CR 20-027 Rule Text

g.

References. Section Tax 11.88 (6) is amended to correct a rule reference.

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: The department has created this proposed rule order to reflect these statutory changes as well as provide needed clarification and correction as described above.

Analysis and supporting documents used to determine effect on small business: This rule makes changes to reflect current law and current department policy. This proposed rule order makes no policy or other changes having an effect on small business.

Anticipated costs incurred by private sector: This proposed rule does not have a fiscal effect on the private sector.

Effect on small business: This proposed rule order makes no policy or other changes having an effect on small business.

Agency contact person: Contact Jen Chadwick at [phone] or [e-mail], if you have any questions regarding this proposed rule.

Place where comments are to be submitted and deadline for submission: Comments may be submitted to the contact person shown below. Information as to the place, date, and time of the public hearing will be published in the Wisconsin Administrative Register.

Jen Chadwick

Department of Revenue

Mail Stop 6-40

2135 Rimrock Road

P.O. Box 8933

Madison, WI 53708-8933

[e-mail]

SECTION 1. Tax 11.002 (3) (a) 3. a. and b. are amended to read:

Tax 11.002 (3) (a) 3. a. Using the Streamlined Sales Tax Governing Board's Central Registration System (SSTGBCRS SSTRS). The information submitted using the SSTGBCRS SSTRS is obtained by the department on a daily basis and will be used to automatically register a person in Wisconsin. If the department determines that additional information is necessary to process the registration, a person will be contacted by the department.

b. Except for a seller who uses a certified service provider, a seller who registers through the SSTGBCRS SSTRS may indicate at the time of registration that it anticipates making no taxable sales in Wisconsin and is not required to file a sales and use tax return in Wisconsin until such time as the seller makes a taxable sale that is sourced to Wisconsin. However, once the seller makes a taxable sale in Wisconsin, the seller is required to file a sales and use tax return in Wisconsin by the last day of the month following the end of the calendar quarter in which the sale occurred and continue to file returns by the last day of each calendar quarter thereafter, unless they are it is notified in writing by the department of a different filing frequency.

SECTION 2. Tax 11.01 (2) (c) 1. (Note) is amended to read:

Tax 11.01 (2) (c) 1. Note: Written requests should be e-mailed to [e-mail] [e-mail], faxed to [phone], or addressed to Mandate eFile Waiver Request, Wisconsin Department of Revenue, Mail Stop 5-77, PO Box 8949, Madison WI 53708-8949.

SECTION 3. Tax 11.09 (4) (a) is amended to read:

Tax 11.09 (4) (a) Prescribed for the treatment of a human being by a person authorized to prescribe the drugs, and dispensed on prescription filled by a registered pharmacist in accordance with law. Insulin furnished by a pharmacist to a person for treatment of diabetes as directed by a physician shall be deemed dispensed on prescription.

SECTION 4. Tax 11.11 (2) (Note) and (3) (d) 2. (Note) are amended to read:

Tax 11.11 (2) Note: Refer to s. Tax 6.40 for information on how to request approvals for property tax exemption for utility waste treatment facilities. For more information regarding exemptions for waste treatment facilities owned by a utility, including railroads, airlines, and pipelines, approved by the department, write to Wisconsin Department of Revenue, Manufacturing and Utility Section Bureau, PO Box 8971, Madison WI 53708-8971; telephone [phone]; send an e-mail to [e-mail] [e-mail]; or access the department's internet web site at http://www.revenue.wi.gov/contact/slfbmta.html www.revenue.wi.gov and search "waste treatment facilities".

(3) (d) 2. Note: For more information regarding the exemption for municipal treatment facilities, write, email or call Wisconsin Department of Revenue, Bureau of Customer Service Bureau, Mail Stop 5-77, PO Box 8902 8949, Madison WI 53708-8902 8949, email [e-mail]; telephone [phone]-2776. The web site is www.revenue.wi.gov.

SECTION 5. Tax 11.17 (3) (Chart) is amended to read:

Tax 11.17 (3) (Chart)

Taxable

Exempt

Adhesive tape Alcoholic beverages Apparatus and equipment for treatment of diabetes Bandages, gauze and cotton Bed pans Beds and linens Blankets Cold packs and hot packs Compresses and dressingsDressings Cosmetics Deodorants and disinfectants

*Antiembolism elastic hose and stockings, including parts and accessories *Artificial eyes and limbs, including parts and accessories *Blood sugar level testing supplies Bone pins and plates, including parts and accessories *Crutches and wheel chairs, including motorized wheelchairs and scooters, including parts and accessories

Taxable

Exempt

Distilled water Enema kits Instruments Laboratory equipment and supplies Medical equipment Needles and syringes Office equipment and supplies Oxygen delivery equipment Paper products Printed material Soda water beverages Soap Soft drinks Uniforms and gowns X-ray film and machines

