Tax 11.32 – ss. 77.51 (12m) (a) (intro.) and 2., 3. and 4., (b) 1., 5., 7. and 8. and (c), (15a), (15b) (a) (intro.), 2., 3., and 4., (b) 1., 5., 7. and 8. and (c), 77.54 (8), 77.585 (7), and 77.61 (3m), Stats. Tax 11.53 – ss. 73.03 (38) and (50), 77.51 (9), 77.52 (1), (7), (9), (11), (12), and (19), 77.54 (7), 77.58, and 77.61 (2), Stats. Tax 11.68 – ss. 77.51 (2), (12m) (b) 7., (12t), (14) (intro.), (15a) (b) 1. and 4., (15b) (b) 7., 77.52 (2) (a) 10., 11., and 20. and (2m), 77.53 (1), 77.54 (5) (d), (6) (am) 1., 4., and 5., (9m), (26), (26m), (31), (41), (60), (62m), and (65), 77.71 (3), and 77.77 (3), Stats. Tax 11.83 – ss. 77.51 (7m), (13) (am), (14) (j), and (15b) (b) 6., 77.52 (1), (2) (a) 10. and 13m., and (15), 77.53 (1), (1m), (16), (17), and (18), 77.54 (5) (a), (c) and (d), (7) and (22b), 77.56 (2) and (3), 77.61 (1), 77.71 (2) and (4), and 77.73, Stats. Statutory Authority: ss. 70.375 (2) (b), 71.04 (8) (c), 71.05 (6) (b) 47m., 71.25 (10) (c), 71.255 (7), 71.26 (1) (h), 71.45 (1) (c), 71.78 (4), 73.029, 77.61 (5) (b), and 227.11 (2), Stats. Explanation of Agency Authority:
Section 70.375 (2) (b), Stats., provides statutory rule-making authority as follows: (b) "The secretary may promulgate any rules necessary to implement the tax under ss. 70.37 to 70.39 and 70.395 (1e). …" Section 71.04 (8) (c), Stats., provides statutory rule-making authority as follows: (c) "The net business income of railroads, car line companies, pipeline companies, financial organizations, telecommunications companies, air carriers, and public utilities requiring apportionment shall be apportioned pursuant to rules of the department of revenue…"
Section 71.05 (6) (b) 47m, Stats., provides statutory rule-making authority as follows: 47m. "… No person may claim a deduction under this subdivision if the person may claim a deduction under this subchapter based on the person relocating the person’s business from another state to this state and in an amount equal to the person’s tax liability. No person may claim a deduction under this subdivision for taxable years beginning after December 31, 2014. The department shall promulgate rules to administer this subdivision."
Section 71.25 (10) (c), Stats., provides statutory rule-making authority as follows: (c) "The net business income of railroads, car line companies, pipeline companies, financial organizations, telecommunications companies, air carriers, and public utilities requiring apportionment shall be apportioned pursuant to rules of the department of revenue, but the income taxed is limited to the income derived from business transacted and property located within the state."
Section 71.255 (7), Stats., provides statutory rule-making authority as follows: (a) "Each combined group shall have one designated agent. Except as prescribed by the department by rule, the designated agent is the parent corporation of the combined group. If there is no such parent corporation, the designated agent may be appointed in the manner prescribed by the department."
(b) 10. "Other responsibilities as determined by rule by the department."
Section 71.26 (1) (h), Stats., provides statutory rule-making authority as follows: (h) "Small business job creation. … No person may claim a deduction under this paragraph if the person may claim a credit under this subchapter based on the person relocating the person’s business from another state to this state and in an amount equal to the person’s tax liability. No person may claim a deduction under this paragraph for taxable years beginning after December 31, 2014. The department shall promulgate rules to administer this paragraph."
Section 71.45 (1) (c), Stats., provides statutory rule-making authority as follows: (c) "… No person may claim a deduction under this paragraph if the person may claim a credit under this subchapter based on the person relocating the person’s business from another state to this state and in an amount equal to the person’s tax liability. No person may claim a deduction under this paragraph for taxable years beginning after December 31, 2014. The department shall promulgate rules to administer this paragraph."
Section 71.78 (4), Stats., provides statutory rule-making authority as follows: (4) "Persons qualified to examine returns for specified purposes. Subject to subs. (5) and (6) and to rules of the department…" Section 73.029, Stats., provides statutory rule-making authority as follows: "Rules required. The department of revenue may require electronic funds transfer only by promulgating rules."
Section 77.61 (5) (b), Stats., provides statutory rule-making authority as follows: (b) "Subject to pars. (c) and (d) and to the rules of the department…" Section 227.11 (2), Stats., provides, in part, statutory rule-making authority 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…"
(b) "Each agency may prescribe forms and procedures in connection with any statute enforced or administered by it, if the agency considers it necessary to effectuate the purpose of the statute, but this paragraph does not authorize the imposition of a substantive requirement in connection with a form or procedure."
(c) "Each agency authorized to exercise discretion in deciding individual cases may formalize the general policies evolving from its decisions by promulgating the policies as rules…"
Related Statutes and Rules: There are no other applicable statutes or rules.
Plain Language Analysis: The department identified the following provisions in need of updates relating to income, franchise, excise, sales, and use taxes for purposes of the JCRAR report submitted on March 30, 2023:
a. Chapter Tax 1 - General — Section Tax 1.12: Listed taxes, fees, and other amounts described to be paid or deposited using the electronic funds transfer (EFT) payment method are outdated. For example, stadium sales and use taxes are obsolete and other tax payments, such as partnership tax payments are now required. b. Chapter Tax 2 - Income Taxation, Returns, Records, and Gross Income —Section Tax 2.105: Increase the 90-day Wisconsin reporting requirement to 180 days after federal or other state tax return adjustments, consistent with the reporting requirements in secs. 71.76 and 71.77(7), Wis. Stats. Update the dates in the examples to match new reporting requirement. — Section Tax 2.11: The rule is obsolete and may be repealed. The credit for sales and use tax paid on fuel and electricity may no longer be claimed for taxable years that begin after December 31, 2005, pursuant to sec. 71.28(3)(c)7., Wis. Stats.
