Tax 11.92 (1) (e) Every person shall keep a record of the purchase price of property, items, and goods on which the person is subject to county, and stadium, and regional transit authority use or excise tax in each enacting county, or stadium district or transit authority's district's jurisdiction.
SECTION 69. Tax 11.95(1)(a) is amended to read:
Tax 11.95 (1) (a) Effective for Wisconsin sales and use tax returns filed for periods ending on or after January 1, 1997, for timely reporting state, county, and stadium, and transit authority sales or use tax collected on their retail sales, retailers may deduct 0.5% of the sales and use tax payable on retail sales, except as provided in pars. (am), (b), and (c).
SECTION 70. Tax 11.96 (title) and (1) are amended to read:
Tax 11.96 (title) Delivery of ordinance or resolution; county, stadium, transit authority, and premier resort area tax.
(1) This section clarifies requirements for the timely delivery of county, and stadium
, and transit authority sales and use tax and premier resort area tax ordinances or resolutions to the secretary of revenue.
SECTION 71. Tax 11.96 (2) (g) and (h) are repealed
SECTION 72. Tax 11.96 (3) (intro.) and (Note) are amended to read:
Tax 11.96 (3) (intro.) An ordinance or resolution referred to in s.
77.70,
77.9941 (1) or
(3),
229.68 (15),
or 229.824 (15),
or 66.1039 (4) (s), Stats., is timely delivered to the secretary of revenue if, by the prescribed number of days before the effective date, any of the following occur:
(Note) Section
Tax 11.96 interprets ss.
66.1039 (4) (s), 77.70, 77.705, 77.706, 77.707, 77.708, 77.9941 (1) and (3), 229.68 (15), and 229.824 (15), Stats.
SECTION 73. Tax 11.97 (8) is repealed and recreated to read:
Tax 11.97 (8)
County and special district taxes. Retailers that are registered or required to be registered to collect and remit Wisconsin state sales or use taxes are also required to collect, report, and remit the applicable county and stadium district sales or use taxes, regardless of whether the retailer is engaged in business in the county or special district, as provided in s.
77.73 (3), Stats.
ADMINISTRATIVE RULES
FISCAL ESTIMATE
AND ECONOMIC IMPACT ANALYSIS
|
Type of Estimate and Analysis
|
X Original Updated Corrected
|
Administrative Rule Chapter, Title and Number
|
Chapters Tax 1 and 11 – General administration and sales and use tax
|
Subject
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Sales tax law changes made by 2011 Wisconsin Act 32 and other legislation
|
Fund Sources Affected
|
Chapter 20 , Stats. Appropriations Affected
|
GPR FED PRO PRS SEG SEG-S
|
|
Fiscal Effect of Implementing the Rule
|
X No Fiscal Effect
Indeterminate
|
Increase Existing Revenues
Decrease Existing Revenues
|
Increase Costs
Could Absorb Within Agency's Budget
Decrease Costs
|
The Rule Will Impact the Following (Check All That Apply)
|
State's Economy
Local Government Units
|
Specific Businesses/Sectors
Public Utility Rate Payers
|
Would Implementation and Compliance Costs Be Greater Than $20 million?
Yes X No
|
Policy Problem Addressed by the Rule
|
The rule does not create or revise policy, other than to reflect statutory changes.
|
Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
|
As indicated in the attached fiscal estimate, the fiscal effect of the proposed rule changes was reflected under general fund condition statements subsequent to 2011 Wisconsin Act 32. The rule itself does not create any further economic or fiscal impact or implementation and compliance costs beyond the statutes it interprets.
No comments concerning the economic effect of the rule were submitted in response to the department's solicitation.
|
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
|
Clarifications and guidance provided by administrative rules may lower the compliance costs for businesses, local governmental units, and individuals.
If the rule is not implemented, Chapters Tax 1 and 11 will be incomplete in that they will not reflect current law.
|
Long Range Implications of Implementing the Rule
|
No long-range implications are anticipated.
|
Compare With Approaches Being Used by Federal Government
|
N/A
|
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
|
N/A
|
Assumptions used in arriving at fiscal estimate
The proposed rule updates Chapter
TAX 11 of the Administrative Code, pertaining to the sales and use tax, to reflect certain sales tax changes contained in
2011 Wisconsin Act 32, the 2011-13 Budget Bill. The proposed rule also amends chapter Tax 1, pertaining to tax administration.
The proposed rule modifies the administrative code to reflect law changes, improve clarity, and add examples to illustrate the tax treatment of certain items.
The proposed rule includes:
○ A sales and use tax exemption for modular and manufactured homes used in real property construction activities outside Wisconsin.
○ A sales and use tax exemption for vegetable oil or animal fat converted to motor vehicle fuel that is exempt from motor vehicle fuel tax.
○ The repeal of regional transit authorities.
○ Change in the tax treatment of items provided free of charge by a retailer.
•
Updates and clarifications to reflect amendments to the Streamlined Sales and Use Tax Agreement.
•
Clarification and examples relating to exempt occasional sales.
•
Changes to reflect the federal preemption on the taxation of air commerce.
•
Clarification that if electronic fund transfers payments are due on a day when the Federal Reserve Bank is closed, the payment due date is revised to be the next day the Federal Reserve Bank is open.
The fiscal effect of the exemptions created under
2011 Wisconsin Act 32 has already been reflected under general fund condition statements subsequent to
2011 Wisconsin Act 32. Since the fiscal impact of the statutory changes has already been reflected, the proposed rule has no fiscal effect.
Notice of Hearing
Revenue
NOTICE IS HEREBY GIVEN that, pursuant to sections
73.15 (3) and
227.11 (2) (a), Stats., the Department of Revenue will hold a public hearing to consider permanent rules creating section
Tax 2.985, relating to the electronic medical records credit.
Hearing Information
The hearing will be held:
Date: Monday, February 27, 2012
Time: 12:30 P.M.
Location: State Revenue Building
Events Room
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 February 27, 2012, 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 the Department of Revenue
Statutes interpreted
Statutory authority
Explanation of agency authority
The department is authorized by s.
73.15 (3), Stats., to promulgate rules to comply with the provisions under ss.
73.15 (1) and
(2), Stats., which provide:
73.15 (1) The department of revenue shall implement a program to certify health care providers as eligible for the electronic medical records credit under ss.
71.07 (5i),
71.28 (5i), and
71.47 (5i).
(2) If the department of revenue certifies a health care provider under sub. (1), the department shall determine the amount of credits to allocate to the health care provider. The total amount of electronic medical records credits allocated to health care providers in any calendar year may not exceed $10,000,000.
(3) The department of revenue shall promulgate rules to administer this section.
The department is further authorized by s.
227.11 (2) (a), Stats., to promulgate rules interpreting the provisions of any statute enforced or administered by the agency if the agency believes it necessary to effectuate the purpose of the statutes enforced or administered by the agency. Section
227.11 (2) (a), Stats., provides:
227.11 (2) Rule-making authority is expressly conferred 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, but a rule is not valid if the rule exceeds the bounds of correct interpretation. All of the following apply to the promulgation of a rule interpreting the provisions of a statute enforced or administered by an agency:
1. A statutory or nonstatutory provision containing a statement or declaration of legislative intent, purpose, findings, or policy does not confer rule-making authority on the agency or augment the agency's rule-making authority beyond the rule-making authority that is explicitly conferred on the agency by the legislature.
2. A statutory provision describing the agency's general powers or duties does not confer rule-making authority on the agency or augment the agency's rule-making authority beyond the rule-making authority that is explicitly conferred on the agency by the legislature.
3. A statutory provision containing a specific standard, requirement, or threshold does not confer on the agency the authority to promulgate, enforce, or administer a rule that contains a standard, requirement, or threshold that is more restrictive than the standard, requirement, or threshold contained in the statutory provision.
Related statute or rule
There are no other applicable statutes or rules.
Plain language analysis
This proposed rule establishes procedures for:
• filing a claim for the electronic medical records tax credit under ss.
71.07 (5i),
71.28 (5i) and
71.47 (5i), Stats., including the method of application and information required; and
• allocating the electronic medical records tax credit to certified health care providers.
Summary of, and comparison with, existing or proposed federal regulation
The federal Office of the National Coordinator (ONC) for Health IT promulgated
45 CFR 170 relating to health information technology (HIT) standards, implementation specifications, and certification criteria and certification programs for HIT. These rules, in addition to the rules for meaningful use of certified electronic health records (EHR) technology under
42 CFR 495, are being used by the Centers for Medicare and Medicaid (CMS) to administer an electronic health record incentive payment program. CMS will require health care providers participating in Medicare to adopt and use certified EHR technology or face penalties beginning in 2016.
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 comply with the statutory requirement to administer the implementation of the electronic medical records credit. No other data was used in the preparation of this proposed rule order or this analysis.
Analysis and supporting documents used to determine effect on small business
As explained above, this proposed rule is created to administer 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.
Anticipated costs incurred by private sector
This proposed rule does not have a significant fiscal effect on the private sector.
Effect on Small Business
This proposed rule does not have a significant effect on small business.
Initial Regulatory Flexibility Analysis
This proposed rule order does not have a significant economic impact on a substantial number of small businesses.
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 2.985 is created to read:
Tax 2.985 Electronic medical records credit. (1) Purpose and scope. The purpose and scope of this section is to establish procedures for all of the following:
