CR_13-011 Hearing to consider rule revising Chapter Tax 11, relating to sales and use tax provisions concerning advertising and promotional direct mail and prosthetic devices.

These rule change proposals do not represent significant policy changes and do not differ significantly from surrounding states. All surrounding states have regulations and rules in place for the management and recreational use of wild game and furbearer species that are established based on needs that are unique to that state's resources and public desires.

Summary of factual data and analytical methodologies

All of the policies in this rule are generally consistent with past board policies of regulating fish and game harvest for conservation purposes.

The harvest of hen pheasants is generally prohibited in the wild but is allowed at certain stocked public hunting grounds. Hunters at these properties must tag the leg of harvested birds before transporting them in any way. Eliminating the tag requirement will save money for the department. By instead requiring that all harvested bird carcasses retain evidence of species and sex identification, such as the head or a fully feathered wing, a conservation warden will still be able to identify a hen pheasant and can then verify where it was harvested.

The use of firearms for deer hunting is restricted to shotguns, muzzleloaders and handguns only in certain portions of the state. At one time people generally believed that these firearms were safer but research and experience indicate that is not the case. Allowing the use of rifles statewide will be a simplification of regulations. Residents of Shawano County have asked for a stand-alone rule proposal, in addition to the statewide proposal, so that a Shawano County proposal can advance if a statewide rule does not. In Conservation Congress voting, residents of Outagamie County have also requested expanded use of rifles.

Currently there are four separate zones for mink and muskrat harvest, with slightly different opening or closing dates. This proposal would consolidate zones in order to simplify regulations that are no longer needed.

Richard Bong Recreation Area, located in Racine County, currently experiences very heavy dove hunting pressure that detracts from the quality of the hunting experience. The purpose in creating a controlled dove hunt area on the Richard Bong State Recreation Area (RBSRA) is to prevent conflict with Special Use Zone (SUZ) user groups. The 1200 acre SUZ is located in the southwest part of the RBSRA. During the airbase construction the current SUZ area was to be the runway. The area was stripped of topsoil and a little over 2 miles of gravel was laid. Just south of the gravel runway several shallow runoff ponds were also built. When the property became a park the runway and surrounding area was designated as the SUZ to serve as a special area to support a variety of activities, many non-traditional, because of the heavy disturbance. Administrative rules list 25 different activities permitted in the SUZ - the ones relating to this rule change are hunting, all-terrain vehicles, and dog training/trialing. The priority ranking guidance in rule helps minimize conflicts, but with the introduction of dove hunting new issues started to develop. Currently there are approximately 7-8 miles of ATV & Motor bike dirt/gravel trails north of the gravel runway. The runway area is attractive to doves because of the gravel and shallow ponds, which also attracts the dove hunters. As dove hunting grew in popularity conflicts started to occur in the SUZ. Rangers observed dove hunters within the ATV loops hunting. A hunter would setup in the loop area and wait for an ATV or Motor Bike to drive by. When the vehicle would flush the dove off the trail the hunter would stand up and shoot at the bird. Also, dove hunters hunting by the ponds would shoot in the direction of the ATV/Motor Bike trails. Fortunately no one has been injured, but changes are needed to avoid an accident. Another concern addressed by this proposal is that the pond areas are starting to become over-crowded. Several hunter groups would line the edge of the ponds shooting in different directions at doves and possibly at other hunting groups and other user groups- ATV/Motor Bike. As a result recommendations were made to create a 300 acre controlled hunting area in the SUZ where hunters are restricted to 8 locations identified by posts. Only 3 hunters are allowed per post; they must hunt within 10 feet of the posts; and they can only shoot to the south. In the remaining portions of the park open to hunting, hunters are not restricted to a specific area to hunt doves.

Arm bands must be worn by pheasant hunters at Richard Bong State Recreation Area. This requirement may no longer be needed and the department will evaluate eliminating it.

This proposal would exempt trappers from the daily trap checking requirement on dry land for certain types of sets made for weasels. Tending traps would be required at least once every four days. The trap types exempted under this proposal would be small body gripping traps contained in enclosures with an opening of a size that should prevent the capture of protected martens. Because body gripping traps are designed to kill the weasel upon capture, trappers have argued that live animals will not remaining in traps for extended periods of time. Additionally, the enclosures in which the traps are placed should prevent scavenging of trapped animals and keep them out of sight. In these specific trapping situations, daily trap checking requirements may not be needed.

Currently, there are no restrictions on the time of day for training dogs to pursue bears. In the past, training dogs by trailing wild bears was not legal during the hunting season for bears. With the passage of 2011 ACT 28, bear dog training is now allowed during the bear hunting season. This proposal will require that all bear pursuit activities take place only during lawful bear hunting hours when the bear hunting season is open in order to eliminate the need to determine who is hunting and who is only training. Bear dog training typically is done during daylight hours so this will not result in a significant loss of opportunity.

Collecting plants from department managed lands is generally prohibited except for some edible plant parts and the removal of invasive plants. This proposal would also allow collecting willow stakes on department managed lands for non-commercial uses with prior permission of the property manager. Willow stakes are often used by trappers for marking trap locations and anchoring traps. The restriction to taking only willows that are 2 ½ " in diameter or less will allow taking trees that are large enough to use for bank poles and set lines but will maintain the prohibition of harvesting trees in general. Willow is a fast growing species that, although native, is sometimes considered invasive in certain areas.

Currently the overnight, unattended placement of hunting stands and blinds is not allowed on department managed lands. This regulation is designed to prevent the "staking out" or making advance claims to hunting locations in favor of a first-come-first served practice. However the overnight placement, remaining in place for more than one day, of stands is allowed on some other public lands and may also be practical on department lands.

At Richard Bong Recreation Area hunters pay a daily entrance fee of $3.00 to hunt stocked pheasants and the daily bag limit is two birds. This fee has not been updated since being established in 1982. An increase to $12.00 ($5.00 if stocking was not done on the previous day) will allow the managed pheasant hunt program to continue in a sustainable manner while improving the quality and consistency of the hunt for program participants.

Anticipated Private Sector Costs and Economic Impact of Implementing the Rule

These rules, and the legislation which grants the department rule making authority, do not have a significant fiscal effect on the private sector or small businesses. These rules are applicable to individual sportspersons and impose no compliance or reporting requirements for small business, nor are any design or operational standards contained in the rule.

This proposal would increase the daily fee for pheasant hunting at Richard Bong Recreation Area from $3.00 to $12.00. The daily bag limit is two birds per day beginning on the third day of the season (1 per day on opening weekend). A survey of privately owned southern Wisconsin pheasant game farms showed that most charge between $44.00 and $50.00 for two birds. The Illinois Department of Natural Resources conducts similar managed pheasant hunts and charges $25.00 per day with a daily bag limit of two. Because the fee at the recreation area will continue to be significantly lower than similar opportunities available in the region, no shift in hunting activity or hunter's related expenditures is anticipated.

Allowing the use of rifles for firearm deer hunting statewide will result in an increase in rifle sales in subsequent years. Many hunters perceive that hunting deer with rifles is preferable to hunting with shotguns, muzzleloaders, or handguns. Because ordering and shipping firearms is difficult, many or most of these purchases will occur at shops in Wisconsin. It is difficult to estimate how many purchases will occur because people would still be able to hunt with shotguns, muzzleloader and handguns. Purchases may be spread out over a period of years as people update their firearms. While the amount of economic impact is difficult to estimate, an increase in firearm sales would be an assured result of this rule change and is something that sporting goods outlets are already anticipating.

Other proposed rule changes are not expected to significantly influence the spending activities or hunting and trapping activity of hunters, trappers, dog trainers, or other outdoor enthusiasts. Correspondingly, no related economic impacts are anticipated.

Effects on Small Business

Pursuant to ss. 227.114 and 227.137 , Wis. Stats., it is not anticipated that the proposed rules will have an economic impact on small businesses.

The Department conducted economic impact analyses in consultation with businesses, business associations, local governmental units, and individuals. The Department has determined that these rules would have no impact on the economy in a material way, a sector of the economy, productivity, jobs, or the overall economic competitiveness of this state.

These rules are applicable to individual sportspersons and impose no compliance or reporting requirements for small businesses, and no design or operational standards are contained in the rule. Because this rule does not add any regulatory requirements for small businesses, the proposed rules will not have a significant economic impact on a substantial number of small businesses under s. 227.24 (3m) , Stats.

The Department's Small Business Regulatory Coordinator may be contacted at [e-mail] or by calling [phone].

Environmental Impact

The Department has made a preliminary determination that this action does not involve significant adverse environmental effects and does not need an environmental analysis under ch. NR 150 , Wis. Adm. Code. However, based on the comments received, the Department may prepare an environmental analysis before proceeding with the proposal. This environmental review document would summarize the Department's consideration of the impacts of the proposal and reasonable alternatives.

Agency Contact Person

Scott Loomans, 101 South Webster St., PO BOX 7921, Madison, WI 53707-7921. [phone], [e-mail] .

