Chapter 73

73.03(69)(a) (a) To, effective on January 1, 2014, implement a program to register businesses for purposes of s. 71.05 (25) and (26). A business shall register electronically with the department each year for which the business desires registration.

73.03(69)(b) (b) A business may register under this subsection if, in the business’s taxable year ending immediately before the date of the businesses registration, all of the following apply:

73.03(69)(b)1. 1. The business has at least 2 full-time employees and the amount of payroll compensation paid by the business in this state is equal to at least 50 percent of the amount of all payroll compensation paid by the business. An employee of a professional employer organization, as defined in s. 202.21 (5), or a professional employer group, as defined in s. 202.21 (4), who is performing services for a client is considered an employee solely of the client for purposes of this subdivision.

73.03(69)(b)2. 2. The value of real and tangible personal property owned or rented and used by the business in this state is equal to at least 50 percent of the value of all real and tangible personal property owned or rented and used by the business.

73.03(69)(c) (c) The department may adopt rules for the administration of this subsection.

73.03(69)(d) (d) For each year beginning after December 31, 2013, the department shall compile a list of businesses registered under this subsection and shall make the list available to the public at the department’s Internet site.

73.03(71) (71) 

73.03(71)(a) (a) To estimate the amount of additional revenue reported to the department from the taxes imposed under subch. III of ch. 77 as a result of the United States Supreme Court decision that expands the state’s authority to require out-of-state retailers and marketplace providers, as defined in s. 77.51 (7i), to collect and remit the taxes imposed under subch. III of ch. 77 on purchases by Wisconsin residents during the following periods:

73.03(71)(a)1. 1. Beginning on October 1, 2018, and ending on September 30, 2019.

73.03(71)(a)2. 2. Beginning on October 1, 2019, and ending on September 30, 2020.

73.03(71)(b) (b)

73.03(71)(b)1. 1. After the department makes the estimation under par. (a) 1., the department shall determine how much the 1st and 2nd individual income tax rates listed in each bracket under s. 71.06 may be reduced for the taxable year beginning after December 31, 2018, and before January 1, 2020, in order to decrease individual income tax revenue by the amount estimated under par. (a) 1. For purposes of this paragraph, the tax rate reductions shall be calculated so that 50 percent of the estimation under par. (a) 1. is used to reduce the 1st individual income tax rate listed in each bracket and the remaining 50 percent is used to reduce the 2nd individual income tax rate listed in each bracket.

73.03(71)(b)2. 2. After the department makes the estimation under par. (a) 2., the department shall determine how much the 1st and 2nd individual income tax rates listed in each bracket under s. 71.06 may be reduced for the taxable year beginning after December 31, 2019, and before January 1, 2021, in order to decrease individual income tax revenue by the amount estimated under par. (a) 2. For purposes of this paragraph, the tax rate reductions shall be calculated so that 50 percent of the estimation under par. (a) 2. is used to reduce the 1st individual income tax rate listed in each bracket and the remaining 50 percent is used to reduce the 2nd individual income tax rate listed in each bracket.

73.03(71)(c) (c)

73.03(71)(c)1. 1. No later than October 20, 2019, the secretary of revenue shall certify and report the determinations made under pars. (a) 1. and (b) 1. to the secretary of the department of administration, the governor, the joint committee on finance, and the legislative audit bureau and specify with that certification and report that the new tax rates take effect for the taxable year beginning after December 31, 2018, and before January 1, 2020, subject to par. (d) 1.

73.03(71)(c)2. 2. No later than October 20, 2020, the secretary of revenue shall certify and report the determinations made under pars. (a) 2. and (b) 2. to the secretary of the department of administration, the governor, the joint committee on finance, and the legislative audit bureau and specify with that certification and report that the new tax rates take effect for the taxable year beginning after December 31, 2019, and before January 1, 2021, and for each taxable year thereafter, subject to par. (d) 2.

73.03(71)(d) (d)

73.03(71)(d)1. 1. The legislative audit bureau shall review the determinations reported under par. (c) 1. and report its findings to the joint legislative audit committee and the joint committee on finance no later than November 1, 2019. If the legislative audit bureau’s review of the determinations reported under par. (c) 1. results in a different calculation of the tax rates than that made under par. (b) 1., the joint committee on finance shall determine which tax rates to apply to the taxable year beginning after December 31, 2018, and before January 1, 2020, and report its determination to the governor, the secretary of administration, and the secretary of revenue no later than November 10, 2019.

73.03(71)(d)2. 2. The legislative audit bureau shall review the determinations reported under par. (c) 2. and report its findings to the joint legislative audit committee and the joint committee on finance no later than November 1, 2020. If the legislative audit bureau’s review of the determinations reported under par. (c) 2. results in a different calculation of the tax rates than that made under par. (b) 2., the joint committee on finance shall determine which tax rates to apply to the taxable year beginning after December 31, 2019, and before January 1, 2021, and to each taxable year thereafter, and report its determination to the governor, the secretary of administration, and the secretary of revenue no later than November 10, 2020.

73.03(72) (72) To indicate in a fiscal estimate prepared by the department under s. 13.093 (2) for a bill that affects tax incremental districts or property tax assessments whether the bill will increase or decrease the increment collection for existing tax incremental districts or whether the bill’s effect on increment collection for existing tax incremental districts is indeterminate.

73.03(73) (73) To work with the Internal Revenue Service to undertake a pilot and a permanent program that accomplishes all of the following:

73.03(73)(a) (a) Assist the department in a 2-year pilot program to make monthly payments to eligible claimants of the amounts such claimants would otherwise be eligible to claim under the federal earned income tax credit under section 32 of the Internal Revenue Code. The pilot program shall be for taxable years beginning after December 31, 2018, and before January 1, 2021. If the Internal Revenue Service agrees to assist with the pilot program, the Internal Revenue Service and the department shall enter into an agreement describing the responsibilities and duties of each party. If the Internal Revenue Service and the department are unable to reach an agreement on how the pilot program will operate, this subsection does not apply and may not be enforced.

73.03(73)(b) (b) Under the pilot program, the Internal Revenue Service would determine the amount of earned income tax credit that could likely be claimed by 100 randomly selected residents of Wisconsin for taxable year 2019 and taxable year 2020, based on criteria selected by the Internal Revenue Service. The department and the Internal Revenue Service shall make every effort to ensure that each individual or married couple selected will be eligible to claim the credit for those taxable years, and that the credit amount for which he or she will likely be eligible will be in excess of $600 each year. At the beginning of each taxable year, the Internal Revenue Service would forward to the department the total amount of payments those 100 claimants would likely be eligible to claim for that taxable year, specifying the amounts allotted to each claimant. The department shall deposit such amounts in the general fund.

73.03(73)(c) (c)

73.03(73)(c)1. 1. The department would develop a method to disperse the federal credit amount to each claimant on a periodic basis.

73.03(73)(c)2. 2. For the test group, based on the amount of federal and state earned income tax credit that each claimant would likely be eligible to receive based on his or her estimated taxable year 2019 and 2020 income tax returns, each claimant would receive one-eleventh of his or her likely federal credit amount each month except for the month following the month in which the claimant receives the credit claimed on his or her tax return, from the department, from the general fund, except that the maximum total amount that each claimant could receive under this subdivision, annually, would be two-thirds of his or her likely credit amount. Any excess amount of federal and state credit for which the claimant is eligible could be claimed for that taxable year on his or her federal income tax return, under s. 71.07 (9e), or under the terms of the agreement under par. (a).

73.03(73)(c)3. 3. The department shall also establish a 2nd test group of 100 claimants who are likely to be eligible to claim the earned income tax credit for taxable years 2019 and 2020, who will receive their earned income tax credit after filing their individual income tax returns, and compare their financial stability to that of the other test group.

73.03(73)(d) (d) For taxable years 2019 and 2020, the participants in each of the 2 test groups shall remain the same, to the greatest extent possible.

73.03(73)(e) (e) The department shall develop policies and promulgate rules, if necessary, to ensure that members of each test group are able to continue to claim the credit under s. 71.07 (9e) to the extent that they are eligible to do so.

