Tax 11.87 (3) (g)
Vegetable oil and animal fat. Sales of vegetable oil and animal fat to an individual that will be converted to motor vehicle fuel for use in that individual's personal motor vehicle if the individual does not sell any of that fuel during the year. This exemption only applies if the motor vehicle fuel is exempt from the motor vehicle fuel tax under s.
78.01 (1), Stats.
SECTION 60. Tax 11.87 (4) (b) is amended to read:
Tax 11.87 (4) (b) When a charge to a customer bears little or no relationship to the actual value of taxable food and food ingredients and beverages received,
such as $100 per ticket for a fund raising dinner dance, the tax shall be based on the reasonable value of the taxable food and food ingredients and other tangible personal property, items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., and taxable services received by the customer.
The retailer is responsible for determining the reasonable value and showing that the charge to the patron bears little or no relationship to the actual value received.
SECTION 61. Tax 11.87 (4) (b) (Examples) are created to read:
Tax 11.87 (4) (b) (Examples) 1) Company A puts on a fundraising dinner. Individuals wishing to attend the dinner must pay $300 per person to attend. The actual value of the dinner received is $50. Company A may compute the tax that must be remitted on the $50 since that is the actual value of the dinner received. The actual value in this example is based on the amount that an individual would be required to pay for this dinner if it was not a fundraising dinner.
2) Company B puts on a fundraising dinner and dance. Individuals wishing to attend the dinner and dance must pay $300 per person to attend. The actual value of the dinner received is $50 and the actual value of admission to the dance is $25. Company B may compute the tax that must be remitted on the $75 since that is the actual value of the dinner and admission to the dance that is received. The actual values in this example are based on the amount that an individual would be required to pay for the dinner and to attend the dance if this was not a fundraising dinner and dance.
SECTION 62. Tax 11.88 (title) is amended to read:
Tax 11.88 (title) Manufactured homes, mobile homes, modular homes, and recreational vehicles.
SECTION 63. Tax 11.88 (1) (bm) is created to read:
Tax 11.88 (1) (bm) 1. “Modular home," as defined in s.
101.71 (6), Stats., means any structure or component thereof which is intended for use as a dwelling and satisfies either of the following conditions:
a. Is of closed construction and fabricated or assembled on-site or off-site in manufacturing facilities for installation, connection, or assembly and installation, at the building site.
b. Is a building of open construction which is made or assembled in manufacturing facilities away from the building site for installation, connection, or assembly and installation, on the building site and for which certification is sought by the manufacturer.
2. “Modular home" does not mean any manufactured home under s.
101.91, Stats., or any building of open construction which is not subject to subd. 1. b.
SECTION 64. Tax 11.88 (3) (b) is amended to read:
(b) If the seller of a manufactured or mobile home as part of the sales transaction agrees to permanently affix the home on a foundation on land owned by the purchaser, the seller is a contractor-consumer engaged in improving realty. Sales Except as provided in par. (c), sales of manufactured or mobile homes to the contractor-consumer are subject to the tax, but the sales price from the subsequent sale by the contractor-consumer to the purchaser of the home are not taxable.
SECTION 65. Tax 11.88 (3) (c) and (4m) are created to read:
Tax 11.88 (3) (c) Sales of manufactured homes to the contractor-consumer for use in real property construction activities outside Wisconsin are exempt from Wisconsin sales and use tax.
(4m) Modular homes. (a) The sale of a modular home and the land to which it is permanently affixed is the sale of a realty improvement not subject to the tax.
(b) If the seller of a modular home as part of the sales transaction agrees to permanently affix the home on a foundation, the seller is a contractor-consumer engaged in improving realty. Except as provided in par. (e), the sale of the modular home to the contractor-consumer is subject to the tax, but the sales price from the subsequent sale by the contractor-consumer to the purchaser of the home is not taxable.
(c) The sales or purchase price from the sale of a modular home that is tangible personal property when sold (i.e., the sale to the contractor-consumer), may be reduced by one of the following:
1. 35% of the sales or purchase price.
2. An amount equal to the sales or purchase price of the home minus the cost of materials that become an ingredient or component part of the home.
(d) Once the retailer chooses one of the options provided in par. (c) 1. or 2., the retailer may not use the other option without the written approval of the department.
(e) Sales of modular homes to the contractor-consumer for use in real property construction activities outside Wisconsin are exempt from Wisconsin sales and use tax.
SECTION 66. Tax 11.92 (1) (b) and (d) (intro.) are amended to read:
Tax 11.92 (1) (b) The basis for all deductions claimed in filing returns, including exemption certificates obtained from customers. Exempt sales to governmental units and public schools need not be supported by exemption certificates, if the supplier retains a copy of the exempt entity's purchase order and the supplier's invoice or billing document. Sales to organizations holding a certificate of exempt status, CES, including religious or charitable organizations, can be shown to be exempt by recording the CES number on the seller's copy of the bill of sale. Except as provided in this paragraph and ss.
77.52 (13) and
77.53 (10), Stats., exempt sales shall be supported by an exemption certificate
retained by the seller and paper certificates shall also be signed by the purchaser
and retained by the seller. Documents necessary to support claimed exemptions from tax liability, such as bills of lading and purchase orders, shall be maintained in a manner in which they readily can be related to the transaction for which exemption is sought.
Tax 11.92 (1) (d) (intro.) Every person subject to the county
, or stadium
, or regional transit authority sales and use tax shall keep a record of sales that the person makes that are sourced under s.
77.522, Stats., to each:
SECTION 67. Tax 11.92 (1) (d) 3. is repealed
SECTION 68. Tax 11.92 (1) (e) is amended to read:
Tax 11.92 (1) (e) Every person shall keep a record of the purchase price of property, items, and goods on which the person is subject to county, and stadium, and regional transit authority use or excise tax in each enacting county, or stadium district or transit authority's district's jurisdiction.
SECTION 69. Tax 11.95(1)(a) is amended to read:
Tax 11.95 (1) (a) Effective for Wisconsin sales and use tax returns filed for periods ending on or after January 1, 1997, for timely reporting state, county, and stadium, and transit authority sales or use tax collected on their retail sales, retailers may deduct 0.5% of the sales and use tax payable on retail sales, except as provided in pars. (am), (b), and (c).
SECTION 70. Tax 11.96 (title) and (1) are amended to read:
Tax 11.96 (title) Delivery of ordinance or resolution; county, stadium, transit authority, and premier resort area tax.
(1) This section clarifies requirements for the timely delivery of county, and stadium
, and transit authority sales and use tax and premier resort area tax ordinances or resolutions to the secretary of revenue.
SECTION 71. Tax 11.96 (2) (g) and (h) are repealed
SECTION 72. Tax 11.96 (3) (intro.) and (Note) are amended to read:
Tax 11.96 (3) (intro.) An ordinance or resolution referred to in s.
77.70,
77.9941 (1) or
(3),
229.68 (15),
or 229.824 (15),
or 66.1039 (4) (s), Stats., is timely delivered to the secretary of revenue if, by the prescribed number of days before the effective date, any of the following occur:
(Note) Section
Tax 11.96 interprets ss.
66.1039 (4) (s), 77.70, 77.705, 77.706, 77.707, 77.708, 77.9941 (1) and (3), 229.68 (15), and 229.824 (15), Stats.
SECTION 73. Tax 11.97 (8) is repealed and recreated to read:
Tax 11.97 (8)
County and special district taxes. Retailers that are registered or required to be registered to collect and remit Wisconsin state sales or use taxes are also required to collect, report, and remit the applicable county and stadium district sales or use taxes, regardless of whether the retailer is engaged in business in the county or special district, as provided in s.
77.73 (3), Stats.
ADMINISTRATIVE RULES
FISCAL ESTIMATE
AND ECONOMIC IMPACT ANALYSIS
|
Type of Estimate and Analysis
|
X Original Updated Corrected
|
Administrative Rule Chapter, Title and Number
|
Chapters Tax 1 and 11 – General administration and sales and use tax
|
Subject
|
Sales 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
Indeterminate
|
Increase Existing Revenues
Decrease Existing Revenues
|
Increase Costs
Could Absorb Within Agency's Budget
Decrease Costs
|
The Rule Will Impact the Following (Check All That Apply)
|
State's Economy
Local Government Units
|
Specific Businesses/Sectors
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 reflected under general fund condition statements subsequent to 2011 Wisconsin Act 32. 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 and 11 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
|
N/A
|
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
|
N/A
|
Assumptions used in arriving at fiscal estimate
The proposed rule updates Chapter
TAX 11 of the Administrative Code, pertaining to the sales and use tax, to reflect certain sales tax changes contained in
2011 Wisconsin Act 32, the 2011-13 Budget Bill. The proposed rule also amends chapter Tax 1, pertaining to tax administration.
The proposed rule modifies the administrative code to reflect law changes, improve clarity, and add examples to illustrate the tax treatment of certain items.
The proposed rule includes:
○ A sales and use tax exemption for modular and manufactured homes used in real property construction activities outside Wisconsin.
○ A sales and use tax exemption for vegetable oil or animal fat converted to motor vehicle fuel that is exempt from motor vehicle fuel tax.
○ The repeal of regional transit authorities.
○ Change in the tax treatment of items provided free of charge by a retailer.
•
Updates and clarifications to reflect amendments to the Streamlined Sales and Use Tax Agreement.
•
Clarification and examples relating to exempt occasional sales.
•
Changes to reflect the federal preemption on the taxation of air commerce.
•
Clarification that if electronic fund transfers payments are due on a day when the Federal Reserve Bank is closed, the payment due date is revised to be the next day the Federal Reserve Bank is open.
The fiscal effect of the exemptions created under
2011 Wisconsin Act 32 has already been reflected under general fund condition statements subsequent to
2011 Wisconsin Act 32. Since the fiscal impact of the statutory changes has already been reflected, the proposed rule has no fiscal effect.
Notice of Hearing
Revenue
NOTICE IS HEREBY GIVEN that, pursuant to sections
73.15 (3) and
227.11 (2) (a), Stats., the Department of Revenue will hold a public hearing to consider permanent rules creating section
Tax 2.985, relating to the electronic medical records credit.
Hearing Information
The hearing will be held:
Date: Monday, February 27, 2012
Time: 12:30 P.M.
Location: State Revenue Building
Events Room
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.
Dale Kleven
Department of Revenue
Mail Stop 6-40
2135 Rimrock Road
P.O. Box 8933
Madison, WI 53708-8933
Telephone: (608) 266-8253
Analysis Prepared by the Department of Revenue
Statutes interpreted
Statutory authority
Explanation of agency authority
The department is authorized by s.
73.15 (3), Stats., to promulgate rules to comply with the provisions under ss.
73.15 (1) and
(2), Stats., which provide:
73.15 (1) The department of revenue shall implement a program to certify health care providers as eligible for the electronic medical records credit under ss.
71.07 (5i),
71.28 (5i), and
71.47 (5i).
(2) If the department of revenue certifies a health care provider under sub. (1), the department shall determine the amount of credits to allocate to the health care provider. The total amount of electronic medical records credits allocated to health care providers in any calendar year may not exceed $10,000,000.
(3) The department of revenue shall promulgate rules to administer this section.
The department is further authorized by s.
227.11 (2) (a), Stats., to promulgate rules interpreting the provisions of any statute enforced or administered by the agency if the agency believes it necessary to effectuate the purpose of the statutes enforced or administered by the agency. Section
227.11 (2) (a), Stats., provides:
227.11 (2) Rule-making authority is expressly conferred as follows:
(a) Each 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, but a rule is not valid if the rule exceeds the bounds of correct interpretation. All of the following apply to the promulgation of a rule interpreting the provisions of a statute enforced or administered by an agency:
