(c) No person may be issued a permit under this subsection unless the person certifies to the department, in the manner prescribed by the department, that the person shall register with credit card and debit card companies; that the invoices and all means of solicitation for all shipments of tobacco product sales from the person shall bear the person's name and address and the permit number of the permit ultimately issued under this subsection; and that the person shall provide the department any information the department considers necessary to administer this section.
(2) No person may sell tobacco products to consumers in this state by direct marketing unless the tax imposed under s. 139.76, and under s. 77.52 or 77.53, has been paid with regard to such products.
(3) No person may sell tobacco products to a consumer in this state by direct marketing unless the person does all of the following:
(a) Verifies the consumer's identity and address and that the consumer is at least 18 years of age by any of the following methods:
1. The person uses a database that includes information based on public records.
2. The person receives from the consumer, at the time of purchase, a copy of an identification card and verifies that the name specified on the identification card matches the name of the consumer and that the birth date on the identification card indicates that the consumer is at least 18 years of age.
3. The person uses a mechanism, other than a mechanism specified under subd. 1. or 2., that is approved by the department.
(b) Obtains from the consumer, at the time of purchase, a statement signed by the consumer that confirms all of the following:
1. The consumer's name, address, and birth date.
2. That the consumer understands that no person who is under 18 years of age may purchase or possess tobacco products or falsely represent his or her age for the purpose of receiving tobacco products, as provided under s. 254.92.
3. That the consumer understands that any person who, for the purpose of obtaining credit, goods, or services, intentionally uses, attempts to use, or possesses with intent to use, any personal identifying information or personal identification document of an individual, including a deceased individual, without the authorization or consent of the individual and by representing that he or she is the individual, that he or she is acting with the authorization or consent of the individual, or that the information or document belongs to him or her, is guilty of a Class H felony, as provided under s. 943.201.
(4) Any person who, without having a valid permit under sub. (1), sells or solicits sales of tobacco products to consumers in this state by direct marketing shall pay a penalty to the department of $5,000 or an amount that is equal to 50 percent of the tax due on the tobacco products the person sold, without having a valid permit under sub. (1), to consumers in this state by direct marketing, whichever is greater.
(5) (a) No person may deliver a package of tobacco products sold by direct marketing to a consumer in this state unless the person making the delivery receives an identification card from the person receiving the package and verifies that the person receiving the package is at least 18 years of age. If the person receiving the package is not the person to whom the package is addressed, the person delivering the package shall have the person receiving the package sign a statement that affirms that the person to whom the package is addressed is at least 18 years of age.
(b) No person may deliver a package of tobacco products to a consumer in this state unless the seller of the tobacco products provides proof to the person making the delivery that the seller has complied with all requirements under this subchapter. A seller shall have no course of action against any person who refuses to deliver tobacco products as provided under this paragraph.
(6) All packages of tobacco products shipped to consumers in this state shall be clearly labelled "TOBACCO PRODUCTS" on the outside of such packages.
(7) (a) Any nonresident or foreign direct marketer that has not registered to do business in this state as a foreign corporation or business entity shall, as a condition precedent to obtaining a permit under s. 139.79 (1), appoint and continually engage the services of an agent in this state to act as agent for the service of process on whom all processes, and any action or proceeding against it concerning or arising out of the enforcement of this chapter, may be served in any manner authorized by law. That service shall constitute legal and valid service of process on the direct marketer. The direct marketer shall provide the name, address, phone number, and proof of the appointment and availability of the agent to the department.
(b) A direct marketer described under par. (a) shall provide notice to the department no later than 30 calendar days before termination of the authority of an agent under par. (a) and shall provide proof to the satisfaction of the department of the appointment of a new agent no later than 5 calendar days before the termination of an existing appointment. In the event an agent terminates an appointment, the direct marketer shall notify the department of that termination no later than 5 calendar days after the termination and shall include proof to the satisfaction of the department of the appointment of a new agent.
(c) The secretary of state is the agent in this state for the service of process of any direct marketer who has not appointed and engaged an agent as provided under par. (a), except that the secretary of state acting as the direct marketer's agent for the service of process does not satisfy the requirements imposed by par. (a).
SECTION 75. 139.81 (1) of the statutes is amended to read:
139.81 (1) No person may sell or take orders for tobacco products for resale or solicit sales of tobacco products in this state for any manufacturer or permittee unless the person has filed an application for and obtained a valid certificate under s. 73.03 (50) and a salesperson's permit from the department. No manufacturer or permittee shall authorize any person to sell or take orders for tobacco products or solicit sales of tobacco products in this state unless the person has filed an application for and obtained a valid certificate under s. 73.03 (50) and a salesperson's permit. No person may authorize the sale of tobacco products or the solicitation of sales of tobacco products in this state unless the person has filed an application for and obtained a valid certificate under s. 73.03 (50) and a valid permit under s. 139.79. Each application for a salesperson's permit shall disclose the name and address of the employer or the person for whom the salesperson is selling or soliciting and shall remain effective only while the salesperson represents the named employer or person. If the salesperson is thereafter employed by another manufacturer or permittee person the salesperson shall obtain a new salesperson's permit. Each manufacturer and permittee The employer of any such salesperson shall notify the department within 10 days after the resignation or dismissal of any the salesperson holding a permit.
SECTION 76. 139.81 (2) of the statutes is amended to read:
139.81 (2) Section 139.34 (1) (b) (c) to (e) applies to the permits under this section.
SECTION 77. 139.86 of the statutes is amended to read:
139.86 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. The attorney general may take any action necessary to enforce s. 139.795.
SECTION 78. 139.87 of the statutes is created to read:
139.87 Lists. The department shall compile and maintain a list of direct marketers who have complied with the requirements of s. 139.795 and a list of direct marketers who the department knows have not complied with such requirements. The department shall provide copies of the lists described under this section to the attorney general and to each person who delivers tobacco products to consumers in this state that are sold by direct marketing under s. 139.795.
SECTION 79. 995.12 (5) (a) of the statutes is amended to read:
995.12 (5) (a) License revocation and civil penalty. Upon a determination that a distributor has violated sub. (2) (c), the department may revoke or suspend the license of the distributor in the manner provided under s. 139.44 (4) and (7). Each stamp affixed and each sale of cigarettes or offer or possession to sell cigarettes in violation of sub. (2) (c) shall constitute a separate violation. For each violation the department may also impose a forfeiture in an amount not to exceed the greater of 500% of the retail value of the cigarettes or $5,000.
SECTION 9341. Initial applicability; Revenue.
(1) DIRECT MARKETING OF CIGARETTES AND TOBACCO PRODUCTS. The treatment of sections 77.61 (11), 100.20 (1n), 100.30 (2) (c) 1. b. and (L) (intro.) and 2., 134.65 (1), (1n), (1r), and (2) (a), 134.66 (2) (d) and (3m), 139.30 (4n), (7), and (8s), 139.32 (4), 139.321 (1) (intro.) and (a) 1., 139.34 (1) (a), (b), (c) 1., 1m., 2., 3., 4., 4m., 5., 6., and 7., and (cm), (4), (6), and (8), 139.345 (1) (a), (b), and (d), (3) (intro.) and (a) (intro.) and 2., (7) (a), (8), (9), (10), (11), and (12), 139.37 (1) (a), 139.40 (1) and (2), 139.44 (1m), (2), (3), (4), (5), (6), (6m), (7), and (13), 139.75 (2), (3g), (3r), (4) (a), (c), and (cm), (4n), (5s), (7), and (8), 139.76 (3), 139.78 (1m), 139.79 (title), (1), and (2), 139.795, 139.81 (1) and (2), 139.86, 139.87, and 995.12 (5) (a) of the statutes, the renumbering and amendment of section 134.65 (5) of the statutes, and the creation of section 134.65 (5) (b) of the statutes first apply to sales of cigarettes and tobacco products made on the effective date of this subsection.
(End)
LRB-0720LRB-0720/1
JK:kjf:pg
2007 - 2008 LEGISLATURE
DOA:......Easton, BB0155 - Changes to film production credits
For 2007-09 Budget -- Not Ready For Introduction
2007 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
taxation
Income taxation
This bill makes technical corrections to the film production services and film production company investment income and franchise tax credits in order to simplify the administration of the credits.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 1. 71.07 (5h) (a) 4. of the statutes is amended to read:
71.07 (5h) (a) 4. "Previously owned property" means real property that the claimant or a related person owned during the 2 years prior to doing business in this state as a film production company and for which the claimant may not deduct a loss from the sale of the property to, or an exchange of the property with, the related person under section 267 of the Internal Revenue Code, except that section 267 of the Internal Revenue Code is modified so that if the claimant owns any part of the property, rather than 50 percent ownership, the claimant is subject to section 267 of the Internal Revenue Code for purposes of this subsection.
SECTION 2. 71.07 (5h) (c) 2. of the statutes is amended to read:
71.07 (5h) (c) 2. A claimant may claim the credit under par. (b) 2. for an amount expended to construct, rehabilitate, remodel, or repair real property, if the claimant began the physical work of construction, rehabilitation, remodeling, or repair, or any demolition or destruction in preparation for the physical work, after December 31, 2007, or if and the completed project is placed in service after December 31, 2007.
SECTION 3. 71.07 (5h) (c) 3. of the statutes is amended to read:
71.07 (5h) (c) 3. A claimant may claim the credit under par. (b) 2. for an amount expended to acquire real property, if the property is not previously owned property and if the claimant acquires the property after December 31, 2007, or if and the completed project is placed in service after December 31, 2007.
SECTION 4. 71.28 (5h) (a) 4. of the statutes is amended to read:
71.28 (5h) (a) 4. "Previously owned property" means real property that the claimant or a related person owned during the 2 years prior to doing business in this state as a film production company and for which the claimant may not deduct a loss from the sale of the property to, or an exchange of the property with, the related person under section 267 of the Internal Revenue Code, except that section 267 of the Internal Revenue Code is modified so that if the claimant owns any part of the property, rather than 50 percent ownership, the claimant is subject to section 267 of the Internal Revenue Code for purposes of this subsection.
SECTION 5. 71.28 (5h) (c) 2. of the statutes is amended to read:
71.28 (5h) (c) 2. A claimant may claim the credit under par. (b) 2. for an amount expended to construct, rehabilitate, remodel, or repair real property, if the claimant began the physical work of construction, rehabilitation, remodeling, or repair, or any demolition or destruction in preparation for the physical work, after December 31, 2007, or if and the completed project is placed in service after December 31, 2007.
SECTION 6. 71.28 (5h) (c) 3. of the statutes is amended to read:
71.28 (5h) (c) 3. A claimant may claim the credit under par. (b) 2. for an amount expended to acquire real property, if the property is not previously owned property and if the claimant acquires the property after December 31, 2007, or if and the completed project is placed in service after December 31, 2007.
SECTION 7. 71.30 (3) (epp) of the statutes is renumbered 71.30 (3) (eps) and amended to read:
71.30 (3) (eps) Film production services credit under s. 71.28 (5f) (b) 1. and 3.
SECTION 8. 71.30 (3) (f) of the statutes is amended to read:
71.30 (3) (f) The total of farmers' drought property tax credit under s. 71.28 (1fd), farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.28 (2m), enterprise zone jobs credit under s. 71.28 (3w), film production services credit under s. 71.28 (5f) (b) 2., and estimated tax payments under s. 71.29.
SECTION 9. 71.47 (5h) (a) 4. of the statutes is amended to read:
71.47 (5h) (a) 4. "Previously owned property" means real property that the claimant or a related person owned during the 2 years prior to doing business in this state as a film production company and for which the claimant may not deduct a loss from the sale of the property to, or an exchange of the property with, the related person under section 267 of the Internal Revenue Code, except that section 267 of the Internal Revenue Code is modified so that if the claimant owns any part of the property, rather than 50 percent ownership, the claimant is subject to section 267 of the Internal Revenue Code for purposes of this subsection.
SECTION 10. 71.47 (5h) (c) 2. of the statutes is amended to read:
71.47 (5h) (c) 2. A claimant may claim the credit under par. (b) 2. for an amount expended to construct, rehabilitate, remodel, or repair real property, if the claimant began the physical work of construction, rehabilitation, remodeling, or repair, or any demolition or destruction in preparation for the physical work, after December 31, 2007, or if and the completed project is placed in service after December 31, 2007.
SECTION 11. 71.47 (5h) (c) 3. of the statutes is amended to read:
71.47 (5h) (c) 3. A claimant may claim the credit under par. (b) 2. for an amount expended to acquire real property, if the property is not previously owned property and if the claimant acquires the property after December 31, 2007, or if and the completed project is placed in service after December 31, 2007.
SECTION 12. 71.49 (1) (epp) of the statutes is renumbered 71.49 (1) (eps) and amended to read:
71.49 (1) (eps) Film production services credit under s. 71.47 (5f) (b) 1. and 3.
SECTION 13. 71.49 (1) (f) of the statutes is amended to read:
71.49 (1) (f) The total of farmers' drought property tax credit under s. 71.47 (1fd), farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.47 (2m), enterprise zone jobs credit under s. 71.47 (3w), film production services credit under s. 71.28 (5f) (b) 2., and estimated tax payments under s. 71.48.
(End)
LRB-0721LRB-0721/2
JK:kjf:rs
2007 - 2008 LEGISLATURE
DOA:......Easton, BB0161 - Pass-through entities withholdings simplification
For 2007-09 Budget -- Not Ready For Introduction
2007 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
taxation
Income taxation
Under current law, a partnership, a limited liability company, a tax-option corporation, an estate, or a trust that is treated as a pass-through entity for federal income tax purposes must withhold income or franchise taxes from the income that the entity may distribute to a nonresident partner, member, shareholder, or beneficiary. However, a nonresident partner's, member's, shareholder's, or beneficiary's share of income from the pass-through entity that is attributable to this state is not included in determining the amount of the withholding tax if the partner, member, shareholder, or beneficiary is exempt from state income and franchise taxes or if the partner, member, shareholder, or beneficiary has no state income other than his or her share of income from the pass-through entity that is attributable to this state and the amount of that income is less than $1,000. Under this bill, income excluded from determining the amount of a pass-through entity's withholding taxes includes income of a nonresident partner, member, shareholder, or beneficiary who files an affidavit with DOR, whereby the nonresident partner, member, shareholder, or beneficiary agrees to file a state income or franchise tax return and be subject to the personal jurisdiction of DOR, the Tax Appeals Commission, and the courts of this state for the purpose of determining and collecting state income and franchise taxes.
Current law imposes interest on certain underpayments of estimated withholding taxes imposed on pass-through entities and on late payments of withholding taxes imposed on pass-through entities. This bill eliminates the provision related to imposing interest on the underpayments of estimated withholding taxes imposed on pass-through entities.
This bill will be referred to the Joint Survey Committee on Tax Exemptions for a detailed analysis, which will be printed as an appendix to this bill.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 1. 71.775 (3) (a) 2. of the statutes is amended to read:
71.775 (3) (a) 2. The partner, member, shareholder, or beneficiary has no Wisconsin income other than his or her partner's, member's, shareholder's, or beneficiary's share of income from the pass-through entity that is attributable to this state and his or her share of such income is less than $1,000.
SECTION 2. 71.775 (3) (a) 3. of the statutes is created to read:
71.775 (3) (a) 3. The nonresident partner, member, shareholder, or beneficiary files an affidavit with the department, in the form and manner prescribed by the department, whereby the nonresident partner, member, shareholder, or beneficiary agrees to file a Wisconsin income or franchise tax return and be subject to the personal jurisdiction of the department, the tax appeals commission, and the courts of this state for the purpose of determining and collecting Wisconsin income and franchise taxes, including estimated tax payments, together with any related interest and penalties.
SECTION 3. 71.775 (4) (b) 2. of the statutes is amended to read:
71.775 (4) (b) 2. A pass-through entity that pays the tax withheld under sub. (2) as provided under subd. 1. is not subject to an underpayment of estimated tax under s. 71.09 or 71.29, if 90 percent of the tax that is due for the current taxable year is paid by the unextended due date or if 100 percent of the tax that is due for the taxable year immediately preceding the current taxable year is paid by the unextended due date and the taxable year immediately preceding the current taxable year was a 12-month period. Interest at the rate of 12 percent shall be imposed on the unpaid amount of the tax withheld due under sub. (2) during any extension period and interest at the rate of 18 percent shall be imposed on the unpaid amount of the tax withheld due under sub. (2) for the period beginning with the extended due date and ending with the date that the unpaid amount is paid in full.
SECTION 4. 71.775 (4) (d) of the statutes is amended to read:
