CR 16-076 Rule Text

ORDER OF THE DEPARTMENT OF REVENUE REPEALING, AMENDING, REPEALING AND RECREATING, AND CREATING RULES

  The Wisconsin Department of Revenue proposes an order to: repeal Tax 13.03 (7) and (14), 13.05 (1), 13.05 (4) (a) 1., 2., and 3., 13.06 1 (a) 1. and 2., (b), (c), (d) 1. and 3., (2), (4), and (5), 13.07 (1), (2) (c) 9. a., b., and c., 13.075, 13.08 (1), (2), (3), (4), (5), and (7), and 13.13; renumber 13.08 (8) and (9); renumber and amend Tax 13.05 (4) (a) (intro.), 13.06 (1) (intro.), and 13.08 (6) (intro.); and amend Tax 13.03 (9), (14g), and (14r), 13.07 (intro) and (2) (c) 9., and 13.11 (5) (a); relating to the Investment and Local Impact Board.

The scope statement for this rule, SS 065-14, was approved by the Governor on July 1, 2014, published in Register No. 703B on July 31, 2014, and approved by the Chair of the Investment and Local Impact Fund Board on August 27, 2014.

Analysis by the Department of Revenue

Statutes interpreted: ss. 70.395 and 70.396, Stats.

Statutory authority: s. ss. 70.395 (2) (c), (hg), (hr), and (i), Stats.

Explanation of agency authority: Section 70.395 (2) (c), Stats., authorizes the board to establish by rule the amount of funds to be distributed under pars. (d) to (g) and to be paid under (j), and determine the amount which is not distributed to be invested under s. 25.17 (1) (jc).

Section 70.395 (2) (hg), Stats., authorizes the board to establish by rule fiscal guidelines and accounting procedures for the use of payments under pars. (d), (f), (fm), and (g), sub (3), and ss. 293.65 (5) and 295.61 (9).

Section 70.395 (2) (hr), Stats., authorizes the board to establish by rule procedures to recoup and withhold payments made for noncompliance or rules adopted under this section.

Related statute or rule: The net proceeds occupation tax on mining of metallic minerals is created by s. 70.375. There are no other applicable rules.

Plain language analysis: The proposed rule makes the following changes:

• Repeals ss. Tax 13.03 (7) and (14) and amends s. Tax 13.03 (9) to eliminate definitions of terms no longer used in the rule language.

• Amends ss. Tax 13.03 (14g) and (14r) to address statutory change in 2013 Act 1.

• Repeals s. Tax 13.05 (1) to repeal rule language that is repetitive of 70.395(1e) and eliminate references to the Badger Fund which was repealed in 1997.

• Amend s. Tax 13.05 (3) (a) to update cross-reference to statutory provision.

• Amends s. Tax 13.05 (4) (a) (intro.) to update cross-reference to statutory provision.

• Repeal s. Tax 13.05 (4) (a) 1., 2., and 3. to eliminate rule language that is repetitive of s. 70.395 (2) (dc), Stats.

• Amends s. Tax 13.06 (1) (intro.) to update cross-reference to statutory provision.

• Repeal s. Tax 13.06 (1) (a) 1. and 2., (b), (c), and (d) 1. and 3. to eliminate rule language that is repetitive of ss. 70.375(6) and 70.395 (2) (d), Stats.

• Repeals ss. Tax 13.06 (2), (4), and (5) to eliminate rule language that is repetitive of s. 70.395 (2) (d) or lacks statutory authority.

• Amends s. Tax 13.07 (intro.) to update cross-reference to statutory provisions.

• Repeals s. Tax 13.07 (1) to eliminate rule language that is repetitive of s. 70.395 (2) (f), Stats.

• Amends s. Tax 13.07 (2) (c) 9. to reference statutory provision

• Repeal s. Tax 13.07 (2) (c) 9. a., b., and c. to eliminate rule language that is repetitive of s. 70.395 (2) (h), Stats.

• Repeals s. Tax 13.075 to eliminate rule language that is repetitive of ss. 293.33 and 295.443, Stats.

• Amends s. Tax 13.08 (6) (intro.) that lacks statutory authority.

• Repeal s. Tax 13.08 (1), (2), (3), (4), (5), and (7) to eliminate rule language that is repetitive of ss. 70.395 (g), 70.396, 293.33, and 295.443, Stats.

• Amend s. Tax 13.11 (5) (a) to update cross-reference to statutory provisions.

• Repeals s. Tax 13.13 to eliminate rule language that lacks statutory authority to the extent that it may be more restrictive than s. 70.395 (3), Stats.

Summary of, and comparison with, existing or proposed federal regulation: The investment and local impact board is not regulated by federal statutes or regulations.

Comparison with rules in adjacent states: The department has not found a similar rule in an adjacent state.

Summary of factual data and analytical methodologies: The proposed rule will repeal unnecessary and confusing provisions and amend complex procedures related to the investment and local impact board's distribution of funds to local communities affected by metalliferous mining in this state. The provisions are repetitive of statutes, which were amended in 2013 Act 1. Tax 13 no longer accurately reflects the statute, and it is unnecessarily complex. The objective of the proposed rule is to clarify the procedures used by the board, reduce confusion and remove inaccuracies by repealing language that is found in the statute, and return the rule's contents to the subjects over which the board and the department of revenue were granted rule-making authority.

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 rule order does not have a fiscal effect on the private sector.

Effect on small business: This rule order does not affect small business.

Agency contact person: Please contact Jen Chadwick at [phone] or [e-mail], if you have any questions regarding this rule order.

Place where comments are to be submitted and deadline for submission: Comments may be submitted to the contact person shown below no later than December 22, 2016. Information as to the place, date, and time of the public hearing will be published in the Wisconsin Administrative Register.

Jen Chadwick

Department of Revenue

Mail Stop 6-40

2135 Rimrock Road

P.O. Box 8933

Madison, WI 53708-8933

[e-mail]

SECTION 1. Tax 13.03 (7) is repealed.

SECTION 2. Tax 13.03 (9) is amended to read:

Tax 13.03 (9) "Mining" or "mined" has the meaning under s. 70.375 (1) (b), Stats.

SECTION 3. Tax 13.03 (14) is repealed.

SECTION 4. Tax 13.03 (14g) is amended to read: