Tax 9.19 HistoryHistory: Cr. Register, February, 1967, No. 134, eff. 3-1-67; am. Register, June, 1975, No. 234, eff. 7-1-75; am. Register, August, 1996, No. 488, eff. 9-1-96; CR 13-013: am. (title), r. (1), am. (2) Register August 2013 No. 692, eff. 9-1-13. Tax 9.21Tax 9.21 Shipments to retailers. Tax 9.21(1)(1) Out-of-state permittees shipping cigarettes to Wisconsin retailers shall, prior to the entry of the cigarettes into this state, have affixed to the cigarette containers the proper Wisconsin revenue stamps. Tax 9.21(2)(2) Wisconsin retailers purchasing cigarettes from outside the state shall purchase them only from out-of-state manufacturers and distributors who hold permits issued to them by the department. Tax 9.21(3)(3) All out-of-state manufacturers may ship cigarettes either stamped or unstamped directly to any Wisconsin manufacturers or distributors who hold the proper permit issued by the department. Tax 9.22(1)(1) Drop shipments are prohibited to retailers unless the proper tax stamps are affixed to the cigarette containers prior to sale and delivery. Tax 9.22(2)(2) All consignors of cigarettes, on drop shipments, shall furnish a memo invoice to the distributor or the retailer receiving the merchandise directly, as well as an invoice to the distributor through whom the billing is serviced. Tax 9.22(3)(3) The consignors shall list on their regular schedule CT-107 the name of the consignee actually receiving the merchandise, as well as the name of the distributor through whom it is billed. Tax 9.22 HistoryHistory: 1-2-56; am. Register, June, 1975, No. 234, eff. 7-1-75; am. (3), Register, December, 1977, No. 264, eff. 1-1-78; am. (1) to (3), r. (4), Register, August, 1996, No. 488, eff. 9-1-96. Tax 9.26Tax 9.26 Trade or transfer of unstamped cigarettes. Tax 9.26(2)(2) No manufacturer or distributor may receive unstamped cigarettes from a retailer for stamping purposes. Tax 9.26(3)(3) No unstamped cigarettes may be transferred from one permittee to another for any reason whatsoever, except for interstate commerce. All cigarettes sold by one permittee to another for the purpose of interstate commerce shall have a label affixed to each case stating “For Interstate Commerce Only.” The label shall be 2 inches by 5 inches in size. This merchandise shall be used for interstate commerce and may not be diverted in any manner for intrastate sale. Tax 9.26 HistoryHistory: 1-2-56; am. Register, June, 1975, No. 234, eff. 7-1-75; correction in (1) made under s. 13.93 (2m) (b) 5., Stats., Register, October, 1995, No. 478; am. Register, August, 1996, No. 488, eff. 9-1-96; CR 13-013: r. (1) Register August 2013 No. 692, eff. 9-1-13. Tax 9.31Tax 9.31 Sales out of Wisconsin. Tax 9.31(1)(1) The excise tax imposed upon the sale of cigarettes within the state does not apply to merchandise which is shipped from within the state to a point outside the state. Manufacturers and distributors need not affix revenue stamps to the original containers of cigarettes that are sold and shipped outside the state. The burden of proof, however, is at all times upon the Wisconsin manufacturer or distributor to show that the merchandise actually went into interstate commerce. Tax 9.31(2)(2) Wisconsin manufacturers and distributors claiming exemption from the excise tax on cigarettes on the grounds that shipments or deliveries were made in interstate commerce shall certify under oath either of the following: Tax 9.31(2)(a)(a) Names and addresses of the persons receiving the shipments or deliveries in the foreign state. Tax 9.31(2)(b)(b) That they are in possession of bills of lading, waybills, freight bills or other evidence of shipment issued by common carriers. Tax 9.36Tax 9.36 Displaying of cigarettes. All cigarette retail outlets in the state of Wisconsin shall display all cigarettes offered for sale at retail in a manner permitting verification that they are stamped cigarettes. Tax 9.36 HistoryHistory: 1-2-56; am. Register, August, 1996, No. 488, eff. 9-1-96. Tax 9.41Tax 9.41 Vending machines. Each vending machine operator shall place on the front of each vending machine operated or controlled by the operator a sticker listing the operator’s name, address and vending machine operator’s permit number as issued by the department, in such a position that it will not become dislodged or detached. The sticker may be placed behind the glass, provided it is completely visible and readable from the