•
Telecommunications utility trade practices surcharge imposed under s.
196.859, Stats.
•
State issued franchise fee (video) imposed under s.
66.0420 (7), Stats.
•
Petroleum inspection fee imposed under s.
168.12, Stats.
•
Motor fuel taxes imposed under s.
78.01, Stats.
iv.
Add the following taxes, fees and charges in s.
Tax 11.26 (3)
•
Police and fire protection fee imposed under s.
196.025 (6), Stats.
•
Low-income assistance fees imposed under s.
16.957 (4) &
(5), Stats.
•
Landline 911 charge imposed under s.
256.35 (3), Stats.
•
State USF fee imposed under s.
196.218, Stats.
o.
Correct error. Amend sec. Tax 11.39 (1) (b), to correct a typographical error. This provision quotes the law and is needed for accuracy.
2. Description of Existing Policies Relevant to the Rule, New Policies Proposed to be Included in the Rule, and an Analysis of Policy Alternatives
Existing policies are as set forth in the rules. New policy is being proposed to reflect the law changes described above. If the rules are not changed, they will be incorrect in that they will not reflect current law or current department policy.
3. Detailed Explanation of Statutory Authority for the Rule (Including the Statutory Citation and Language)
Section
77.65 (3), Stats., provides "[t]he department may promulgate rules to administer this section
…"
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..."
4. Estimate of Amount of Time that State Employees will Spend Developing the Rule and of Other Resources Necessary to Develop the Rule
The department estimates it will take approximately 100 hours to develop the rule.
5. List with Description of all Entities that may be Affected by the Proposed Rule
Purchasers and sellers of the products described above.
6. Summary and Preliminary Comparison with any Existing or Proposed Federal Regulation that is Intended to Address the Activities to be Regulated by the Proposed Rule
There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.
7. Anticipated Economic Impact of Implementing the Rule (Note if the Rule is Likely to Have a Significant Economic Impact on Small Businesses)
No economic impact is anticipated.
8. Contact Person
Dale Kleven, (608) 266-8253.
Revenue
This statement of scope was approved by the Governor on August 2, 2013.
Rule No.
Relating to
Sales tax filing frequency.
Rule Type
Permanent and Emergency.
1. Finding/Nature of Emergency (Emergency Rule Only)
Section
77.58 (1), Wis. Stats., provides that retailers must file sales tax returns quarterly, except as provided in s.
77.58 (1) (a) and
(b) which allows for sales tax returns to be filed monthly.
Section
77.58 (5), Wis. Stats., provides that the department may require returns and payments on the amount of taxes for other than a quarterly period if it deems it necessary to ensure payment to or facilitate the collection by the state of the amount of taxes. The department has provided for annual sales tax returns by rule in s.
Tax 11.93 (1) for retailers that have an annual tax liability of $300 or less.
Section
77.58 (1) (a), Wis. Stats., as amended by
2013 Wis. Act 20, requires retailers to file sales tax returns monthly if their tax liability exceeds $1,200 in any quarter. This change goes into effect on January 1, 2014. Under prior law, retailers were required to file monthly sales tax returns if their tax liability exceeded $600 in any quarter.
Because Wisconsin Act 20 doubles the threshold upon which a monthly sales tax return is required to be filed ($600 to $1200), s.
Tax 11.93 (1) should also be changed to reflect a similar increase in the threshold upon which an annual sales tax return can be filed.
As the statutory change to the monthly filing standard goes into effect on January 1, 2014, the corresponding change to the annual filing standard in s.
Tax 11.93 (1) should also go into effect on January 1, 2014. There is insufficient time for the permanent rule to be effective on January 1, 2014.
2. Detailed Description of the Objective of the Proposed Rule
The objectives of the rule are to:
•
Amend the reference in sec. Tax 11.93 to increase the annual filing standard to $600 (currently $300) to allow more retailers to file sales tax returns annually. This is consistent with changes made to s.
77.58 (1) (a), Stats., by
2013 Wisconsin Act 20, to allow more retailers to file sales tax returns less frequently (quarterly rather than monthly).
This change would make this rule consistent with recent changes to s.
77.58 (1) (a), Stats.
3. Description of the Existing Policies Relevant to the Rule, New Policies Proposed to be Included in the Rule, and an Analysis of Policy Alternatives
Existing policies are as set forth in the rules. A new policy is being proposed to reflect a law change concerning how frequently smaller retailers must file sales tax returns. If the rule is not changed, only a portion of smaller filers will be allowed to file less frequently.
This change would make this rule consistent with recent changes to s.
77.58 (1) (a), Stats.
4. Detailed Explanation of Statutory Authority for the Rule (Including the Statutory Citation and Language)
Section
77.58 (5), Stats., provides “The department, if it deems it necessary to ensure payment to or facilitate the collection by the state of the amount of taxes, may require returns and payments of the amount of taxes for other than quarterly periods. The department may, if satisfied that the revenues will be adequately safeguarded, permit returns and payments of the amount of taxes for other than quarterly periods
…"
Section
77.65 (3), Stats., provides “[t]he department may promulgate rules to administer this section
…"
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..."
5. Estimate of Amount of Time that State Employees will Spend Developing the Rule and of Other Resources Necessary to Develop the Rule
The department estimates it will take approximately 100 hours to develop the rule.
6. List with Description of all Entities that may be Affected by the Proposed Rule
An estimated 11,929 retailers will file less frequently.
7. Summary and Preliminary Comparison with any Existing or Proposed Federal Regulation that is Intended to Address the Activities to be Regulated by the Proposed Rule
There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.
8. Anticipated Economic Impact of Implementing the Rule (Note if the Rule is Likely to Have a Significant Economic Impact on Small Businesses)
No economic impact is anticipated.
9. Contact Person
Dale Kleven, (608) 266-8253.
Revenue
This statement of scope was approved by the Governor on August 2, 2013.
Rule No.
Relating to
Income and franchise tax provisions.
Rule Type
Permanent.
1. Detailed Description of the Objective of the Proposed Rule
The objective of the rule is to reflect law changes in the 2013-2014 Legislative session:
•
Revise s.
Tax 2.32 to reflect that, for taxable years beginning after December 31, 2012, the economic development surcharge does not apply to individuals, estates, trusts, partnerships, and limited liability companies treated as partnerships.
•
Revise s.
Tax 2.88 to reflect, effective July 2, 2013, the reduction in the rate of refund interest from 9 percent to 3 percent.
•
Revise s.
Tax 2.957 to reflect that the relocated business credit and deduction may not be claimed by a business that relocates to Wisconsin in a taxable year beginning after December 31, 2013.
•
Repeal s.
Tax 2.985 to reflect that the electronic medical records credit may not be claimed for taxable years beginning after December 31, 2013.
•
Create s.
Tax 2.986 to administer the registration of “qualified Wisconsin businesses" for purposes of the capital gains exclusion in s.
71.05 (25), Stats., and the income tax deferral in s.
71.05 (26), Stats.
•
Revise s.
Tax 2.99 to reflect that the dairy and livestock farm investment credit may not be claimed for taxable years beginning after December 31, 2013.
•
Revise s.
Tax 3.095 to reflect that, effective for taxable years beginning after December 31, 2012, certain interest from bonds issued by the Wisconsin Health and Educational Facilities Authority is exempt.
2. Description of Existing Policies Relevant to the Rule, New Policies Proposed to be Included in the Rule, and an Analysis of Policy Alternatives
Existing policies are as set forth in the rules. New policy is being proposed to reflect the law changes described above. If the rules are not changed, they will be incorrect in that they will not reflect current law or current department policy.
3. Detailed Explanation of Statutory Authority for the Rule (Including the Statutory Citation and Language)
Section
73.03 (69) (c), Stats., provides “[t]he department may promulgate rules for the administration of this subsection." This provision applies to the creation of s.
Tax 2.986.
Section
73.15 (3), Stats., provides “[t]he department of revenue shall promulgate rules
…" This provision applies to the repeal of s.
Tax 2.985.
Under s.
71.80 (1) (c), Stats., the department may make such regulations as it shall deem necessary in order to carry out chapter 71 of the Wisconsin Statutes, relating to income and franchise taxes. This provision applies to the revision of ss.
Tax 2.88,
2.99, and
3.095.
