Rule No.
Relating to
Description of the Objective of the Rule
The objective of the proposed rule is to update the Wisconsin Administrative Code to reflect the following tax law changes:
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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 to be updated is in Section
Tax 2.96.
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2005 Wisconsin Act 25, which renumbered secs. 71.07 (3n) (b), 71.28 (3n) (b), and 71.47 (3n)(b), Stats., renumbered and amended secs. 71.07 (3n) (e), 71.28 (3n) (e), and 71.47 (3n) (e), Stats., amended secs. 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 secs. 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 secs. 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 to be updated are in Section
Tax 2.99.
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1993 Wisconsin Act 263, which created sec. 71.05 (1) (e), Stats. [subsequently renumbered 71.05 (1) (c) 3. by
1995 Wisconsin Act 56];
1995 Wisconsin Act 56, which created sec. 71.05 (1) (c) 4., Stats.;
1999 Wisconsin Act 65, which created sec. 71.05 (1) (c) 6., Stats.;
1999 Wisconsin Act 167, which created sec. 71.05 (1) (c) 5., Stats.;
2003 Wisconsin Act 85, which repealed sec. 71.05 (1) (c) 2., Stats., and created sec. 71.05 (1) (c) 1m., Stats.;
2005 Wisconsin Act 335, which created sec. 71.05 (1) (c) 7., Stats.;
2007 Wisconsin Act 20, which created sec. 71.05 (1) (c) 8., Stats.;
2009 Wisconsin Act 28, which created sec. 71.05 (1) (c) 9., Stats.;
2009 Wisconsin Act 205, which created sec. 71.05 (1) (c) 10., Stats.; and
2011 Wisconsin Act 32, which repealed sec. 71.05 (1) (c) 9., Stats., and created sec. 71.05 (1) (c) 12., Stats. These provisions all concern income tax exemptions for certain bonds and notes. Existing provisions to be updated are in Section
Tax 3.095.
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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 to be updated are in Chapter
Tax 2.
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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 sec. 125.58 (4) (a) (intro.), Stats., repealed and recreated sec. 139.035, Stats., and created sec. 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 to be updated (repealed) is Section Tax 8.24.
Description of Existing Policies Relevant to the Rule and of New Policies Proposed to be Included in the Rule and an Analysis of Policy Alternatives; the History, Background and Justification for the Proposed Rule
Existing policies are as set forth in the rules. No new policies are being proposed, other than to reflect law changes. If the rules are not changed, they will be incorrect in that they will not reflect current law or current Department policy.
Statutory Authority for the Rule Including the Statutory Citation and Language)
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..."
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 (3), Stats., provides “[t]he department of revenue shall levy, enforce, and collect the surcharge under this subchapter." This provision applies to the proposed rule changes relating to the economic development surcharge.
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.
Estimate of the Amount of Time that State Employees will Spend to Develop the Rule and of Other Resources Necessary to Develop the Rule
The department estimates it will take approximately 100 hours to develop the proposed rule order.
Description of All Entities that may be Impacted by the Rule
Tax practitioners, taxpayers, and others who rely on up-to-date and accurate administrative rules.
Summary and Preliminary Comparison of any Existing or Proposed Federal Regulation that is Intended to Address the Activities to be Regulated by the Rule
There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.
Contact Person
Dale Kleven (608) 266-8253
Revenue
This scope statement was approved by the governor on October 21, 2011
Rule No.
Relating to
Tax law changes made by
2011 Wisconsin Act 32 and other legislation and additional information relating to interpretive rules adopted by the Streamlined Sales Tax Governing Board that are consistent with Wisconsin laws.
Description of the Objective of the Rule
The objectives of the proposed rule are listed below. Unless otherwise specified, the existing provisions to be updated are in Chapter
Tax 11.
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To reflect the following tax law changes:
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Section
77.52 (21), Stats., as revised by
2011 Wisconsin Act 32 to change the sales and use tax treatment of items provided free of charge by a retailer.
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Section
77.54 (5) (am), Stats., as created by
2011 Wisconsin Act 32 to create a sales and use tax exemption for modular and manufactured homes used in real property construction activities outside Wisconsin.
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Section
77.54 (11m), Stats., as created by
2011 Wisconsin Act 32 to create a sales and use tax exemption for vegetable oil or animal fat converted to motor vehicle fuel that is exempt from the taxes imposed under s.
78.01 (1), Stats.
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The repeal of the regional transit authorities.
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So that it is consistent with the interpretive rules and amendments adopted by the Streamlined Sales Tax Governing Board to the extent those rules and amendments are consistent with Wisconsin's laws and make changes to clarify rules based on suggestions made during last year's compliance review conducted by the SSTGB.
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To provide specifically that if the due date of a payment falls on a day the Federal Reserve Bank is closed the payment is timely if it is made on the next day the Federal Reserve is open. Existing provisions to be updated are in Section
Tax 1.12.
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To improve readability and provide clarity, remove potentially obsolete language and add or amend examples where needed for clarification purposes.
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To make corrections to incorrect statutory cross-references.
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To correctly reflect the occasional sale provisions contained in Wisconsin law.
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To reflect the department's position relating to the Federal Anti-Head Tax Act (
49 U.S.C. 40166) as it applies to Wisconsin sales and use tax.
Description of Existing Policies Relevant to the rule and of New Policies Proposed to be Included in the Rule and an Analysis of Policy Alternatives; the History, Background and Justification for the Proposed Rule
Existing policies are as set forth in the rules. New policies are being proposed to reflect law changes such as in the area of items provided free of charge by retailer and the changes being proposed due to the Federal Anti-Head Tax Act (
49 U.S.C. 40166). If the rules are not changed, they will be incorrect in that they will not reflect current law or current Department policy.
Statutory Authority for the Rule (Including the Statutory Citation and Language)
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..."
Section
77.52 (19), Stats., provides “[t]he department shall by rule provide for the efficient collection of the taxes imposed by this subchapter on sales of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services by persons not regularly engaged in selling at retail in this state or not having a permanent place of business, but who are temporarily engaged in selling from trucks, portable roadside stands, concessions at fairs and carnivals, and the like. The department may authorize such persons to sell property or items, property or goods under sub. (1) (b), (c), or (d) or sell, perform, or furnish services on a permit or nonpermit basis as the department by rule prescribes and failure of any person to comply with such rules constitutes a misdemeanor." This provision applies to proposed rule changes relating to Chapter
Tax 11.
Section
77.65 (3), Stats., provides “[t[he department may enter into the agreement to simplify and modernize sales tax and use tax administration in order to substantially reduce the tax compliance burden for all sellers and for all types of commerce. The department may act jointly with other states that are signatories to the agreement to establish standards for the certification of a certified service provider and certified automated system and to establish performance standards for multistate sellers. The department may promulgate rules to administer this section, may procure jointly with other states that are signatories to the agreement goods and services in furtherance of the agreement, and may take other actions reasonably required to implement this section. The secretary of revenue or the secretary's designee may represent this state before the states that are signatories to the agreement." This provision also applies to proposed rule changes relating to Chapter
Tax 11.
Section
73.029, Stats., provides “[t]he department of revenue may require electronic funds transfer only by promulgating rules." This provision applies to proposed rule changes relating to Section
Tax 1.12.
Estimate of the Amount of Time that State Employees will Spend to Develop the Rule and of Other Resources Necessary to Develop the Rule
The department estimates it will take approximately 200 hours to develop the proposed rule order.
Description of All Entities that may be Impacted by the Rule
Tax practitioners, taxpayers, and others who rely on up-to-date and accurate administrative rules, persons issuing or receiving exemption certificates, persons providing services subject to the Federal Anti-Head Tax Act (
49 U.S.C. 40166), persons providing training services along with the sale of prewritten computer software, persons engaged in barter type transactions, and persons selling prepaid calling services.
Summary and Preliminary Comparison of any Existing or Proposed Federal Regulation that is Intended to Address the Activities to be Regulated by the Rule
The Federal Anti-Head Tax Act (
49 U.S.C. 40166) prohibits states and political subdivisions from taxing air commerce and transportation. The changes made by the rule will ensure that Wisconsin's sales and use tax is in compliance with the Act.
Contact Person
Dale Kleven (608) 266-8253
Revenue
This scope statement was approved by the governor on October 25, 2011
Rule No.
Section
Tax 2.985 (emergency and permanent rule).
Relating to
Electronic medical records credit.
Description of the Objective of the Rule
The objective of the emergency and proposed permanent rules is to create Section
Tax 2.985, relating to the electronic medical records credit. The rules will 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), Stats., and allocate to certified providers, tax credits for information technology (IT) hardware or software that is used to maintain medical records in electronic form.
Description of Existing Policies Relevant to the Rule and of New Policies Proposed to be Included in the Rule and an Analysis of Policy Alternatives; the History, Background and Justification for the Proposed Rule
Sections
71.07 (5i),
71.28 (5i), and
71.47 (5i), Stats., permit a health care provider, as defined in s.
146.81 (a) to (p), Stats., to claim as a credit, subject to limitations, against taxes imposed under ss.
71.02 and
71.08, Stats., up to the amount of those taxes, an amount equal to 50 percent of the amount the claimant paid in the taxable year beginning after December 31, 2011, for information technology hardware or software that is used to maintain medical records in electronic form.
Section
73.15 (3), Stats., requires the department to promulgate rules to 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), Stats., and to allocate to certified providers, tax credits for information technology (IT) hardware or software that is used to maintain medical records in electronic form.
The department intends to propose rules interpreting the provisions of ss.
71.07 (5i),
71.28 (5i),
71.47 (5i), and
73.15 (1) and
(2), Stats., including addressing activities relating to: (1) eligibility; (2) application and documentation; (3) criteria for certification (4) criteria for allocation of credits; and (5) claiming credits.
Because health care providers may begin claiming the tax credits for amounts paid for IT hardware and software to maintain medical records in electronic form, beginning in taxable year 2012, the department will issue these rules first as emergency rules and then as permanent rules.
The alternative of not promulgating these rules would conflict with a directive in s.
73.15 (3) Stats., which requires the department to promulgate these rules.
Statutory Authority for the Rule (Including the Statutory Citation and Language)
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 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.
