Department of Revenue
Mail Stop 6-40
2135 Rimrock Road
P.O. Box 8933
Madison, WI 53708-8933
SECTION 1. Tax 2.82 (2) (d) is created to read:
Tax 2.82 (2) (d) For purposes of this section, "regular" and "regularly" mean 15 or more days of activity. Fifteen days of activity means one person for 15 days or 15 persons for one day, or any combination of persons and days that results in at least 15 person-days of activity. Days of activity include any day, or portion thereof, upon which business activity took place. Days of activity do not include travel days, holidays, or weekends, unless business activities were conducted on those days.
SECTION 2. Tax 2.82 (3) (b) 3. a. is amended to read:
Tax 2.82 (3) (b) 3. a. Usual or frequent activity Activity in Wisconsin by employees or representatives soliciting orders for tangible personal property which orders are sent outside this state for approval or rejection.
SECTION 3. Tax 2.82 (4) (a) 3. is amended to read:
(4) (a) General. Any of the following activities constitute nexus:
3. Ownership of a stock of goods in a public warehouse or on consignment in Wisconsin. Ownership of tangible personal property in Wisconsin, including inventory held by a distributor, consignee, or other non-employee representative, whether or not used to fill orders for the owner's account, but not including personal property for use in an employee's or representative's home, residential office or automobile that is solely limited to conducting the activities protected by Public Law 86-272.
SECTION 4. Tax 2.82 (4) (a) 4. is repealed.
SECTION 5. Tax 2.82 (4) (a) 5. is amended to read:
5. Usual or frequent Regular activity in Wisconsin by employees or representatives soliciting orders with authority to accept approve them.
SECTION 6. Tax 2.82 (4) (a) 5m. is created to read:
5m. Regular activity in Wisconsin by employees or representatives performing services related to the sale of tangible personal property. Services related to the sale of tangible personal property may include consulting, design, engineering, construction, installation, and assembly of equipment.
SECTION 7. Tax 2.82 (4) (a) 6. is repealed.
SECTION 8. Tax 2.82 (4) (a) 7. is amended to read:
7. Other usual and frequent activities by employees or representatives in Wisconsin such as Regular activity in Wisconsin by employees or representatives engaged in purchasing activities, credit investigations, collection of delinquent accounts, conducting training classes or seminars for customer personnel in the operation, or repair and, or maintenance of the taxpayer's products.
SECTION 9. Tax 2.82 (4) (a) 7. (Example) is created to read:
Example: Training Company is a calendar year-end corporation headquartered outside Wisconsin. Training Company does not maintain a business location or have resident employees in Wisconsin. During the year, Training Company sends five employees to Wisconsin for three days to conduct a training seminar related to the operation of machinery that Training Company sold to the taxpayer. Training Company has nexus since its employees conducted activity in Wisconsin for 15 days.
SECTION 10. Tax 2.82 (4) (a) 8. and 9. are amended to read:
8. Operation of mobile stores in Wisconsin, such as trucks with driver-salespersons, regardless of frequency, or whether the driver-salesperson is an employee.
9. Leasing of tangible property and licensing in Wisconsin, but not including personal property for use in an employee's or representative's home, residential office or automobile that is solely limited to conducting the activities protected by Public Law 86-272.
SECTION 11. Tax 2.82 (4) (a) 9m. is created to read:
9m. Licensing of intangible rights for use in Wisconsin.
SECTION 12. Tax 2.82 (4) (a) 11. is amended to read:
11. The performance of construction contracts and personal services contracts in Wisconsin by employees or representatives, the services of which are unrelated to the sale of tangible personal property.
SECTION 13. Tax 2.82 (4) (a) 11. (Example) is created to read:
Example: Repair Company is a calendar year-end corporation headquartered outside Wisconsin. Repair Company does not maintain a business location or have resident employees in Wisconsin. During the year, Repair Company sends four technicians to repair customer equipment located in Wisconsin. Each of the technicians perform repairs in Wisconsin for three days during the year. Repair Company has nexus in Wisconsin since its employees or representatives perform services in Wisconsin. Public Law 86-272 does not apply because services such as repair activities are not a protected activity.
SECTION 14. Tax 2.82 (4) (d) is amended to read:
(d) How to obtain ruling. Paragraph (a) and the statutory definitions summarized in par. (b) as to what activities constitute nexus are not all-inclusive. A ruling may be requested about a particular foreign corporation as to whether it is subject to Wisconsin franchise or income taxes by writing to the Wisconsin Department of Revenue, Audit Technical Services Section Bureau, Nexus Unit, P.O. Box 8906, Madison, WI 53708.
SECTION 15. Effective date; general. 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.
