July 11, 1997 Room 207, GEF #3
Friday 125 South Webster St.
9:00 a.m. MADISON, WI
Analysis Prepared by the Wisconsin Dept. of Revenue
Statutory authority: s. 227.11 (2) (a), Stats.
Statutes interpreted: ss. 70.27 and 236.12 (7), Stats.
Section 1. ATCP 53 is repealed. The unit which developed this rule was transferred from DATCP to the Department of Commerce in the 1995-97 budget. Through a Memorandum of Understanding, the work unit in question was transferred to the Department of Revenue who retains authority to administer rules and the rules process. Having been given this authority, the Department of Revenue hereby repeals ch. ATCP 53.
Section 2. Chapter Tax 53 is created to replace the repealed ch. ATCP 53. Under the rule, certain fees charged for plat review are increased. These fees include:
The fee schedule which applies to the submission of final plat or assessor's plat to the Department under s. 236.12 (2), s. 236.12 (6), or s. 70.27 (8), Stats., has increased from $15.00 to $20.00 per parcel or from $60.00 to $80.00 per plat, whichever is greater.
Under s. 236.12 (6), Stats., the fee increase to cover reproduction and postage costs apply to the submission to the Department of an original drawing for preliminary plat from $15.00 to $30.00 per sheet and for final plat or assessor's plat from $20.00 to $30.00 per sheet.
Under s. 236.12 (2), Stats., the fee increase to cover copy and postage costs, apply to the submission to the Department of copies of a final plat from $20.00 to $30.00 per sheet and for preliminary from $10.00 to $30.00 per sheet.
Initial Regulatory Flexibility Analysis
Under s. 227.11 (8) (a), Stats., this analysis is not required for emergency rules promulgated under s. 227.24, Stats.
Fiscal Estimate
Under the proposed rule, certain fees charged for plat review would be increased, beginning on the first day of the month following publication.
Based on estimates provided by the Plat Review Unit, program revenues of Plat Review would increase on an annual basis by $69,000, from $293,000 under the current rule to $362,000 under the proposed rule:
○ Fees for final plat or assessor's plat submissions would increase by $62,500.
○ Fees for reproduction and postage costs for submission of an original drawing of a preliminary or final plat under s. 236.12 (6), Stats., would increase by $2,000.
○ Fees for copy and postage costs for submission of copies of a preliminary or final plat under s. 236.12 (2), Stats., would increase by $4,500.
Contact Person
Following the public hearing, the hearing record will remain open until July 18, 1997, for additional comments.
Copies of the complete rule text and fiscal estimate are available at no charge on request from Wallace T. Tews at the address listed below. An interpreter for the hearing-impaired will be available on request for the hearing. Please make reservations for a hearing interpreter by July 9, 1997, either by writing:
Wallace T. Tews, Assistant Administrator
Telephone (608) 266-9759
FAX (608) 264-6887
Division of State and Local Finance
Wisconsin Department of Revenue
125 South Webster Street
Madison, WI 53702
Notice of Hearing
Revenue
Notice is hereby given that pursuant to s. 227.11(2)(a), Stats., and interpreting ss. 77.52(2)(a)20., (13) and (14) and 77.54(9a), (20)(c)4. and (30)(a)5., Stats., the Department of Revenue will hold a public hearing at the time and place indicated below, to consider the revision of rules relating to landscaping services, and sales and purchases by governmental units and the use of exemption certificates.
Hearing Information
July 29, 1997 Room #207, GEF 3
Tuesday 125 South Webster Street
10:00 a.m. Madison, Wisconsin
Handicap access is available at the Butler Street entrance of the building.
Comments on the Rule
Interested persons are invited to appear at the hearing and may make an oral presentation. It is requested that written comments reflecting the oral presentation be given to the department at the hearing. Written comments may also be submitted to the contact person shown below no later than August 5, 1997, and will be given the same consideration as testimony presented at the hearing.