73.03(73)(f) (f)

73.03(73)(f)1. 1. Subject to subd. 2., for taxable years beginning after December 31, 2020, the department shall make the pilot program described under par. (b) permanent and applicable to all eligible claimants of the earned income tax credit under s. 71.07 (9e) (aj), based on the specifications described under pars. (b) and (c) 2.

73.03(73)(f)2. 2. Subdivision 1. does not apply unless the Internal Revenue Service and the department enter into an agreement describing the responsibilities and duties of each party and an agreement on how the permanent program will operate. If the Internal Revenue Service and the department are unable to reach an agreement on how the permanent program will operate, subd. 1. does not apply and may not be enforced.

73.03(73m) (73m) 

73.03(73m)(a) (a) To serve notice in any of the following ways, unless otherwise provided by law:

73.03(73m)(a)1. 1. By serving notice as a circuit court summons is served.

73.03(73m)(a)2. 2. By certified or registered mail.

73.03(73m)(a)3. 3. By regular mail, if the intended recipient admits receipt or there is satisfactory evidence of receipt.

73.03(73m)(a)4. 4. By electronic transmission if, before the person receives the electronic transmission, the intended recipient consents to receiving such notices electronically.

73.03(73m)(b) (b) Any notice transmitted by the department under par. (a) 4. is considered to be received by the intended recipient on the date that the department electronically transmits the information to the person or electronically notifies the person that the information is available to be accessed by the person. Department records of electronic transmission shall constitute appropriate and sufficient proof of delivery and be admissible in any action or proceeding.

73.03(73m)(c) (c) For purposes of this subsection, if the intended recipient has appointed another person or entity to act on the intended recipient’s behalf as its agent under a power of attorney, then service upon the agent constitutes service upon the intended recipient.

73.03(74) (74) To provide a one-time reduction from the total tax due in a written notice by the department of an audit determination under s. 77.59 (2) equal to 10 percent of the additional sales tax imposed under s. 77.52 for each year of the audit period, if the annual gross sales of the person being audited are less than $5,000,000 for each year of the audit period and, at the time that the department sends notification of examination under s. 77.59 (2), the department has received all returns required under ch. 77 from the person being audited for the entire audit period. Each person eligible for a reduction under this subsection is entitled to only one such reduction.

73.03(75) (75) To create and maintain a web page on its Internet site to display information relating to general purpose revenues, as defined in s. 20.001 (2) (a). The information shall be presented in readily understandable formats that the department determines will provide taxpayers of this state with a useful overview of the amounts of general purpose revenue collected and the purposes for which the amounts are spent. The information shall include visual representations of data relating to the amounts of revenue collected by source and the general purposes for which the amounts are spent. The information shall also include a breakdown of the sources of general purpose revenue by year and other information the department determines is useful for taxpayers in understanding where and how the amounts collected are spent. The department may include information relating to other revenue types defined in s. 20.001 (2) if the department determines the information is useful in meeting the purpose of this subsection. The department may work with the department of administration to gather the information described in this subsection.

73.03(76) (76) To submit a report to the joint committee on finance no later than 6 months after the end of each fiscal year, beginning with the 2021-22 fiscal year and ending with the 2025-26 fiscal year, that contains information on the use of contract auditors in the unclaimed property program under ch. 177, including auditor performance results and comments and concerns from those audited regarding the contract auditors. The department shall survey those audited by contract auditors to receive comments and concerns. Before allowing any person to engage in an audit of another person’s documents or records, the administrator, as defined in s. 177.01 (1), shall post the contract or other agreement with the person on the department’s Internet site. The contract or other agreement shall remain posted on the department’s Internet site until the contract or other agreement is no longer in effect, is no longer valid, or is superseded or otherwise rescinded. The person may take no action to engage in the audit until the administrator certifies that the person will proceed, even if domiciled in another state, in accordance with Wisconsin statutes and department rules and guidance documents and the administrator concludes there is a reasonable justification for using the person to engage in the audit. The administrator shall actively monitor the person to ensure that the person, even if domiciled in another state, is acting in accordance with such statutes, rules, and guidance documents and shall immediately take corrective action, including rescinding the contract, if the administrator reasonably concludes the person is not acting in accordance with such statutes, rules, and guidance documents.

73.03(77) (77) To annually produce a comparative local government spending report from information received under s. 73.10 and to create and maintain a web page on its Internet site to display the information contained in the report.

73.03 History History: 1971 c. 40, 215; 1973 c. 90; 1975 c. 39; 1977 c. 143; 1977 c. 196 s. 130 (7); 1977 c. 313; 1979 c. 34; 1979 c. 110 s. 60 (13); 1979 c. 221, 350; 1981 c. 20; 1981 c. 79 s. 18; 1983 a. 275 s. 15 (4); 1983 a. 524; 1983 a. 538 s. 269 (3); 1985 a. 12, 29, 273; 1987 a. 4, 27, 186; 1987 a. 312 s. 17; 1987 a. 328, 378, 399; 1989 a. 31; 1989 a. 56 s. 259; 1989 a. 74, 335; 1991 a. 39, 219, 313, 316; 1993 a. 16, 112, 205, 490; 1995 a. 27 ss. 3434g to 3440m, 9145 (1); 1995 a. 209, 233; 1997 a. 27, 35, 191, 237, 252; 1999 a. 9, 31, 185; 2001 a. 16, 44, 104, 107, 109; 2003 a. 33, 127; 2005 a. 25, 259; 2007 a. 20, 86; 2009 a. 2, 28, 180, 401; 2011 a. 10, 32, 257; 2013 a. 20, 54; 2015 a. 55, 216, 254, 295; 2017 a. 59, 270, 324, 358, 368; 2019 a. 10; 2021 a. 66, 87, 240, 258; 2023 a. 12, 73.

73.03 Annotation The Department of Revenue’s construction of a tax law in an official technical information memorandum estopped the department from collecting a tax. DOR v. Family Hospital, 105 Wis. 2d 250, 313 N.W.2d 828 (1982).

73.03 Annotation The Department of Revenue’s subpoena authority does not permit it to take possession of subpoenaed records for more than one business day; however, the department may repeatedly subpoena records until its investigation is completed. State v. Kielisch, 123 Wis. 2d 125, 365 N.W.2d 904 (Ct. App. 1985).

73.03 Annotation The statutory duties under subs. (3), (4), and (9) to (12) and s. 73.06 (1) to (3) are broad grants of investigative and prosecutorial authority and are not the types of activities that can be compelled by mandamus, as each of these duties requires the Department of Revenue to use discretion, even if the existence of a violation is clear. In the area of criminal and civil investigative and enforcement activities, government actors invariably employ discretion so as to make those activities not amenable to mandamus relief absent a statute compelling a specific action under a specific set of facts. Klein v. DOR, 2020 WI App 56, 394 Wis. 2d 66, 949 N.W.2d 608, 18-1133.

73.0301 73.0301 License denial, nonrenewal, discontinuation, suspension and revocation based on tax delinquency.

73.0301(1) (1) Definitions. In this section:

73.0301(1)(a) (a) “Credential” has the meaning given in s. 440.01 (2) (a).

73.0301(1)(b) (b) “Credentialing board” means a board, examining board or affiliated credentialing board in the department of safety and professional services that grants a credential.

73.0301(1)(c) (c) “Liable for delinquent taxes” means that a person has exhausted all legal remedies to challenge the assertion that the person owes taxes, including penalties, interest, fees and costs, under ch. 71, 72, 76, 77, 78, 125 or 139 and sufficient time has elapsed so that the person is delinquent in the payment of those taxes.

73.0301(1)(d) (d) “License” means any of the following:

73.0301(1)(d)1. 1. An approval specified in s. 29.024 (2r) or a license specified in s. 169.35.

73.0301(1)(d)2. 2. A license issued by the department of children and families under s. 48.66 (1) (a) to a child welfare agency, group home, shelter care facility, or child care center, as required by s. 48.60, 48.625, 48.65, or 938.22 (7).

73.0301(1)(d)3. 3. A license, certificate of approval, provisional license, conditional license, certification, certification card, registration, permit, training permit or approval specified in s. 50.35, 50.49 (6) (a) or (10), 51.038, 51.04, 51.42 (7) (b) 11., 51.421 (3) (a), 51.45 (8), 146.40 (3), (3g), or (3m), 254.176, 254.20 (3), 256.15 (5) (a) or (b), (6g) (a), (7), or (8) (a) or (f) or 343.305 (6) (a) or a license for operation of a campground specified in s. 97.67 (1).

