Tax 9.09(2)(a)(a) A Wisconsin cigarette distributor permittee may sell untaxed cigarettes to an Indian retailer if the untaxed cigarettes are to be sold to resident tribal members on the reservation. If this occurs:
Tax 9.09(2)(a)1.
1. The cigarettes shall be delivered by the distributor to the purchaser on the reservation.
Tax 9.09(2)(a)2.
2. The Wisconsin cigarette distributor shall retain, for a period of 2 years from the date of sale, proof that all of the sales were to a qualified Indian retailer. Either of the following types of proof shall be retained:
Tax 9.09(2)(a)2.a.
a. A purchase order issued by an Indian tribal council on its letterhead.
Tax 9.09(2)(a)2.b.
b. A photocopy of the written authorization to traffic in cigarettes issued to the Indian retailer by the tribal council of the reservation to which the cigarettes are to be delivered.
Tax 9.09(2)(a)3.
3. The Wisconsin cigarette distributor shall list all sales of untaxed cigarettes to Indian purchasers on form CT-103 as “Out-of-State Sales."
Tax 9.09(2)(b)
(b) The Wisconsin cigarette distributor may not sell untaxed cigarettes to an Indian retailer if the department has notified the distributor that the untaxed cigarettes are being sold to persons other than resident tribal members.
Tax 9.09(3)
(3)
Sales to Indians for sale to persons other than resident tribal members. A Wisconsin cigarette distributor shall sell only stamped cigarettes to an Indian retailer if the cigarettes are to be sold to persons other than resident tribal members.
Tax 9.09(4)
(4)
Sales by Indians to resident tribal members. An Indian retailer may sell untaxed cigarettes to resident tribal members on the reservation.
Tax 9.09(5)
(5)
Sales by Indians to persons other than resident tribal members. An Indian retailer shall sell only stamped cigarettes to persons other than resident tribal members.
Tax 9.09(6)
(6)
Records for sales by Indians. The Indian retailer shall keep detailed records of both taxable and nontaxable transactions and shall record the number and dollar amounts of taxable sales to nonmembers of the tribe. With respect to nontaxable sales, the retailer shall record and retain for state inspection the names of all Indian purchasers, their tribal affiliations, the Indian reservation within which sales are made, and the number, dollar amounts and dates of sales. In addition, unless the Indian purchaser is personally known to the retailer, he or she shall present a tribal identification card.
Tax 9.09(7)
(7)
Refunds. If all the statutory requirements of s.
139.323, Stats., are fulfilled in accordance with s.
Tax 9.08 (2),
(3) and
(4), the department shall refund 70% of the tax collected under s.
139.31 (1), Stats., to the tribal council.
Tax 9.09 Note
Note: Section
Tax 9.09 interprets subch. II, ch.
139, Stats.
Tax 9.09 History
History: Emerg. cr. eff. 10-1-83; cr.
Register, March, 1984, No. 339, eff. 4-1-84; am. (2) (b), (6) and (7),
Register, August, 1996, No. 488, eff. 9-1-96.
Tax 9.11(1)(1)
A refund shall be granted to any cigarette distributor for stamps which were applied to packages of cigarettes when the distributor supplies documentation to the department that the packages of cigarettes to which stamps have been affixed were damaged or otherwise unsalable and have been returned to the manufacturer. A distributor who has possession of unsalable cigarettes may ship the cigarettes to the manufacturer and make application for refund. The distributor shall make application for refund on a form to be furnished by the department. The application for refund shall be accompanied by a copy of the signed bill of lading for the shipment. A copy of the credit memo for each shipment from the manufacturer shall be forwarded to the department prior to processing the refund. The department also requires an affidavit from the manufacturer attesting to the number of cigarettes received in each shipment.
Tax 9.11(2)
(2) A refund shall be granted on all stamps unfit for use or otherwise unused and returned to the department by duly authorized permittees, providing the sale of the stamps can be verified by the department.
Tax 9.11 History
History: 1-2-56; r. cr.
Register, November, 1971, No. 191, eff. 12-1-71; correction in (1) made under s. 13.93 (2m) (b) 5., Stats.,
Register, October, 1995, No. 478; am. (1) and (2), r. (3),
Register, August, 1996, No. 488, eff. 9-1-96.
Tax 9.19
Tax 9.19
Stamp application machines and stamps. Tax 9.19(2)(2)
The use of stamps and any machines or devices for their application by any distributor shall be subject to the approval of the secretary of revenue and the approval may be withdrawn at any time at the discretion of the secretary of revenue.
Tax 9.19(3)
(3) To be properly stamped the full revenue stamp and at least 50% of the surrounding “field" shall be clearly visible in a proper position on the cigarette package.
Tax 9.19(4)
(4) To be considered properly stamped an identifying code number shall also be clearly affixed to the cigarette package by the distributor or in a method approved by the secretary of revenue.
Tax 9.19 History
History: Cr.
