Chapter Tax 4

Tax 4.50 Note Note: This section interprets ss. 78.77, Stats.

Tax 4.50 History History: 1-2-56; am. Register, June, 1975, No. 234, eff. 7-1-75; renum. to be (intro.) and am., cr. (1), (2), (3) and (4), Register, June, 1983, No. 330, eff. 7-1-83; emerg. am. eff. 4-1-94; am. Register, November, 1994, No. 467, eff. 12-1-94.

Tax 4.51 Tax 4.51 Measuring withdrawals. All withdrawals of motor vehicle fuel from Wisconsin refineries, marine terminals or pipeline terminals shall be measured in liquid gallons by accurate meters; however, it is not necessary to meter withdrawals into railway tank cars.

Tax 4.51 Note Note: This section interprets ss. 78.12, Stats.

Tax 4.51 History History: 1-2-56; emerg. am. eff. 4-1-94; am. Register, November, 1994, No. 467, eff. 12-1-94.

Tax 4.52 Tax 4.52 Separate schedules. Separate schedules shall be filed for each Wisconsin refinery, marine terminal or pipeline terminal.

Tax 4.52 Note Note: This section interprets ss. 78.12, Stats.

Tax 4.52 History History: 1-2-56; emerg. am. eff. 4-1-94; am. Register, November, 1994, No. 467, eff. 12-1-94.

Tax 4.53 Tax 4.53 Certificate of authorization.

Tax 4.53(1) (1) Statutes. An alternate fuel dealer may be authorized by an alternate fuel user, if the alternate fuel dealer agrees, to report and pay the tax on alternate fuel delivered into a bulk storage facility of the user. The user then is not required to obtain an alternate fuel license from the department.

Tax 4.53(2) (2) General.

Tax 4.53(2)(a) (a) A certificate of authorization, form MF-207, may be executed by a purchaser of alternate fuel to request a supplier of alternate fuel to bill the purchaser for both the alternate fuel and the alternate fuel tax.

Tax 4.53(2)(b) (b) A certificate of authorization executed by a supplier of alternate fuel indicates the supplier’s acceptance of the purchaser’s request to bill the alternate fuel tax on bulk deliveries and remit it to the department.

Tax 4.53(3) (3) Effect of certificates.

Tax 4.53(3)(a) (a) If a purchaser and seller of alternate fuel agree that the seller will collect the alternate fuel tax from the purchaser and remit it to the department, the purchaser is not required to obtain an alternate fuel license from the department nor to submit monthly reports of tax liability.

Tax 4.53(3)(b) (b) The supplier shall compute the monthly tax liability by adding the number of gallons of alternate fuel placed in storage facilities where purchasers have executed certificates of authorization to the number of gallons of alternate fuel placed in fuel supply tanks of motor vehicles.

Tax 4.53 Note Note: Blank certificates of authorization, form MF-207, may be obtained on the department’s website at https://www.revenue.wi.gov/DORForms/mf-207.pdf.

Tax 4.53 Note Note: This section interprets ss. 78.40 (1), 78.47 and 78.49 (3), Stats.

Tax 4.53 History History: Cr. Register, December, 1980, No. 300, eff. 1-1-81; emerg. am. eff. 4-1-94; am. Register, November, 1994, No. 467, eff. 12-1-94.

Tax 4.54 Tax 4.54 Security requirements.

Tax 4.54(1) (1) General. Under ss. 78.11, 78.48 (9) and 78.57 (9), Stats., the department may require motor vehicle fuel, alternate fuel and general aviation fuel taxpayers to deposit security with the department. This security may be required before or after the fuel tax license is issued. The amount of security determination shall be made by the department. If any person fails or refuses to place the security, the department may refuse to issue the license or may revoke the license.

Tax 4.54(2) (2) Factors for department’s consideration.

Tax 4.54(2)(a) (a) In determining whether security shall be required and the amount of security to be required, the department shall consider all relevant factors, including:

Tax 4.54(2)(a)1. 1. Evidence of adequate financial responsibility. The evidence may include a person’s assets and liabilities, liquidity of assets, estimated expenditures and potential fuel tax liability.

Tax 4.54(2)(a)2. 2. The person’s prior record of filing tax returns and paying taxes of any kind with the department.

Tax 4.54(2)(a)3. 3. Type of entity making the sales of motor vehicle fuel, alternate fuel and general aviation fuel.

Tax 4.54 Note Example: A sole proprietor or partner having nonbusiness financial resources may be a better risk than a corporation having limited assets.

Tax 4.54(2)(b) (b) Although the individual factors listed in par. (a) shall be considered in determining security requirements, each case shall be determined on its merits as evaluated by the department. Protection of the fuel tax revenues shall be the major consideration in determining security requirements. However, due consideration shall be given to reasonable evidence that security is not necessary.

