All retailers selling cigarettes shall retain invoices covering all purchases of cigarettes. The invoices shall be retained on the licensed premises in groups covering a period of one month each, and shall be available for inspection at all reasonable times by any representative of the department.
Invoicing of sales, including exchanges of cigarettes. Tax 9.47(1)(1)
A true and correct invoice shall accompany the cigarettes at the time of any sale, including exchanges, between permittees or between permittees and retailers. Permittees include cigarette sellers, distributors, jobbers, vending machine operators or multiple retailers. A true and correct invoice shall contain the following information:
Names and business addresses of both parties as shown on the permit or license of each.
Number of packs or cartons of cigarettes by brand and pack.
Unit price per pack or carton. The unit price of the cigarettes alone may be shown with the Wisconsin cigarette tax stated as a separate item.
Signature of the person receiving the cigarettes. In an exchange, both parties shall sign the invoice.
When a seller, acting as a representative of a cigarette manufacturer, exchanges fresh cigarettes for dried or damaged cigarettes, the seller shall accept and receive only dried or damaged cigarettes of the brands manufactured by the seller's employer and shall prepare and deliver with the fresh cigarettes a true and correct invoice as set forth in sub. (1)
When a seller, acting as a representative of a cigarette manufacturer, or when a permittee returns dried or damaged cigarettes to a distributor for return to the manufacturer and receives fresh cigarettes in exchange, the seller or permittee shall prepare a true and correct invoice as set forth in sub. (1)
. Each carton of dried or damaged cigarettes shall contain only cigarettes of one brand and pack. The distributor shall verify that all of the cigarettes are stamped cigarettes.
A clearly legible copy of all invoices evidencing a sale or exchange of cigarettes shall be retained by each of the parties to the transaction for a period of 5 years from the date of the invoice, in groups covering a period of one month each.
Tax 9.47 History
Cr. Register, November, 1971, No. 191
, eff. 12-1-71; correction in (2) and (3) made under s. 13.93 (2m) (b) 5., Stats., Register, February, 1994, No. 458
; correction in (1) (intro.) made under s. 13.93 (2m) (b) 5., Stats., Register, October, 1995, No. 478
; am. (1) (intro.), (d), (e), (3) and (4), Register, August, 1996, No. 488
, eff. 9-1-96; CR 13-013
: am. (4) Register August 2013 No. 692
, eff. 9-1-13.
Cigarettes shipped into this state by manufacturers to their representatives, including advertising agencies and airlines, for the purpose of free samples shall be accompanied by a memo invoice stating brands and number of cigarettes. The memos shall be retained by the representative for the statutory period of 5 years.
Manufacturers may ship free sample cigarettes in quantities of 400 or fewer to consumers, such as employees or stockholders.
All sample cigarettes described in subs. (1)
shall bear the legend: “Applicable state tax paid. Not for resale." The cigarettes are subject to Wisconsin cigarette use tax. The tax paid by the manufacturer shipping or causing the cigarettes to be shipped into this state shall be remitted no later than the 15th day of the month following the shipment. Along with the applicable tax remitted each manufacturer shall submit a list of persons to whom cigarettes were shipped indicating the amount of cigarettes shipped to each person.
Separate sets of records are required for each branch or place at which a wholesale cigarette business is operated.
Tax 9.56 History
; am. Register, June, 1975, No. 234
, eff. 7-1-75.
Warehousing of cigarettes.
Out-of-state persons, firms or corporations having permits to engage in the sale of cigarettes in the state of Wisconsin may warehouse either stamped or unstamped merchandise in properly licensed warehouses located in the state of Wisconsin. No out-of-state person, firm or corporation may affix stamps to merchandise while it is stored in the licensed warehouse.
Payment for cigarette tax stamps.
Under s. 139.32 (6)
, Stats., manufacturers and distributors having obtained a permit from the secretary of revenue may purchase cigarette tax stamps on credit. The credit extended by the department for any cigarette tax stamp purchase shall become due and payable upon the earlier of:
Fifteen days after the close of the month in which the indicia were received by the manufacturer or distributor.
The department may investigate the financial stability of the applicant and may deny credit to any permittee when there is any question of ability to pay as required in this section.
Revocation of privilege.
The privilege granted to any manufacturer or distributor of making cigarette tax stamp purchases on credit may be revoked at any time at the discretion of the department.
Tax 9.67 History
Cr. Register, November, 1957, No. 23
, eff. 12-1-57; am. Register, 68
, eff. 9-1-61; am. Register, June, 1975, No. 234
, eff. 7-1-75; emerg. r. and recr. eff. 9-1-93; r. and recr. Register, February, 1994, No. 458
, eff. 3-1-94.
Ownership and name changes. Tax 9.68(1)(1)
Under s. 139.34 (4)
, Stats., a cigarette permit is not transferable to another person. This section clarifies when a new cigarette permit is required, as the result of an ownership or name change, or both.
When there is a change in ownership of a business, the new owner shall apply for a new permit using form CTP-129, except as provided in par. (c)
. The new owner shall notify the department not later than 10 days prior to the change.
Tax 9.68 Note
Form CTP-129 is available on the department's web site at www.revenue.wi.gov
A new permit shall be obtained by using form CTP-129 when there is a change in ownership of a sole proprietorship, partnership, corporation or other form of ownership, except as provided in par. (c)
Tax 9.68 Note
Examples. A new permit is required if: 1) A sole proprietorship or partnership incorporates.
