Tax 4.001 HistoryHistory: CR 10-093: cr. Register November 2010 No. 659, eff. 12-1-10; CR 21-085: am. (2) (a) (intro.), r. (2) (b) Register August 2022 No. 800, eff. 9-1-22. Tax 4.01Tax 4.01 Portable motor equipment. Portable motor equipment attached to any motor vehicle shall have a separate fuel tank, and detailed records shall be kept of the gallonage consumed in the motor of portable equipment. Tax 4.01 NoteNote: This section interprets s. 78.75, Stats. Tax 4.01 HistoryHistory: 1-2-56; emerg. am. eff. 4-1-94; am. Register, November, 1994, No. 467, eff. 12-1-94. Tax 4.02Tax 4.02 Resellers’ personal claims for refund. Motor vehicle fuel resellers who make personal claims for refund of tax paid on gallonage used for tax-exempt purposes shall make out an original invoice to themselves for each sale in the same manner as to any other customer. In addition the claim shall be supported by paid invoices from the company from whom the motor vehicle fuel was originally purchased. Tax 4.02 NoteNote: This section interprets s. 78.75, Stats. Tax 4.02 HistoryHistory: 1-2-56; emerg. am. eff. 4-1-94; am. Register, November, 1994, No. 467, eff. 12-1-94. Tax 4.03Tax 4.03 Public highways closed to public travel. Motor vehicle fuel used in connection with the construction, repair and maintenance of the public highways may not be construed as used on a public highway when it is being used on a highway entirely closed to public travel. Tax 4.03 NoteNote: This section interprets s. 78.75, Stats. Tax 4.03 HistoryHistory: 1-2-56; emerg. am. eff. 4-1-94; am. Register, November, 1994, No. 467, eff. 12-1-94. Tax 4.05(1)(1) Definition. In this section, “taxicab” means a motor vehicle having a passenger carrying capacity of fewer than 15 persons, held for public hire, at designated places, charging passengers upon a time or distance basis, and carrying passengers to designations without following any fixed routes. “Taxicab” does not include any of the following: Tax 4.05(1)(a)(a) Motor vehicles rented to be driven by the renter or the renter’s agent. Tax 4.05(1)(c)(c) Motor vehicles of car pools and van pools operated by private individuals, nonprofit organizations or city, state or federal governments. Tax 4.05(1)(e)(e) Motor vehicles operated primarily for transporting property. Tax 4.05(1)(f)(f) Motor vehicles not designated “Vehicle has or will be used for public transportation (taxi)” on the motor vehicle registration form, form MV-1, filed with the department of transportation. Tax 4.05 NoteExamples: 1) A rent-a-car does not qualify as a taxicab.
Tax 4.05 Note2) A limousine with driver that holds 8 people is hired by a wedding party to transport them throughout a city on a per hour basis. The limousine is considered a taxicab.
Tax 4.05(2)(2) General. A person who uses motor vehicle fuel or alternate fuel in operating a taxicab for the transportation of passengers and has paid a tax on the fuel under ch. 78, Stats., may file a claim for refund of the tax paid with the department, provided the claim is for tax on 100 gallons or more. Tax 4.05 HistoryHistory: Cr. Register, September, 1991, No. 429, eff. 10-1-91; emerg. am. eff. 4-1-94; am. Register, November, 1994, No. 467, eff. 12-1-94. Tax 4.10Tax 4.10 Motor vehicle fuel tax liability. Tax 4.10(1)(1) Purpose. This section clarifies the tax liability on all sales of motor vehicle fuel produced, refined, blended, manufactured or imported into Wisconsin. Tax 4.10(2)(2) Definition. In this section, “position holder” has the meaning specified in the federal internal revenue service regulations, 26 CFR 48.4081-1 (m). Tax 4.10(3)(3) Imposition. The tax on all motor vehicle fuel, either gasoline or undyed diesel fuel, shall be paid to the department by suppliers required to be licensed with the department, as follows: Tax 4.10(3)(a)(a) Fuel withdrawn from a Wisconsin marine terminal or pipeline terminal. The motor vehicle fuel tax on gasoline and undyed diesel fuel withdrawn from a Wisconsin marine terminal or pipeline terminal shall be paid by the position holder. Tax 4.10(3)(b)(b) Imported fuel. Gasoline and undyed diesel fuel imported into Wisconsin is subject to the motor vehicle fuel tax and shall be paid by the supplier when either of the following conditions applies: Tax 4.10(3)(b)1.1. The product is placed into a transport truck whose destination is a Wisconsin location other than a pipeline terminal or refinery. The bill of lading prepared by the out-of-state terminal operator shall clearly indicate Wisconsin as the destination state. The tax shall be paid by the position holder at the out-of-state terminal. Tax 4.10(3)(b)2.2. The product is transported across the state line by a supplier from an out-of-state bulk plant in a transporting vehicle. The sales invoice shall clearly indicate Wisconsin as the destination state and that the tax shall be paid by the supplier. Tax 4.10(3)(c)(c) Blending components. Any product that is not a motor vehicle fuel and is blended as a component part of motor vehicle fuel other than at a refinery, marine terminal, pipeline terminal or place of manufacture is subject to tax at the time and place of blending. The tax on the component part shall be paid by the person who owns the motor vehicle fuel when blending is completed. Tax 4.10 NoteNote: This section interprets s. 78.07, Stats. Tax 4.10 HistoryHistory: Emerg. cr. eff. 4-1-94; cr. Register, November, 1994, No. 467, eff. 12-1-94; CR 16-064: am. (3) (b) 2. Register January 2018 No. 745, eff. 2-1-18. Tax 4.11Tax 4.11 Tax exemption for dyed diesel fuel. Tax 4.11(1)(1) Purpose. This section clarifies the tax exemption provided to suppliers required to be licensed by the department when a dye has been added to diesel fuel. Tax 4.11(2)(a)(a) All fuel dyed in accordance with the federal internal revenue service temporary regulations, 26 CFR 48.4082-1T, 2T, 3T and 4T, is treated as destined for exempt use and is exempt from the motor vehicle fuel tax. Tax 4.11(2)(b)(b) Dyed diesel fuel shall only be used for exempt purposes. Tax 4.11 NoteExamples: 1) Diesel fuel used as heating oil has an exempt purpose.
Tax 4.11 Note2) Diesel fuel used for nonhighway use has an exempt purpose.
Tax 4.11 Note3) Diesel fuel used in trains has an exempt purpose.
Tax 4.11 NoteNote: This section interprets s. 78.01 (2p), Stats. Tax 4.11 HistoryHistory: Emerg. cr. eff. 4-1-94; cr. Register, November, 1994, No. 467, eff. 12-1-94. Tax 4.12Tax 4.12 Uncollected motor vehicle fuel taxes and repossessions. Tax 4.12(1)(1) Purpose. This section clarifies when and how a supplier required to be licensed by the department may recover the motor vehicle fuel tax from the department when a purchaser is unable to pay the tax to the supplier. This section also clarifies when and how a wholesaler distributor may recover the motor vehicle fuel tax from the department when the wholesaler distributor is unable to collect the tax from another wholesaler distributor or a retail dealer. Tax 4.12(2)(2) Statutes. Under s. 78.01 (2s), Stats., a supplier is not liable for the tax on motor vehicle fuel when the supplier is unable to recover the tax from a purchaser. With proper documentation, the supplier may claim a tax deduction on a later remittance of taxes. A wholesaler distributor may file a refund claim with the department to recover the tax on uncollectable accounts covering sales to other wholesaler distributors and retail dealers. Tax 4.12(3)(a)(a) Tax imposed. A supplier shall pay the motor vehicle fuel tax to the department by the 15th day of the month after the month in which the fuel is received, as described in s. 78.07, Stats., irrespective of whether the sale is for cash or credit. Tax 4.12(3)(b)1.1. ‘Deduction from measure of tax.’ A supplier is relieved from the liability for motor vehicle fuel tax on accounts which have become worthless and which have met the requirements to be charged off for income or franchise tax purposes. The bad debt tax deduction shall be reported and claimed on the supplier’s monthly tax report for the month in which the account becomes worthless. However, if a supplier is out of business when the account becomes worthless, a bad debt deduction may be claimed on the last return filed by that business or through a refund claim filed with the department. A wholesaler distributor may claim a bad debt tax deduction for the amount of tax liability for motor vehicle fuel tax on sales to other wholesaler distributors or retail dealers on accounts which have become worthless and which have met the requirements to be charged off for income or franchise tax purposes by filing a refund claim with the department. A claim for refund relating to a worthless account must be filed within 4 years of the 15th day of the 4th month following the close of the supplier’s or wholesaler distributor’s calendar or fiscal year within which the account becomes worthless. Tax 4.12 NoteExamples: 1) An account of a supplier who is still in business becomes worthless and meets the requirements to be charged off for income or franchise tax purposes on January 10, 2011. The supplier may claim a bad debt deduction on the motor vehicle fuel tax return, form MF-002, filed for the month of January 2011, even though the bad debt deduction may not be claimed for income or franchise tax purposes until the 2011 income or franchise tax return is filed in 2012.
Tax 4.12 Note2) Assume the same facts as in Example 1, except the account is that of a wholesaler distributor. Irrespective of when the wholesaler distributor files the income or franchise tax return on which the bad debt deduction is claimed, the wholesaler distributor may file a claim for refund to recover the uncollected motor vehicle fuel tax any time between January 10, 2011 and April 15, 2016.
Tax 4.12(3)(b)2.2. ‘Recovery of bad debts charged off.’ If a bad debt deduction has been claimed by a supplier or wholesaler distributor for an account found worthless and charged off and the account is thereafter in whole or in part collected by the supplier or wholesaler distributor, the bad debt deduction shall be repaid to the department. A supplier shall report the amount so collected in the first tax report, form MF-002, filed after the collection, and the tax on the amount collected shall be paid with the report. A wholesaler distributor shall file a corrected refund claim and pay the tax collected within 30 days of collection. Tax 4.12(3)(b)3.a.a. A deduction may only be claimed for the unpaid amount of tax on an account found worthless and charged off. The total amount charged off may include the cost of the fuel, interest, financing or insurance costs in addition to the tax amount. To determine the unpaid amount of tax to be deducted, all payments and credits to the account shall be prorated to the various components of the total amount that the purchaser contracted to pay. Tax 4.12 NoteExample: At the time when the tax rate is 30.9¢ per gallon, Supplier A sells 8,000 gallons of gasoline to Company B. Company B has an agreement with Supplier A to delay payment of the tax. The amount of the contract is $12,942, consisting of tax, $2,472, and the cost of fuel, $10,470. Company B defaults and discontinues operations, leaving a balance due Supplier A of $2,100, which includes interest of $200 not included in the contract amount. The deductible tax loss is $363, computed as follows:
Tax 4.12(3)(b)3.b.b. No deduction may be allowed for expenses incurred by a supplier or wholesaler distributor in attempting to collect any account receivable, or for that portion of a debt recovered that is reclaimed by or paid to a third party as compensation for services rendered in collecting the account. Tax 4.12(3)(b)4.4. ‘Special situations.’ A purchaser of receivables may not claim a bad debt deduction for the motor vehicle fuel tax on receivables that subsequently become worthless. Tax 4.12(3)(b)5.5. ‘Repossessions.’ When motor vehicle fuel is repossessed a tax deduction may be allowed only to the extent that the supplier or wholesaler distributor sustains a net loss upon which tax was paid. Tax 4.12(3)(c)(c) Tax rate change. If a deduction for uncollectible tax is claimed in a period when the tax rate is different from the tax rate in effect when the tax was reported on the tax report, an adjustment to the gallons claimed shall be made to compensate for the tax rate differential. The number of gallons to claim is computed by dividing the old tax rate by the new tax rate and multiplying that percentage by the gallons sold. Tax 4.12 NoteExample: If tax was reported on an 8,000 gallon sale when the tax rate was 23.2¢ per gallon and a deduction was taken at a 24¢ rate, only 7,733 gallons may be claimed on the monthly supplier’s tax report; [23.2 24] x 8,000 = 7,733.