Register, February, 1967, No. 134, eff. 3-1-67; am.
Register, June, 1975, No. 234, eff. 7-1-75; am.
Register, August, 1996, No. 488, eff. 9-1-96;
CR 13-013: am. (title), r. (1), am. (2)
Register August 2013 No. 692, eff. 9-1-13.
Tax 9.21
Tax 9.21
Shipments to retailers. Tax 9.21(1)(1)
Out-of-state permittees shipping cigarettes to Wisconsin retailers shall, prior to the entry of the cigarettes into this state, have affixed to the cigarette containers the proper Wisconsin revenue stamps.
Tax 9.21(2)
(2) Wisconsin retailers purchasing cigarettes from outside the state shall purchase them only from out-of-state manufacturers and distributors who hold permits issued to them by the department.
Tax 9.21(3)
(3) All out-of-state manufacturers may ship cigarettes either stamped or unstamped directly to any Wisconsin manufacturers or distributors who hold the proper permit issued by the department.
Tax 9.22(1)(1)
Drop shipments are prohibited to retailers unless the proper tax stamps are affixed to the cigarette containers prior to sale and delivery.
Tax 9.22(2)
(2) All consignors of cigarettes, on drop shipments, shall furnish a memo invoice to the distributor or the retailer receiving the merchandise directly, as well as an invoice to the distributor through whom the billing is serviced.
Tax 9.22(3)
(3) The consignors shall list on their regular schedule CT-107 the name of the consignee actually receiving the merchandise, as well as the name of the distributor through whom it is billed.
Tax 9.22 History
History: 1-2-56; am.
Register, June, 1975, No. 234, eff. 7-1-75; am. (3),
Register, December, 1977, No. 264, eff. 1-1-78; am. (1) to (3), r. (4),
Register, August, 1996, No. 488, eff. 9-1-96.
Tax 9.26
Tax 9.26
Trade or transfer of unstamped cigarettes. Tax 9.26(2)(2)
No manufacturer or distributor may receive unstamped cigarettes from a retailer for stamping purposes.
Tax 9.26(3)
(3) No unstamped cigarettes may be transferred from one permittee to another for any reason whatsoever, except for interstate commerce. All cigarettes sold by one permittee to another for the purpose of interstate commerce shall have a label affixed to each case stating “For Interstate Commerce Only." The label shall be 2 inches by 5 inches in size. This merchandise shall be used for interstate commerce and may not be diverted in any manner for intrastate sale.
Tax 9.26 History
History: 1-2-56; am.
Register, June, 1975, No. 234, eff. 7-1-75; correction in (1) made under s. 13.93 (2m) (b) 5., Stats.,
Register, October, 1995, No. 478; am.
Register, August, 1996, No. 488, eff. 9-1-96;
CR 13-013: r. (1)
Register August 2013 No. 692, eff. 9-1-13.
Tax 9.31
Tax 9.31
Sales out of Wisconsin. Tax 9.31(1)(1)
The excise tax imposed upon the sale of cigarettes within the state does not apply to merchandise which is shipped from within the state to a point outside the state. Manufacturers and distributors need not affix revenue stamps to the original containers of cigarettes that are sold and shipped outside the state. The burden of proof, however, is at all times upon the Wisconsin manufacturer or distributor to show that the merchandise actually went into interstate commerce.
Tax 9.31(2)
(2) Wisconsin manufacturers and distributors claiming exemption from the excise tax on cigarettes on the grounds that shipments or deliveries were made in interstate commerce shall certify under oath either of the following:
Tax 9.31(2)(a)
(a) Names and addresses of the persons receiving the shipments or deliveries in the foreign state.
Tax 9.31(2)(b)
(b) That they are in possession of bills of lading, waybills, freight bills or other evidence of shipment issued by common carriers.
Tax 9.36
Tax 9.36
Displaying of cigarettes. All cigarette retail outlets in the state of Wisconsin shall display all cigarettes offered for sale at retail in a manner permitting verification that they are stamped cigarettes.
Tax 9.36 History
History: 1-2-56; am.
Register, August, 1996, No. 488, eff. 9-1-96.
Tax 9.41
Tax 9.41
Vending machines. Each vending machine operator shall place on the front of each vending machine operated or controlled by the operator a sticker listing the operator's name, address and vending machine operator's permit number as issued by the department, in such a position that it will not become dislodged or detached. The sticker may be placed behind the glass, provided it is completely visible and readable from the front.
Tax 9.41 History
History: 1-2-56; am.
Register, June, 1975, No. 234, eff. 7-1-75; correction, made under s. 13.93 (2m) (b) 5., Stats.,
Register, October, 1995, No. 478; am.
Register, August, 1996, No. 488, eff. 9-1-96.
Tax 9.46
Tax 9.46
Purchases by the retailer. Tax 9.46(1)(1)
No firm, person or corporation engaged in the retail sale of cigarettes may purchase cigarettes except from a manufacturer, distributor or jobber who holds a permit from the department.