Contact Person
Mark Wipperfurth, (608) 266-8253
Department of Revenue
125 South Webster Street
P.O. Box 8933
Madison, WI 53708-8933
Analysis by the Department of Revenue
Statutory authority: s. 227.11(2)(a)
Statutes interpreted: ss. 77.52(2)(a)20., (13) and (14) and 77.54(9a), (20)(c)4. and (30)(a)5.
SECTION 1. Tax 11.05(2)(h) is amended to conform language and style to Legislative Council Rules Clearinghouse standards.
Tax 11.05(2)(k), relating to sales of beverages to hospitals, etc., is amended to more clearly reflect s. 77.54(20)(b) and (c)4., Stats., and to reflect the amendment to s. 77.54(20)(c)4., Stats., by 1993 Wisconsin Act 332.
Tax 11.05(2)(m), relating to sales to schools, is amended to reflect correct terminology.
Tax 11.05(2)(s) is amended to reflect the Wisconsin Tax Appeals Commission decision in the case of Straight Arrow Construction Company, Inc. v. Wisconsin Department of Revenue (8/28/96 and 4/4/97, Docket 93-S-569), that there was no statutory basis for the distinction made by the department that certain services performed in developed areas were landscaping while the same services performed in undeveloped areas were not landscaping.
Tax 11.05(3)(b), relating to sales of fuel and electricity by governmental units, is amended to reflect the creation of s. 77.54(30)(a)5., Stats., by 1991 Wisconsin Act 39.
Tax 11.05(3)(L), relating to sales of meals by governmental units, is amended to reflect the amendment to s. 77.54(20)(c)4., Stats., by 1991 Wisconsin Act 39 and 1993 Wisconsin Act 332.
Tax 11.05(4)(a), relating to sales to governmental units, is amended to include in the list of exempt governmental units a local exposition district, due to the creation of s. 77.54(9a)(g), Stats., by 1993 Wisconsin Act 263, and the University of Wisconsin Hospitals and Clinics Authority, due to the amendment to s. 77.54(9a)(a), Stats., by 1995 Wisconsin Act 27.
SECTIONS 2 AND 3. Tax 11.05(4)(b) is repealed and recreated and Tax 11.05(4)(e) is amended. These paragraphs, relating to how a retailer verifies an exempt sale to a governmental unit, are revised to reflect the department's creation of a new exemption certificate for governmental units.
SECTION 4. Tax 11.86(6) is repealed and recreated to reflect the Wisconsin Tax Appeals Commission decision in the case of Straight Arrow Construction Company, Inc. v. Wisconsin Department of Revenue (8/28/96 and 4/4/97, Docket 93-S-569), that there was no statutory basis for the distinction made by the department that certain services performed in developed areas were landscaping while the same services performed in undeveloped areas were not landscaping.
Text of Rule
SECTION 1. Tax 11.05(2)(h), (k), (m) and (s), (3)(b) and (L) and (4)(a) are amended to read:
Tax 11.05(2)(h) Sales of buildings or timber when the purchaser acquires such the property for removal.
(k) Sales of soda water beverages and beer, fermented malt beverages and intoxicating liquor, including sales of these items by hospitals, sanatoriums and, nursing homes,retirement homes, community-based residential facilities as defined in s. 50.01(1g), Stats., and day care centers under ch. 48, Stats., to patients, employes or guests.
(m) Sales of books and supplies, including sales by vocational, technical and adult education schools college districts. Sales of tangible personal property by elementary and secondary schools are exempt under s. 77.54(4), Stats.
(s) The gross receipts from landscaping and lawn maintenance services, including weed cutting in lawn, and garden and other developed areas and along highways, streets and walkways, but not charges for damages described in sub. (3)(c).