Diaphragms *Disposable syringes containing insulin Drugs Dye *Hearing aids, including parts and accessories Medical oxygen Oral contraceptives Pacemakers, including parts and accessories Prophylactics Rib belts and supports Rubbing alcohol Splints and cast materials Suppositories Sutures Vaccines Vaginal creams and jellies Vitamins

SECTION 6. Tax 11.20 (3) (a) 2. is amended to read:

Tax 11.20 (3) (a) 2. Seeds for planting, plants, feed, fertilizer, soil conditioners, animal bedding, sprays, pesticides and fungicides, breeding and other livestock, bees, beehives, and bee combs, poultry, farm work stock, baling twine and baling wire, containers for fruits, vegetables, grain, hay, silage and animal wastes, plastic bags, plastic sleeves and plastic sheeting used to store or cover hay or silage, drugs, semen for artificial insemination, fuel, and electricity, that are used exclusively and directly in raising such animals.

SECTION 7. Tax 11.34 (4) (a) 3. (Note) is amended to read:

Tax 11.34 (4) (a) 3. Note: A person requesting seller's permit inactivation by electronic mail email should send its request to [e-mail] [e-mail].

SECTION 8. Tax 11.46 (4) (b) is amended to read:

Tax 11.46 (4) (b) An agency camp is not engaged in a trade or business if its sales of otherwise taxable tangible personal property, items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., or services or its events occur on 20 75 days or less during the calendar year or if its taxable receipts for the calendar year are $25,000 $50,000 or less.

SECTION 9. Tax 11.535 (4) (Note) and (5) are amended to read:

Tax 11.535 (4) Note: Copies of the Form S-240, "Wisconsin Temporary Event Operator and Seller Information reporting form," may be obtained from the department's website at revenue.wi.gov, at any Department of Revenue office, by calling [phone] 266-1961, by electronic mail email at [e-mail] [e-mail], or by writing to Wisconsin Department of Revenue, Post Office Box 8902 8949, Madison, WI 53708-8949.

(5) Alternative reporting method. Operators of continuing or successive events may report all vendors for each event or may report under an alternative method approved by the department. Any operator may request approval from the department of an alternative method of reporting which will provide the department with the required information on all vendors at each event. The request shall be made in writing to: Wisconsin Department of Revenue, Temporary Events Program, 265 W Northland Avenue, Appleton, WI 54911 PO Box 8910, Madison, WI 53708-8910. It shall list the dates and locations of events to be held during the calendar year and the proposed method for reporting the information required.

SECTION 10. Tax 11.61 (1) (a) 4., (2) (b) 1., and (2) (c) (Note 2) are amended to read:

Tax 11.61 (1) (a) 4. Services performed to animals which are livestock or poultry as defined in s. Tax 11.12 (2) (j), bees, or farm work stock as defined in s. Tax 11.12 (2) (e), regardless of whether the service is a veterinary service.

(2) (b) 1. Veterinarians' purchases of drugs used on farm livestock, bees and farm work stock, are exempt from tax.

(c) Note: Section Tax 11.61 interprets ss. 77.51 (1bm), (2d), (3pj), and (13) (m) and (o), 77.52 (2) (a) 10., and 77.54 (3), (3m), (33), and (42), Stats.

SECTION 11. Tax 11.88 (6) is amended to read:

Tax 11.88 (6) Consignment sales. When a recreational vehicle dealer has possession of a recreational vehicle owned by another person, the principal, the dealer is the retailer responsible for reporting tax on the transaction if the dealer makes the sale without disclosing the identity of the principal to the purchaser. If the principal is disclosed to the purchaser on the invoice or in the sales contract, the principal is the seller of the recreational vehicle and the tax on the transaction shall be paid under sub. (4) (5) (a), provided the recreational vehicle dealer does not take title to the recreational vehicle. If the dealer does take title, the dealer is the seller.

SECTION 12. Tax 11.925 (3) (b) 2. (Note) is amended to read:

Tax 11.925 (3) (b) 2. Note: Form S-127 may be obtained from the department's website at www.revenue.wi.gov, any Department of Revenue office or by writing, emailing, or calling: Wisconsin Department of Revenue, P.O. Box 8902 8901, Madison, WI 53708-8901, [e-mail], [phone] 266-0833.

SECTION 13. Effective date. This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s. 227.22 (2) (intro.), Stats.

DEPARTMENT OF REVENUE

Dated:     By: ___________________________  

Peter W. Barca

Secretary of Revenue

E:Rules/172 – Biennial Review – Tax 11 Update – SS 099-19/Tax 11 Biennial Review Proposed Rule Order