Tax 9.001 – ss. 139.30 (4m) and 139.75 (4m), Stats.
Tax 14.01 – ss. 71.03 (6m), 71.51 to 71.55, 71.74 (8) (a), 71.75 (2) and (7), 71.77 (2) and 71.82 (1) (c), Stats.
Tax 14.02 – ss. 71.52 (1), (2) and (7), 71.53 (1) (b) and (c) and (2) (d) and 71.58 (1) (b), Stats.
Tax 14.04 – ss. 71.52 (3) and (7) and 71.54 (2) (a) and (c) 2., Stats.
Tax 14.05 – ss. 71.52 (2) and (8), 71.53 (2) (e) and (f), 71.54 (2) (a) and (c) and 71.55 (2) and (8), Stats.
Explanation of agency authority: Under 70.375 (2) (b), Stats., the secretary may promulgate any rules necessary to implement the tax under ss. 70.37 to 70.39 and 70.395 (1e). This provision applies to the revisions of s. Tax 1.11. Under s. 71.80 (1) (c), Stats., the department may make such regulations as it shall deem necessary in order to carry out chapter 71 of the Wisconsin Statutes, relating to income and franchise taxes. Section 77.65 (3), Stats., provides "[t]he department may promulgate rules to administer this section…" This provision applies to the revisions of s. Tax 1.11. Under s. 78.79, Stats., the department may promulgate reasonable rules relating to the administration and enforcement of chapter 78 of the Wisconsin Statutes, relating to vehicle and general aviation fuel taxes. This provision applies to the revisions of ss. Tax 4.001 and 4.75. Under s. 125.03 (1), Stats., the department may promulgate rules consistent with chapters 125 and 139 of the Wisconsin Statutes, relating to alcohol beverages regulation and beverage, controlled substances, and tobacco taxes, and to provide for registration of wine collectors and establishing standards of eligibility for registration as a wine collector. This provision applies to the revisions of ss. Tax 7.001, 7.01, 7.11, 7.21, 8.001, 8.22, 8.63, and 9.001. Under s. 125.54 (7) (d), Stats., the department shall promulgate rules to administer and enforce the requirements relating to wholesalers' permits. Under s. 139.08(2), Stats., the secretary of revenue shall adopt rules necessary to carry out the secretary's duties under this chapter. Under s. 139.39, (1), Stats., the department shall adopt rules necessary to administer and enforce its duties. Section 227.11 (2), Stats., provides statutory rule-making authority as follows: (a)
"Each agency may promulgate rules interpreting the provisions of any statute enforced or administered by the agency, if the agency considers it necessary to effectuate the purpose of the statute...”(c)
"Each agency authorized to exercise discretion in deciding individual cases may formalize the general policies evolving from its decisions by promulgating the policies as rules …"Related statute or rule: There are no other applicable statutes or rules.
Plain language analysis: Upon review of the administrative code, as it relates to income, franchise, and excise taxes for purposes of the JCRAR report submitted on March 26, 2019, the following sections were identified as needing updating or repeal:
Replace "special fuel tax" with "alternate fuels tax" as a result of 1993 Wis. Act 16
Add other situations in which district attorneys may examine returns as specified in ss. 71.78 (8) and 77.61(5)(f), Stats.
Add language for situations in which tax return information is ordered to be produced in open court as specified in ss. 71.78(4)(f) and 77.61(5)(b)6., Stats.
Remove reference to older tax years
Update to address other situations relating to producing records as provided in s. 71.78 (4) (f), Stats.
Repeal section relating to commissioner of insurance, as a result of 2013 Wis. Act 20, as it no longer applies
Remove limitation of access to sales and use tax returns as access to these returns is allowed under sec. 77.61 (5) (b) 8., Stats.
Remove statement relating to open inspection by the public as this information may contain personally identifiable information, such as SSN, etc.
Remove mailing camera-ready copies of the earned income tax credit informational flyers to large Wisconsin employers as the department no longer performs this activity
Remove obsolete toll-free telephone information
Section Tax 2.10: Remove reference to obsolete forms
Update $10,000 deficiency amount to $50,000 relating to decisions in unappealable cases heard by the U.S. tax court pursuant to 26 USC 7463 and Public Law 105-206
Repeal section Tax 2.105 (6) (b) relating to 1986 and prior taxable years as this is no longer needed
Remove reference to obsolete forms
Section Tax 2.88: Remove reference to old tax years as they no longer apply
Section Tax 2.89: Remove reference to obsolete form
Section Tax 2.956: Repeal section as it only applied for the initial applicability of projects begun after December 31, 1988
Section Tax 2.98: Repeal old tax years as they no longer apply
Section Tax 3.096: Repeal old tax years as they no longer apply
Section Tax 4.001: Update to reflect that all returns are electronically filed
Section Tax 4.75: Replace reference to fax with excise email address and customer service phone number
Section Tax 7.001: Update to reflect that all returns are electronically filed
Section Tax 7.01: Update to reflect permits are posted online
Section Tax 7.21: Update reference to federal regulations
Section Tax 8.001: Update to reflect that all returns are electronically filed
Section Tax 8.22: Update to reflect permits are posted online
Section Tax 9.001: Update to reflect that all returns are electronically filed
Section Tax 14.05: Repeal example which is incorrectly listed under exempt housing (applies to non-arm's length rental transactions)Summary of, and comparison with, existing or proposed federal regulation: There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.
Comparison with rules in adjacent states: The department is not aware of a similar rule in an adjacent state.
Summary of factual data and analytical methodologies: Upon review of the administrative code, as it relates to income, franchise, and excise taxes for purposes of the JCRAR report submitted on March 26, 2019, certain sections were identified as needing updating or repeal. No other data was used in the preparation of this proposed rule order or this analysis.
Analysis and supporting documents used to determine effect on small business: This rule order makes changes to reflect current law and current department policy. It makes no policy or other changes having an effect on small business.
Anticipated costs incurred by private sector: This proposed rule does not have a fiscal effect on the private sector.
Effect on small business: This proposed rule does not affect small business.
Agency contact person: Please contact Jen Olson at (608) 266-8253 or jennifer.olson@wisconsin.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.
Jen Olson
Department of Revenue
Mail Stop 6-40
2135 Rimrock Road
P.O. Box 8933
Madison, WI 53708-8933
SECTION 1. Tax 1.10 (title) is amended to read:
Tax 1.10 Depository bank requirements for estimated tax vouchers, sales and use tax returns, and withholding, motor fuel, general aviation fuel and special fuel alternate fuels tax deposit reports.
