ORDER OF THE DEPARTMENT OF REVENUE REPEALING, RENUMBERING AND AMENDING, AMENDING, AND CREATING RULES
The Wisconsin Department of Revenue proposes an order to: repeal Tax 2.99, 4.54 (3) (b), 11.001 (2) (d), 11.63 (c) 1. and 2., 11.66 (3) (c)11.67 (3) (e) 2. (Note), and 11.68 (4) (fm); renumber and amend Tax 2.67 (2) (c) 4. and 11.63 (2) (c) (intro.); consolidate, renumber, and amend Tax 4.54 (3) (intro.) and (a); amend Tax 1.06, 1.13 (1) (b), 2.085 (3), 2.92 (2), 4.001 (2) (c) 1. (Note), 4.53 (3) (Note 1), 4.54 (2) (c), 7.001 (2) (c) 1. (Note), 8.001 (2) (c) 1. (Note), 8.03 (2) (Note), 9.001 (2) (c) 1. (Note), 9.70 (Title), (1), and (3) (a), (c), (d), (e), and (f), 11.001 (1), 11.001 (2) (e), 11.32 (4) (a) 2., 11.66 (3) (intro.) and (d), 11.68 (13) (Title), (a), (c), (d), and (e), 11.84 (1) (c), and 14.03 (4) (b) 3. e.; repeal and recreate Tax 2.085 (1) and 2.92 (1); and create Tax 2.02 (11) (a) (Note), 2.67 (2) (c) 4. a., b., c., d., e., f., g., h., i., j., and k., and 9.70 (2) (e); relating to income, franchise, excise, sales, and use tax provisions and affecting small business.
The scope statement for this rule, SS 057-21, was approved by the Governor on June 3, 2021, published in Register No. 786A3 on June 14, 2021, and approved by the Secretary of Revenue on August 12, 2021. Analysis by the Department of Revenue
Statutes interpreted:
Tax 1.06 – Federalization of the computation of Wisconsin gross income for individuals and fiduciaries was provided by Chapter 163, Laws of 1965, effective for taxable year 1965 and thereafter. Federalization of the computation of Wisconsin net income of a corporation was provided by 1987 Wis. Act 27, effective for taxable year 1987 and thereafter. Tax 2.67 – ss. 71.24 (1), (1m), and (7), 71.255 (1) (b), (7) (b), (8), and (9), 71.44 (1), (1m), and (3), 71.77, 71.82, and 71.83, Stats. Tax 11.32 – ss. 77.51 (12m) (a) (intro.) and 2., 3. and 4., (b) 1., 5., 7. and 8. and (c), (15a), (15b) (a) (intro.), 2., 3., and 4., (b) 1., 5., 7. and 8. and (c), 77.54 (8), 77.585 (7), and 77.61 (3m), Stats. Tax 11.63 – ss. 77.51 (7i), (7j), (11d), (13), (14), and (17), 77.52 (2) (a) 11., and (3m), 77.523, and 77.54 (23m) and (23n), Stats. Tax 11.66 – ss. 77.51 (1ba), (1r), (3c), (3pe), (3pn), (3rn), (5d), (5f), (5n), (5r), (7k), (8m), (9s), (10d), (10f), (11c), (13rn), (17m), (21n), (24), (25), and (26), 77.52 (2) (a) 5. and 5m., 77.522 (4), 77.525, and 77.54 (37), Stats. Tax 11.67 – ss. 77.51 (1f), (12), (12m), (13), (14) (intro.) and (h), (15a), (15b), (20), and (22) (a) and (b) and 77.52 (1), (2) (a), (2m) (a) and (b), (20), and (21), Stats. Tax 11.68 – ss. 77.51 (2), (12m) (b) 7., (12t), (14) (intro.), (15a) (b) 1. and 4., (15b) (b) 7., 77.52 (2) (a) 10., 11., and 20. and (2m), 77.53 (1), 77.54 (5) (d), (6) (am) 1., 4., and 5., (9m), (26), (26m), (31), (41), (60), and (65), 77.71 (3), and 77.77 (3), Stats. Explanation of agency authority: Section 71.80 (1) (c), Stats., provides that 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. Section 77.65 (3), Stats., provides that the department may promulgate rules to administer compliance with the streamlined sales and use tax agreement. Section 78.79, Stats., provides that the department may promulgate reasonable rules relating to the administration and enforcement of chapter 78 of the Wisconsin Statutes, relating to vehicle and general aviation fuel taxes. This provision applies to the revisions of ss. Tax 4.001, 4.53, and 4.54. Section 125.03 (1), Stats., provides that the department may promulgate rules consistent with chapters 125 and 139 of the Wisconsin Statutes, relating to alcohol beverages regulation and beverage, controlled substances, and tobacco taxes, and to provide for registration of wine collectors and establishing standards of eligibility for registration as a wine collector. This provision applies to the revisions of ss. Tax 7.001, 8.001, 8.03, 9.001, and 9.70. Section 227.11 (2), Stats., provides statutory rule-making authority 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...”(b)
"Each agency authorized to exercise discretion in deciding individual cases may formalize the general policies evolving from its decisions by promulgating the policies as rules …"Related statute or rule: There are no other applicable statutes or rules.
Plain language analysis: As required under sec. 227.29, Wis. Stats., the department performed a complete review of the Wisconsin's Administrative Code as it relates to income, franchise, withholding, excise, sales, and use taxes to determine if the rules are unauthorized, obsolete, unnecessary, duplicative, superseded, in conflict, economically burdensome, or outdated. The report submitted to the legislature's Joint Committee for Review of Administrative Rules on March 31, 2021, identified the following sections as needing updates:
a.
Chapter Tax 1 - General Administrationb.
Chapter Tax 2 - Income Taxation, Returns, Records and Gross Income
Section Tax 2.02: Add reference to the department's new online tool for creating estimated payment vouchers.
Section Tax 2.085: Update rule to be consistent with the department's update to Form 804, Claim for Decedent’s Wisconsin Income Tax Refund. The form may now be submitted with the income tax return when filed instead of waiting to receive the refund check in the mail.
Section Tax 2.67: Eliminate references to Forms A-1 and A-2, which calculate the percentage of income attributable to Wisconsin for multi-state businesses. These forms have been replaced with Schedules A-01 through A-11.
Tax 2.92: Update rule to reflect federal changes to withholding; withholding allowances no longer apply for federal purposes.
Tax 2.99: Repeal this section of the rule since this rule is only useful to those who are eligible to claim new credits, and no new dairy and livestock farm investment credit claims may be made for taxable years beginning after December 31, 2013, pursuant to secs. 71.07 (3n) (g), 71.28 (3n) (g), and 71.47 (3n) (g), Wis. Stats.c.
Chapter Tax 4 - Motor Vehicle and General Aviation Fuel Taxation
Section Tax 4.001: Update email address for excise tax.
Section Tax 4.53: Update rule to direct customers to Form MF-207, Certificate of Authorization for Bulk Alternate Fuel Purchasers, on the department's website.
Section Tax 4.54: Update rule to provide an increased dollar threshold for when the department must describe the reasons for requiring security before obtaining a fuel tax license, and update rule to eliminate certificates of deposit as a form of security since the department no longer accepts such form of security.d.
Chapter Tax 7 - Fermented Malt Beverages
Section Tax 7.001: Update email address for excise tax.e.
Chapter Tax 8 - Intoxicating Liquors
Section Tax 8.001: Update email address for excise tax.
Section Tax 8.03: Update mailing address for new mail stop.f.
Chapter Tax 9 – Cigarette Tax
Section Tax 9.001: Update mailing address for new mail stop.
