Rule-Making Notices
Notice of Hearing
Revenue
NOTICE IS HEREBY GIVEN that, pursuant to section
227.24, Stats., and interpreting section
77.54 (56), Stats., the Department of Revenue will hold a public hearing to consider emergency rules creating section
Tax 11.10, relating to
wind, solar, and certain gas powered products.
Hearing Information
The hearing will be held:
Date: Friday, August 12, 2011
Time: 9:00 A.M.
Location: Department of Revenue
Events Room
2135 Rimrock Road
Madison, WI 53713
Handicap access is available at the hearing location.
Appearances at the Hearing
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.
Submittal of Written Comments
Written comments may also be submitted to the contact person listed below no later than August 19, 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
Telephone: (608) 266-8253
Analysis Prepared by Department of Revenue
Statutes interpreted
Statutory authority
Explanation of Statutory Authority
Section
227.24, Stats., provides an agency may promulgate a rule as an emergency rule without complying with the notice, hearing, and publication requirements of the statutes if preservation of the public peace, health, safety, or welfare necessitates putting the rule into effect prior to the time it would take effect if the agency complied with the procedures.
Related rules or statutes
There are no other applicable statutes or rules.
Plain language analysis
This emergency rule defines the term “product" as it applies to the sales and use tax exemption under s.
77.54 (56), Stats., provides examples of items that are and are not considered products, and clarifies the exemption requirements and scope.
Comparison with federal regulations
There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the emergency rule.
Comparison with rules in adjacent states
Minnesota and Iowa have sales and use tax exemptions relating to equipment involved in converting wind or solar energy into electricity or heat, Michigan and Illinois do not.
Minnesota:
M. S. 297A.67. Subd.29, Solar energy products. A solar energy system, as defined in section 216C.06, subdivision 17, is exempt.
M. S. 297A.68.Subd.12, Wind energy conversion systems. Wind energy conversion systems, as defined in section 216C.06, subdivision 12, that are used as an electric power source are exempt, and the materials used to manufacture, install, construct, repair, or replace them are exempt.
Minnesota has no rules pertaining to these statutes.
Iowa:
Iowa Code sec. 423.3.54, the sales price from the sale of wind energy conversion property to be used as an electric power source and the sale of the materials used to manufacture, install, or construct wind energy conversion property used or to be used as an electric power source.
For purposes of this subsection, “wind energy conversion property" means any device, including, but not limited to, a wind charger, windmill, wind turbine, tower and electrical equipment, pad mount transformers, power lines, and substation, which converts wind energy to a form of usable energy.
Iowa Code sec. 423.3.90, The sales price from the sale of solar energy equipment. For purposes of this subsection, “solar energy equipment" means equipment that is primarily used to collect and convert incident solar radiation into thermal, mechanical, or electrical energy or equipment that is primarily used to transform such converted solar energy to a storage point or to a point of use.
Iowa has a rule (701—230.7(423)) relating to the statutory exemption for “wind energy conversion property." However, the rule merely reiterates the statutory language and does not interpret the statute.
Summary of data and analytical methodologies
In reviewing the language of s.
77.54 (56), Stats., the department concluded that in order to administer the sales and use tax exemption being created, it needs to promulgate rules interpreting and clarifying the underlying statutory provisions.
Analysis and supporting documentation used to determine effect on small business
As explained above, this emergency rule is created to administer changes in Wisconsin's sales and use 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.
Small Business Impact
This emergency rule does not have a significant effect on small business.
Economic Impact
Individuals and representatives of businesses and local governmental units that may be affected by the rule are invited to appear at the hearing or submit written comments as described above as to whether the rule will adversely affect in a material way the economy, a sector of the economy, productivity, jobs, or the overall economic competitiveness of Wisconsin.
Fiscal Estimate
State fiscal effect