(3)(b) Water delivered through mains. Wood residue used for fuel and sold for use in a business activity. Coal, fuel oil, propane, steam, peat, fuel cubes produced from solid waste and wood used for fuel, sold for residential use. Electricity and natural gas sold for residential use and electricity sold for farm use during the months of November through April. Fuel sold for use in farming. “Sold” is defined in s. 77.54(30)(b), Stats. In this paragraph, “residential use” has the meaning in s. Tax 11.57(2)(L)7.
(L) Meals, food, food products or beverages, except soda water beverages and beer, fermented malt beverages and intoxicating liquor, sold by hospitals, sanatoriums and
, nursing homes, retirement homes, community-based residential facilities as defined in s. 50.01(1g), Stats., and day care centers under ch. 48, Stats., on their premises to patients, employes, residents or guests; meals furnished in accordance with any contract or agreement by a public institution of higher education, including dormitory meals; and meals sold to the elderly or handicapped by “mobile meals on wheels.”
(4)(a) Section 77.54(9a), Stats., exempts sales to and the storage, use or other consumption of tangible personal property and services by Wisconsin or by any agency thereof, or any Wisconsin county, city, village, town, school district, county-city hospital established under s. 66.47, Stats., sewerage commission organized under s. 281.43(4), Stats., metropolitan sewerage district organized under ss. 66.20 to 66.26 or 66.88 to 66.918, Stats.,
local exposition district under subch. II of ch. 229, Stats., university of Wisconsin hospitals and clinics authority or any other unit of government, or any agency or instrumentality of one or more units of government within Wisconsin. However, the exemption does not apply to governmental units of other states or hospital service insurance corporations under s. 613.80, Stats.
SECTION 2. Tax 11.05(4)(b) is repealed and recreated to read:
Tax 11.05(4)(b) A Wisconsin governmental unit shall provide one of the following to a retailer as proof that a sale to the governmental unit is exempt from tax:
1. A purchase order or similar written document identifying the governmental unit as the purchaser.
2. An exemption certificate, form S-207 or S-209.
Note: Form S-207, Certificate of Exemption, and Form S-209, Government Sales and Use Tax Exemption Certificate, are available from any Department of Revenue office.
SECTION 3. Tax 11.05(4)(e) is amended to read:
Tax 11.05(4)(e) Purchases, including lodging, meals or uniforms, by employes of a governmental unit are not exempt, whether or not the employe is subsequently reimbursed for the purchases by the governmental unit, unless the retailer issues the billing or invoice in the name of the governmental unit, receives a purchase order or similar written document from the governmental unit a document as described in par. (b) and keeps a copy of both documents.
Note to Revisor: Change the first note at the end of s. Tax 11.05 to read:
Note: Section Tax 11.05 interprets ss. 77.51(4)(c)6. and (10), 77.52(2)(a)1., 2., 9. and 20., (13) and (14) and 77.54(9a), (10), (15), (17), (20), (30), (32), (37) and (42), Stats.
Note to Revisor: In the second note at the end of s. Tax 11.05, delete the word “and” before part (o) and add the following at the end of the Note:
;(p) The exemption for fuel used in farming became effective October 1, 1991, pursuant to 1991 Wis. Act 39; (q) The requirement that meals must be served on the premises of hospitals, nursing homes, etc., for exemption to apply became effective October 1, 1991, pursuant to 1991 Wis. Act 39; (r) The exemption for sales to a local exposition district became effective April 26, 1994, pursuant to 1993 Wis. Act 263; (s) The exemption for sales of meals by community-based residential facilities became effective June 1, 1994, pursuant to 1993 Wis. Act 332; and (t) The exemption for sales to the University of Wisconsin Hospitals and Clinics Authority became effective July 29, 1995, pursuant to 1995 Wis. Act 27.
SECTION 4. Tax 11.86(6) is repealed and recreated to read:
Tax 11.86(6) LANDSCAPING SERVICES. Gross receipts from landscaping and lawn maintenance services are taxable. Except as provided in sub. (5)(a), landscaping and lawn maintenance services include:
