Chapter Tax 4

Chapter Tax 4

MOTOR VEHICLE AND GENERAL AVIATION FUEL TAXATION

Tax 4.001   Motor vehicle, alternate fuels, and general aviation fuel tax return and refund claim forms.

Tax 4.01   Portable motor equipment.

Tax 4.02   Resellers’ personal claims for refund.

Tax 4.03   Public highways closed to public travel.

Tax 4.05   Taxicabs.

Tax 4.10   Motor vehicle fuel tax liability.

Tax 4.11   Tax exemption for dyed diesel fuel.

Tax 4.12   Uncollected motor vehicle fuel taxes and repossessions.

Tax 4.50   Assignment, use and reporting of document number.

Tax 4.51   Measuring withdrawals.

Tax 4.52   Separate schedules.

Tax 4.53   Certificate of authorization.

Tax 4.54   Security requirements.

Tax 4.55   Ownership and name changes.

Tax 4.65   Motor vehicle fuel tax refunds to vendors and tax deductions for suppliers.

Tax 4.75   Payment of motor vehicle fuel tax.

Tax 4.001 Tax 4.001 Motor vehicle, alternate fuels, and general aviation fuel tax return and refund claim forms.

Tax 4.001(1) (1) Forms. The department shall provide official forms for filing motor vehicle, alternate fuels, and general aviation fuel tax returns and refund claims. Except as approved by the department, tax returns and refund claims may only be filed using these official forms.

Tax 4.001 Note Note: The official forms for filing motor vehicle, alternate fuels, and general aviation fuel tax returns and refund claims are available on the department’s web site at https://www.revenue.wi.gov/Pages/Form/excise-Home-f.aspx.

Tax 4.001(2) (2) Filing returns.

Tax 4.001(2)(a) (a) Forms filed with the department shall be submitted as prescribed by the department or by one of the following means:

Tax 4.001(2)(a)1. 1. Mailing them to the address specified by the department on the forms or in the instructions.

Tax 4.001(2)(a)2. 2. Delivering them to the department or to the destination that the department prescribes.

Tax 4.001(2)(a)3. 3. Filing them electronically by means prescribed by the department.

Tax 4.001(2)(c) (c) The secretary of revenue may waive the requirement to file electronically when the secretary determines that the requirement causes an undue hardship, if the person does all of the following:

Tax 4.001(2)(c)1. 1. Requests the waiver in writing.

Tax 4.001 Note Note: Written requests should be e-mailed to [e-mail], faxed to [phone], or addressed to Mandate Waiver Request, Wisconsin Department of Revenue, Mail Stop 5-107, PO Box 8900, Madison WI 53708-8900.

Tax 4.001(2)(c)2. 2. Clearly indicates why the requirement causes an undue hardship.

Tax 4.001(2)(d) (d) In determining whether the requirement to file electronically causes an undue hardship, the secretary of revenue may consider the following factors:

Tax 4.001(2)(d)1. 1. Unusual circumstances that may prevent the person from filing electronically.

Tax 4.001 Note Example: The person does not have access to a computer that is connected to the internet.

Tax 4.001(2)(d)2. 2. Any other factor that the secretary determines is pertinent.

Tax 4.001 Note Note: Section Tax 4.001 interprets ss. 78.005 (6m), 78.39 (4m), and 78.55 (2r), Stats.

Tax 4.001 History History: CR 10-093: cr. Register November 2010 No. 659, eff. 12-1-10; CR 21-085: am. (2) (a) (intro.), r. (2) (b) Register August 2022 No. 800, eff. 9-1-22.

Tax 4.01 Tax 4.01 Portable motor equipment. Portable motor equipment attached to any motor vehicle shall have a separate fuel tank, and detailed records shall be kept of the gallonage consumed in the motor of portable equipment.

Tax 4.01 Note Note: This section interprets s. 78.75, Stats.

Tax 4.01 History History: 1-2-56; emerg. am. eff. 4-1-94; am. Register, November, 1994, No. 467, eff. 12-1-94.

Tax 4.02 Tax 4.02 Resellers’ personal claims for refund. Motor vehicle fuel resellers who make personal claims for refund of tax paid on gallonage used for tax-exempt purposes shall make out an original invoice to themselves for each sale in the same manner as to any other customer. In addition the claim shall be supported by paid invoices from the company from whom the motor vehicle fuel was originally purchased.