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA 2049 (R 07/2011) ADMINISTRATIVE RULES FISCAL ESTIMATE AND ECONOMIC IMPACT ANALYSIS
Type of Estimate and Analysis
X Original ⍽ Updated ⍽ Corrected
Administrative Rule Chapter, Title and Number
WM-01-13 relating to hunting, trapping, closed areas, dog training, and the use of department lands. This rule modifies Chs. NR 10 related to game and hunting, NR 11 related to closed areas, NR 17 related to dog trials and training, and NR 45 related to the use of department properties.
Subject
Economic impact analysis for public comment relating to hunting, trapping, closed areas, dog training, and the use of department lands.
Fund Sources Affected			Chapter 20 , Stats. Appropriations Affected
⍽ GPR ⍽ FED ⍽ PRO ⍽ PRS X SEG ⍽ SEG-S			20.370 (1) (mu)
Fiscal Effect of Implementing the Rule
⍽ No Fiscal Effect ⍽ Indeterminate	X Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs ⍽ Could Absorb Within Agency's Budget ⍽ Decrease Costs
The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers
Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes X No
Policy Problem Addressed by the Rule
All of the policies in this rule are generally consistent with past board policies of regulating fish and game harvest for conservation purposes. These rule changes are proposed for inclusion on the 2013 Spring Hearing rules package and questionnaire. This rule package will create and amend regulations for hunting, trapping, closed areas, dog training, and the use of department lands found in Chs. NR 1, 10, 11, 17 and 45. This analysis is required under s. 227.137 Stats. It has been prepared as part of the normal rule making process. The effort involved and sophistication of this analysis are limited but sufficient given the minimal economic impact of these rules. Due to the excessive time required, no effort was made to calculate a net benefit using formal cost-benefit analysis techniques. Pursuant to the Governor's Executive Order 50, Section II, this is a level 3 economic impact analysis. A notice for Solicitation of comments on this analysis was posted on the department's website from November 26 through December 10 and various interest groups were contacted by email. The department received a handful of comments in support of individual provisions of the rule but no comments on economic impacts to businesses, local governments, or individuals.
Specifically, these rules would; 1.   Simplify pheasant hunting regulations by eliminating the requirement to tag harvested birds at stocked hen/rooster pheasant hunting areas. Instead, field dressed carcasses of all birds would need to retain proof of species and sex identification while being transported. 2.   Simplify firearm deer hunting regulations by allowing the use of rifles statewide. Currently, only shotguns may be used in some areas. If the statewide use of rifles were not to win support at some point during the rule making process, the department would consider expanding rifle use in individual counties including, but not limited to, Shawano and Outagamie as recommended in Conservation Congress voting. 3.   Simplify mink and muskrat trapping regulations by creating more consistent opening dates throughout the state and require reporting the harvest of certain species such as otter and fisher within 24 hours. 4.   Establish a controlled dove hunt at Bong State Recreation Area in Racine County in order to improve hunter satisfaction by reducing hunter interference. 5.   Simplify regulations for pheasant hunters at Richard Bong State Recreation Area in Racine County, including eliminating the arm band requirement for pheasant hunters. 6.   Lengthen the period of time that trappers have to check weasel traps, as recommended in voting by the Conservation Congress in 2012. 7.   Eliminate the refuge/closed area at Mecan Springs, Waushara County, as recommended in voting by the Conservation Congress in 2012. 8.   Establish that, when the bear hunting season is open, hunting hours apply to people who are training bear hunting dogs as well as to people who are hunting bears. 9.   Establish that, in addition to collecting certain food items, it is also legal to cut and gather willow stakes on department managed lands for non-commercial uses. Willow stakes are often used by trappers. 10.   Allow unattended, overnight placement of portable tree stands on department managed lands. 11.   Increase the daily pheasant hunting fee at Bong State Recreation Area in Racine County from $3.00 to $12.00 ($5.00 if stocking was not done on the previous day) because the current fee is not sufficient to cover the cost of this stocking program.
Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
These proposals will contribute to providing good opportunities for hunting and trapping and maintenance of the economic activity generated by people who participate in those activities. However, these rules are not expected to significantly affect currently available outdoor opportunities and no significant impacts to the economic activities of hunters, trappers, or outdoor recreation enthusiasts are expected. State Fiscal Impact This proposal would increase the daily fee for pheasant hunting at Richard Bong Recreation Area from $3.00 to $12.00. The daily bag limit is two birds per day beginning on the third day of the season (1 per day on opening weekend). Increasing the daily hunting fee at Richard Bong State Recreation Area will generate approximately $100,000 in additional revenue and will not create any additional costs. This proposal aims to make the Managed Hunt Program a self-sufficient operation so that statewide hunters and fisherman are not subsidizing those that partake in the managed hunt program at Richard Bong. Eliminating the requirement to tag harvested pheasants at certain department properties will reduce the department's costs annually by at least $6,752 which is the current cost to print the tags. The department will benefit from some reduced costs for shipping tags, but this will be limited because much distribution is done jointly with other materials that will still need to be distributed. Other provisions of this rule will not have a fiscal impact on the department. The department already administers seasons and enforces regulations related to all of the other hunting and trapping opportunities that are modified by this rules package. No new expenses or revenues are anticipated as a result of these proposals.
Small Business Impacts These rules, and the legislation which grants the department rule making authority, do not have a significant fiscal effect on the private sector or small businesses. These rules are applicable to individual sportspersons and impose no compliance or reporting requirements for small business, nor are any design or operational standards contained in the rule.
Economic Impacts This rule contains a proposal to increase the daily fee for pheasant hunting at Richard Bong Recreation Area from $3.00 to $12.00. The daily bag limit is two birds per day beginning on the third day of the season (1 per day on opening weekend). A survey of privately owned southern Wisconsin pheasant game farms showed that most charge between $44.00 and $50.00 for two birds. The Illinois Department of Natural Resources conducts similar managed pheasant hunts and charges $25.00 per day with a daily bag limit of two. Because the fee at the recreation area will continue to be significantly lower than similar opportunities available in the region, no shift in hunting activity or hunter's related expenditures is anticipated. Some private game farm owners likely consider the department's stocking program to be competitive with their businesses. However, some private game farm owners have indicated they believe that department's pheasant stocking maintains public interest in pheasant hunting and ultimately results in more people seeking the additional opportunities provided by private game farms. In either case, no impacts are anticipated. Allowing the use of rifles for firearm deer hunting statewide will result in an increase in firearm sales in subsequent years. Many hunters perceive that hunting deer with rifles is preferable to hunting with shotguns, muzzleloaders, or handguns. Because ordering and shipping firearms is difficult, many or most of these purchases will occur at shops in Wisconsin. It is difficult to estimate how many purchases will occur because people would still be able to hunt with shotguns, muzzleloader and handguns. Purchases may be spread out over a period of years as people update their firearms. While the amount of economic impact is difficult to estimate, an increase in firearm sales would be an assured result of this rule change and is something that sporting goods outlets are already anticipating. Other proposed rule changes are not expected to significantly influence the spending activities or hunting and trapping activity of hunters, trappers, dog trainers, or other outdoor enthusiasts. Correspondingly, no related economic impacts are anticipated.
Public Utility Rate Payers These proposed rules will have no impact on public utility rate payers.
Local Governmental Units These rules do not establish any requirements for local governments. These rules are unlikely to have a significant economic impact on local economies because of the limited number of participants in a wolf hunting or trapping season in any given year.
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
This rule proposes several simplifications to existing regulations. Eliminating the requirement that some pheasants be tagged immediately upon harvest will simplify regulations for hunters as well as simplifying the department's administrative procedures. The use of firearms for deer hunting is restricted to shotguns, muzzleloaders and handguns only in certain portions of the state. At one time people generally believed that these firearms were safer but research and experience indicate that is not the case. Allowing the use of rifles statewide will be a simplification of regulations. Currently there are four separate zones for mink and muskrat harvest, with slightly different opening or closing dates. This proposal would consolidate zones in order to eliminate regulations that are no longer needed. Richard Bong Recreation Area, located in Racine County, currently experiences very heavy dove hunting pressure that detracts from the quality of the hunting experience. The purpose in creating a controlled dove hunt area on the Richard Bong State Recreation Area (RBSRA) is to improve the quality of the hunting experience and prevent conflict with Special Use Zone user groups. Currently, there are no restrictions on the time of day for training bears. In the past, training dogs by trailing wild bears was not legal during the hunting season for bears. With the passage of 2011 ACT 28, dog training is now allowed during the bear hunting season. This proposal will require that all bear pursuit activities take place only during daylight hours when the bear hunting season is open in order to eliminate the need to determine who is hunting and who is only training. Bear dog training typically is done during daylight hours so this will not result in a significant loss of opportunity. Collecting plants from department managed lands is generally prohibited except for some edibles and the removal of invasive plants. This proposal would also allow collecting willow stakes on department managed lands for non-commercial uses. Willow stakes are often used by trappers for marking trap locations and anchoring traps. Willow is a fast growing species that, although native, is sometimes considered invasive in certain areas. Currently the overnight, unattended placement of tree stands for hunting is not allowed on department managed lands. This regulation is designed to prevent the "staking out" or making advance claims to hunting locations in favor of a first-come-first served practice. However, the overnight placement, remaining in place for as long as an entire season, of stands is allowed on some lands may also be practical on department lands. At Richard Bong Recreation Area hunters pay a daily entrance fee of $3.00 to hunt stocked pheasants and the daily bag limit is two birds. This fee has not been updated since being established in 1982. An increase to $12.00 ($5.00 if stocking was not done on the previous day) will allow the managed pheasant hunt program to continue in a sustainable manner while improving the quality and consistency of the hunt for program participants.
Long Range Implications of Implementing the Rule
The long range implications of this rule proposal will be the same as the short term impacts. These proposals will contribute to providing good opportunities for hunting and trapping and maintenance of the economic activity generated by people who participate in those activities.
Compare With Approaches Being Used by Federal Government
Federal regulations allow states to manage the wildlife resources located within their boundaries provided they do not conflict with regulations established in the Federal Register. None of these rule changes violate or conflict with the provisions established in the Federal Code of Regulations.
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota )
These rule change proposals do not represent significant policy changes and do not differ significantly from surrounding states. All surrounding states have regulations and rules in place for the management and recreational use of wild game and furbearer species that are established based on needs that are unique to that state's resources and public desires. The Illinois Department of Natural Resources conducts similar managed pheasant hunts and charges $25.00 per day with a daily bag limit of two.
Name and Phone Number of Contact Person
Scott Loomans, Wildlife Regulation Policy Specialist, 608-267-2452.

Notice of Hearing

Revenue

CR 13-011

NOTICE IS HEREBY GIVEN That, pursuant to ss. 77.65 (3) and 227.11 (2) (a) , Stats., the Department of Revenue will hold a public hearing to consider permanent rules revising Chapter Tax 11 , relating to sales and use tax provisions concerning advertising and promotional direct mail and prosthetic devices.

Hearing Dates and Locations

Date:   Monday, April 1, 2013
Time:   9:00 a.m.
Location:   Events Room
  State Revenue Building
  2135 Rimrock Road
  Madison, WI 53713

Handicap access is available at the hearing location.

Appearances at the Hearing and Submittal of Written Comments

Interested persons are invited to appear at the hearing and may make an oral presentation. It is requested that written comments reflecting the oral presentation be given to the department at the hearing. Written comments may also be submitted to the contact person listed below or to adminrules.wisconsin.gov no later than April 1, 2013 , and will be given the same consideration as testimony presented at the hearing.

Dale Kleven

Department of Revenue

Mail Stop 6-40

2135 Rimrock Road

P.O. Box 8933

Madison, WI 53708-8933

Telephone: [phone]

E-mail: [e-mail] .

Analysis by the Department of Revenue

Statutes interpreted

Sections 77.51 (11m) and 77.54 (22b) and (59) , Stats.

Statutory authority

Sections 77.65 (3) and 227.11 (2) (a) , Stats.

Explanation of agency authority

Section 77.65 (3) , Stats., provides "[t]he department may promulgate rules to administer this section … "

Section 227.11 (2) (a) , Stats., provides "[e]ach 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..."

Related statute or rule

There are no other applicable statutes or rules.

Plain language analysis

This proposed rule:

•   Reflects the creation of s. 77.54 (59) , Stats., by 2011 Wisconsin Act 32 to provide a sales and use tax exemption for advertising and promotional direct mail. This requires the explanation of the new exemption in Subchapter III of Chapter Tax 11 and updates to the provisions of ss. Tax 11.19 , 11.56 , 11.70 , and 11.945 .

•   Amends the second note at the end of s. Tax 11.72 to correctly reflect the effective date of the repeal of the sales and use tax exemption for cloth diapers.

•   Amends the list of taxable and exempt purchases contained in s. Tax 11.17 (3) to move "Splints and cast materials" and "Rib belts and supports" from the taxable list to the exempt list so that it is consistent with the information in ss. Tax 11.08 (4) and 11.45 (3) (b) 9. and current law.

Summary of, and comparison with, existing or proposed federal regulation

There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.

Comparison with rules in adjacent states

The department is not aware of a similar rule in an adjacent state.

Summary of factual data and analytical methodologies

2011 Wisconsin Act 32 made a change to Wisconsin's sales and use tax treatment of advertising and promotional direct mail. The department has created this proposed rule order to reflect this statutory change. No other data was used in the preparation of this proposed rule order or this analysis.

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

Effect on Small Business and Initial Regulatory Flexibility Analysis

This proposed rule does not affect small business.

Agency Contact Person

Please contact Dale Kleven at [phone] or [e-mail] , if you have any questions regarding this proposed rule.

Text of Rule

SECTION 1. Tax 11.17 (3) is amended to read:

Tax 11.17 (3) Purchases by clinics and members of the medical profession. Purchases made by physicians and medical clinics that do not hold a Certificate of Exempt Status, "CES," are subject to the sales or use tax unless specifically exempt by law. To be exempt, the items on the exempt list shall be furnished to patients at the direction of a physician, surgeon, or podiatrist in conjunction with providing medical service, except for items noted with an asterisk. These items are exempt even though not purchased under the direction of the health professional. The following is a partial list of taxable and exempt purchases of clinics and members of the medical professions.

Taxable	Exempt
Adhesive tape Alcoholic beverages Apparatus and equipment for treatment of diabetes Bandages, gauze and cotton Bed pans Beds and linens Blankets Cold packs and hot packs Compresses and dressings Cosmetics	*Antiembolism elastic hose and stockings, including parts and accessories *Artificial eyes and limbs, including parts and accessories *Blood sugar level testing supplies Bone pins and plates, including parts and accessories * Crutches and wheel chairs, including motorized wheelchairs and scooters, including parts and accessories
Deodorants and disinfectants Distilled water Enema kits Instruments Laboratory equipment and supplies Medical equipment Needles and syringes Office equipment and supplies Oxygen delivery equipment	Diaphragms *Disposable syringes containing insulin Drugs Dye * Hearing aids, including parts and accessories Medical oxygen Oral contraceptives Pacemakers, including parts and accessories
Paper products Printed material Rib belts and supports Soda water beverages Soap Splints and cast materials Uniforms and gowns X-ray film and machines	Prophylactics Rib belts and supports Rubbing alcohol Splints and cast materials Suppositories Sutures Vaccines Vaginal creams and jellies Vitamins

SECTION 2. Tax 11.19 (2) (dm) and (5s) are created to read:

Tax 11.19 (2) (dm) Section 77.54 (59) , Stats., provides an exemption for advertising and promotional direct mail.

(5s) Advertising and promotional direct mail . (a) Section 77.54(59) , Stats., provides an exemption from Wisconsin sales and use tax for the sales price from the sales of and the storage, use, or other consumption of advertising and promotional direct mail.

(b) "Advertising and promotional direct mail" is defined in s. 77.51(1ag) , Stats., to mean direct mail that has the primary purpose of attracting public attention to a product, person, business, or organization or to attempt to sell, popularize, or secure financial support for a product, person, business, or organization.

SECTION 3. Tax 11.19 (Note) is amended to read:

Tax 11.19 (Note) The interpretations in s. Tax 11.19 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The exemption for printing or imprinting of tangible personal property furnished by customers and used out-of-state in sub. (2) (a) became effective March 1, 1970; (b) The exemption for advertising materials used out-of-state in sub. (4) (a) became effective May 21, 1972; (c) The second class mail standard described in sub. (3) became effective August 1, 1974; (d) The exemption for sales of shoppers guides became effective July 1, 1978; (e) The exemption for ingredients and components of shoppers guides, newspapers and periodicals described in sub. (2) (d) became effective July 2, 1983; (f) The definition of newspaper in sub. (3) (a) and the limitation of the periodical exemption to "periodicals sold by subscription" became effective July 2, 1983; (g) The exemption for controlled circulation publication reflected in subs. (2) (b) and (3) (b) became effective September 1, 1983, pursuant to 1985 Wis. Act 149 ; (h) The provision for foreign publishers described in sub. (2) (e) became effective January 1, 1980 for publishers of books or periodicals or both other than catalogs and January 1, 1990, for all other foreign publishers pursuant to 1989 Wis. Act 336 ; (i) The definition of storage and use for purposes of imposing use tax does not include storing or using raw materials becoming printed materials to be shipped outside Wisconsin effective October 1, 1993, pursuant to 1993 Wis. Act 16 ; (j) The sales and use tax exemption for raw materials becoming printed materials transported and used solely outside Wisconsin became effective December 1, 1997, pursuant to 1997 Wis. Act 27 ; (k) The exemption for periodicals sold by subscription by educational associations and corporations which are exempt under s. 77.54 (9a) (f) , Stats., became effective December 1, 1997 pursuant to 1997 Wis. Act 27 ; (L) The exemption for catalogs became effective April 1, 2009 pursuant to 2007 Wis. Act 20 ; (m) The change of the term "gross receipts" to "sales price" and the separate impositions of tax on coins and stamps sold above face value under s. 77.52 (1) (b) , Stats., certain leased property affixed to real property under s. 77.52 (1) (c) , Stats., and digital goods under s. 77.52 (1) (d) , Stats., became effective October 1, 2009, pursuant to 2009 Wis. Act 2 ; (n) The definition of "direct mail" became effective October 1, 2009 pursuant to 2009, Wis. Act 2; (o) The definition of "advertising and promotional direct mail" became effective May 27, 2010, pursuant to 2009 Wis. Act 330 ; and (p) The sales and use tax exemption for advertising and promotional direct mail became effective July 1, 2013, pursuant to 2011 Wis. Act 32 .

SECTION 4. Tax 11.56 (4) (b) 3. is created to read:

Tax 11.56 (4) (b) 3. Advertising and promotional direct mail, as defined in s. Tax 11.19 (5s) (b) .

SECTION 5. Tax 11.56 (Note) is amended to read:

Tax 11.56 (Note) The interpretations in s. Tax 11.56 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) Sales of typeset material shall first be considered sales of tangible personal property on April 1, 1983; (b) The exemption in sub. (3) (b) 2. for ingredients of publications became effective July 2, 1983, pursuant to 1983 Wis. Act 27 ; (c) The definition of storage and use for purposes of imposing use tax does not include storing or using raw materials becoming printed materials to be shipped outside Wisconsin effective October 1, 1993, pursuant to 1993 Wis. Act 16 ; (d) The sales and use tax exemption for raw materials transported and used solely outside Wisconsin became effective December 1, 1997, pursuant to 1997 Wis. Act 27 ; (e) The exemption for fuel and electricity consumed in manufacturing became effective January 1, 2006, pursuant to 2003 Wis. Act 99 ; (f) The exemption for catalogs and the envelopes in which they are mailed became effective April 1, 2009 pursuant to 2007 Wis. Act 20 ; (g) The requirement that property and items which qualify for exemption under s. 77.54 (2) and (2m) , Stats., be consumed exclusively and directly by a manufacturer in manufacturing property and items destined for sale became effective August 1, 2009 pursuant to 2009 Wis. Act 28 ; and (h) The change of the term "gross receipts" to "sales price" and the separate impositions of tax on coins and stamps sold above face value under s. 77.52 (1) (b) , Stats., certain leased property affixed to real property under s. 77.52 (1) (c) , Stats., and digital goods under s. 77.52 (1) (d) , Stats., became effective October 1, 2009, pursuant to 2009 Wis. Act 2 ; and (i) The sales and use tax exemption for advertising and promotional direct mail became effective July 1, 2013, pursuant to 2011 Wis. Act 32 .

SECTION 6. Tax 11.70 (1) (a), (b), and (c) are renumbered Tax 11.70 (1) (b), (d), and (e).

SECTION 7. Tax 11.70 (1) (a) and (c) are created to read:

Tax 11.70 (1) (a) "Advertising and promotional direct mail" means direct mail that has the primary purpose of attracting public attention to a product, person, business, or organization or to attempt to sell, popularize, or secure financial support for a product, person, business, or organization.

(c) "Direct mail" means printed material that is delivered or distributed by the U.S. postal service or other delivery service to a mass audience or to addressees on a mailing list provided by or at the direction of the purchaser of the printed material, if the cost of the printed material or any tangible personal property or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) included with the printed material is not billed directly to the recipients of the printed material. "Direct mail" includes any tangible personal property, or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) provided directly or indirectly by the purchaser of the printed material to the seller of the printed material for inclusion in any package containing the printed material, including billing invoices, return envelopes, and additional marketing materials. "Direct mail" does not include multiple items of printed material delivered to a single address.

SECTION 8. Tax 11.70 (2) (c) and (3) (gm) are amended to read:

Tax 11.70 (2) (c) Sales of signs, circulars, business cards, stationary showcards, banners, posters, bulletins, advertising and promotional direct mail, brochures, commercials, tapes, or other items of tangible personal property or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , Stats.

(3) (gm) Catalogs , as defined in s. 77.51 (1fr), Stats., and the envelopes in which the catalogs are mailed, if the catalogs are designed to advertise and promote the sale of merchandise or to advertise the services of individual business firms.

SECTION 9. Tax 11.70 (3) (n) is created to read:

Tax 11.70 (3) (n) Advertising and promotional direct mail.

Example 1: Company B, located in Wisconsin, contracts with a printer to have 10,000 advertising flyers that are designed to promote Company B's products printed. Once the printer finishes printing the advertising flyers, the printer mails the flyers to the addresses on a mailing list provided by Company B. The addresses are in and outside Wisconsin. The charge by the printer to Company B is exempt from Wisconsin sales and use tax since the advertising flyers are advertising and promotional direct mail.

Example 2: Same as Example 1, except the flyers are sent by the printer to Company B, the purchaser, and Company B mails the flyers to the addresses on the mailing list. The flyers are not advertising and promotional direct mail because the seller/printer is not delivering the flyers to a mass audience or to addresses on a mailing list at the direction of the purchaser.

SECTION 10. Tax 11.70 (Note) is amended to read:

Tax 11.70 (Note) The interpretations in s. Tax 11.70 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The exemption for printing or imprinting of tangible personal property furnished by customers and used out-of-state for advertising became effective March 1, 1970; (b) The exemption for printed advertising material used out-of-state became effective May 21, 1972; (c) The exemption for ingredients or components of shoppers guides, newspapers, and periodicals became effective July 7, 1983; (d) The sales and use tax exemption for raw materials for printed materials transported and used solely outside Wisconsin became effective December 1, 1997, pursuant to 1997 Wis. Act 27 ; (e) The exemption for catalogs and their mailing envelopes became effective April 1, 2009, pursuant to 2007 Wis. Act 20 ; (f) The provision that items must be consumed exclusively and directly by a manufacturer in manufacturing property or items destined for sale became effective August 1, 2009, pursuant to 2009 Wis. Act 28 ; (g) The definitions of bundled transaction and finished artwork became effective October 1, 2009, pursuant to 2009 Wis. Act 2 ; and (h) The change of the term "gross receipts" to "sales price" and the separate impositions of tax on coins and stamps sold above face value under s. 77.52 (1) (b) , Stats., certain leased property affixed to real property under s. 77.52 (1) (c) , Stats., and digital goods under s. 77.52 (1) (d) , Stats., became effective October 1, 2009, pursuant to 2009 Wis. Act 2 ; (i) The definition of "direct mail" became effective October 1, 2009 pursuant to 2009 Wis. Act 2 ; (j) The definition of "advertising and promotional direct mail" became effective May 27, 2010, pursuant to 2009 Wis. Act 330 ; and (k) The sales and use tax exemption for advertising and promotional direct mail became effective July 1, 2013, pursuant to 2011 Wis. Act 32 .

