Rule-Making Notices
Notice of Hearing
Revenue
NOTICE IS HEREBY GIVEN that, pursuant to sections
71.80 (1) (c),
77.96 (4),
125.03 (1) (a), and
227.11 (2) (a), Stats., the Department of Revenue will hold a public hearing to consider permanent rules revising Chapters
Tax 1,
2,
3, and
8, relating to tax law changes made by
2011 Wisconsin Act 32 and other legislation.
Hearing Information
The hearing will be held:
Date: Monday, February 27, 2012
Time: 9:00 A.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
Sections
71.05 (1) (c),
71.07 (3n),
71.255 (2m) (d),
71.28 (3n),
71.47 (3n),
71.78 (4) (m),
71.83 (3),
73.03 (27),
77.93 (intro.),
77.96 (6),
77.97, and
125.535, Stats.
Statutory authority
Explanation of agency authority
Section
71.80 (1) (c), Stats., provides “[t]he department may make such regulations as it shall deem necessary in order to carry out this chapter." This provision applies to the proposed rule changes relating to the authority to examine returns, late filing fees, the dairy investment credit and dairy and livestock farm investment credit, income tax exemptions for certain bonds and notes, and the controlled group election.
Section
77.96 (4), Stats., provides that the authority listed above under s.
71.80 (1) (c), Stats., applies to the economic development surcharge under subch.
VII of ch. 77, Stats.
Section
125.03 (1) (a), Stats., provides “[t]he department, in furtherance of effective control, may promulgate rules consistent with this chapter and ch.
139." This provision applies to the proposed rule change relating to the direct shipment of wine.
Section
227.11 (2) (a), Stats., provides “[e]ach 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..."
Related statute or rule
There are no other applicable statutes or rules.
Plain language analysis
This proposed rule concerns the statutory provisions and legislative actions indicated below.
• Section 71.83 (3), Stats., as renumbered and amended by
2009 Wisconsin Act 28 to change the amount of late filing fees for income, franchise, and partnership returns and withholding reports. The existing provision updated is in Section
Tax 2.96.
• 2005 Wisconsin Act 25, which renumbered ss. 71.07 (3n) (b), 71.28 (3n) (b), and 71.47 (3n) (b), Stats., renumbered and amended ss. 71.07 (3n) (e), 71.28 (3n) (e), and 71.47 (3n) (e), Stats., amended ss.
71.07 (3n) (title) and
(a) 2. (intro.),
71.28 (3n) (title) and
(a) 2. (intro.), and
71.47 (3n) (title) and
(a) 2. (intro.), Stats., and created ss.
71.07 (3n) (a) 4.,
5., and
6.,
(b) 2., and
(e) 2.,
71.28 (3n) (a) 4.,
5., and
6.,
(b) 2., and
(e) 2., and
71.47 (3n) (a) 4.,
5., and
6.,
(b) 2., and
(e) 2., Stats., to clarify and expand the dairy investment credit; and
2011 Wisconsin Act 15, which amended ss.
71.07 (3n) (a) 2. (intro.),
5. (intro.), and
6. b. and
(b) 1. and
2.,
71.28 (3n) (a) 2. (intro.),
5. (intro.), and
6. b. and
(b) 1. and
2., and
71.47 (3n) (a) 2. (intro.),
5. (intro.), and
6. b. and
(b) 1. and
2., Stats., to extend the dairy and livestock farm investment credit. Existing provisions updated are in Section
Tax 2.99.
• 1993 Wisconsin Act 263, which created s. 71.05 (1) (e), Stats. [subsequently renumbered 71.05 (1) (c) 3. by
1995 Wisconsin Act 56];
1995 Wisconsin Act 56, which created s. 71.05 (1) (c) 4., Stats.;
1999 Wisconsin Act 65, which created s. 71.05 (1) (c) 6., Stats.;
1999 Wisconsin Act 167, which created s. 71.05 (1) (c) 5., Stats.;
2003 Wisconsin Act 85, which repealed s. 71.05 (1) (c) 2., Stats., and created s. 71.05 (1) (c) 1m., Stats.;
2005 Wisconsin Act 335, which created s.
71.05 (1) (c) 7., Stats.;
2007 Wisconsin Act 20, which created s.
71.05 (1) (c) 8., Stats.;
2009 Wisconsin Act 28, which created s. 71.05 (1) (c) 9., Stats.;
2009 Wisconsin Act 205, which created s. 71.05 (1) (c) 10., Stats.; and
2011 Wisconsin Act 32, which repealed s. 71.05 (1) (c) 9., Stats., and created s. 71.05 (1) (c) 12., Stats. These provisions all concern income tax exemptions for certain bonds and notes. Existing provisions updated are in section
Tax 3.095.
• Section
71.255 (2m) (d), Stats., as amended by
2011 Wisconsin Act 32 to provide that the department may not disregard the tax effect or disallow the election for any controlled group member for any year of the controlled group election period. Existing provisions updated are in Chapter
Tax 2.
• 2007 Wisconsin Act 85, which, in part, repealed secs. 125.52 (8), 125.53 (3), and 125.58 (4) (a) 1. to 4., Stats., renumbered and amended s. 125.58 (4) (a) (intro.), Stats., repealed and recreated s. 139.035, Stats., and created s. 125.535, Stats., to authorize the direct shipment of wine. This update is part of a general clean-up prompted by the provisions in
2011 Wisconsin Act 32 concerning three-tier beer laws. The existing provision updated (repealed) is section Tax 8.24.
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 rules in adjacent states
The department is not aware of a similar rule in an adjacent state.
Summary of factual data and analytical methodologies
2011 Wisconsin Act 32 and the other legislation referenced in the above plain language analysis made various changes to Wisconsin's income, franchise, surcharge, and excise tax laws. The department has created this proposed rule order to reflect these statutory changes. 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 changes in Wisconsin's income, franchise, surcharge, and excise 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 1.11 (4) (e) is repealed and recreated to read:
Tax 1.11 (4) (e)
Wisconsin economic development corporation. The chief executive officer of the Wisconsin economic development corporation and employees of the corporation may examine tax returns, except state and county sales and use tax returns, under the provisions specified in sub. (2), to the extent necessary to administer the development zone program under subch.
II of Ch. 238, Stats.
SECTION 2. Tax 2.105 (1), (3) (a) and (b), (4) (a) (intro.), 1. f., 2., and 3. and (b), (5) (c) 2., and (6) (a) are amended to read:
Tax 2.105 (1) PURPOSE. This section clarifies the time periods for a taxpayer to report federal audit adjustments and federal and other state amended returns for Wisconsin franchise or income tax and recycling economic development surcharge purposes, and the result if a taxpayer fails to report the adjustments or amended returns.