Tax 4.02 Note Note: This section interprets s. 78.75, Stats.

Tax 4.02 History History: 1-2-56; emerg. am. eff. 4-1-94; am. Register, November, 1994, No. 467, eff. 12-1-94.

Tax 4.03 Tax 4.03 Public highways closed to public travel. Motor vehicle fuel used in connection with the construction, repair and maintenance of the public highways may not be construed as used on a public highway when it is being used on a highway entirely closed to public travel.

Tax 4.03 Note Note: This section interprets s. 78.75, Stats.

Tax 4.03 History History: 1-2-56; emerg. am. eff. 4-1-94; am. Register, November, 1994, No. 467, eff. 12-1-94.

Tax 4.05 Tax 4.05 Taxicabs.

Tax 4.05(1) (1) Definition. In this section, “taxicab” means a motor vehicle having a passenger carrying capacity of fewer than 15 persons, held for public hire, at designated places, charging passengers upon a time or distance basis, and carrying passengers to designations without following any fixed routes. “Taxicab” does not include any of the following:

Tax 4.05(1)(a) (a) Motor vehicles rented to be driven by the renter or the renter’s agent.

Tax 4.05(1)(b) (b) Motor vehicles operated primarily as funeral cars.

Tax 4.05(1)(c) (c) Motor vehicles of car pools and van pools operated by private individuals, nonprofit organizations or city, state or federal governments.

Tax 4.05(1)(d) (d) Motor vehicles operated primarily as ambulances.

Tax 4.05(1)(e) (e) Motor vehicles operated primarily for transporting property.

Tax 4.05(1)(f) (f) Motor vehicles not designated “Vehicle has or will be used for public transportation (taxi)” on the motor vehicle registration form, form MV-1, filed with the department of transportation.

Tax 4.05 Note Examples: 1) A rent-a-car does not qualify as a taxicab.

Tax 4.05 Note 2) A limousine with driver that holds 8 people is hired by a wedding party to transport them throughout a city on a per hour basis. The limousine is considered a taxicab.

Tax 4.05(2) (2) General. A person who uses motor vehicle fuel or alternate fuel in operating a taxicab for the transportation of passengers and has paid a tax on the fuel under ch. 78, Stats., may file a claim for refund of the tax paid with the department, provided the claim is for tax on 100 gallons or more.

Tax 4.05 Note Note: This section interprets s. 78.75 (1m) (a) 1., Stats.

Tax 4.05 History History: Cr. Register, September, 1991, No. 429, eff. 10-1-91; emerg. am. eff. 4-1-94; am. Register, November, 1994, No. 467, eff. 12-1-94.

Tax 4.10 Tax 4.10 Motor vehicle fuel tax liability.

Tax 4.10(1) (1) Purpose. This section clarifies the tax liability on all sales of motor vehicle fuel produced, refined, blended, manufactured or imported into Wisconsin.

Tax 4.10(2) (2) Definition. In this section, “position holder” has the meaning specified in the federal internal revenue service regulations, 26 CFR 48.4081-1 (m).

Tax 4.10(3) (3) Imposition. The tax on all motor vehicle fuel, either gasoline or undyed diesel fuel, shall be paid to the department by suppliers required to be licensed with the department, as follows:

Tax 4.10(3)(a) (a) Fuel withdrawn from a Wisconsin marine terminal or pipeline terminal. The motor vehicle fuel tax on gasoline and undyed diesel fuel withdrawn from a Wisconsin marine terminal or pipeline terminal shall be paid by the position holder.

Tax 4.10(3)(b) (b) Imported fuel. Gasoline and undyed diesel fuel imported into Wisconsin is subject to the motor vehicle fuel tax and shall be paid by the supplier when either of the following conditions applies:

Tax 4.10(3)(b)1. 1. The product is placed into a transport truck whose destination is a Wisconsin location other than a pipeline terminal or refinery. The bill of lading prepared by the out-of-state terminal operator shall clearly indicate Wisconsin as the destination state. The tax shall be paid by the position holder at the out-of-state terminal.

