SECTION 13. Tax 3.01 (4) (e) 4. b. is amended to read:
Tax 3.01 (4) (e) 4. b. The Wisconsin recycling
surcharge, which is imposed on partnerships and tax-option (S) corporations pursuant to s. 77.93 (1)
, and (5)
SECTION 14. Tax 3.095 (4) (a) 9. is repealed
SECTION 15. Tax 3.095 (4) (a) 10. and 11. are renumbered 3.095 (4) (a) 9. and 10.
SECTION 16. Tax 3.095 (4) (a) 11. to 19. are created to read:
Tax 3.095 (4) (a) 11. WHEDA bonds or notes issued under s. 234.08
, Stats., on or after January 1, 2004, if the bonds or notes are issued to fund multifamily affordable housing projects or elderly housing projects.
12. Bonds or notes issued by a local exposition district created under subch. II of ch. 229
13. Bonds or notes issued by a local professional baseball park district created under subch. III of ch. 229
14. Bonds or notes issued by a local professional football stadium district created under subch. IV of ch. 229
15. Bonds or notes issued by a local cultural arts district created under subch. V of ch. 229
16. Bonds or notes issued by the Wisconsin Aerospace Authority.
17. Wisconsin Health and Educational Facilities Authority bonds or notes issued under s. 231.03 (6)
, Stats., on or after October 27, 2007, if the proceeds from the bonds or notes that are issued are used by a health facility, as defined in s. 231.01 (5)
, Stats., to fund the acquisition of information technology hardware or software.
18. Bonds or notes issued by a commission created under s. 66.0304
, Stats., if any of the following applies:
a. The bonds or notes are used to fund multifamily affordable housing projects or elderly housing projects in this state, and WHEDA has the authority to issue its bonds or notes for the project being funded.
b. The bonds or notes are used by a health facility, as defined in s. 231.01 (5)
, Stats., to fund the acquisition of information technology hardware or software, in this state, and the Wisconsin Health and Educational Facilities Authority has the authority to issue its bonds or notes for the project being funded.
c. The bonds or notes are issued to fund a redevelopment project in this state or a housing project in this state, and the authority exists for bonds or notes to be issued by an entity described under s. 66.1201
, or 66.1335
19. WHEDA bonds or notes, if the bonds or notes are issued to provide loans to a public affairs network under s. 234.75 (4)
Tax 8.24 is repealed.
AND ECONOMIC IMPACT ANALYSIS
Type of Estimate and Analysis
X Original Updated Corrected
Administrative Rule Chapter, Title and Number
Chapters Tax 1, 2, 3, and 8 – General administration, income taxation, returns, records, gross income, exclusions, exemptions, and intoxicating liquors
Tax law changes made by 2011 Wisconsin Act 32 and other legislation
Fund Sources Affected
Chapter 20 , Stats. Appropriations Affected
GPR FED PRO PRS SEG SEG-S
Fiscal Effect of Implementing the Rule
X No Fiscal Effect
Increase Existing Revenues
Decrease Existing Revenues
Could Absorb Within Agency's Budget
The Rule Will Impact the Following (Check All That Apply)
Local Government Units
Public Utility Rate Payers
Would Implementation and Compliance Costs Be Greater Than $20 million?
Yes X No
Policy Problem Addressed by the Rule
The rule does not create or revise policy, other than to reflect statutory changes.
Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
As indicated in the attached fiscal estimate, the fiscal effect of the proposed rule changes was included in the fiscal effect of the legislation on which the proposed rule order is based. The rule itself does not create any further economic or fiscal impact or implementation and compliance costs beyond the statutes it interprets.
No comments concerning the economic effect of the rule were submitted in response to the department's solicitation.
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
Clarifications and guidance provided by administrative rules may lower the compliance costs for businesses, local governmental units, and individuals.
If the rule is not implemented, Chapters Tax 1, 2, 3, and 8 will be incomplete in that they will not reflect current law.
Long Range Implications of Implementing the Rule
No long-range implications are anticipated.
Compare With Approaches Being Used by Federal Government
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
Assumptions Used in Arriving at Fiscal Estimate:
The proposed rule updates the following Administrative Code Sections:
Section Tax 1.11
to provide the CEO of the Wisconsin Economic Development Corporation limited authority to examine tax returns, to implement s. 71.78 (4) (m)
as amended by 2011 Act 32
Section Tax 2.96
to change the late filing fees for income, franchise, and partnership returns and withholding reports, to implement s. 71..83 (3) as amended by 2009 Act 28
Various sections of Chapter Tax 2
to implement the change from a recycling surcharge to an economic development surcharge as provided in 2011 Act 32
Various sections of Tax 8.24
to implement statutory changes in 2007 Act 85
which authorize the direct shipment of wine, and 2011 Act 32
concerning three-tier beer laws.
All of the proposed rule changes are being made to implement statutory changes. Any fiscal effect from the statutory changes would have been included in the fiscal estimate for the bills which were enacted. As such, the proposed rule has no fiscal effect.