Tax 4.54(2)(c) (c) In instances in which the department determines security in excess of $1,000 is required, notification of this requirement shall include a written statement clearly describing the reasons for the requirement and a description or calculation showing how the amount of the security requirement was determined.

Tax 4.54(3) (3) Types of security. Acceptable types of security include noninterest-bearing cash, certified check, money order, or surety bonds issued by authorized underwriters.

Tax 4.54(4) (4) Determination of amount.

Tax 4.54(4)(a) (a) If security is required, the amount shall be equal to the depositor’s average quarterly Wisconsin fuel tax liability increased to the next highest even $100 amount, unless the department determines under sub. (2) that for good cause a higher amount is appropriate. The estimate of the depositor’s average quarterly fuel tax liability shall be based on whichever of the following the department considers most appropriate in the circumstances:

Tax 4.54(4)(a)1. 1. The depositor’s previous fuel tax liability.

Tax 4.54(4)(a)2. 2. The depositor’s predecessor’s fuel tax liability.

Tax 4.54(4)(a)3. 3. The estimated tax liability shown on the application for a license.

Tax 4.54(4)(a)4. 4. Other factors, such as the department’s estimate of tax liability based on its experience with other similar activities.

Tax 4.54(4)(b) (b) If at the time of the security review the person has an outstanding fuel tax delinquency, the delinquent amount shall be added to the estimated average quarterly fuel tax liability and the sum of the two shall be the amount of security required.

Tax 4.54(5) (5) Return of deposit.

Tax 4.54(5)(a) (a) Any security deposited shall be returned to the taxpayer if the taxpayer has, for 24 consecutive months, complied with all the requirements of ch. 78, Stats.

Tax 4.54(5)(b) (b) The 24-month compliance requirement described in par. (a) shall begin on the day the deposit is received by the department.

Tax 4.54(5)(c) (c) Within 30 days after the conclusion of the 24-month period described in par. (a), the department shall review the taxpayer’s compliance record. If the taxpayer has complied with ch. 78, Stats., the department shall within 60 days after the expiration of the 24-month period certify the deposit for refund.

Tax 4.54(5)(d) (d) Compliance with ch. 78, Stats., means that:

Tax 4.54(5)(d)1. 1. Fuel tax reports are timely filed.

Tax 4.54(5)(d)2. 2. All payments are made when due.

Tax 4.54(5)(d)3. 3. No penalties due to negligence or fraud are assessed for filing periods within the 24-month compliance period.

Tax 4.54(5)(d)4. 4. No assessment of additional tax, interest or other charges for filing periods within the 24-month compliance period is unpaid at the end of the period.

Tax 4.54(5)(d)5. 5. No delinquencies of fuel tax, interest or other charges imposed under ch. 78, Stats., exist with the department.

Tax 4.54(5)(e) (e) If a taxpayer does not meet the compliance requirements set forth in par. (d), the deposit shall be retained by the department until the taxpayer is in compliance for 24 consecutive months from the date of the latest incident of noncompliance.

Tax 4.54 Note Note: This section interprets ss. 78.11, 78.48 (9) and 78.57 (9), Stats.

Tax 4.54 History History: Cr. Register, September, 1991, No. 429, eff. 10-1-91; emerg. am. (1), (2) (a) (intro.) and 3., (b), (3) (b), (4) (a) (intro.), (5) (b), (c), (d) 3. to 5., eff. 4-1-94; am. (1), (2) (a) (intro.) and 3., (b), (3) (b), (4) (a) (intro.), (5) (b), (c), (d) 3. to 5., Register, November, 1994, No. 467, eff. 12-1-94; CR 22-044: am. (2) (c), consol. (3) (intro.) and (a) and renum. to (3) and am., r. (3) (b) Register June 2023 No. 810, eff. 7-1-23.

Tax 4.55 Tax 4.55 Ownership and name changes.

Tax 4.55(1) (1) General. Under ss. 78.10 (6), 78.48 (6) and 78.57 (6), Stats., a fuel tax license is not transferable to another person or to another place of business. This section clarifies when a change in ownership or name of a business requires a new fuel tax license.

Tax 4.55(2) (2) Ownership change.

Tax 4.55(2)(a) (a) When there is a change in ownership of a business, the new owner shall apply for a new license using form MF-100, except as provided in par. (c). The new owner shall notify the department no later than 10 days prior to the change. Security may be required as provided in s. Tax 4.54.

Tax 4.55 Note Note: Form MF-100 is available on the department’s web site at www.revenue.wi.gov.

Tax 4.55(2)(b) (b) A new license shall be obtained when there is a change in the type of ownership of a sole proprietorship, partnership, corporation or other form of ownership, except as provided in par. (c).