SECTION 11. Tax 11.72 (Note) is amended to read:

Tax 11.72 (Note) The interpretations in s. Tax 11.72 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) Laundries and dry cleaners became the consumers of, and pay tax on the purchases of, items transferred to customers effective September 1, 1983, pursuant to 1983 Wis. Act 27 ; (b) The exemption for diaper services and cloth diapers became effective July 1, 1990, pursuant to 1989 Wis. Act 335 ; (c) The repeal of the exemption for cloth diapers became effective October 1, 2002 2009 , pursuant to 2009 Wis. Act 2 ; and (d) The change of the term "gross receipts" to "sales price" became effective October 1, 2009, pursuant to 2009 Wis. Act 2 .

SECTION 12. Tax 11.94 (3) (a) is amended to read:

Delivery charges for advertising and promotional direct mail and " other direct mail " are not subject to sales or use tax if the delivery charges are separately stated on the invoice, bill of sale, or similar document that the seller gives to the purchaser. Delivery charges for "advertising and promotional direct mail" are exempt from sales and use tax regardless of whether they are separately stated on the invoice, bill of sale, or similar document.

SECTION 13. Tax 11.94 (Note) is amended to read:

Tax 11.94 (Note) The interpretations in s. Tax 11.94 are effective under the general sales and use tax law on and after September 1, 1969, except that the : (a) The definitions of "delivery charges" and "direct mail," and the change of the term "gross receipts" to "sales price" and the separate impositions of tax on coins and stamps sold above face value under s. 77.52 (1) (b) , Stats., certain leased property affixed to real property under s. 77.52 (1) (c) , Stats., and digital goods under s. 77.52 (1) (d) , Stats., became effective October 1, 2009, pursuant to 2009 Wis. Act 2 ; (b) The definitions of "advertising and promotional direct mail" and "other direct mail" became effective May 27, 2010, pursuant to 2009 Wis. Act 330 ; and (c) The sales and use tax exemption for advertising and promotional direct mail, which includes the delivery charges for advertising and promotional direct mail, became effective July 1, 2013, pursuant to 2011 Wis. Act 32 .

SECTION 14. Tax 11.945 (3) (a) 1. to 5. are renumbered Tax 11.945 (3) (a) 2. to 6., and Tax 11.945 (3) (a) 3., 4., 5., and 6.a., as renumbered, are amended to read:

Tax 11.945 (3) (a) 3. If the purchaser provides one of the items indicated in subd. 1. a. 2.a. or b., to the seller, the purchaser shall source the sales to the jurisdictions to which the advertising and promotional direct mail is delivered to the recipients and pay or remit to the department the tax imposed under s. 77.53, Stats., on all its purchases of advertising and promotional direct mail for which the tax is due, and in the absence of bad faith the seller is relieved from liability for collecting the tax .

4. If the purchaser provides delivery information as provided in subd. 1. c. 2.c. , the seller shall collect the tax source the sales according to that information , and in the absence of bad faith, the seller is relieved of any further obligation to collect tax on any transaction for which the seller has collected tax pursuant to the delivery information provided by the purchaser .

5. An exemption certificate provided by the purchaser under subd. 1. b. 2.b. remains in effect for all sales by the seller who received the exemption certificate to the purchaser who provided the exemption certificate , in the absence of bad faith .

6.a. Except as provided in subd. 5. b. 6.b. , if a transaction is a bundled transaction that includes "advertising and promotional direct mail," subds. 1. 2. to 4. 5. only apply if the primary purpose of the transaction is the sale of products or services that meet the definition of advertising and promotional direct mail.

SECTION 15. Tax 11.945 (3) (a) 1. is created to read:

Tax 11.945 (3) (a) 1. Sales of advertising and promotional direct mail sourced to Wisconsin are exempt from Wisconsin sales and use taxes. However, sales of advertising and promotional direct mail sourced to another state may be subject to that other state's sales or use tax.

SECTION 16. Tax 11.945 (5) (d) (Note 2) is amended to read:

Tax 11.945 (5) (d) (Note 2) (a) The interpretations under s. Tax 11.945 are effective beginning October 1, 2009, pursuant to 2009 Wis. Acts 2 and 28 ; and (b) The definitions of "advertising and promotional direct mail" and "other direct mail" and the provisions relating to the sourcing of transactions that include these types of items are effective May 27, 2010, pursuant to 2009 Wis. Act 330 ; and (c) The sales and use tax exemption for advertising and promotional direct mail became effective July 1, 2013, pursuant to 2011 Wis. Act 32 .

SECTION 17. Effective date. This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s. 227.22 (2) (intro.) , Stats.

ADMINISTRATIVE RULES FISCAL ESTIMATE AND ECONOMIC IMPACT ANALYSIS
Type of Estimate and Analysis
X Original ⍽ Updated ⍽ Corrected
Administrative Rule Chapter, Title and Number
Chapter Tax 11 – Sales and use tax
Subject
Sales and use tax provisions concerning advertising and promotional direct mail and prosthetic devices
Fund Sources Affected			Chapter 20 , Stats. Appropriations Affected
⍽ GPR ⍽ FED ⍽ PRO ⍽ PRS ⍽ SEG ⍽ SEG-S
Fiscal Effect of Implementing the Rule
X No Fiscal Effect ⍽ Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs ⍽ Could Absorb Within Agency's Budget ⍽ Decrease Costs
The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers
Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes X No
Policy Problem Addressed by the Rule
The rule does not create or revise policy, other than to reflect current law and department policy.
Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
As indicated in the attached fiscal estimate, the fiscal effects of the sales and use tax exemption created under 2011 Wisconsin Act 32 have already been reflected under general fund condition statements subsequent to 2011 Wisconsin Act 32. Since the fiscal impacts of the statutory changes have already been reflected, the proposed rule has no fiscal effect. No comments concerning the economic effect of the rule were submitted in response to the department's solicitation.
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
Clarifications and guidance provided by administrative rules may lower the compliance costs for businesses, local governmental units, and individuals. If the rule is not implemented, Chapter Tax 11 will be incomplete in that it will not reflect current law or department policy.
Long Range Implications of Implementing the Rule
No long-range implications are anticipated.
Compare With Approaches Being Used by Federal Government
N/A
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota )
N/A

