Note: Contractors and others may determine whether an industrial waste treatment facility has been approved by the department as follows:
a. Public utility facilities, including railroads, airlines and pipelines: Write or call Wisconsin Department of Revenue, Bureau of Utility and Special Taxes, P.O. Box 8933, Madison, WI 53708-8933; telephone (608) 266-8162.
b. Other commercial and industrial facilities: Write or call Wisconsin Department of Revenue, Bureau of Manufacturing and Telco Assessment, P.O. Box 8933, Madison, WI 53708-8933; telephone (608) 266-1147.
Initial Regulatory Flexibility Analysis
This proposed rule order does not have a significant economic impact on a substantial number of small businesses.
Fiscal Estimate
There is no fiscal effect.
Notice of Proposed Rule
Revenue
Notice is hereby given that pursuant to s. 227.11 (2) (a), Stats., and interpreting ss. 77.51 (4) (cm), 77.52 (1) and 77.54 (15) and (20), Stats., and according to the procedure set forth in s. 227.16 (2) (e), Stats., the Department of Revenue will adopt the following rules as proposed in this notice without public hearing, unless, within 30 days after publication of this notice on June 15, 1999, it is petitioned for a public hearing by 25 natural persons who will be affected by the rule, a municipality which will be affected by the rule, or an association which is representative of a farm, labor, business or professional group which will be affected by the rule.
Analysis by the Dept. of Revenue
Statutory authority: s. 227.11 (2) (a)
Statutes interpreted: ss. 77.51 (4) (cm), 77.52 (1) and 77.54 (15) and (20)
SECTION 1. Tax 11.51 (1) is revised, to reflect the renumbering of sub. (2) (c), as explained below.
Tax 11.51 (2) (a) and (b) are revised, to list additional items of taxable and exempt sales by grocery stores, to reflect current Department policy relating to fruit juices, to reflect the treatment of “sandwiches" and to reference each of the paragraphs in sub. (3), as renumbered from sub. (2) (c) or as newly created.
SECTIONS 2 TO 5 AND 7. Tax 11.51 (2) (c) (title) and 1. to 5. are renumbered Tax 11.51 (3) (title) and (a), (b), (c), (d) and (g) 1., Tax 11.51 (2) (c) (intro.) is repealed and Tax 11.51 (3) (intro.) is created, to place the contents of the paragraph in a separate subsection. The material in sub. (2) (c) is not a guidelist, as the title to sub. (2) suggests.
Tax 11.51 (3) (c) as renumbered is revised, to reflect current Department policy relating to fruit juices.
Tax 11.51 (3) (d) as renumbered is revised, to conform style to Legislative Council Rules Clearinghouse standards.
Tax 11.51 (3) (g) 1. as renumbered is revised and sub. (3) (g)
2. is created, to provide separate subdivisions for taxable and exempt deli sales and to remove language relating to sandwiches and meals, due to the creation of sub. (3) (e) and (f) as explained below.
Tax 11.51 (3) (e) and (f) are created, to provide definitions of “meal" and “sandwich," respectively, as a result of the creation of s. 77.54 (20) (bg) 1. and 2., Stats., by 1997 Wis. Act 237.
Tax 11.51 (3) (h) is created, to provide that gross receipts from sales of certain prepackaged food combinations are not taxable, as a result of the creation of s. 77.51 (4) (cm), Stats., by 1997 Wis. Act 237.
SECTION 6. Tax 11.51 (3) is renumbered Tax 11.51 (4), due to the renumbering of Tax 11.51 (2) (c) to Tax 11.51 (3).
Text of Rule
SECTION 1. Tax 11.51 (1) and (2) (a) and (b) are amended to read:
Tax 11.51 (1) GENERAL. All sales of tangible personal property are taxable except when a specific exemption applies. One of the exemptions is for “food, food products and beverages," which generally exempts all basic food items for human consumption off the premises of the grocer. This exemption, however, does not include many items normally available in grocery and food stores, such as soda water beverages, including bases or concentrates to produce soft drinks and fruit drinks, beer, intoxicating liquors, candy, paper products and detergents. The lists in sub. (2)(a) and (b) shall serve as a guide to grocers to determine the kinds of items that are taxable and exempt.
Note to Revisor: Amend only the following portions of the alphabetical lists in sub. (2)(a) and (b):
(2) (a) …
Deli items, see par. (c)5. as explained in sub. (3) (g) 2.
…
Fruit drinks, liquid and powdered, see par. (c) 2. if not pure fruit juice, as explained in sub. (3) (b).
…
Greeting cards.
Grilling supplies.
Grooming aids.
…
Heated foods and beverages, see par. (c) 1.
as explained in sub. (3) (a).
…
Household equipment and supplies.
Hygiene products.
