Analysis and supporting documents used to determine effect on small business: This rule order will only apply to financial institutions, brokers-dealers, investment advisers, investment companies, and underwriters that are required to use apportionment. Apportionment applies to financial institutions, brokers-dealers, investment advisers, investment companies, and underwriters that are large, multistate corporations. Therefore, this rule order does not affect small business.
Anticipated costs incurred by private sector: It is the department's intent that the revised method of assigning gross receipts from the sale of trading assets to Wisconsin for purposes of computing the amount of income taxable to Wisconsin will not have a significant economic impact on any interstate broker-dealer, investment adviser, investment company, or underwriter.
Effect on small business: This proposed rule does not affect small business.
Agency contact person: Please contact Dale Kleven at (608) 266-8253 or dale.kleven@revenue.wi.gov, if you have any questions regarding this proposed rule. Place where comments are to be submitted and deadline for submission: Comments may be submitted to the contact person shown below no later than the date on which the public hearing on this proposed rule is conducted. Information as to the place, date, and time of the public hearing will be published in the Wisconsin Administrative Register.
Dale Kleven
Department of Revenue
Mail Stop 6-40
2135 Rimrock Road
P.O. Box 8933
Madison, WI 53708-8933
.
SECTION 1. Tax 2.495 (4) (d) 1. is amended to read:
Tax 2.495 (4) (d) 1. Except as provided in subd. 2., for taxable years beginning after December 31, 2005, and before January 1, 2015, the numerator of the receipts factor includes gross receipts, net of commissions, from sales of trading assets, if the day-to-day decisions regarding the trading assets occur at a location in this state. If the day-to-day decisions regarding the trading assets occur at locations both in and outside this state, the assets shall be considered to be located at the location where the trading policies and guidelines are established. It shall be rebuttably presumed that the location where the trading policies and guidelines are established is at the taxpayer's commercial domicile.
SECTION 2. Tax 2.495 (4) (d) 1m. is created to read:
Tax 2.495 (4) (d) 1m. Except as provided in subd. 2, for taxable years beginning after December 31, 2014, the numerator of the receipts factor includes gross receipts, net of commissions, from sales of trading assets if the customer's billing address is in this state.
SECTION 3. Effective date. This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s. 227.22 (2) (intro.), Stats.