Tax 4.12 HistoryHistory: Emerg. cr. 4-1-94; cr. Register, November, 1994, No. 467, eff. 12-1-94. Tax 4.50Tax 4.50 Assignment, use and reporting of document number. Each shipment, transfer, purchase or sale of a petroleum product which is reportable to the department in accordance with ch. 78, Stats., shall bear a “document number.” In this section “document number” means the number provided for in subs. (1) through (4), as follows: Tax 4.50(1)(1) Assignment. Except as provided in sub. (4), the assignment of a document number shall originate with and be assigned by the refiner, terminal operator or place of manufacture where the fuel is loaded. All subsequent transactions, invoices and reports regarding each respective shipment shall use and make reference to this number. Tax 4.50(2)(2) Railway tank car shipments. On all railway tank car shipments the tank car initials and number shall become the document number. Tax 4.50(3)(3) Truck transport shipments. On all truck transport shipments the manifest number shall become the document number. Tax 4.50(4)(4) Other shipments. On all other types of shipments, which do not originate at a refinery, terminal or place of manufacture, the shipper shall assign the invoice number as the document number. An invoice number may not be assigned by a shipper as the document number in any case where tank car initials and number or a truck transport manifest number is involved. Tax 4.50 NoteNote: This section interprets ss. 78.77, Stats. Tax 4.50 HistoryHistory: 1-2-56; am. Register, June, 1975, No. 234, eff. 7-1-75; renum. to be (intro.) and am., cr. (1), (2), (3) and (4), Register, June, 1983, No. 330, eff. 7-1-83; emerg. am. eff. 4-1-94; am. Register, November, 1994, No. 467, eff. 12-1-94. Tax 4.51Tax 4.51 Measuring withdrawals. All withdrawals of motor vehicle fuel from Wisconsin refineries, marine terminals or pipeline terminals shall be measured in liquid gallons by accurate meters; however, it is not necessary to meter withdrawals into railway tank cars. Tax 4.51 NoteNote: This section interprets ss. 78.12, Stats. Tax 4.51 HistoryHistory: 1-2-56; emerg. am. eff. 4-1-94; am. Register, November, 1994, No. 467, eff. 12-1-94. Tax 4.52Tax 4.52 Separate schedules. Separate schedules shall be filed for each Wisconsin refinery, marine terminal or pipeline terminal. Tax 4.52 NoteNote: This section interprets ss. 78.12, Stats. Tax 4.52 HistoryHistory: 1-2-56; emerg. am. eff. 4-1-94; am. Register, November, 1994, No. 467, eff. 12-1-94. Tax 4.53Tax 4.53 Certificate of authorization. Tax 4.53(1)(1) Statutes. An alternate fuel dealer may be authorized by an alternate fuel user, if the alternate fuel dealer agrees, to report and pay the tax on alternate fuel delivered into a bulk storage facility of the user. The user then is not required to obtain an alternate fuel license from the department. Tax 4.53(2)(a)(a) A certificate of authorization, form MF-207, may be executed by a purchaser of alternate fuel to request a supplier of alternate fuel to bill the purchaser for both the alternate fuel and the alternate fuel tax. Tax 4.53(2)(b)(b) A certificate of authorization executed by a supplier of alternate fuel indicates the supplier’s acceptance of the purchaser’s request to bill the alternate fuel tax on bulk deliveries and remit it to the department. Tax 4.53(3)(a)(a) If a purchaser and seller of alternate fuel agree that the seller will collect the alternate fuel tax from the purchaser and remit it to the department, the purchaser is not required to obtain an alternate fuel license from the department nor to submit monthly reports of tax liability. Tax 4.53(3)(b)(b) The supplier shall compute the monthly tax liability by adding the number of gallons of alternate fuel placed in storage facilities where purchasers have executed certificates of authorization to the number of gallons of alternate fuel placed in fuel supply tanks of motor vehicles.