Tax 9.68 Note
2) A sole proprietorship is sold to a different sole proprietor.
Tax 9.68 Note
3) A sole proprietorship becomes a partnership.
Tax 9.68 Note
4) A partner in a partnership leaves the partnership or a partner is added to the partnership.
Tax 9.68 Note
5) The federal employer identification number of a business changes.
A new permit is not required for a change in the ownership of a corporation unless either of the following occurs:
A corporation is merged with another corporation, the merged corporation ceases to exist, and the surviving corporation does not have a valid permit.
The federal employer identification number of a corporation changes.
A permittee shall notify the department of a name change at least 10 days prior to the change and the permittee shall retain the same permit number.
A rider, verifying the name change, such as one filed by a permittee's insurance company at the request of the permittee, shall be submitted and attached to the security documents on file with the department. If no security is on file, or if a rider is not filed with the department, new security shall be deposited under the new name as required, and any old security shall be returned to the permittee.
Tax 9.68 History
Cr. Register, September, 1991, No. 429
, eff. 10-1-91; am. (2) (b) and (3) (b), Register, August, 1996, No. 488
, eff. 9-1-96.
Master settlement agreement with tobacco product manufacturers. Tax 9.69(1)(1)
This section describes requirements and methods relating to collecting, maintaining and reporting data regarding the number of Wisconsin state cigarette excise tax stamps affixed to packages of cigarettes, and the amount of “roll-your-own" cigarette tobacco, sold in Wisconsin each year.
Tax 9.69 Note
The data collected, maintained and reported under this section shall be used to ascertain the amount of Wisconsin excise tax paid on the cigarettes of each tobacco product manufacturer that elects to place funds in a qualified escrow fund under s. 995.10
, Stats., for each year, or, if the department deems it appropriate, is a participating manufacturer under the master settlement agreement between the state and tobacco product manufacturers, pursuant to 1999 Wis. Act 122
“Tobacco product manufacturer" has the same meaning as in s. 995.10 (1) (i)
, Stats., and includes both a cigarette manufacturer under subch. II of ch. 139
, Stats., and a tobacco products manufacturer under subch. III of ch. 139
, Stats., that sells “roll-your-own" cigarette tobacco.
“Wisconsin consumer" means a consumer within this state, including a direct consumer, distributor, retailer or intermediary similar to a distributor or a retailer.
Every tobacco product manufacturer that elects to sell cigarettes to Wisconsin consumers shall, by the 15th
day of each month, file a schedule with the department that reconciles the number of Wisconsin state cigarette excise tax stamps affixed to packages of cigarettes sold to Wisconsin consumers and the amount of “roll-your-own" cigarette tobacco sold to Wisconsin consumers in the previous calendar month.
The schedule required under par. (a)
shall contain all of the following information that is applicable:
A listing of each sale of cigarettes other than “roll-your-own" cigarette tobacco manufactured, or the name of the manufacturer of the cigarettes that were delivered to Wisconsin consumers, onto which state cigarette excise tax stamps were affixed.
A listing of each sale of “roll-your-own" cigarette tobacco manufactured, or the name of the manufacturer of the “roll-your-own" cigarette tobacco, that was delivered to Wisconsin consumers.
For each manufacturer listed pursuant to subd. 1.
, a listing of all brands of cigarettes sold and the number of Wisconsin state cigarette excise tax stamps affixed to cigarette packages with respect to each brand.
For each brand of cigarettes listed for each manufacturer pursuant to subd. 3.
, the following additional information, if known:
The name of the person or entity first responsible for the cigarettes being designated or identified for sale in the United States.
For each sale of “roll-your-own" cigarette tobacco listed for each manufacturer pursuant to subd. 2.
, the following additional information, if known:
The name of the manufacturer of the “roll-your-own" cigarette tobacco.
The name of the person or entity first responsible for the “roll-your-own" cigarette tobacco being designated or identified for sale in the United States, by brand.
Any other information the department may deem necessary to administer the provisions of this section.
Escrow fund certification requirements. Tax 9.69(4)(a)
Every tobacco product manufacturer that is not a participating manufacturer under the master settlement agreement shall by April 15 of each year certify to the department and to the attorney general that the amounts required under s. 995.10 (2) (b)
, Stats., have been placed into a qualified escrow fund that is designated for Wisconsin judgments or release payments.
The certification required under par. (a)
shall include all of the following:
The name of the qualified financial institution where the escrow fund is maintained.
The amount of funds placed into the escrow fund since the last reporting period, based on Wisconsin sales.
The amounts, if any, paid out of the escrow fund in judgments or release payments and the purpose of the disbursements.
A copy of the escrow fund balance statement as of March 31 of each year.
Every tobacco product manufacturer required to file a schedule under sub. (3)
shall maintain complete and accurate records to support the information reported on the required schedule. These records shall be maintained for a period of 5 years from the date of sale into Wisconsin and shall include all of the following:
Purchase records indicating the tobacco product manufacturer of the cigarettes, the date of purchase and the number of cigarettes by brand or amount of “roll-your-own" cigarette tobacco purchased, by brand.
Sales records indicating to whom the sale was made, the tobacco product manufacturer of the cigarettes, the date of sale and the number of cigarettes by brand or amount of “roll-your-own" cigarette tobacco sold.
The number of Wisconsin cigarette tax stamps placed on packages of cigarettes for sale in the state of Wisconsin.