73.0301(1)(d)3m. 3m. A license or certificate issued by the department of workforce development under s. 103.275 (2) (b), 103.34 (3) (c), 103.91 (1), 103.92 (3), 104.07 (1) or (2), or 105.13 (1).

73.0301(1)(d)5. 5. An occupational license, as defined in s. 101.02 (1) (a) 2.

73.0301(1)(d)6. 6. A license or certificate of registration issued by the department of financial institutions, or a division of it, under ss. 138.09, 138.12, 138.14, 202.12 to 202.14, 202.22, 203.03, 217.05, 218.0101 to 218.0163, 218.02, 218.04, 218.05, 224.72, 224.725, 224.93 or under subch. IV of ch. 551.

73.0301(1)(d)6m. 6m. A certificate or registration issued under s. 168.23 (3).

73.0301(1)(d)7. 7. A license described in s. 218.0114 (14) (a) and (g), a license described in s. 218.0114 (14) (b), (c) or (e), a license issued under s. 218.11, 218.12, 218.22, 218.32, 218.41, 343.61 or 343.62, a buyer identification card issued under s. 218.51 or a certificate of registration issued under s. 341.51.

73.0301(1)(d)7m. 7m. A license issued under s. 562.05 or 563.24.

73.0301(1)(d)8. 8. A license, registration or certification specified in s. 299.07 (1) (a).

73.0301(1)(d)9. 9. A credential.

73.0301(1)(d)10. 10. A license or permit granted by the department of public instruction.

73.0301(1)(d)11. 11. A license to practice law.

73.0301(1)(d)12. 12. A license issued under s. 628.04, 628.92 (1), 632.69 (2), or 633.14, a registration under s. 628.92 (2), or a temporary license issued under s. 628.09.

73.0301(1)(d)13. 13. A license issued by the ethics commission under s. 13.63 (1).

73.0301(1)(d)14. 14. A permit under s. 170.12.

73.0301(1)(d)15. 15. A license issued by the division of hearings and appeals under s. 102.17 (1) (c).

73.0301(1)(e) (e) “Licensing department” means the department of administration; the division of hearings and appeals; the department of agriculture, trade and consumer protection; the board of commissioners of public lands; the department of children and families; the ethics commission; the department of financial institutions; the department of health services; the department of natural resources; the department of public instruction; the department of safety and professional services; the department of workforce development; the office of the commissioner of insurance; or the department of transportation.

73.0301(1)(f) (f) “Nondelinquency certificate” means a certificate that the department of revenue issues to a person and that states that the person is not delinquent in the payment of taxes, including penalties, interest, fees and costs, under ch. 71, 72, 76, 77, 78, 125 or 139.

73.0301(2) (2) Duties and powers of licensing departments.

73.0301(2)(a) (a) Each licensing department and the supreme court, if the supreme court agrees, shall enter into a memorandum of understanding with the department of revenue under sub. (4) (a) that requires the licensing department or supreme court to do all of the following:

73.0301(2)(a)1. 1. Request the department of revenue to certify whether an applicant for a license or license renewal or continuation is liable for delinquent taxes. With respect to an applicant for a license granted by a credentialing board, the department of safety and professional services shall make a request under this subdivision. This subdivision does not apply to the department of transportation with respect to licenses described in sub. (1) (d) 7.

73.0301(2)(a)2. 2. Request the department of revenue to certify whether a license holder is liable for delinquent taxes. With respect to a holder of a license granted by a credentialing board, the department of safety and professional services shall make a request under this subdivision.

73.0301(2)(b) (b) Each licensing department and the supreme court, if the supreme court agrees, shall do all of the following:

73.0301(2)(b)1. 1.

73.0301(2)(b)1.a. a. If, after a request is made under par. (a) 1. or 2., the department of revenue certifies that the license holder or applicant for a license or license renewal or continuation is liable for delinquent taxes, revoke the license or deny the application for the license or license renewal or continuation. The department of transportation may suspend licenses described in sub. (1) (d) 7. in lieu of revoking those licenses. A suspension, revocation or denial under this subd. 1. a. is not subject to administrative review or, except as provided in subd. 2. and sub. (5) (am), judicial review. With respect to a license granted by a credentialing board, the department of safety and professional services shall make a revocation or denial under this subd. 1. a. With respect to a license to practice law, the department of revenue shall not submit a certification under this subd. 1. a. to the supreme court until after the license holder or applicant has exhausted his or her remedies under sub. (5) (a) and (am) or has failed to make use of such remedies.

73.0301(2)(b)1.b. b. Send a notice of suspension, revocation, or denial under subd. 1. a. to the license holder or applicant. The notice shall include a statement of the facts that warrant the suspension, revocation, or denial and a statement that the license holder or applicant may, within 30 days after the date on which the notice of denial, suspension, or revocation is sent, file a written request with the department of revenue to have the certification of tax delinquency on which the suspension, revocation, or denial is based reviewed at a hearing under sub. (5) (a). With respect to a license granted by a credentialing board, the department of safety and professional services shall send a notice under this subd. 1. b. With respect to a license to practice law, the department of revenue shall send a notice under this subd. 1. b., and the notice shall indicate that the license holder or applicant may request a hearing under sub. (5) (a) and (am) and that the department of revenue shall submit a certificate of delinquency to suspend, revoke, or deny a license to practice law to the supreme court after the license holder or applicant has exhausted his or her remedies under sub. (5) (a) and (am) or has failed to make use of such remedies. A notice sent to a person who holds a license to practice law or who is an applicant for a license to practice law shall also indicate that the department of revenue may not submit a certificate of delinquency to the supreme court if the license holder or applicant pays the delinquent tax in full or enters into an agreement with the department of revenue to satisfy the delinquency.

73.0301(2)(b)2. 2. Except as provided in subd. 2m., if notified by the department of revenue that the department of revenue has affirmed a certification of tax delinquency after a hearing under sub. (5) (a), affirm a suspension, revocation or denial under subd. 1. a. A license holder or applicant may seek judicial review under ss. 227.52 to 227.60, except that the review shall be in the circuit court for Dane County, of an affirmation of a revocation or denial under this subdivision. With respect to a license granted by a credentialing board, the department of safety and professional services shall make an affirmation under this subdivision.

73.0301(2)(b)2m. 2m. With respect to a license to practice law, if notified by the department of revenue that the department of revenue has affirmed a certification of tax delinquency after any requested review under sub. (5) (a) and (am), decide whether to suspend, revoke, or deny a license to practice law.

73.0301(2)(b)3. 3. If a person submits a nondelinquency certificate issued under sub. (5) (b) 1., reinstate the license or grant the application for the license or license renewal or continuation, unless there are other grounds for suspending or revoking the license or for denying the application for the license or license renewal or continuation. If reinstatement is required under this subdivision, a person is not required to submit a new application or other material or to take a new test. No separate fee may be charged for reinstatement of a license under this subdivision. With respect to a license granted by a credentialing board, the department of safety and professional services shall reinstate a license or grant an application under this subdivision.

73.0301(2)(b)4. 4. If a person whose license has been suspended or revoked or whose application for a license or license renewal or continuation has been denied under subd. 1. a. submits a nondelinquency certificate issued under sub. (3) (a) 2., reinstate the license or grant the person’s application for the license or license renewal or continuation, unless there are other grounds for not reinstating the license or for denying the application for the license or license renewal or continuation. With respect to a license granted by a credentialing board, the department of safety and professional services shall reinstate a license or grant an application under this subdivision.

73.0301(2)(c) (c)

73.0301(2)(c)1. 1. Each licensing department and the supreme court may require a holder of a license to provide the following information upon request:

73.0301(2)(c)1.a. a. If the license holder is an individual and has a social security number, the license holder’s social security number.

73.0301(2)(c)1.am. am. If the applicant is an individual and does not have a social security number, a statement made or subscribed under oath or affirmation that the applicant does not have a social security number. The form of the statement shall be prescribed by the department of children and families. A license issued in reliance upon a false statement submitted under this subd. 1. am. is invalid.