Notice of Hearing
The hearing will be held:
Date: Monday, February 27, 2012
Time: 10:00 A.M.
Location: State Revenue Building
2135 Rimrock Road
Madison, WI 53713
Handicap access is available at the hearing location.
Appearances at the Hearing and Submittal of Written Comments
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 listed below no later than February 27, 2012, and will be given the same consideration as testimony presented at the hearing.
Department of Revenue
Mail Stop 6-40
2135 Rimrock Road
P.O. Box 8933
Madison, WI 53708-8933
Telephone: (608) 266-8253
Analysis by the Department of Revenue
Explanation of agency authority
, Stats., provides “[t]he department of revenue may require electronic funds transfer only by promulgating rules." This provision applies to proposed rule changes relating to section Tax 1.12
Section 77.52 (19)
, Stats., provides “[t]he department shall by rule provide for the efficient collection of the taxes imposed by this subchapter on sales of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services by persons not regularly engaged in selling at retail in this state or not having a permanent place of business, but who are temporarily engaged in selling from trucks, portable roadside stands, concessions at fairs and carnivals, and the like. The department may authorize such persons to sell property or items, property or goods under sub. (1) (b), (c), or (d) or sell, perform, or furnish services on a permit or nonpermit basis as the department by rule prescribes and failure of any person to comply with such rules constitutes a misdemeanor." This provision applies to proposed rule changes relating to Chapter Tax 11
Section 77.65 (3)
, Stats., provides “[t[he department may enter into the agreement to simplify and modernize sales tax and use tax administration in order to substantially reduce the tax compliance burden for all sellers and for all types of commerce. The department may act jointly with other states that are signatories to the agreement to establish standards for the certification of a certified service provider and certified automated system and to establish performance standards for multistate sellers. The department may promulgate rules to administer this section, may procure jointly with other states that are signatories to the agreement goods and services in furtherance of the agreement, and may take other actions reasonably required to implement this section. The secretary of revenue or the secretary's designee may represent this state before the states that are signatories to the agreement." This provision also applies to proposed rule changes relating to Chapter Tax 11
Section 227.11 (2) (a)
, Stats., provides “[e]ach agency may promulgate rules interpreting the provisions of any statute enforced or administered by the agency, if the agency considers it necessary to effectuate the purpose of the statute..."
Related statute or rule
There are no other applicable statutes or rules.
Plain language analysis
This proposed rule:
• reflects the following tax law changes:
Section 77.52 (21)
, Stats., as revised by 2011 Wisconsin Act 32
to change the sales and use tax treatment of items provided free of charge by a retailer.
Section 77.54 (5) (am)
, Stats., as created by 2011 Wisconsin Act 32
to create a sales and use tax exemption for modular and manufactured homes used in real property construction activities outside Wisconsin.
Section 77.54 (11m)
, Stats., as created by 2011 Wisconsin Act 32
to create a sales and use tax exemption for vegetable oil or animal fat converted to motor vehicle fuel that is exempt from the taxes imposed under s. 78.01 (1)
• The repeal of the regional transit authorities:
○ provides consistency with the interpretive rules and amendments adopted by the Streamlined Sales Tax Governing Board (SSTGB) to the extent those rules and amendments are consistent with Wisconsin's laws and makes changes to clarify rules based on suggestions made during last year's compliance review conducted by the SSTGB.
provides specifically that if the due date of a payment falls on a day the Federal Reserve Bank is closed the payment is timely if it is made on the next day the Federal Reserve is open (existing provisions to be updated are in section Tax 1.12
○ removes potentially obsolete language and adds and amends examples where needed for clarification purposes
○ makes corrections to incorrect statutory cross-references
○ correctly reflects the occasional sale provisions contained in Wisconsin law
reflects the department's position relating to the Federal Anti-Head Tax Act (49 U.S.C. 40166
) as it applies to Wisconsin sales and use tax
Summary of, and comparison with, existing or proposed federal regulation
There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.
Comparison with rules in adjacent states
The department is not aware of a similar rule in an adjacent state.
Summary of factual data and analytical methodologies
2011 Wisconsin Act 32
and the other legislation referenced in the above plain language analysis made various changes to Wisconsin's sales and use tax laws. The department has created this proposed rule order to reflect these statutory changes. No other data was used in the preparation of this proposed rule order or this analysis.
Analysis and supporting documents used to determine effect on small business
As explained above, this proposed rule is created to administer Wisconsin's sales and use tax laws. As the rule itself does not impose any significant financial or other compliance burden, the department has determined that it does not have a significant effect on small business.
Anticipated costs incurred by private sector
This proposed rule does not have a significant fiscal effect on the private sector.
Effect on Small Business
This proposed rule does not have a significant effect on small business.
Initial Regulatory Flexibility Analysis
This proposed rule order does not have a significant economic impact on a substantial number of small businesses.
Agency Contact Person
Please contact Dale Kleven at (608) 266-8253 or email@example.com
, if you have any questions regarding this proposed rule.
Text of Rule