Tax 4.10(3)(b)2. 2. The product is transported across the state line by a supplier from an out-of-state bulk plant in a transporting vehicle. The sales invoice shall clearly indicate Wisconsin as the destination state and that the tax shall be paid by the supplier.

Tax 4.10(3)(c) (c) Blending components. Any product that is not a motor vehicle fuel and is blended as a component part of motor vehicle fuel other than at a refinery, marine terminal, pipeline terminal or place of manufacture is subject to tax at the time and place of blending. The tax on the component part shall be paid by the person who owns the motor vehicle fuel when blending is completed.

Tax 4.10 Note Note: This section interprets s. 78.07, Stats.

Tax 4.10 History History: Emerg. cr. eff. 4-1-94; cr. Register, November, 1994, No. 467, eff. 12-1-94; CR 16-064: am. (3) (b) 2. Register January 2018 No. 745, eff. 2-1-18.

Tax 4.11 Tax 4.11 Tax exemption for dyed diesel fuel.

Tax 4.11(1) (1) Purpose. This section clarifies the tax exemption provided to suppliers required to be licensed by the department when a dye has been added to diesel fuel.

Tax 4.11(2) (2) General.

Tax 4.11(2)(a) (a) All fuel dyed in accordance with the federal internal revenue service temporary regulations, 26 CFR 48.4082-1T, 2T, 3T and 4T, is treated as destined for exempt use and is exempt from the motor vehicle fuel tax.

Tax 4.11(2)(b) (b) Dyed diesel fuel shall only be used for exempt purposes.

Tax 4.11 Note Examples: 1) Diesel fuel used as heating oil has an exempt purpose.

Tax 4.11 Note 2) Diesel fuel used for nonhighway use has an exempt purpose.

Tax 4.11 Note 3) Diesel fuel used in trains has an exempt purpose.

Tax 4.11 Note Note: This section interprets s. 78.01 (2p), Stats.

Tax 4.11 History History: Emerg. cr. eff. 4-1-94; cr. Register, November, 1994, No. 467, eff. 12-1-94.

Tax 4.12 Tax 4.12 Uncollected motor vehicle fuel taxes and repossessions.

Tax 4.12(1) (1) Purpose. This section clarifies when and how a supplier required to be licensed by the department may recover the motor vehicle fuel tax from the department when a purchaser is unable to pay the tax to the supplier. This section also clarifies when and how a wholesaler distributor may recover the motor vehicle fuel tax from the department when the wholesaler distributor is unable to collect the tax from another wholesaler distributor or a retail dealer.

Tax 4.12(2) (2) Statutes. Under s. 78.01 (2s), Stats., a supplier is not liable for the tax on motor vehicle fuel when the supplier is unable to recover the tax from a purchaser. With proper documentation, the supplier may claim a tax deduction on a later remittance of taxes. A wholesaler distributor may file a refund claim with the department to recover the tax on uncollectable accounts covering sales to other wholesaler distributors and retail dealers.

Tax 4.12(3) (3) Procedure.

Tax 4.12(3)(a) (a) Tax imposed. A supplier shall pay the motor vehicle fuel tax to the department by the 15th day of the month after the month in which the fuel is received, as described in s. 78.07, Stats., irrespective of whether the sale is for cash or credit.

Tax 4.12(3)(b) (b) Bad debts.

Tax 4.12(3)(b)1. 1. ‘Deduction from measure of tax.’ A supplier is relieved from the liability for motor vehicle fuel tax on accounts which have become worthless and which have met the requirements to be charged off for income or franchise tax purposes. The bad debt tax deduction shall be reported and claimed on the supplier’s monthly tax report for the month in which the account becomes worthless. However, if a supplier is out of business when the account becomes worthless, a bad debt deduction may be claimed on the last return filed by that business or through a refund claim filed with the department. A wholesaler distributor may claim a bad debt tax deduction for the amount of tax liability for motor vehicle fuel tax on sales to other wholesaler distributors or retail dealers on accounts which have become worthless and which have met the requirements to be charged off for income or franchise tax purposes by filing a refund claim with the department. A claim for refund relating to a worthless account must be filed within 4 years of the 15th day of the 4th month following the close of the supplier’s or wholesaler distributor’s calendar or fiscal year within which the account becomes worthless.