Tax 9.46(2)
(2) All retailers selling cigarettes shall retain invoices covering all purchases of cigarettes. The invoices shall be retained on the licensed premises in groups covering a period of one month each, and shall be available for inspection at all reasonable times by any representative of the department.
Tax 9.47
Tax 9.47
Invoicing of sales, including exchanges of cigarettes. Tax 9.47(1)(1)
A true and correct invoice shall accompany the cigarettes at the time of any sale, including exchanges, between permittees or between permittees and retailers. Permittees include cigarette sellers, distributors, jobbers, vending machine operators or multiple retailers. A true and correct invoice shall contain the following information:
Tax 9.47(1)(a)
(a) Names and business addresses of both parties as shown on the permit or license of each.
Tax 9.47(1)(c)
(c) Number of packs or cartons of cigarettes by brand and pack.
Tax 9.47(1)(d)
(d) Unit price per pack or carton. The unit price of the cigarettes alone may be shown with the Wisconsin cigarette tax stated as a separate item.
Tax 9.47(1)(e)
(e) Signature of the person receiving the cigarettes. In an exchange, both parties shall sign the invoice.
Tax 9.47(2)
(2) When a seller, acting as a representative of a cigarette manufacturer, exchanges fresh cigarettes for dried or damaged cigarettes, the seller shall accept and receive only dried or damaged cigarettes of the brands manufactured by the seller's employer and shall prepare and deliver with the fresh cigarettes a true and correct invoice as set forth in sub.
(1).
Tax 9.47(3)
(3) When a seller, acting as a representative of a cigarette manufacturer, or when a permittee returns dried or damaged cigarettes to a distributor for return to the manufacturer and receives fresh cigarettes in exchange, the seller or permittee shall prepare a true and correct invoice as set forth in sub.
(1). Each carton of dried or damaged cigarettes shall contain only cigarettes of one brand and pack. The distributor shall verify that all of the cigarettes are stamped cigarettes.
Tax 9.47(4)
(4) A clearly legible copy of all invoices evidencing a sale or exchange of cigarettes shall be retained by each of the parties to the transaction for a period of 5 years from the date of the invoice, in groups covering a period of one month each.
Tax 9.47 History
History: Cr.
Register, November, 1971, No. 191, eff. 12-1-71; correction in (2) and (3) made under s. 13.93 (2m) (b) 5., Stats.,
Register, February, 1994, No. 458; correction in (1) (intro.) made under s. 13.93 (2m) (b) 5., Stats.,
Register, October, 1995, No. 478; am. (1) (intro.), (d), (e), (3) and (4),
Register, August, 1996, No. 488, eff. 9-1-96;
CR 13-013: am. (4)
Register August 2013 No. 692, eff. 9-1-13.
Tax 9.51(1)(1)
Cigarettes shipped into this state by manufacturers to their representatives, including advertising agencies and airlines, for the purpose of free samples shall be accompanied by a memo invoice stating brands and number of cigarettes. The memos shall be retained by the representative for the statutory period of 5 years.
Tax 9.51(2)
(2) Manufacturers may ship free sample cigarettes in quantities of 400 or fewer to consumers, such as employees or stockholders.
Tax 9.51(3)
(3) All sample cigarettes described in subs.
(1) and
(2) shall bear the legend: “Applicable state tax paid. Not for resale." The cigarettes are subject to Wisconsin cigarette use tax. The tax paid by the manufacturer shipping or causing the cigarettes to be shipped into this state shall be remitted no later than the 15th day of the month following the shipment. Along with the applicable tax remitted each manufacturer shall submit a list of persons to whom cigarettes were shipped indicating the amount of cigarettes shipped to each person.
Tax 9.56
Tax 9.56
Branch offices. Separate sets of records are required for each branch or place at which a wholesale cigarette business is operated.
Tax 9.56 History
History: 1-2-56; am.
Register, June, 1975, No. 234, eff. 7-1-75.
Tax 9.61
Tax 9.61
Warehousing of cigarettes. Out-of-state persons, firms or corporations having permits to engage in the sale of cigarettes in the state of Wisconsin may warehouse either stamped or unstamped merchandise in properly licensed warehouses located in the state of Wisconsin. No out-of-state person, firm or corporation may affix stamps to merchandise while it is stored in the licensed warehouse.
Tax 9.67(1)(1)
Payment for cigarette tax stamps. Under s.
139.32 (6), Stats., manufacturers and distributors having obtained a permit from the secretary of revenue may purchase cigarette tax stamps on credit. The credit extended by the department for any cigarette tax stamp purchase shall become due and payable upon the earlier of:
Tax 9.67(1)(b)
(b) Fifteen days after the close of the month in which the indicia were received by the manufacturer or distributor.
Tax 9.67(2)
(2)
Investigation. The department may investigate the financial stability of the applicant and may deny credit to any permittee when there is any question of ability to pay as required in this section.