FISCAL ESTIMATE FORM				2011 Session
X ORIGINAL ⍽ UPDATED	LRB #
	INTRODUCTION #
⍽ CORRECTED ⍽ SUPPLEMENTAL	Admin rule #		Chapter Tax 11: Prosthetic devices, advertising and promotional direct mail
Subject Proposed order of the Department of Revenue relating to sales and use tax provisions concerning advertising and promotional direct mail and prosthetic devices.
Fiscal Effect

State:   X No State Fiscal Effect   Check columns below only if bill makes a direct appropriation or   affects a sum sufficient appropriation ⍽ Increase Existing Appropriation     ⍽ Increase Existing Revenues ⍽ Decrease Existing Appropriation     ⍽ Decrease Existing Revenues ⍽ Create New Appropriation			Increase Costs - May be Possible to Absorb Within Agency's Budget ⍽ Yes ⍽ No ⍽ Decrease Costs
Local: X No Local Government Costs
1.   ⍽ Increase Costs	3   ⍽ Increase Revenues		5. Types of Local Governmental Units Affected:
⍽ Permissive ⍽ Mandatory	⍽ Permissive ⍽ Mandatory		⍽ Towns ⍽ Villages ⍽ Cities
2.   ⍽ Decrease Costs	4.   Decrease Revenues		⍽ Counties ⍽ Others
⍽ Permissive ⍽ Mandatory	⍽ Permissive ⍽ Mandatory		⍽ School Districts ⍽ WTCS Districts
Fund Sources Affected ⍽ GPR ⍽ FED ⍽ PRO ⍽ PRS ⍽ SEG ⍽ SEG-S		Affected Ch. 20 Appropriations
Assumptions Used in Arriving at Fiscal Estimate: The proposed rule updates Chapter TAX 11 of the Administrative Code, pertaining to the sales and use tax, to reflect certain sales tax changes contained in 2011 Wisconsin Act 32, the 2011-13 Budget Bill. The proposed rule also amends chapter TAX 11 provisions pertaining to prosthetic devices and cloth diapers. The proposed rule modifies the administrative code to reflect law changes and add examples to illustrate the tax treatment of certain items. The proposed rule includes: •   A sales and use tax exemption for advertising and promotional direct mail created under 2011 Wisconsin Act 2. •   Updates to the list of taxable and exempt purchases of prosthetic devices to reflect current law. •   A modification to correctly reflect the effective date of the repeal of the sales and use tax exemption for   cloth diapers. The fiscal effects of the exemptions created under 2011 Wisconsin Act 32 have already been reflected under general fund condition statements subsequent to 2011 Wisconsin Act 32. Since the fiscal impacts of the statutory changes have already been reflected, the proposed rule has no fiscal effect.

Notice of Hearing

Revenue

CR 13-012

NOTICE IS HEREBY GIVEN That, pursuant to ss. 71.80 (1) (c) and 227.11 (2) (a) , Stats., the Department of Revenue will hold a public hearing to consider permanent rules revising chapters Tax 1, 2, and 11 relating to general provisions of income taxation and sales and use tax.

Hearing Dates and Locations

Date:   Monday, April 1, 2013
Time:   11:00 a.m.
Location:   Events Room
  State Revenue Building
  2135 Rimrock Road
  Madison, WI 53713

Handicap access is available at the hearing location.

Appearances at the Hearing and Submittal of Written Comments

Interested persons are invited to appear at the hearing and may make an oral presentation. It is requested that written comments reflecting the oral presentation be given to the department at the hearing. Written comments may also be submitted to the contact person listed below or to adminrules.wisconsin.gov no later than April 1, 2013 , and will be given the same consideration as testimony presented at the hearing.

Dale Kleven

Department of Revenue

Mail Stop 6-40

2135 Rimrock Road

P.O. Box 8933

Madison, WI 53708-8933

Telephone: [phone]

E-mail: [e-mail] .

Analysis by the Department of Revenue

Statutes interpreted

Sections 71.07 (9e) , 71.63 (6) , and 71.78 (4) (L) , Stats.

Statutory authority

Sections 71.80 (1) (c) and 227.11 (2) (a) , Stats.

Explanation of agency authority

Section 227.11 (2) (a) , Stats., provides "[e]ach 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..."

In addition, under s. 71.80 (1) (c) , Stats., the department may make such regulations as it shall deem necessary in order to carry out ch. 71 , Stats., relating to income and franchise taxes. This authority pertains to all of the proposed changes in this rule, except those concerning ch. Tax 11 .

Related statute or rule

There are no other applicable statutes or rules.

Plain language analysis

The proposed rule makes the following changes:

•   Amends s. Tax 1.11 (4) (d) to reflect the Lottery Board no longer exists and the lottery is instead a division of the department.

•   Amends s. Tax 2.085 (1) , (2) , and (3) to reflect a change in the process used to claim a refund on behalf of a deceased taxpayer.

•   Adds a note to s. Tax 2.50 (1) explaining that a public utility that is a corporation may be in a combined group.

•   Repeals s. Tax 2.90 (6) to reflect retirement pay or pension are not part of the statutory definition of "wages" for withholding purposes.

•   Repeals s. Tax 2.97 , which is out-of-date and thus obsolete.

•   Amends s. Tax 2.98 (1) (b) to update a reference to the Internal Revenue Code.

•   Revises s. Tax 2.98 (Note 2) to remove out-of-date statutory references and otherwise provide clarity.

•   Amends ss. Tax 11.04 (1) , 11.05 (4) (a) , and 11.49 (2) (b) to reflect the addition of the Wisconsin Economic Development Corporation as an exempt entity ( 2011 Wisconsin Act 7 ).

•   Amends s. Tax 11.70 (2) (e) to correct a grammatical error.

Summary of, and comparison with, existing or proposed federal regulation

There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.

Comparison with rules in adjacent states

The department is not aware of a similar rule in an adjacent state.

Summary of factual data and analytical methodologies

2012 Executive Order 61 and 2011 Wisconsin Act 46 requires state agencies to work with the Small Business Regulatory Review Committee to review the agency's administrative rules that may be particularly onerous to small businesses in Wisconsin. In response, the department initiated a comprehensive review of all of its administrative rules. The changes described above were identified as part of that review. No other data was used in the preparation of this rule order or this analysis.

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 and Initial Regulatory Flexibility Analysis

This rule order does not affect small business.

Agency Contact Person

Please contact Dale Kleven at [phone] or [e-mail] , if you have any questions regarding this rule order.

Text of Rule

SECTION 1. Tax 1.11 (4) (d) is amended to read:

Tax 1.11 (4) (d) Lottery board division . The executive director administrator of the lottery board may request examination of tax returns for the purpose of withholding delinquent Wisconsin taxes, child support , and other debts owing this state.

SECTION 2. Tax 2.085 (1), (2), and (3) are amended to read:

Tax 2.085 (1) If a refund of Wisconsin income taxes is due a deceased taxpayer and if the refund exceeds $100 claimant is unable to cash the refund check , the claimant shall file , with the income tax return, a completed form I-804 804 , entitled "Claim for Decedent's Wisconsin Income Tax Refund".

(2) Form I-804 does not have to be filed if the If a refund is claimed on a joint Wisconsin income tax return of the surviving spouse and the decedent . The , the surviving spouse shall write "filing as surviving spouse" in the signature area of the return. If someone other than the surviving spouse is the personal representative, the personal representative shall also sign the joint return.

(3) Forms required to be filed under sub. (1) shall be mailed to the Wisconsin Department of Revenue, Tax Operations Bureau – Mail Stop 3-164, P.O. Box 59 8903 , Madison, WI 53785 53708-8903 .

SECTION 3. Tax 2.50 (1) (Note) is created to read:

Tax 2.50 (1) (Note) A public utility that is a corporation may be in a combined group for taxable years beginning on or after January 1, 2009. See s. Tax 2.61 (2) for a description of corporations required to use combined reporting.

SECTION 4. Tax 2.90 (6) is repealed.

SECTION 5. Tax 2.97 is repealed.

SECTION 6. Tax 2.98 (1) (b) and (Note 2) are amended to read:

Tax 2.98 (1) (b) If a taxpayer sustains a casualty loss from a disaster in an area subsequently determined by the president of the United States to warrant federal assistance, section 165 (h) (i) of the Internal Revenue Code gives taxpayers the election to deduct the loss on the return for the current tax year or on the return for the immediately preceding tax year.

(Note 2) Section 71.02 (2) (d), 1983 Stats., which defines "Wisconsin taxable income," was renumbered 71.02 (2) (me), 1985 Stats., and amended by 1985 Wis. Act 29, The treatment described in this section became effective with 1986 individual income tax returns filed in taxable year 1987. This amendment is reflected in s. Tax 2.98. Section 71.02 (2) (me), 1985 Stats., was again renumbered, s. 71.01 (16), Stats., by 1987 Wis. Act 312 . For 1985 and prior year income tax returns filed in 1986 and prior taxable years, disaster area losses from damage to property used for personal purposes were also allowed, as an itemized deduction , using the provisions in sub. (1) (b) and the individual treatment in sub. (2) (b) .

SECTION 7. Tax 11.04 (1) is amended to read:

Tax 11.04 (1) Definition. In this rule, "exempt entity" means a person qualifying for an exemption under s. 77.54 (9a) or 77.55 (1) , Stats. Section 77.54 (9a) , Stats., provides an exemption for sales to this state or any agency thereof, the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic Development Corporation, the Health Insurance Risk-Sharing Plan Authority, and the Fox River Navigational System Authority; any county, city, village, town or school district in this state; a county-city hospital established under s. 66.0927 , Stats.; a sewerage commission organized under s. 281.43 (4) , Stats., or a metropolitan sewerage district organized under ss. 200.01 to 200.15 or 200.21 to 200.65 , Stats.; any other unit of government in this state or any agency or instrumentality of one or more units of government in this state; any federally recognized American Indian tribe or band in this state; any joint local water authority created under s. 66.0823 , Stats.; any corporation, community chest fund, foundation or association organized and operated exclusively for religious, charitable, scientific or educational purposes, or for the prevention of cruelty to children or animals, except hospital service insurance corporations under s. 613.80 (2) , Stats., no part of the net income of which inures to the benefit of any private stockholder, shareholder, member or corporation; a local exposition district under subch. II of ch. 229 , Stats.; a local cultural arts district under subch. V of ch. 229 , Stats.; a cemetery company or corporation described under section 501 (c) 13 of the Internal Revenue Code, if the tangible personal property or taxable services are used exclusively by the cemetery company or corporation for the purposes of the company or corporation. Section 77.55 (1) , Stats., provides an exemption for sales to the United States, its unincorporated agencies and instrumentalities, and any unincorporated [incorporated] agency or instrumentality of the United States wholly owned by the United States or by a corporation wholly owned by the United States.

SECTION 8 . Tax 11.05 (4) (a) is amended to read:

Tax 11.05 (4) (a) Section 77.54 (9a) , Stats., exempts sales to and the storage, use or other consumption of tangible personal property and items and property under s. 77.52 (1) (b) and (c) , Stats., and services by Wisconsin or by any agency of Wisconsin, the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic Development Corporation, the Health Insurance Risk-Sharing Plan Authority, and the Fox River Navigational System Authority; any county, city, village, town or school district in this state; a county-city hospital established under s. 66.0927 , Stats.; a sewerage commission organized under s. 281.43 (4) , Stats., or a metropolitan sewerage district organized under ss. 200.01 to 200.15 or 200.21 to 200.65 , Stats.; any other unit of government in this state or any agency or instrumentality of one or more units of government in this state; any federally recognized American Indian tribe or band in this state; any joint local water authority created under s. 66.0823 , Stats.; any corporation, community chest fund, foundation or association organized and operated exclusively for religious, charitable, scientific or educational purposes, or for the prevention of cruelty to children or animals, except hospital service insurance corporations under s. 613.80 (2) , Stats., no part of the net income of which inures to the benefit of any private stockholder, shareholder, member or corporation; a local exposition district under subch. II of ch. 229 , Stats.; a local cultural arts district under subch. V of ch. 229 , Stats.; and a cemetery company or corporation described under section 501 (c) (13) of the Internal Revenue Code, if the tangible personal property or taxable services are used exclusively by the cemetery company or corporation for the purposes of the company or corporation.

SECTION 9 . Tax 11.49 (2) (b) is amended to read:

Tax 11.49 (2) (b) Sales made directly to this state or any agency thereof, the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic Development Corporation, the Health Insurance Risk-Sharing Plan Authority, and the Fox River Navigational System Authority; any county, city, village, town, or school district in this state; a county-city hospital established under s. 66.0927 , Stats.; a sewerage commission organized under s. 281.43 (4) , