ORDER OF THE DEPARTMENT OF REVENUE REPEALING, RENUMBERING AND AMENDING, AMENDING, AND CREATING RULES
The Wisconsin Department of Revenue proposes an order to: repeal Tax 1.11 (3) (f) 2. c. and (4) (b), 2.07 (2) (d) and (e) (Note), 2.105 (6) (b) and (Example), 2.12 (5) (b), 2.88 (5) (Note 2) and (Note 3), 2.956, 2.98 (2) (b) (Note 1) and (Note 2), 3.096 (3) (Note 1) and (Note 2), 4.001 (2) (b), 7.001 (2) (b), 8.001 (2) (b), 9.001 (2) (b), and 14.05 (8) (b) (Example); renumber and amend Tax 1.11 (3) (d) 2.; amend Tax 1.10 (title), 1.11 (2), (3) (g) 1., (4) (c), and (5) (b), 1.13 (1) (b), 2.04 (2) (intro), 2.10 (1), 2.105 (4) (a) 1. f. (Note), (5) (c) 4. (Example 1) and (Example 2), and (6) (a) (Example), 2.12 (4) (b) 2. (Example 1), (Example 2), and (Example 3) and 3. a. (Example 1), (Example 2), (Example 3), (Example 4), and (Example 5) and (5) (a) and (c), 2.89 (8) (b) 3. (Note), 2.955 (5) (Example), 4.001 (2) (a) (intro), 4.75 (3) (a) 2. and (Note), 7.001 (2) (a) (intro), 7.01 (1), 7.21, 8.001 (2) (a) (intro), 8.22 (2) and (3), 9.001 (2) (a) (intro), 14.01 (5) (a) 2. (Example) and (b) (Example) and (7) (b) (Example), 14.02 (9) (Example), and 14.04 (3) (e) (Example); and create Tax 1.11 (3) (d) 2. and a., 3., 4., and 5.; relating to income and franchise tax provisions.
The scope statement for this rule, SS 097-19, was approved by the Governor on October 3, 2019, published in Register No. 766A1 on October 7, 2019, and approved by the Secretary of Revenue on October 29, 2019. Analysis by the Department of Revenue
Statutes interpreted:
Tax 1.11 – ss. 70.375 (2) (b), 71.78, 72.06, 77.61 (5), 77.76 (3), 77.79, 78.80 (3) and (4), 134.98, 139.11 (4), 139.38 (6) and 139.82 (6), Stats.
Tax 1.13 – ss. 71.78 (4) (e), 71.255 (7) (b), 72.06, 77.61 (5) (b) 5. a., 77.76 (3), 78.80 (3), 139.11 (4), 139.38 (6) and 139.82 (6), Stats.
Tax 2.04 – ss. 71.26 (3) (e), 71.63 (3m), 71.65 (2), 71.67 (4) and (5), 71.70, 71.71 (2), 71.715 (2), 71.72, 71.738 (2m), 71.74 (4) and 71.80 (20), Stats.
Tax 2.07 – ss. 71.07 (9e) and 73.03 (48), Stats.
Tax 2.10 – ss. 71.03 (5) and 71.20 (1), Stats.
Tax 2.105 – ss. 71.255 (1) and (7), 71.75 (2), 71.76, 71.77 (2) and (7) and 77.96 (4), Stats.
Tax 2.12 – ss. 71.255 (1), (4), and (7), 71.30 (4), 71.738 (2m), 71.74, 71.75, 71.76, 71.77, 71.80 (18) and 77.96 (4), Stats.
Tax 2.88 – ss. 71.03 (7), 71.24 (7), 71.44 (3), 71.82 (1) and (2) (a) and 71.90 (1), Stats.
Tax 2.89 – ss. 71.09 (9), 71.255 (7), and 71.29 (5), Stats.
Tax 2.955 – s. 71.07 (7), Stats.
Tax 2.956 – ss. 71.07 (9m) and (9r), 71.28 (6) and 71.47 (5) and (6), Stats.
Tax 2.98 – ss. 71.01 (6), 71.22 (4), and 71.255 (7) (b) Stats.
Tax 3.096 – s. 71.05 (6) (b) 1., Stats.
Tax 4.001 – ss. 78.005 (6m), 78.39 (4m), and 78.55 (2r), Stats.
Tax 4.75 – s. 78.12 (5), Stats.
Tax 7.001 – s. 139.01 (2r), Stats.
Tax 7.01 – ss. 125.30, 125.33 (9), and 139.11 (1) and (4), Stats.
Tax 7.21 – s. 125.32 (7), Stats.
Tax 8.001 – s. 139.01 (2r), Stats.
Tax 8.22 – ss. 125.52 (1), 125.54 (1), 125.53, and 139.11 (4), Stats.
Tax 9.001 – ss. 139.30 (4m) and 139.75 (4m), Stats.
Tax 14.01 – ss. 71.03 (6m), 71.51 to 71.55, 71.74 (8) (a), 71.75 (2) and (7), 71.77 (2) and 71.82 (1) (c), Stats.
Tax 14.02 – ss. 71.52 (1), (2) and (7), 71.53 (1) (b) and (c) and (2) (d) and 71.58 (1) (b), Stats.
Tax 14.04 – ss. 71.52 (3) and (7) and 71.54 (2) (a) and (c) 2., Stats.
Tax 14.05 – ss. 71.52 (2) and (8), 71.53 (2) (e) and (f), 71.54 (2) (a) and (c) and 71.55 (2) and (8), Stats.
Explanation of agency authority: Under 70.375 (2) (b), Stats., the secretary may promulgate any rules necessary to implement the tax under ss. 70.37 to 70.39 and 70.395 (1e). This provision applies to the revisions of s. Tax 1.11. Under s. 71.80 (1) (c), Stats., the department may make such regulations as it shall deem necessary in order to carry out chapter 71 of the Wisconsin Statutes, relating to income and franchise taxes. Section 77.65 (3), Stats., provides "[t]he department may promulgate rules to administer this section…" This provision applies to the revisions of s. Tax 1.11. Under s. 78.79, Stats., the department may promulgate reasonable rules relating to the administration and enforcement of chapter 78 of the Wisconsin Statutes, relating to vehicle and general aviation fuel taxes. This provision applies to the revisions of ss. Tax 4.001 and 4.75. Under s. 125.03 (1), Stats., the department may promulgate rules consistent with chapters 125 and 139 of the Wisconsin Statutes, relating to alcohol beverages regulation and beverage, controlled substances, and tobacco taxes, and to provide for registration of wine collectors and establishing standards of eligibility for registration as a wine collector. This provision applies to the revisions of ss. Tax 7.001, 7.01, 7.11, 7.21, 8.001, 8.22, 8.63, and 9.001. Under s. 125.54 (7) (d), Stats., the department shall promulgate rules to administer and enforce the requirements relating to wholesalers' permits. Under s. 139.08(2), Stats., the secretary of revenue shall adopt rules necessary to carry out the secretary's duties under this chapter. Under s. 139.39, (1), Stats., the department shall adopt rules necessary to administer and enforce its duties. Section 227.11 (2), Stats., provides statutory rule-making authority as follows: (a)
"Each agency may promulgate rules interpreting the provisions of any statute enforced or administered by the agency, if the agency considers it necessary to effectuate the purpose of the statute...”(c)
"Each agency authorized to exercise discretion in deciding individual cases may formalize the general policies evolving from its decisions by promulgating the policies as rules …"Related statute or rule: There are no other applicable statutes or rules.
Plain language analysis: Upon review of the administrative code, as it relates to income, franchise, and excise taxes for purposes of the JCRAR report submitted on March 26, 2019, the following sections were identified as needing updating or repeal:
Replace "special fuel tax" with "alternate fuels tax" as a result of 1993 Wis. Act 16
Add other situations in which district attorneys may examine returns as specified in ss. 71.78 (8) and 77.61(5)(f), Stats.
Add language for situations in which tax return information is ordered to be produced in open court as specified in ss. 71.78(4)(f) and 77.61(5)(b)6., Stats.
Remove reference to older tax years
Update to address other situations relating to producing records as provided in s. 71.78 (4) (f), Stats.
Repeal section relating to commissioner of insurance, as a result of 2013 Wis. Act 20, as it no longer applies
Remove limitation of access to sales and use tax returns as access to these returns is allowed under sec. 77.61 (5) (b) 8., Stats.