front. Tax 9.41 HistoryHistory: 1-2-56; am. Register, June, 1975, No. 234, eff. 7-1-75; correction, made under s. 13.93 (2m) (b) 5., Stats., Register, October, 1995, No. 478; am. Register, August, 1996, No. 488, eff. 9-1-96. Tax 9.46Tax 9.46 Purchases by the retailer. Tax 9.46(1)(1) No firm, person or corporation engaged in the retail sale of cigarettes may purchase cigarettes except from a manufacturer, distributor or jobber who holds a permit from the department. Tax 9.46(2)(2) All retailers selling cigarettes shall retain invoices covering all purchases of cigarettes. The invoices shall be retained on the licensed premises in groups covering a period of one month each, and shall be available for inspection at all reasonable times by any representative of the department. Tax 9.47Tax 9.47 Invoicing of sales, including exchanges of cigarettes. Tax 9.47(1)(1) A true and correct invoice shall accompany the cigarettes at the time of any sale, including exchanges, between permittees or between permittees and retailers. Permittees include cigarette sellers, distributors, jobbers, vending machine operators or multiple retailers. A true and correct invoice shall contain the following information: Tax 9.47(1)(a)(a) Names and business addresses of both parties as shown on the permit or license of each. Tax 9.47(1)(c)(c) Number of packs or cartons of cigarettes by brand and pack. Tax 9.47(1)(d)(d) Unit price per pack or carton. The unit price of the cigarettes alone may be shown with the Wisconsin cigarette tax stated as a separate item. Tax 9.47(1)(e)(e) Signature of the person receiving the cigarettes. In an exchange, both parties shall sign the invoice. Tax 9.47(2)(2) When a seller, acting as a representative of a cigarette manufacturer, exchanges fresh cigarettes for dried or damaged cigarettes, the seller shall accept and receive only dried or damaged cigarettes of the brands manufactured by the seller’s employer and shall prepare and deliver with the fresh cigarettes a true and correct invoice as set forth in sub. (1). Tax 9.47(3)(3) When a seller, acting as a representative of a cigarette manufacturer, or when a permittee returns dried or damaged cigarettes to a distributor for return to the manufacturer and receives fresh cigarettes in exchange, the seller or permittee shall prepare a true and correct invoice as set forth in sub. (1). Each carton of dried or damaged cigarettes shall contain only cigarettes of one brand and pack. The distributor shall verify that all of the cigarettes are stamped cigarettes. Tax 9.47(4)(4) A clearly legible copy of all invoices evidencing a sale or exchange of cigarettes shall be retained by each of the parties to the transaction for a period of 5 years from the date of the invoice, in groups covering a period of one month each. Tax 9.47 HistoryHistory: Cr. Register, November, 1971, No. 191, eff. 12-1-71; correction in (2) and (3) made under s. 13.93 (2m) (b) 5., Stats., Register, February, 1994, No. 458; correction in (1) (intro.) made under s. 13.93 (2m) (b) 5., Stats., Register, October, 1995, No. 478; am. (1) (intro.), (d), (e), (3) and (4), Register, August, 1996, No. 488, eff. 9-1-96; CR 13-013: am. (4) Register August 2013 No. 692, eff. 9-1-13. Tax 9.51(1)(1) Cigarettes shipped into this state by manufacturers to their representatives, including advertising agencies and airlines, for the purpose of free samples shall be accompanied by a memo invoice stating brands and number of cigarettes. The memos shall be retained by the representative for the statutory period of 5 years. Tax 9.51(2)(2) Manufacturers may ship free sample cigarettes in quantities of 400 or fewer to consumers, such as employees or stockholders. Tax 9.51(3)(3) All sample cigarettes described in subs. (1) and (2) shall bear the legend: “Applicable state tax paid. Not for resale.” The cigarettes are subject to Wisconsin cigarette use tax. The tax paid by the manufacturer shipping or causing the cigarettes to be shipped into this state shall be remitted no later than the 15th day of the month following the shipment. Along with the applicable tax remitted each manufacturer shall submit a list of persons to whom cigarettes were shipped indicating the amount of cigarettes shipped to each person. Tax 9.56Tax 9.56 Branch offices. Separate sets of records are required for each branch or place at which a wholesale cigarette business is operated. Tax 9.56 HistoryHistory: 1-2-56; am. Register, June, 1975, No. 234, eff. 7-1-75. Tax 9.61Tax 9.61 Warehousing of cigarettes. Out-of-state persons, firms or corporations having permits to engage in the sale of cigarettes in the state of Wisconsin may warehouse either stamped or unstamped merchandise in properly licensed warehouses located in the state of Wisconsin. No out-of-state person, firm or corporation may affix stamps to merchandise while it is stored in the licensed warehouse. Tax 9.67(1)(1) Payment for cigarette tax stamps. Under s. 139.32 (6), Stats., manufacturers and distributors having obtained a permit from the secretary of revenue may purchase cigarette tax stamps on credit. The credit extended by the department for any cigarette tax stamp purchase shall become due and payable upon the earlier of: Tax 9.67(1)(b)(b) Fifteen days after the close of the month in which the indicia were received by the manufacturer or distributor. Tax 9.67(2)(2) Investigation. The department may investigate the financial stability of the applicant and may deny credit to any permittee when there is any question of ability to pay as required in this section. Tax 9.67(3)(3) Revocation of privilege. The privilege granted to any manufacturer or distributor of making cigarette tax stamp purchases on credit may be revoked at any time at the discretion of the department. Tax 9.67 HistoryHistory: Cr. Register, November, 1957, No. 23, eff. 12-1-57; am. Register, 68, eff. 9-1-61; am. Register, June, 1975, No. 234, eff. 7-1-75; emerg. r. and recr. eff. 9-1-93; r. and recr. Register, February, 1994, No. 458, eff. 3-1-94. Tax 9.68Tax 9.68 Ownership and name changes. Tax 9.68(1)(1) General. Under s. 139.34 (4), Stats., a cigarette permit is not transferable to another person. This section clarifies when a new cigarette permit is required, as the result of an ownership or name change, or both. Tax 9.68(2)(a)(a) When there is a change in ownership of a business, the new owner shall apply for a new permit using form CTP-129, except as provided in par. (c). The new owner shall notify the department not later than 10 days prior to the change. Tax 9.68 NoteNote: Form CTP-129 is available on the department’s web site at www.revenue.wi.gov. Tax 9.68(2)(b)(b) A new permit shall be obtained by using form CTP-129 when there is a change in ownership of a sole proprietorship, partnership, corporation or other form of ownership, except as provided in par. (c). Tax 9.68 NoteExamples. A new permit is required if: 1) A sole proprietorship or partnership incorporates.
Tax 9.68 Note2) A sole proprietorship is sold to a different sole proprietor.
Tax 9.68 Note3) A sole proprietorship becomes a partnership.
Tax 9.68 Note4) A partner in a partnership leaves the partnership or a partner is added to the partnership.
Tax 9.68 Note5) The federal employer identification number of a business changes.
Tax 9.68(2)(c)(c) A new permit is not required for a change in the ownership of a corporation unless either of the following occurs: Tax 9.68(2)(c)1.1. A corporation is merged with another corporation, the merged corporation ceases to exist, and the surviving corporation does not have a valid permit. Tax 9.68(2)(c)2.2. The federal employer identification number of a corporation changes. Tax 9.68(3)(a)(a) A permittee shall notify the department of a name change at least 10 days prior to the change and the permittee shall retain the same permit number. Tax 9.68(3)(b)(b) A rider, verifying the name change, such as one filed by a permittee’s insurance company at the request of the permittee, shall be submitted and attached to the security documents on file with the department. If no security is on file, or if a rider is not filed with the department, new security shall be deposited under the new name as required, and any old security shall be returned to the permittee. Tax 9.68 HistoryHistory: Cr. Register, September, 1991, No. 429, eff. 10-1-91; am. (2) (b) and (3) (b), Register, August, 1996, No. 488, eff. 9-1-96. Tax 9.69Tax 9.69 Master settlement agreement with tobacco product manufacturers. Tax 9.69(1)(1) Purpose. This section describes requirements and methods relating to collecting, maintaining and reporting data regarding the number of Wisconsin state cigarette excise tax stamps affixed to packages of cigarettes, and the amount of “roll-your-own” cigarette tobacco, sold in Wisconsin each year.
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