Text of Rule
SECTION 1. Tax 1.06 is amended to read:
Tax 1.06 Application of federal income tax regulations. To the extent that any provision of the internal revenue code has application in the determination of Wisconsin taxable income, Wisconsin net income, or Wisconsin income or franchise tax or Wisconsin minimum tax or alternative minimum tax of any natural person, fiduciary or corporation, including tax−option (S) corporations, any United States treasury regulation interpreting the provision shall be deemed a tax rule of the Wisconsin Administrative Code.
SECTION 2. Tax 1.13 (1) (b) is amended to read:
Tax 1.13 (1) (b) The power of attorney requirement applies to income, franchise, alternative minimum, withholding, sales and use, county sales and use, estate, motor fuel, general aviation fuel, special fuel, fermented malt beverage, intoxicating liquor, cigarette and tobacco products tax matters of individuals, partnerships and corporations, including (S) corporations, and homestead and farmland preservation credit matters, and unclaimed property matters.
SECTION 3. Tax 2.02 (11) (a) (Note) is created to read:
SECTION 4. Tax 2.085 (1) is repealed and recreated to read:
Tax 2.085 (1) If a claimant is filing a deceased taxpayer's income tax return and is due a refund, the claimant shall file Form 804, "Claim for Decedent's Wisconsin Income Tax Refund," with the income tax return. If the claimant did not file Form 804 with the income tax return, a refund check is issued in the deceased taxpayer's name. If the claimant is unable to cash the refund check, the claimant shall file Form 804.
SECTION 5. Tax 2.085 (3) is amended to read:
Tax 2.085 (3) Forms required to be filed under sub. (1) shall be mailed to Wisconsin Department of Revenue, Tax Operations Bureau — Mail Stop 3−164, P.O. Box 8903, Madison, WI 53708−8903.
SECTION 6. Tax 2.67 (2) (c) 4. is renumbered Tax 2.67 (2) (c) 4. (intro.) and amended to read:
Tax 2.67 (2) (c) 4. (intro.) If the combined group is using apportionment, one Form A−1, Apportionment Data for Single Factor Formulas, or Form A−2, Apportionment Data for Multiple Factor Formulas one of the following forms, per member as applicable.:
SECTION 7. Tax 2.67 (2) (c) 4. a. to k. is created to read:
a. Schedule A-01, Wisconsin Single Sales Factor Apportionment Data for Nonspecialized Industries.
b. Schedule A-02, Wisconsin Apportionment Percentage for Interstate Financial Institutions.
c. Schedule A-03, Wisconsin Apportionment Percentage for Interstate Motor Carriers.
d. Schedule A-04, Wisconsin Apportionment Percentage for Interstate Telecommunications Companies.
e. Schedule A-05, Wisconsin Premium Factor for Insurance Companies.
f. Schedule A-06, Wisconsin Receipts Factor for Interstate Brokers-Dealers, Investment Advisors, Investment Companies, and Underwriters.
g. Schedule A-07, Wisconsin Apportionment Percentage for Interstate Air Carriers.
h. Schedule A-08, Wisconsin Apportionment Percentage for Broadcasters.
i. Schedule A-09, Wisconsin Apportionment Percentage for Interstate Railroads.
j. Schedule A-10, Wisconsin Apportionment Percentage for Interstate Pipeline Companies.
k. Schedule A-11, Wisconsin Apportionment Percentage for Interstate Air Freight Forwarders Affiliated with a Direct Air Carrier.
SECTION 8. Tax 2.92 (1) is repealed and recreated to read:
Tax 2.92 (1) An employee is required to provide a completed Form WT-4, "Employee's Withholding Exemption Certificate/New Hire Reporting," to their employer.
SECTION 9. Tax 2.92 (2) is amended to read:
Tax 2.92 (2) An employee who had incurred no Wisconsin income tax liability for the preceding taxable year and anticipates no liability for a current taxable year shall be exempt from withholding if the employee provides his or her employer with a completed form Form WT−4, “Employee’s Wisconsin Withholding Exemption Certificate Certificate/New Hire Reporting” which shows a claim for total exemption. For this purpose, a tax liability is “incurred” if the employee had for the preceding year, or anticipates for the current year, a net Wisconsin income tax due, i.e., gross tax less personal exemptions on a Wisconsin return. If an employee is married, the Wisconsin marital property laws for tax computation shall be considered in determining if the employee may claim this exemption.
SECTION 10. Tax 2.99 is repealed.
SECTION 11. Tax 4.001 (2) (c) 1. (Note) is amended to read:
SECTION 12. Tax 4.53 (3) (Note 1) is amended to read:
Tax 4.53 (3) (Note 1) Blank certificates of authorization, form MF-207, may be obtained by writing or calling Wisconsin Department of Revenue, Audit Bureau, P. O. Box 8906, Madison, WI 53708-8906, (608) 266-3223 on the department's website at https://www.revenue.wi.gov/DORForms/mf-207.pdf. SECTION 13. Tax 4.54 (2) (c) is amended to read:
Tax 4.54 (2) (c) In instances in which the department determines security in excess of $100 $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.
SECTION 14. Tax 4.54 (3) (intro.) and (a) are consolidated, renumbered Tax 4.54 (3) and amended to read:
Tax 4.54 (3) TYPES OF SECURITY. Acceptable types of security include, but are not limited to: (a) Noninterest−bearing: 1. Cash cash, certified check, or money order. 2., or Surety surety bonds issued by authorized underwriters.
SECTION 15. Tax 4.54 (3) (b) is repealed.
SECTION 16. Tax 7.001 (2) (c) 1. (Note) is amended to read:
SECTION 17. Tax 8.001 (2) (c) 1. (Note) is amended to read:
SECTION 18. Tax 8.03 (2) (Note) is amended to read:
Tax 8.03 (2) Note: Wine collector registrations may be addressed to Wisconsin Department of Revenue, Excise Tax Section Unit — Mail Stop 6−107 5-107, PO Box 8900, Madison, Wisconsin 53708−8900.
SECTION 19. Tax 9.001 (2) (c) 1. (Note) is amended to read:
SECTION 20. Tax 9.70 (Title) and (1) are amended to read:
Tax 9.70 Cigarette, and tobacco, and vapor products tax bad debt deductions. (1) Purpose. This section clarifies when and how a person who pays cigarette taxes or a distributor who pays tobacco and vapor taxes may claim a deduction under ss. 139.362 and 139.801, Stats., for cigarette, and tobacco, and vapor products tax attributable to bad debt. SECTION 21. Tax 9.70 (2) (e) is created to read:
Tax 9.70 (2) (e) "Vapor product" has the meaning given in s. 139.75 (14), Stats. SECTION 22. Tax 9.70 (3) (a), (c), (d), (e), and (f) are amended to read:
Tax 9.70 (3) (a) Deduction from measure of tax. Using form Form CT−117, titled “Cigarette Distributor Bad Debt Deduction for Uncollectible Wisconsin Cigarette Tax,” or form Form TT−117, titled “Tobacco and Vapor Products Distributor Bad Debt Deduction for Uncollectible Wisconsin Tobacco Products Tax,” a person who pays cigarette taxes or a distributor who pays tobacco and vapor products taxes may claim a deduction on the monthly tax report for the cigarette, and tobacco, and vapor products tax attributable to bad debt that is written off as uncollectible in their books and records and that is eligible to be deducted as bad debt under s. 166 of the internal revenue code Internal Revenue Code.
(c) Recovery of bad debt. If a person who pays cigarette taxes or a distributor who pays tobacco and vapor products taxes subsequently collects in whole or in part any bad debt for which a deduction is claimed under par. (a), they shall include the amount collected in the monthly tax report filed for the month in which the amount is collected and shall pay the tax with the report.
(d) Payments and credits. Payments and credits applied to a debt before it is written off as uncollectible shall be apportioned to the amount of such debt attributable to cigarette or tobacco and vapor products tax on the basis of the ratio of the cigarette or tobacco and vapor products tax to be paid per the invoice to the total amount to be paid per the invoice. The amount so apportioned shall reduce the amount of debt attributable to cigarette or tobacco and vapor products tax to arrive at the deduction under par. (a).
(e) Tax rate change. If the deduction under par. (a) is claimed for a month when the cigarette or tobacco products or vapor products tax rate is different from the tax rate in effect when the cigarettes, or tobacco or vapor products were sold, the tax rate in effect when the cigarettes, or tobacco or vapor products were sold shall be used to determine the amount of the deduction.
(f) Illegal sales. No deduction under par. (a) shall be allowed for cigarette, and tobacco, and vapor products tax attributable to bad debt incurred on sales of cigarettes, or tobacco, or vapor products sold in violation of state or federal law.
SECTION 23. Tax 11.001 (1) is amended to read:
Tax 11.001 (1) Applicability. Chapter Tax 11 is applicable to the state sales and use taxes imposed under subch. III of ch. 77, Stats., and is also applicable to the county and stadium sales and use taxes taxes authorized under subch. V of ch. 77, Stats. SECTION 24. Tax 11.001 (2) (d) is repealed.
SECTION 25. Tax 11.001 (2) (e) is amended to read:
Tax 11.001 (2) (e) “Tax” means the Wisconsin sales or use taxes in effect under ss. 77.52 (1) and (2) and 77.53 (1), Stats. “Tax” also includes the county and stadium taxes tax imposed under s. 77.71, Stats. SECTION 26. Tax 11.32 (4) (a) 2. is amended to read:
Tax 11.32 (4) (a) 2. Conspicuously posting the bracket system card, form Form S−213 or S−218, issued by the department.
SECTION 27. Tax 11.63 (2) (c) (intro.) is renumbered to 11.63 (2) (c) and amended to read:
Tax 11.63 (2) (c) If When a radio or television station advertises on behalf of out−of−state persons to sell merchandise, such as records or books, or taxable services, the station is the retailer of the merchandise a marketplace provider and shall pay collect and remit sales tax on the sales if: the station directly or indirectly, through agreements or arrangements with third parties, processes the payment from the purchaser for the retail sale, regardless of whether the station receives compensation or other consideration in exchange for the services provided by the station.
SECTION 28. Tax 11.63 (2) (c) 1. and 2. are repealed:
SECTION 29. Tax 11.66 (3) (intro.) is amended to read:
Tax 11.66 (3) Sourcing. This subsection describes the sourcing of telecommunications services, ancillary services, Internet access services, and telecommunications message services.
SECTION 30. Tax 11.66 (3) (c) is repealed.
SECTION 31. Tax 11.66 (3) (d) is amended to read:
Tax 11.66 (3) (d) Exceptions. For purposes of pars. (a), and (b), and (c), if the location of the customer’s service address, channel termination point, or place of primary use is not known, the location where the seller receives or hands off the signal shall be considered, for purposes of this rule, the customer’s service address, channel termination point, or place of primary use.
SECTION 32. Tax 11.67 (3) (e) 2. (Note) is repealed.
SECTION 33. Tax 11.68 (4) (fm) is repealed.
SECTION 34. Tax 11.68 (13) (Title), (a), (c), (d), and (e) are amended to read:
Tax 11.68 (13) County and stadium taxes tax on building materials. (a) Section 77.71 (3), Stats., imposes excise taxes upon a contractor engaged in construction activities, which includes constructing, altering, repairing, or improving real property within any county or special district’s jurisdictional area that has adopted the county or stadium sales and use tax. The taxes are measured by the purchase price of the tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., used in constructing, altering, repairing, or improving real property which becomes a component part of real property in that county or special district’s jurisdictional area, unless the contractor has paid the county or stadium tax of a county or special district in Wisconsin or a similar local sales tax in another state on the purchase of that property, item, or good. (c) In providing the services to property subject to taxation under s. 77.52 (2) (a) 10., Stats., a contractor may purchase without county or stadium tax for resale tangible personal property and items and goods under s. 77.52 (1) (b) and (d), Stats., physically or electronically transferred to the customer in conjunction with providing such services. (d) Section 77.77 (3), Stats., provides that the sales tax under s. 77.71 (1), Stats., and the county and stadium taxes tax under s. 77.71 (3), Stats., on the sale of building materials to contractors engaged in the business of constructing, altering, repairing, or improving real estate for others are not imposed, if the materials are affixed and made a structural part of real estate and the amount payable to the contractor is fixed without regard to the costs incurred in performing a written contract that was irrevocably entered into prior to the effective date of the county ordinance or special district resolution, or that resulted from the acceptance of a formal written bid accompanied by a bond or other performance guaranty that was irrevocably submitted before that date. (e) The county and stadium taxes tax under s. 77.71 (3), Stats., on building materials used in real property construction activities are not imposed if the contractor purchased the building materials before the effective date of the county or stadium tax of that county or special district’s jurisdictional area or has paid the sales tax of another county or special district in Wisconsin in purchasing the building materials. SECTION 35. Tax 11.84 (1) (c) is amended to read:
Tax 11.84 (1) (c) Section 77.61 (1) (a), Stats., provides that no aircraft may be registered in Wisconsin unless the registrant presents proof that the sales tax has been paid or a valid exemption was claimed. If the registrant does not present proof that the tax has been paid, the registrant shall pay the tax to the department of transportation at the time the aircraft is registered or titled in Wisconsin. The tax applies to aircraft registered or customarily hangared or both in Wisconsin, even though the aircraft also may be used out−of−state. If the purchase of an aircraft subject to Wisconsin use taxes was subject to a sales or use tax in the state in which the purchase was made or in a state where the aircraft was stored, used, or consumed prior to being stored, used, or consumed in Wisconsin, the amount of the sales or use taxes paid to the other state or states shall be applied as a credit against and deducted from, to the extent thereof, the Wisconsin state, and county, and stadium district use taxes imposed on the storage, use, or consumption of the aircraft in Wisconsin. SECTION 36. Tax 14.03 (4) (b) 3. e. is amended to read:
Tax 14.03 (4) (b) 3. e. Reimbursement from a governmental agency for amounts originally paid for by the recipient, not including cash reimbursements for home energy assistance or for services under Title XX of the federal social security act and community options program, or “COP” payments under s. 46.27, 2017 Stats. SECTION 37. 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.
