(End)
LRB-1226LRB-1226/6
JK:bjk&wlj:rs
2009 - 2010 LEGISLATURE
DOA:......Lillethun, BB0298 - Financial institution data match
For 2009-11 Budget -- Not Ready For Introduction
2009 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
taxation
Other taxation
This bill requires financial institutions to provide DOR with information about persons who hold accounts at the financial institutions so that DOR can determine if any of those accounts are held by persons who owe the state delinquent debts. Under current law, DOR may impose a levy on financial institutions to collect delinquent debts from the accounts of debtors.
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. 20.566 (1) (hc) of the statutes is created to read:
20.566 (1) (hc) Collections from the financial record matching program. From moneys received from the collection of delinquent Wisconsin taxes and other debts under s. 71.91, that are collected as a result of the program under s. 71.91 (8), the amounts in the schedule to pay the costs incurred by the department of revenue and financial institutions to match account holders at financial institutions to the department's delinquent account database, as provided under s. 71.91 (8). Notwithstanding s. 20.001 (3) (a), at the end of the fiscal year the unencumbered balance of this appropriation account lapses to the general fund.
****NOTE: This SECTION involves a change in an appropriation that must be reflected in the revised schedule in s. 20.005, stats.
SECTION 2. 71.91 (8) of the statutes is created to read:
71.91 (8) FINANCIAL RECORD MATCHING PROGRAM. (a) Definitions. In this subsection:
1. "Account" means a demand deposit account, checking account, negotiable withdrawal order account, savings account, time deposit account, or money market mutual fund account.
2. "Department" means the department of revenue.
3. "Financial institution" has the meaning given in s. 49.853 (1) (c).
4. "Ownership interest" has the meaning specified by the department by rule.
5. "Person" includes any individual, firm, partnership, limited liability company, joint venture, joint stock company, association, public or private corporation, estate, trust, receiver, personal representative, and other fiduciary, and the owner of a single-owner entity that is disregarded as a separate entity under this chapter.
(b) Matching program agreements. The department shall promulgate rules specifying procedures under which the department shall enter into agreements with financial institutions doing business in this state to operate the financial record matching program under this subsection. The agreement shall require the financial institution to participate in the financial record matching program under this subsection by electing either the financial institution matching option under par. (c) or the state matching option under par. (d). The information required under pars. (c) and (d) shall be provided by electronic data exchange in the manner specified by the department by rule or by agreement between the department and the financial institution. If the financial institution requests reimbursement, the department shall reimburse a financial institution for costs associated with participating in the financial record matching program under this subsection in an amount not to exceed $125 for each calendar quarter that the institution participates in the program.
(c) Financial institution matching option. If a financial institution with which the department has an agreement under par. (b) elects to use the financial institution matching option, the department shall provide to the financial institution, at least quarterly, the names and social security numbers or federal employer identification numbers of delinquent debtors. The financial institution shall match this information against all accounts maintained at the financial institution. The financial institution shall notify the department of the name, social security or federal employer identification number, address, account number, account type, and account balance of any person with ownership interest in any account that matches any name or number provided by the department. The notice shall be provided in a manner specified by the department by rule or by agreement between the department and the financial institution.
(d) State matching option. If a financial institution with which the department has an agreement under par. (b) elects to use the state matching option, the financial institution shall provide to the department, at least quarterly, the name, social security or federal employer identification number, address, account number, account type, and account balance of all persons who have an ownership interest in all accounts maintained at the financial institution. The department shall match the information provided with its database of delinquent debtors. The department may not disclose or retain information received from the financial institution concerning account holders who are not delinquent debtors.
(e) Confidentiality. A financial institution participating in the financial institution matching option under par. (c) and the employees, agents, officers, and directors of the financial institution, may use any information provided by the department only for the purpose of administering this subsection and shall be subject to the confidentiality provisions of ss. 71.78 (1) and 77.61 (5) (a). Any person violating this paragraph may be fined not less than $25 nor more than $500, or imprisoned in the county jail for not less than 10 days nor more than one year or both.
(f) Financial institution liability. A financial institution that provides information under par. (c) or (d) is not liable to any person for disclosing information to the department under this subsection or for any other action that the financial institution takes in good faith to comply with this subsection.
(g) Penalty. A financial institution that fails to provide any information required under par. (c) or (d) within 120 days from either the date that the information is due or from the date that the department requests the information may be subject to a $100 penalty for each occurrence of the financial institution's failure to provide account information about an account holder. The department may commence civil proceedings to enforce this subsection if a financial institution fails to provide any information required under par. (c) or (d) after 120 days from either the date that the information is due or from the date that the department requests the information.
SECTION 9443. Effective dates; Revenue.
(1) FINANCIAL RECORD MATCHING PROGRAM. The treatment of sections 20.566 (1) (hc) and 71.91 (8) of the statutes takes effect on the first day of the 6th month beginning after publication.
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LRB-1227LRB-1227/P1
JK:bjk:md
2009 - 2010 LEGISLATURE
DOA:......Lillethun, BB0299 - Standard of review
For 2009-11 Budget -- Not Ready For Introduction
2009 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
taxation
Other taxation
Under this bill, for purposes of reviewing DOR's rules, the Tax Appeals Commission must give controlling weight deference to DOR's interpretation of its rules unless the interpretation is plainly erroneous or inconsistent with the language of the rules or the statutes that govern the rules.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 1. 73.01 (4) (a) of the statutes is amended to read:
73.01 (4) (a) Subject to the provisions for judicial review contained in s. 73.015 and par. (ar), the commission shall be the final authority for the hearing and determination of all questions of law and fact arising under sub. (5) and s. 72.86 (4), 1985 stats., and ss. 70.38 (4) (a), 70.397, 70.64, and 70.995 (8), s. 76.38 (12) (a), 1993 stats., ss. 76.39 (4) (c), 76.48 (6), 76.91, 77.26 (3), 77.59 (5m) and (6) (b), 78.01, 78.22, 78.40, 78.555, 139.02, 139.03, 139.06, 139.31, 139.315, 139.33, 139.76, 139.78, 341.405, and 341.45, subch. XIV of ch. 71, and subch. VII of ch. 77. Whenever with respect to a pending appeal there is filed with the commission a stipulation signed by the department of revenue and the adverse party, under s. 73.03 (25), or the department of transportation and the adverse party agreeing to an affirmance, modification, or reversal of the department of revenue's or department of transportation's position with respect to some or all of the issues raised in the appeal, the commission shall enter an order affirming or modifying in whole or in part, or canceling the assessment appealed from, or allowing in whole or in part or denying the petitioner's refund claim, as the case may be, pursuant to and in accordance with the stipulation filed. No responsibility shall devolve upon the commission, respecting the signing of an order of dismissal as to any pending appeal settled by the department of revenue or the department of transportation without the approval of the commission.
SECTION 2. 73.01 (4) (ar) of the statutes is created to read:
73.01 (4) (ar) For purposes of reviewing the department of revenue's rules, the commission shall give controlling weight deference to the department's interpretation of its rules unless the interpretation is plainly erroneous or inconsistent with the language of the rules or the statutes that govern the rules.
SECTION 9343. Initial applicability; Revenue.
(1) TAX APPEALS COMMISSION; STANDARD OF REVIEW. The treatment of section 73.01 (4) (a) and (ar) of the statutes first applies to matters before the tax appeals commission on the effective date of this subsection.
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LRB-1228LRB-1228/P4
JK:bjk:ph
2009 - 2010 LEGISLATURE
DOA:......Lillethun, BB0300 - Direct marketing of cigarettes and tobacco products
For 2009-11 Budget -- Not Ready For Introduction
2009 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
taxation
Other taxation
Under current law, generally, a person may not sell cigarettes in this state as a distributor, jobber, vending machine operator, or multiple retailer without having a permit from DOR. A "jobber" is any person who acquires cigarettes from manufacturers or distributors, stores the cigarettes, and sells the cigarettes to retailers for resale.
Current law also prohibits a direct marketer from selling cigarettes to consumers in this state unless the direct marketer fulfills certain requirements. Current law defines "direct marketing" as publishing or making accessible an offer for the sale of cigarettes to consumers in this state, or selling cigarettes, using any means by which the consumer is not physically present on a premise that sells cigarettes.
Under current law, a direct marketer must certify to DOR: that the person will register with debit and credit card companies; that the invoices for all shipments of cigarettes will bear the direct marketer's name and address; and that the direct marketer will provide DOR any information that DOR considers necessary. The direct marketer may not sell any cigarettes unless the sales tax, use tax, or cigarette tax, as appropriate, has been paid on the sale of the cigarettes.
Current law requires a direct marketer who sells cigarettes to consumers in this state to verify the consumer's name and address and that the consumer is at least 18 years of age. In addition, any person who delivers such cigarettes to consumers in this state must verify that the person who purchased the cigarettes, and who receives the delivery, is at least 18 years of age.
Under this bill, generally, the same provisions under current law that apply to the direct marketing of cigarettes also apply to the direct marketing of tobacco products. In addition, no person may sell cigarettes or tobacco products to consumers in this state unless the person applies to DOR for a permit.
Under current law, a person may not sell cigarettes or tobacco products to consumers in this state unless the person obtains a license from each city, village, or town in which the person intends to sell cigarettes or tobacco products. Under the bill, no city, village, or town may issue a license to any person who has an arrest or conviction record related to selling cigarettes or tobacco products. Under the bill, a direct marketer who holds a valid permit to sell cigarettes or tobacco products to consumers in this state is not required to obtain a license from each city, village, or town in which the cigarettes or tobacco products are sold.
Because this bill creates a new crime or revises a penalty for an existing crime, the Joint Review Committee on Criminal Penalties may be requested to prepare a report concerning the proposed penalty and the costs or savings that are likely to result if the bill is enacted.
For further information see the state and local 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. 77.61 (11) of the statutes is amended to read:
77.61 (11) Any city, village or town clerk or other official whose duty it is to issue licenses or permits to engage in a business involving the sale at retail of tangible personal property subject to tax under this subchapter, or the furnishing of services so subject to tax, shall, before issuing such license or permit, require proof that the person to whom such license or permit is to be issued is the holder of a seller's permit or use tax registration certificate as required by this subchapter or has been informed by an employee of the department that the department will issue a seller's permit or use tax registration certificate to that person.
SECTION 2. 100.20 (1n) of the statutes is amended to read:
100.20 (1n) It is an unfair method of competition or an unfair trade practice for any person to sell cigarettes to consumers in this state in violation of s. 139.345 or to sell tobacco products to consumers in this state in violation of s. 139.795.
SECTION 3. 100.30 (2) (c) 1. b. of the statutes is amended to read:
100.30 (2) (c) 1. b. For every person holding a permit as a bonded direct marketer as defined in s. 139.30 (1d), as a distributor as defined in s. 139.30 (3), or as a multiple retailer as defined in s. 139.30 (8), with respect to that portion of the person's business which involves the purchase and sale of cigarettes "cost to wholesaler" means the cost charged by the cigarette manufacturer, disregarding any manufacturer's discount or any discount under s. 139.32 (5), plus the amount of tax imposed under s. 139.31. Except for a sale at wholesale between wholesalers, a markup to cover a proportionate part of the cost of doing business shall be added to the cost to wholesaler. In the absence of proof of a lesser cost, this markup shall be 3% of the cost to wholesaler as set forth in this subd. 1. b.
SECTION 4. 100.30 (2) (L) (intro.) of the statutes is amended to read:
100.30 (2) (L) (intro.) "Wholesaler" includes every person holding a permit as a bonded direct marketer as defined in s. 139.30 (1d) or as a multiple retailer under s. 139.30 (8) and every person engaged in the business of making sales at wholesale, other than sales of motor vehicle fuel at wholesale, within this state except as follows:
SECTION 5. 100.30 (2) (L) 2. of the statutes is amended to read:
100.30 (2) (L) 2. In the case of a person holding a permit as a bonded direct marketer as defined in s. 139.30 (1d) or as a multiple retailer as defined in s. 139.30 (8), "wholesaler" applies to that portion of the person's business involving the purchase and sale of cigarettes and to any wholesale portion of that person's business.
SECTION 6. 134.65 (1) of the statutes is amended to read:
134.65 (1) No person shall in any manner, or upon any pretense, or by any device, directly or indirectly sell, expose for sale, possess with intent to sell, exchange, barter, dispose of or give away any cigarettes or tobacco products to any person not holding a license as herein provided or a permit under ss. 139.30 to 139.41 or, 139.79, or 139.795 without first obtaining a license from the clerk of the city, village, or town wherein such privilege is sought to be exercised. This subsection does not apply to a person who holds a valid permit under s. 139.345 or 139.795 and who sells cigarettes or tobacco products solely as a direct marketer.
SECTION 7. 134.65 (1n) of the statutes is created to read:
134.65 (1n) (a) The department of revenue shall prepare an application form for licenses issued under this section. In addition to the information required under sub. (1m), the form shall require all of the following information:
1. The applicant's history relevant to the applicant's fitness to hold a license under this section.
2. The kind of license for which the applicant is applying.
3. The premises where cigarettes or tobacco products will be sold or stored.
4. If the applicant is a corporation, the identity of the corporate officers and agent.
5. If the applicant is a limited liability company, the identity of the company members or managers and agent.
6. The applicant's trade name, if any.
7. Any other information required by the department.
(b) The department of revenue shall provide one copy of the application form prepared under this subsection to each city, village, and town.
(c) Each applicant for a license under this section shall use the application form prepared under this subsection.
(d) 1. Each application for a license under this section shall be sworn to by the applicant and the applicant shall submit the application with the clerk of the city, village, or town where the intended place of sale is located.
2. Within 10 days of any change in any fact set forth in an application, the applicant or license holder shall file a written description of the change with the clerk of the city, village, or town where the application was submitted.
