpaid, become delinquent, whichever is
5earlier.
SB518, s. 28
6Section
28. 77.60 (2) (intro.) of the statutes is amended to read:
SB518,18,177
77.60
(2) (intro.) Delinquent sales and use tax returns shall be subject to a $20
8late filing fee unless the return was not timely filed because of the death of the person
9required to file or unless the return was not timely filed due to good cause and not
10due to neglect. The fee shall not apply if the department has failed to issue a seller's
11permit or a use tax registration within 30 days of the receipt of an application for a
12seller's permit or use tax registration accompanied by the fee established under s.
1373.03 (50), if the person does not hold a valid certificate under s. 73.03 (50), and the
14security required under s. 77.61 (2) has not been placed with the department.
15Delinquent sales and use taxes shall bear interest at
the rate of 1.5% a rate that is
16equal to one-twelfth of the rate determined under s. 73.14 (7) (b) per month until
17paid. The taxes imposed by this subchapter shall become delinquent if not paid:
SB518, s. 29
18Section
29. 77.60 (3) of the statutes is amended to read:
SB518,18,2319
77.60
(3) If Subject to s. 73.14 (6), if due to neglect an incorrect return is filed,
20the entire tax finally determined shall be subject to a penalty of 25%, or 50% in the
21case of returns under s. 77.61 (1) (c), of the tax exclusive of interest or other penalty.
22A person filing an incorrect return shall have the burden of proving that the error
23or errors were due to good cause and not due to neglect.
SB518, s. 30
24Section
30. 77.60 (4) of the statutes is amended to read:
SB518,19,11
177.60
(4) In Subject to s. 73.14 (6), in case of failure to file any return required
2under authority of s. 77.58 by the due date, determined with regard to any extension
3of time for filing, unless it is shown that such failure was due to reasonable cause and
4not due to neglect, there shall be added to the amount required to be shown as tax
5on such return 5% of the amount of such tax if the failure is not for more than one
6month, with an additional 5% for each additional month or fraction thereof during
7which such failure continues, not exceeding 25% in the aggregate. For purposes of
8this subsection, the amount of tax required to be shown on the return shall be
9reduced by the amount of any part of the tax which is paid on or before the due date
10prescribed for payment of the tax and by the amount of any credit against the tax
11which may be claimed upon the return.
SB518, s. 31
12Section
31. 77.60 (5) of the statutes is amended to read:
SB518,19,1613
77.60
(5) If Subject to s. 73.14 (6), if a person fails to file a return when due or
14files a false or fraudulent return with intent in either case to defeat or evade the tax
15imposed by this subchapter, a penalty of 50% shall be added to the tax required to
16be paid, exclusive of interest and other penalties.
SB518, s. 32
17Section
32. 77.96 (5) of the statutes is amended to read:
SB518,19,2318
77.96
(5) Each person subject to a surcharge under s. 77.93 shall, on or before
19the due date, including extensions, for filing under ch. 71, file an accurate statement
20of its gross tax liability or net business income. Payments made after the due date
21under sub. (2) and on or before the due date under this subsection are not delinquent
22but are subject to interest at the rate
of 12% determined under s. 73.14 (7) (a) per
23year.
SB518, s. 33
24Section
33. 78.68 (1) of the statutes is amended to read:
SB518,20,5
178.68
(1) Unpaid taxes shall bear interest at the rate of 12% per year from the
2due date of the tax until paid or deposited with the department, and all refunded
3taxes bear interest at the rate
of 9% determined under s. 73.14 (7) (a) per year from
4the due date of the return to the date on which the refund is certified on the refund
5rolls.
SB518, s. 34
6Section
34. 78.68 (2) (intro.) of the statutes is amended to read:
SB518,20,117
78.68
(2) (intro.) Delinquent tax returns are subject to a $10 late filing fee.
8Delinquent motor vehicle fuel, alternate fuels and general aviation fuel taxes bear
9interest at
the rate of 1.5% a rate that is equal to one-twelfth of the rate determined
10under s. 73.14 (7) (b) per month until paid. The taxes imposed by this chapter are
11delinquent if not paid as follows:
SB518, s. 35
12Section
35. 78.68 (3) of the statutes is amended to read:
SB518,20,1613
78.68
(3) If Subject to s. 73.14 (6), if due to neglect an incorrect return is filed,
14the entire tax finally determined is subject to a penalty of 25% of the tax exclusive
15of interest or other penalty.
A person filing an incorrect return has the burden of
16proving that the error or errors were due to good cause and not due to neglect.
SB518, s. 36
17Section
36. 227.12 (3) of the statutes is amended to read:
SB518,20,2318
227.12
(3) Within Except as provided in sub. (4), within a reasonable period of
19time after the receipt of a petition under this section, an agency shall either deny the
20petition in writing or proceed with the requested rule making. If the agency denies
21the petition, it shall promptly notify the petitioner of the denial, including a brief
22statement of the reason for the denial. If the agency proceeds with the requested rule
23making, it shall follow the procedures prescribed in this subchapter.
SB518, s. 37
24Section
37. 227.12 (4) of the statutes is created to read:
SB518,21,14
1227.12
(4) If a petition to the department of revenue alleges that the
2department has established a standard by which it is construing a state tax statute,
3but has not promulgated a rule to adopt the standard or published the standard in
4a manner that is available to the public, the department shall initiate rule making
5within 90 days from the date that the petition is received and submit a rule to the
6legislature pursuant to s. 227.19 (2) no later than 180 days from the date that the
7petition is received. The rule need not adhere to the standard established by the
8department, but shall address the same circumstances as the standard addresses.
9If the department fails to comply with this subsection, any of the petitioners may
10commence an action in circuit court to compel the department's compliance. If an
11action is commenced under this subsection, the court may compel the department to
12provide information to the court related to the degree to which the department is
13enforcing the standard, except that the information provided by the department
14shall not disclose the identity of any person who is not a party to the action.
SB518, s. 38
15Section
38. 227.41 (1) of the statutes is amended to read:
SB518,21,2216
227.41
(1) Any Except as provided in sub. (5), any agency may, on petition by
17any interested person, issue a declaratory ruling with respect to the applicability to
18any person, property or state of facts of any rule or statute enforced by it. Full
19opportunity for hearing shall be afforded to interested parties. A declaratory ruling
20shall bind the agency and all parties to the proceedings on the statement of facts
21alleged, unless it is altered or set aside by a court. A ruling shall be subject to review
22in the circuit court in the manner provided for the review of administrative decisions.
SB518, s. 39
23Section
39. 227.41 (3) of the statutes is amended to read:
SB518,21,2524
227.41
(3) The Except as provided in sub. (5) (b), the petition shall be filed with
25the administrative head of the agency or with a member of the agency's policy board.
SB518, s. 40
1Section
40. 227.41 (4) of the statutes is amended to read:
SB518,22,62
227.41
(4) Within Except as provided in sub. (5) (c), within a reasonable time
3after receipt of a petition pursuant to this section, an agency shall either deny the
4petition in writing or schedule the matter for hearing. If the agency denies the
5petition, it shall promptly notify the person who filed the petition of its decision,
6including a brief statement of the reasons therefor.
SB518, s. 41
7Section
41. 227.41 (5) of the statutes is created to read:
SB518,22,158
227.41
(5) (a) The department of revenue shall, on petition by any interested
9person, or any group or association of interested persons, issue a declaratory ruling
10with respect to the applicability to any person, property, or state of facts of any rule
11or statute enforced by it. Full opportunity for hearing shall be afforded to interested
12parties. A declaratory ruling shall bind the department and all parties to the
13proceedings on the statement of facts alleged, unless it is altered or set aside by the
14tax appeals commission or a court. A ruling, including the denial of the petition, shall
15be subject to review by the tax appeals commission as provided in ch. 73.
SB518,22,1716
(b) A petition under par. (a) shall conform to the requirements under sub. (2)
17and be filed with the secretary of revenue.
SB518,22,2418
(c) No later than 30 days after the day that the secretary of revenue receives
19a petition under this subsection, the department of revenue shall either deny the
20petition in writing or schedule the matter for hearing. The department may deny the
21petition only if the petition fails to comply with the requirements under sub. (2). If
22the department denies the petition, it shall promptly notify the person who filed the
23petition of its decision and include with the notice a brief statement of the reasons
24for denying the petition.
SB518,23,5
1(d) If the department of revenue does not deny the petition, the department
2shall hold a hearing and issue a ruling on the petition no later than 90 days after the
3day that the secretary of revenue receives the petition, unless the deadline is
4extended by written agreement of all parties. Upon agreement of the parties, the
5department may rule on the petition based on facts stipulated by the parties.
SB518, s. 42
6Section
42. 227.485 (2) (a) of the statutes is amended to read:
SB518,23,87
227.485
(2) (a) "Hearing examiner" means the agency
, tax appeals commission, 8or hearing examiner conducting the hearing.
SB518, s. 43
9Section
43. 227.485 (3) of the statutes is amended to read:
SB518,23,1610
227.485
(3) In Except as provided under sub. (3m), in any contested case in
11which an individual, a small nonprofit corporation or a small business is the
12prevailing party and submits a motion for costs under this section, the hearing
13examiner shall award the prevailing party the costs incurred in connection with the
14contested case, unless the hearing examiner finds that the state agency which is the
15losing party was substantially justified in taking its position or that special
16circumstances exist that would make the award unjust.
SB518, s. 44
17Section
44. 227.485 (3m) of the statutes is created to read:
SB518,23,2418
227.485
(3m) In any proceeding before the tax appeals commission in which
19the department of revenue is not the prevailing party and the prevailing party
20submits a motion for costs under this section, the tax appeals commission shall
21award the prevailing party the costs incurred in connection with the proceeding
22unless the tax appeals commission determines that the department of revenue was
23substantially justified in taking its position or that special circumstances exist that
24would make the award unjust.
SB518, s. 45
25Section
45. 227.485 (5) of the statutes is amended to read:
SB518,24,13
1227.485
(5) If the hearing examiner awards costs under sub. (3)
or (3m), he or
2she shall determine the costs under this subsection, except as modified under sub.
3(4). The decision on the merits of the case shall be placed in a proposed decision and
4submitted under ss. 227.47 and 227.48. The prevailing party shall submit, within
530 days after service of the proposed decision, to the hearing examiner and to the
6state agency which is the losing party an itemized application for fees and other
7expenses, including an itemized statement from any attorney or expert witness
8representing or appearing on behalf of the party stating the actual time expended
9and the rate at which fees and other expenses were computed. The state agency
10which is the losing party has 15 working days from the date of receipt of the
11application to respond in writing to the hearing examiner. The hearing examiner
12shall determine the amount of costs using the criteria specified in s. 814.245 (5) and
13include an order for payment of costs in the final decision.
SB518, s. 46
14Section
46. 227.485 (7) of the statutes is amended to read:
SB518,24,2015
227.485
(7) An individual is not eligible to recover costs under this section if
16the person's properly reported federal adjusted gross income was $150,000 or more
17in each of the 3 calendar years or corresponding fiscal years immediately prior to the
18commencement of the case. This subsection applies whether the person files the tax
19return individually or in combination with a spouse.
This subsection does not apply
20to costs awarded under sub. (3m).
SB518, s. 47
21Section
47. 227.485 (10) (intro.) of the statutes is amended to read:
SB518,24,2522
227.485
(10) (intro.) If the examiner finds that the motion under sub. (3)
or (3m) 23is frivolous, the examiner may award the state agency all reasonable costs in
24responding to the motion. In order to find a motion to be frivolous, the examiner must
25find one or more of the following:
SB518, s. 48
1Section
48. 803.08 of the statutes is amended to read:
SB518,25,7
2803.08 Class actions. When the question before the court is one of a common
3or general interest of many persons or when the parties are very numerous and it
4may be impracticable to bring them all before the court, one or more may sue or
5defend for the benefit of the whole
, except that no claim may be maintained against
6the state or any other party under this section if the relief sought includes the refund
7of or damages associated with a tax administered by the state.
SB518,25,109
(1) The treatment of section 803.08 of the statutes first applies to lawsuits that
10are pending on the effective date of this subsection.
SB518,25,1511
(2) The treatment of sections 71.83 (1) (a) 2. and 3., 73.01 (4) (e) 2., 73.03 (25),
1273.14 (1) to (6) and (8), 77.59 (3m), (4) (a), and (8m), 77.60 (3), (4), and (5), 78.68 (3),
13and 227.485 (3), (3m), and (7) of the statutes first applies to audits, assessments,
14claims for refunds, and actions concerning any appeal that are pending on the
15effective date of this subsection.
SB518,25,2016
(3) The treatment of sections 71.82 (1) (a), (b), and (c) and (2) (a), (b), (c), and
17(d), 71.84 (1) and (2) (a) and (c), 71.90 (1) and (2), 71.91 (6) (d) 1., (e) 3., (f) 5., and (g)
182., 73.14 (7), 77.60 (1) (a) and (b) and (2) (intro.), 77.96 (5), and 78.68 (1) and (2) (intro.)
19of the statutes first applies to audits and assessments that are issued, and claims for
20refunds that are filed, on January 1, 2007.
SB518,25,2322
(1) This act takes effect on the first day of the 2nd month beginning after
23publication.