Tax 61.08 History History: Cr. Register, March, 1989, No. 399, eff. 4-1-89; corrections made under s. 13.93 (2m) (b) 6. and 7., Stats., Register, March, 1995, No. 471; am. (11) (c) and (21) (c), Register, October, 2000, No. 538, eff. 11-1-00; CR 01-088: r. (15) (c) and am. (1), (3), (5), (7), (8), (10), (11) (b), (e) and (h), (13), (14) (b), (bm), (c) and (d), (15) (a), (b) and (d), (16), (19), (20) and (21) (intro.) and (a) to (h) Register February 2002 No. 554, eff. 3-1-02; CR: 04-083: am. (11) (c), (13) (a), (14) (d), (16) (a) and (21) (c), r. (11) (h), (12), and (15), cr. (13) (c) and (d), r. and recr. (17) (a) Register April 2005 No. 592, eff. 5-1-05; CR 07-087: cr. (11) (h), (j), (k), (13) (e), (14) (c), (15), (17) (a) 4., and (22), am. (13) (c) 1., (14) (bm), (17) (b), (18), (21) (intro.) and (g), renum. (14) (c) and (d) to be (14) (d) and (e) and am. Register April 2008 No. 628, eff. 5-1-08; CR 13-034: am. (11) (h), (k), (13) (a), cr. (13) (cm) Register December 2013 No. 696, eff. 1-1-14.

Tax 61.085 Tax 61.085 Retailer performance program.

Tax 61.085(1) (1) Purpose.

Tax 61.085(1)(a) (a) The retailer performance program or RPP is intended to provide additional compensation, above the compensation provided under s. 565.10 (14) (b) 1. or 2., Stats., to retailers who meet certain performance goals identified by the department of revenue. This additional compensation is authorized under ss. 565.02 (4) (g) and 565.10 (14) (b) 3m., Stats.

Tax 61.085(1)(b) (b) This program is applicable to lottery retailer sales transactions beginning on January 1, 2000.

Tax 61.085(2) (2) Definitions. In this section:

Tax 61.085(2)(a) (a) “Appropriate sales history” means the historical sales data that is used to calculate performance of a retail location within the RPP. The appropriate quarterly sales history data may be from either the comparable history quarter as defined under par. (c) or the immediately previous quarter as defined under par. (e). The appropriate annual sales history data shall be from the comparable history fiscal year under par. (b).

Tax 61.085(2)(b) (b) “Comparable history fiscal year” means the previous fiscal year that has sales history in each sales quarter for a specific retail location.

Tax 61.085(2)(c) (c) “Comparable history quarter” means the full sales quarter that is one year prior to the current sales quarter in which the RPP is being administered.

Tax 61.085(2)(d) (d) “Gross sales” means the sales data as indicated by Wisconsin lottery accounts receivable documentation of weekly invoicing of the purchase of Wisconsin lottery products by retailers.

Tax 61.085(2)(e) (e) “Immediately previous quarter” means the full sales quarter immediately prior to the current sales quarter in which the RPP is being administered.

Tax 61.085(2)(f) (f) “Instant ticket” means any of the following:

Tax 61.085(2)(f)1. 1. Any ticket which uses a scratch, pull-tab or break-open method, or a combination of those methods, as the method of player interaction with the ticket.

Tax 61.085(2)(f)2. 2. Any ticket where the features and procedures documentation under s. 565.27, Stats., indicates the ticket is an instant ticket for purposes of the retailer performance program as identified under this section.

Tax 61.085(2)(g) (g) “Retail location” means the place of business at which lottery products such as instant tickets or terminal generated tickets are sold, as selected under s. Tax 61.04.

Tax 61.085(2)(h) (h) “Sales goals incentive” means the component of the RPP that pays incentives to retailers who increase gross sales in a specified sales quarter or specified fiscal year, or both, when the sales quarter or fiscal year is compared to an appropriate sales history as defined under par. (a).

Tax 61.085(2)(hm) (hm) “Sales quarter” means a quarter of the Wisconsin lottery fiscal year that is 13 weeks in length. Beginning in fiscal year 2001, the administrator shall determine the start and end dates of all sales quarters of a fiscal year no later than one month prior to the beginning of that fiscal year, and upon request shall provide the calendar dates that define each quarter of a fiscal year. A quarter shall start and end on dates that are consistent with the standard billing cycle that the lottery uses to collect revenue from retailer accounts.

Tax 61.085(2)(i) (i) “Short-term incentive” means the component of the RPP that pays incentives to retailers who satisfy a performance expectation as established in short-term incentive features and procedures documentation.

Tax 61.085(2)(j) (j) “Winning ticket incentive” means the component of the RPP that pays incentives to retailers who sell winning lottery tickets.

Tax 61.085(3) (3) Eligibility. Any retailer may participate in the RPP if it meets all of the following eligibility requirements:

Tax 61.085(3)(a) (a) The retailer honors the current retailer contract, including any applicable addenda.

Tax 61.085(3)(b) (b) The retailer is not a nonprofit organization as defined in s. 565.10 (14) (a), Stats.

Tax 61.085(3)(c) (c) The retailer satisfies any qualifying requirements specific to each component of the RPP. If a retailer fails to satisfy the requirements specific to a component of the RPP, the retailer may not be considered qualified for that component of the RPP. A retailer qualifies for each component separately, and qualifying for one component of the RPP does not affect qualifying for another component.

Tax 61.085(4) (4) Design. The retailer performance program shall consist of 3 components, the winning ticket incentive, the sales goals incentive, and the short-term incentive described as follows:

Tax 61.085(4)(a) (a) Winning ticket incentive. The expected performance of the winning ticket incentive component of the RPP is the selling of winning lottery tickets. To qualify for the winning ticket incentive, a retailer shall satisfy the eligibility requirements in sub. (3). An incentive shall be paid to a retailer for selling any winning lottery ticket where the stated prize value of the winning lottery ticket is $600 or greater. The incentive shall be paid as follows:

Tax 61.085(4)(a)1. 1. For winning lottery tickets, 2% of the stated prize value shall be paid to a retailer on each prize, up to a maximum of $100,000 per prize level per drawing. In the event that a retailer or retailers earn more than $300,000 from any one prize level in any one drawing, then the lottery shall divide $300,000 equally among all retailers who earned an incentive from that prize level.

Tax 61.085(4)(b) (b) Sales goals incentive. The sales goals incentive component of the RPP shall pay a retailer an incentive based on an increase in the amount of sales over the appropriate sales history. The incentive shall be tracked, measured and paid separately for each product type. For each product type, a retailer shall satisfy eligibility requirements in sub. (3), sell a minimum amount of instant tickets as indicated under s. Tax 61.08 (11) (c), and qualify for the product type under sub. (5).

Tax 61.085(4)(b)1. 1. Quarterly payments may be paid for instant ticket product and for non-jackpot terminal generated product, and shall be made in the following manner:

Tax 61.085(4)(b)1.a. a. For the instant ticket sales product type, the retailer shall receive an incentive calculated by comparing a sales quarter against the appropriate sales history to determine if a sales increase has occurred. If a sales increase has not occurred, no incentive may be paid. If a sales increase has occurred, the retailer shall receive up to 2% of the sales increase unless the administrator adjusts the payment percentage to a lower percentage under sub. (7) to ensure that appropriate funding authority is maintained within the current fiscal year. Any adjustment made shall consider historical sales and incentive information and shall be applied equally to all retailers. Information regarding the details of any adjustment shall be made available upon request to the administrator.