ECONOMIC DEVELOPMENT SURCHARGE
77.92
77.92
Definitions. In this subchapter:
77.92(1m)
(1m) “File" means mail or deliver a document that the department prescribes to the department or, if the department prescribes another method of submitting or another destination, use that other method or submit to that other destination.
77.92(3)
(3) “Gross tax liability" means a corporation's tax liability under ch.
71, without regard to any tax credit.
77.92 History
History: 1989 a. 335;
1991 a. 39,
269;
1993 a. 16,
112,
490;
1995 a. 27,
209;
1997 a. 27;
1999 a. 9;
2001 a. 16;
2003 a. 99,
135,
255,
326;
2005 a. 74,
361,
479,
483;
2007 a. 20,
96;
2009 a. 2,
28,
265,
269,
295,
332;
2011 a. 32,
212;
2011 a. 260 s.
80;
2013 a. 20.
77.93
77.93
Applicability. For the privilege of doing business in this state, there is imposed an economic development surcharge on the following entities:
77.93(1)
(1) All corporations required to file a return under subch.
IV or
V of ch. 71 that have at least $4,000,000 in gross receipts from all activities for the taxable year except corporations that are exempt from taxation under s.
71.26 (1) and that have no unrelated business income reportable under s.
71.24 (1m). The surcharge is imposed on the tax-option corporation, not on its shareholders, except that if a tax-option corporation's surcharge is delinquent, its shareholders are jointly and severally liable for it.
77.93(4)
(4) All insurers that are required to file a return under subch.
VII of ch. 71 and that have at least $4,000,000 in gross receipts from all activities for the taxable year.
77.93 Cross-reference
Cross-reference: See also s.
Tax 2.32, Wis. adm. code.
77.93 Annotation
This section does not violate the constitutional guaranty of equal protection. Love, Voss & Murray v. DOR,
195 Wis. 2d 189,
536 N.W.2d 189 (Ct. App. 1995),
94-2185.
77.935
77.935
Single-owner entities. A single-owner entity that is disregarded as a separate entity under ch.
71 is disregarded as a separate entity under this subchapter. The owner of that entity shall include the information from the entity on the owner's return under this subchapter.
77.935 History
History: 1997 a. 27.
77.94
77.94
Surcharge determination. 77.94(1)(1)
Except as provided in sub.
(2), the surcharge imposed under s.
77.93 is an amount equal to the amount calculated by multiplying gross tax liability for the taxable year of the corporation by 3 percent, or in the case of a tax-option corporation an amount equal to the amount calculated by multiplying net income under s.
71.34 by 0.2 percent, up to a maximum of $9,800, or $25, whichever is greater.
77.94(2)(a)1.
1. “Begins to do business" includes but is not limited to a change in corporate form and the occurrence of any event that creates a short taxable year for purposes of the taxes under ch.
71.
77.94(2)(a)2.
2. “Ceases to do business" includes but is not limited to a change in corporate form and the occurrence of any event that creates a short taxable year for purposes of the taxes under ch.
71.
77.94(2)(b)
(b) If an entity begins to do business in this state after the beginning of its taxable year or ceases to do business in this state before the end of its taxable year, subject to the maximum and minimum surcharge, the surcharge imposed on it under s.
77.93 is calculated as follows:
77.94(2)(b)1.
1. Multiply its gross tax liability for the taxable year by a fraction the numerator of which is 365 and, if the entity begins to do business in this state after the beginning of its taxable year, the denominator of which is the number of days from the day that it begins to do business in this state until the end of its taxable year and, if the entity ceases to do business in this state before the end of its taxable year, the denominator of which is the number of days from the beginning of its taxable year until the day that it ceases to do business in this state and, if the entity both begins to do business in this state after the beginning of its taxable year and ceases to do business in this state before the end of its taxable year, the denominator of which is the number of days from the day that it begins to do business in this state to the day that it ceases to do business in this state.
77.94(2)(b)2.
2. Determine the surcharge that would be imposed under sub.
(1) on the amount calculated under subd.
1. 77.94 Cross-reference
Cross-reference: See also s.
Tax 2.32, Wis. adm. code.
77.96
77.96
Administration. 77.96(1)(1)
An entity's taxable year for the surcharge under this subchapter is the same as the entity's taxable year for the taxes under ch.
71.
77.96(2)
(2) The surcharge under this subchapter is due on the date on which the entity's return under ch.
71 is due without regard to any extension.
77.96(3)
(3) The department of revenue shall levy, enforce and collect the surcharge under this subchapter.
77.96(4)
(4) Sections
71.74 (1) to
(3),
(6),
(7) and
(9) to
(15),
71.75 (1),
(2),
(4),
(5) and
(6) to
(10),
71.76,
71.77,
71.78 (1) to
(8),
71.80 (1) (a) to
(d),
(3),
(3m),
(6),
(8) to
(12),
(14) and
(18),
71.87,
71.88,
71.89,
71.90,
71.91 and
71.93, as they apply to the taxes under ch.
71, apply to the surcharge under this subchapter.
77.96(5)
(5) Each person subject to a surcharge under s.
77.93 shall, on or before the due date, including extensions, for filing under ch.
71, file an accurate statement of its gross tax liability. Payments made after the due date under sub.
(2) and on or before the due date under this subsection are not delinquent but are subject to interest at the rate of 12 percent per year.
77.96(5m)
(5m) Persons who owe amounts under this subchapter shall mail or deliver those amounts to the department of revenue or, if that department prescribes another method of submitting or another destination, those persons shall use that other method or submit those amounts to that other destination.
77.96(6)
(6) The department of revenue shall refer to the surcharge under this subchapter as the economic development surcharge.
77.97
77.97
Use of revenue. The department of revenue shall deposit the surcharge, interest and penalties collected under this subchapter in the economic development fund under s.
25.49.
LOCAL FOOD AND BEVERAGE TAX
77.98(1)(1)
A local exposition district under subch.
II of ch. 229 may impose a tax on the retail sale, except sales for resale, within the district's jurisdiction under s.
229.43 of all of the following:
77.98(1)(a)
(a) Alcoholic beverages, as defined in s.
77.51 (1b), if the alcoholic beverages are for consumption on the seller's premises.
77.98(3)
(3) For purposes of sub.
(1) (a), “premises" shall be broadly construed and shall include the lobby, aisles, and auditorium of a theater or the seating, aisles, and parking area of an arena, a rink, or a stadium, or the parking area of a drive-in or an outdoor theater. The premises of a caterer with respect to catered meals or beverages shall be the place where served.
77.98(4)(a)(a) Except as provided in par.
(b), the tax imposed under this section shall not be imposed on the sale of alcoholic beverages, candy, prepared food, or soft drinks sold by a person primarily engaged, as determined by the department, in the retail trade as a food and beverage store, as classified under sector 44-45, subsector 445, of the North American Industry Classification System, 2017 edition, published by the U.S. office of management and budget, beginning on the first day of the calendar quarter that is at least 120 days after the date on which the bonds issued by the district under subch.
II of ch. 229 during the first 60 months after April 26, 1994, and any debt issued to fund or refund those bonds, are retired. The district shall notify the department of revenue, in the manner prescribed by the department, when such bonds and debt are retired.
77.98(4)(b)
(b) Notwithstanding par.
(a), the district board may, by a majority vote of its members, reimpose the tax under this section on a person engaged in a retail trade, as described under par.
(a).
77.981
77.981
Rate. The tax under s.
77.98 is imposed on the sale of taxable products at the rate of 0.25 percent of the sales price, except that the district, by a vote of a majority of the authorized members of its board of directors, may impose the tax at the rate of 0.5 percent of the sales price. A majority of the authorized members of the district's board may vote that, if the balance in a special debt service reserve fund of the district is less than the requirement under s.
229.50 (5), the tax rate under this subchapter is 0.5 percent. The 0.5 percent rate shall be effective on the next January 1, April 1, July 1 or October 1, and this tax is irrepealable if any bonds issued by the district and secured by the special debt service reserve fund are outstanding.
77.981 History
History: 1993 a. 263;
2009 a. 2.
77.9815
77.9815
Exemption. Any retailer whose liability for the tax under this subchapter would be less than $5 for a year is exempt from that tax for that year.
77.9815 History
History: 1997 a. 27.
77.982(1)(1)
The department of revenue shall administer the tax under this subchapter and may take any action, conduct any proceeding and impose interest and penalties.
77.982(2)
(2) Sections
77.51 (1f),
(3pf),
(9p),
(12m),
(13),
(14),
(14g),
(15a),
(15b), and
(17),
77.52 (1b),
(3),
(5),
(13),
(14), and
(18) to
(23),
77.522,
77.523,
77.54 (51) and
(52),
77.58 (1) to
(5),
(6m), and
(7),
77.585,
77.59,
77.60,
77.61 (2),
(3m),
(5),
(6),
(8),
(9),
(12) to
(15), and
(19m), and
77.62, as they apply to the taxes under subch.
III, apply to the tax under this subchapter. Section
77.73, as it applies to the taxes under subch.
V, applies to the tax under this subchapter.
77.982(3)
(3) From the appropriation under s.
20.835 (4) (gg), the department of revenue shall distribute 97.45 percent of the taxes collected under this subchapter for each district to that district and shall indicate to the district the taxes reported by each taxpayer in that district, no later than the end of the month following the end of the calendar quarter in which the amounts were collected. The taxes distributed shall be increased or decreased to reflect subsequent refunds, audit adjustments, and all other adjustments. Interest paid on refunds of the tax under this subchapter shall be paid from the appropriation under s.
20.835 (4) (gg) at the rate under s.
77.60 (1) (a). Those taxes shall first be used for the district's debt service on its bond obligations, as described in s.
77.98 (4). After such obligations are retired, the district may use the taxes for any lawful purpose. Any district that receives a report along with a payment under this subsection is subject to the duties of confidentiality to which the department of revenue is subject under s.
77.61 (5) and
(6).
77.982(4)
(4) Persons who are subject to the tax under this subchapter shall register with the department of revenue. Any person who is required to register; including any person authorized to act on behalf of a corporation, partnership or other person who is required to register; who fails to do so is guilty of a misdemeanor.
LOCAL RENTAL CAR TAX
77.99
77.99
Imposition. A local exposition district under subch.
II of ch. 229 may impose a tax at the rate of 3 percent of the sales price on the rental, but not for rerental and not for rental as a service or repair replacement vehicle, within the district's jurisdiction under s.
229.43, of Type 1 automobiles, as defined in s.
340.01 (4) (a), by establishments primarily engaged in short-term rental of passenger cars without drivers, for a period of 30 days or less, unless the sale is exempt from the sales tax under s.
77.54 (1),
(4),
(7) (a),
(7m),
(9) or
(9a). If the state makes a payment under s.
229.50 (7) to a district's special debt service reserve fund, a majority of the district's authorized board of directors may vote to increase the tax rate under this subchapter to 4 percent. A resolution to adopt the taxes imposed under this section, or an increase in the tax rate, shall be effective on the first January 1, April 1, July 1, or October 1 following the adoption of the resolution or tax increase.
77.99 History
History: 1993 a. 263;
2009 a. 2.
77.991(1)(1)
The department of revenue shall administer the tax under this subchapter and may take any action, conduct any proceeding and impose interest and penalties.
77.991(2)
(2) Sections
77.51 (12m),
(13),
(14),
(14g),
(15a),
(15b), and
(17),
77.52 (1b),
(3),
(5),
(13),
(14),
(18), and
(19),
77.522,
77.523,
77.58 (1) to
(5),
(6m), and
(7),
77.585,
77.59,
77.60,
77.61 (2),
(3m),
(5),
(6),
(8),
(9),
(12) to
(15), and
(19m), and
77.62, as they apply to the taxes under subch.
III, apply to the tax under this subchapter. Section
77.73, as it applies to the taxes under subch.
V, applies to the tax under this subchapter. The renter shall collect the tax under this subchapter from the person to whom the passenger car is rented.
77.991(3)
(3) From the appropriation under s.
20.835 (4) (gg), the department of revenue shall distribute 97.45 percent of the taxes collected under this subchapter for each district to that district and shall indicate to the district the taxes reported by each taxpayer in that district, no later than the end of the month following the end of the calendar quarter in which the amounts were collected. The taxes distributed shall be increased or decreased to reflect subsequent refunds, audit adjustments, and all other adjustments. Interest paid on refunds of the tax under this subchapter shall be paid from the appropriation under s.
20.835 (4) (gg) at the rate under s.
77.60 (1) (a). Those taxes may be used only for the district's debt service on its bond obligations. Any district that receives a report along with a payment under this subsection is subject to the duties of confidentiality to which the department of revenue is subject under s.
77.61 (5).
77.991(4)
(4) Persons who are subject to the tax under this subchapter shall register with the department of revenue. Any person who is required to register; including any person authorized to act on behalf of a corporation, partnership or other person who is required to register; who fails to do so is guilty of a misdemeanor.
PREMIER RESORT AREA TAXES
77.994
77.994
Premier resort area tax. 77.994(1)(1)
Except as provided in subs.
(2) and
(3), a municipality or a county all of which is included in a premier resort area under s.
66.1113 may, by ordinance, impose a tax at a rate of 0.5 percent of the sales price from the sale, license, lease, or rental in the municipality or county of property, items, goods, or services that are taxable under subch.
III made by businesses that are classified in the standard industrial classification manual, 1987 edition, published by the U.S. office of management and budget, under the following industry numbers:
77.994(1)(b)
(b) 5399 — Miscellaneous general merchandise stores.
77.994(1)(c)
(c) 5441 — Candy, nut and confectionary stores.
77.994(1)(fa)
(fa) 5611 — Men's and boys' clothing and accessory stores.
77.994(1)(fc)
(fc) 5632 — Women's accessory and specialty stores.
