Rule-Making Notices
Notice of Hearing
Revenue
NOTICE IS HEREBY GIVEN that, pursuant to sections
71.05 (6) (b) 47. e.,
71.28 (9s) (d) 2., and
71.47 (9s) (d) 2., Stats., the Department of Revenue will hold a public hearing to consider emergency rules and permanent rules creating section
Tax 2.957, relating to
income and franchise tax credits and deductions for businesses that relocate to Wisconsin.
Hearing Information
The hearing will be held:
Date and Time Location
June 14, 2011 Events Room
Tuesday State Revenue Building
at 9:00 A.M. 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 June 21, 2011, 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
Analysis Prepared by the Department of Revenue
Statute(s) interpreted
Statutory authority
Explanation of agency authority
Related statute or rule
There are no other applicable statutes or rules.
Plain language analysis
This proposed rule prescribes the method by which the percentage of the workforce payroll of a business and the dollar amount of wages paid to such workforce moved to this state during a taxable year shall be determined for purposes of ss.
71.05 (6) (b) 47.,
71.28 (9s), and
71.47 (9s), Stats. It also provides examples of actions that may indicate a business has relocated to this state from another state or country and limits the deduction provided for in s.
71.05 (6) (b) 47. am.,
b., and
c., Stats.
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 proposed rule.
Comparison with similar rules in adjacent states
The department has researched provisions in adjacent states and is not aware of the existence of a similar rule.
Summary of factual data and analytical methodologies
2011 Wisconsin Act 3 created income and franchise tax credits and deductions for businesses that relocate to Wisconsin. Among the provisions created is a requirement for the department to promulgate rules to administer these credits and deductions. The department has created this proposed rule order to comply with this statutory requirement.
Analysis and supporting documents used to determine effect on small business
As explained above, this proposed rule is created to administer changes in Wisconsin's income and franchise 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.
Effect on Small Business
This proposed rule does not have a significant effect on small business.
Fiscal Estimate
Assumptions used in arriving at fiscal estimate
The fiscal effect of income and franchise tax credit and deduction for businesses that relocate to Wisconsin from another state or country was included in the fiscal estimate for
2011 Act 3. As such, the proposed rule has no fiscal effect.
State fiscal effect
No state fiscal effect.
Local government fiscal effect
No local government costs.
Anticipated costs incurred by private sector
This proposed rule does not have a significant fiscal effect on the private sector.
Agency Contact Person
Please contact Dale Kleven at (608) 266-8253 or
dale.kleven@revenue.wi.gov, if you have any questions regarding this proposed rule.
Text of Rule
SECTION 1. Tax 2.957 is created to read:
Tax 2.957 Relocated business credit or deduction. (1) Purpose. The purpose of this section is to prescribe the method by which the percentage of the workforce payroll of a business and the dollar amount of wages paid to such workforce moved to this state during a taxable year shall be determined for purposes of ss.
71.05 (6) (b) 47.,
71.28 (9s), and
71.47 (9s), Stats.; provide examples of actions that may indicate a business has relocated to this state from another state or country; and limit the deduction provided for in s.
71.05 (6) (b) 47. am.,
b., and
c., Stats.
(2) Definitions. In this section:
(a) “Business" means any organization or enterprise operated for profit, including a sole proprietorship, partnership, firm, business trust, joint venture, syndicate, corporation, limited liability company, or association.
(b) “Doing business in this state" has the meaning given in s.
71.22 (1r), Stats.
(c) “Employee" has the meaning given in section
3121 (d) of the Internal Revenue Code.
(e) “Wages" has the meaning given in section
3121 (a) of the Internal Revenue Code.
(3) Relocation To This State. For purposes of ss.
71.05 (6) (b) 47.,
71.28 (9s), and
71.47 (9s), Stats., actions that may indicate a business has relocated to this state from another state or country include the following:
(a) Registering with the department, as provided in s.
73.03 (50), Stats.
(b) Registering to do business in Wisconsin with the department of financial institutions.