Tax 4.55 Note Examples: A new license is required if: 1) A sole proprietorship or partnership incorporates.

Tax 4.55 Note 2) A sole proprietorship is sold to a different sole proprietor.

Tax 4.55 Note 3) A sole proprietorship becomes a partnership.

Tax 4.55 Note 4) A partner in a partnership leaves the partnership or a partner is added to the partnership.

Tax 4.55 Note 5) The federal employer identification number of a business changes.

Tax 4.55(2)(c) (c) A change in the ownership of a corporation does not require a new license unless either of the following occurs:

Tax 4.55(2)(c)1. 1. A corporation is merged with another corporation, the merged corporation ceases to exist, and the surviving corporation does not have a valid license.

Tax 4.55(2)(c)2. 2. The federal employer identification number of a corporation changes.

Tax 4.55(3) (3) Name change.

Tax 4.55(3)(a) (a) A licensee shall notify the department of a name change at least 10 days prior to the change and the licensee shall retain the same license number.

Tax 4.55(3)(b) (b) A rider, verifying the name change, such as one filed by a licensee’s insurance company at the request of the licensee, shall be submitted to the department. If no security is on file or a rider is not filed with the department, new security shall be deposited under the new name, as required under s. Tax 4.54, and any old security shall be returned to the licensee.

Tax 4.55 Note Note: This section interprets ss. 78.10 (6), 78.48 (6) and 78.57 (6), Stats.

Tax 4.55 History History: Cr. Register, September, 1991, No. 429, eff. 10-1-91; emerg. am. (2) (b), eff. 4-1-94; am. (2) (b), Register, November, 1994, No. 467, eff. 12-1-94.

Tax 4.65 Tax 4.65 Motor vehicle fuel tax refunds to vendors and tax deductions for suppliers.

Tax 4.65(1) (1) Scope. This section applies to suppliers required to be licensed by the department, wholesaler distributors and retail dealers who sell motor vehicle fuel to customers for exempt purposes on which the tax was paid. Registered vendors may file refund claims with the department. Suppliers may claim deductions on their monthly reports. The claim for refund and the deduction claimed may be investigated by the department and adjusted within 4 years after the date of filing.

Tax 4.65(2) (2) Statutes. Under s. 78.01 (2r), Stats., the ultimate consumer who purchases fuel for an exempt purpose shall assign his or her claim for a refund or deduction on the tax paid on undyed diesel fuel and gasoline to the person from whom the ultimate consumer purchased the fuel.

Tax 4.65(3) (3) Procedures.

Tax 4.65(3)(a) (a) Vendors, other than suppliers licensed with the department, shall register with the department, using form MF-112, to expedite the processing of a tax refund claim.

Tax 4.65(3)(b) (b) Persons making exempt sales shall prepare and provide the customer with a sales invoice. A properly prepared legible invoice shall include the following information:

Tax 4.65(3)(b)1. 1. Name and address of seller.

Tax 4.65(3)(b)2. 2. Date of sale.

Tax 4.65(3)(b)3. 3. Name and address of purchaser.

Tax 4.65(3)(b)4. 4. Product sold.

Tax 4.65(3)(b)5. 5. Number of gallons.

Tax 4.65(3)(b)6. 6. Price per gallon.

Tax 4.65(3)(b)7. 7. A statement that no Wisconsin motor vehicle fuel tax is included in the price per gallon figure.

Tax 4.65(3)(c) (c) The customer shall provide the vendor with an exemption certificate when purchasing undyed diesel fuel and gasoline which will be consumed by that customer for an exempt purpose as defined in s. 78.01 (2) and (2m), Stats. A purchaser of undyed diesel fuel and gasoline for an exempt use shall provide the seller with a properly completed exemption certificate, form MF-209, prior to the tax-exempt purchase.

Tax 4.65(3)(d) (d) Claims shall be made and filed upon forms prescribed and furnished by the department, form MF-012.

Tax 4.65(3)(e) (e) The penalties provided in s. 78.73, Stats., for filing a false or fraudulent claim apply to all refund claimants.

Tax 4.65(3)(f) (f) Refunds under s. 78.01 (2r), Stats., shall be of tax only and may not include interest.

Tax 4.65 Note Note: Copies of vendor registration form MF-112, exemption certificate form MF-209, and refund claim form MF-012 are available on the department’s web site at www.revenue.wi.gov.

Tax 4.65 Note Note: This section interprets ss. 78.01 (2r), Stats.

Tax 4.65 History History: Emerg. cr. eff. 4-1-94; cr. Register, November, 1994, No. 467, eff. 12-1-94; CR 16-046: am. (3) (c) Register January 2018 No. 745, eff. 2-1-18.