Ice, cube and block.
…
Matches.
Meals, as explained in sub. (3) (e).
Medicinal preparations.
…
Powdered fruit drinks, see par. (e)2. as explained in sub. (3) (b).
…
Sandwiches, hot or cold, but not frozen, as explained in sub. (3) (f).
…
Soaps.
Soda fountain items.
Soda water beverages, see par. (c)2. as explained in sub. (3) (b).
Soft drinks, see par. (c)2. as explained in sub. (3) (b).
…
(b) …
Cream.
Deli items, as explained in sub. (3) (g) 1.
Desserts and toppings.
Dietary foods, see par. (c)4. as explained in sub. (3) (d).
…
Frozen fruit juices, see par. (c)3. as explained in sub. (3) (c).
…
Juices, pure fruit, see par. (c)3. as explained in sub. (3) (c).
…
Potato salad, see par. (c) 5. as explained in sub. (3) (g) 1.
Poultry and poultry products.
Prepackaged food combinations, as explained sub. (3) (h).
Preserves.
…
SECTION 2. Tax 11.51 (2) (c) (title) is renumbered Tax 11.51 (3) (title) and amended to read:
Tax 11.51(3) EXPLANATIONS OF SOME ITEMS NOTED ABOVE TAXABLE AND EXEMPT SALES BY GROCERS.
SECTION 3. Tax 11.51 (2) (c) (intro.) is repealed.
SECTION 4. Tax 11.51 (2) (c) 1. to 4. are renumbered Tax 11.51 (3) (a) to (d) and, as renumbered, Tax 11.51 (3) (c) and (d) are amended to read:
Tax 11.51 (3) (c) Sales of pure fruit juices as defined in ch. 97, 1967 Stats., are not taxable. Fruit juices are the clean, unfermented liquid product obtained by the first pressing of fresh ripe fruits. The only permissible additives are sugar and one of the preservatives such as sodium benzoate, sorbic acid or sodium sorbate. Frozen concentrates conforming to the above description are also tax exempt. To be exempt, the title of the fruit juice on the label
shall generally will contain the word juice to the exclusion of all other words such as cocktail, drink, punch, ade or nectar in compliance with requirements set by the United States food and drug administration. However, if a fruit juice label also contains the word cocktail, drink, punch, ade or nectar but is 100% pure fruit juice, the juice is not subject to Wisconsin sales tax.
Note to Revisor: In examples 2 and 3 at the end of sub. (3) (c) as renumbered, add the words “if it does not contain 100% pure fruit juice" at the end of each example.
(d) “Dietary foods" include products intended to substitute in whole or in part for the ordinary diet such as Metrecal, Slimfast Powder Drinks and Bars powder drinks and bars and meat base formula. It also includes those products which supplement the ordinary diet, such as Ovaltine, and Ensure and Enrich nutrition supplements, and compressed or concentrated foods taken in wafer form which can be identified as food because of higher concentrated food values of carbohydrates and proteins. Dietary foods do not include patent medicines, tonics, vitamins and medical-type preparations in liquid, powdered, granular, tablet, capsule, lozenge and pill form used for medicinal or remedial purposes. The sales of these items are taxable.
Note to Revisor: Move the examples at the end of sub. (2) (c) 4. before renumbering to the end of sub. (3) (d) as renumbered.
SECTION 5. Tax 11.51 (2) (c) 5. is renumbered Tax 11.51 (3) (g) 1. and amended to read:
Tax11.51(3)(g)1. Deli sales for off premise
off-premise consumption sold by a weight or measure such as by the pound or the dozen, and not at a stated price for any particular combination of the separate ingredients which can be designated as either a meal or sandwich, are exempt. Deli sales for off-premise consumption sold in a heated state or sold at a stated price for a combination of the separate ingredients designated as either a meal or sandwich are taxable. Sales of sandwiches are taxable. A meal usually consists of a diversified selection of foods which are not susceptible of consumption in the absence of at least some articles of tableware and which are not conveniently consumed while one is standing or walking.
SECTION 6. Tax 11.51 (3) is renumbered Tax 11.51 (4).
SECTION 7. Tax 11.51 (3) (intro.), (e), (f), (g) 2. and (h) are created to read:
Tax 11.51(3) For purposes of sub. (2):
(e) 1. “Meals" include, but are not limited to, a diversified selection of food, food products or beverages that are customarily consumed as a breakfast, lunch or dinner, that may not easily be consumed without an article of tableware and that may not conveniently be consumed while standing or walking.
2. “Meals" do not include:
a. Frozen items that are sold to a consumer.
b. Items that are customarily heated or cooked after the retail sale and before they are consumed.
c. A diversified selection of food, food products and beverages that is packaged together by a person other than the grocer before the sale to the consumer.
