Statement of Scope
Department of Revenue
Rule No.: | Chapter Tax 1, 2, 3, 11, 13, and 14 |
Relating to: | Income, franchise, sales, and use tax, investment and local impact fund, homestead credit |
This scope statement was approved by the Governor on September 7, 2023.
1. Detailed description of the objective of the proposed rule:
The department identified the following provisions in need up updates relating to income, franchise, excise, sales, and use taxes for purposes of the JCRAR report submitted on March 30, 2023:
a. Chapter Tax 1 - General — Section Tax 1.12: Listed taxes, fees, and other amounts described to be paid or deposited using the electronic funds transfer (EFT) payment method are outdated. For example, stadium sales and use taxes are obsolete and other tax payments, such as partnership tax payments are now required. b. Chapter Tax 2 - Income Taxation, Returns, Records, and Gross Income — Section Tax 2.105: Increase the 90-day Wisconsin reporting requirement to 180 days after federal or other state tax return adjustments, consistent with the reporting requirements in secs. 71.76 and 71.77(7), Wis. Stats. Update the dates in the examples to match new reporting requirement. — Section Tax 2.11: The rule is obsolete and may be repealed. The credit for sales and use tax paid on fuel and electricity may no longer be claimed for taxable years that begin after December 31, 2005, pursuant to sec. 71.28(3)(c)7., Wis. Stats.
— Section Tax 2.12: Eliminate the example that references Form 1X-R, as it no longer exists.
— Tax 2.41: Repeal sub. (1)(a) as the deductibility of federal income taxes no longer applies after 1975.
— Tax 2.502: Repeal sub. (4), and remove references to sub. (4), as it only applied for taxable years beginning before January 1, 2009.
— Tax 2.89: Notes and examples need to be updated to reflect changes made by section 4 of 2017 Wisconsin Act 2. — Tax 2.94: A note that references law changes made in 1965 is outdated and may be removed.
— Tax 2.957: Repeal the rule as secs. 71.05(6)(b), 71.28(9s) and 71.47(9s), Wis. Stats., were repealed by 2021 Wisconsin Act 127. Further, the relocated business credit cannot be claimed by businesses that relocated to Wisconsin after taxable years beginning after Dec 31, 2013. c. Chapter Tax 3 – Income Taxation, Deductions from Gross Income, Exclusions, and Exemptions — Section Tax 3.05: The rule is obsolete and may be repealed. The job creation deduction may no longer be claimed for taxable years beginning after Dec 31, 2014.
d. Chapter Tax 11 – Sales and Use Tax — Section Tax 11.04: Update rule to reflect 2021 Wisconsin Act 1, including new statutory language for entities described under sec. Tax 11.04(1m)(a)8. — Section Tax 11.11: Update note to correct phone number and email address. — Section Tax 11.33: Update rule to reflect changes made by 2017 Wisconsin Act 59 which changed sec. 77.51(9)(a)2., Wis. Stats., to presume one is not in business if they make less than $2,000 taxable sales during a calendar year. — Section Tax 11.35: Update entertainment definition and examples for the occasional sales exemption for nonprofit organizations as a result of changes made by 2021 Wisconsin Act 167 which increased the threshold from $10,000 to $50,000. — Section Tax 11.53: Replace the term "receipts" with "sales" to match the tax returns. — Section Tax 11.535: Update rule to reflect that an alternative reporting method is available for which a request and department approval is not necessary. — Section Tax 11.68: Update rule to add University of Wisconsin Hospitals and Clinics Authority created under 2021 Wisconsin Act 1. Update note to add contracts with University of Wisconsin Hospitals and Clinics Authority effective February 20, 2021. — Section Tax 11.83: Update sec. Tax 11.83(8)((b) of the rule and notes to remove outdated dollar amounts for use tax on license plates held by motor vehicle dealerships and refer to a department web page that shows amounts for each year.
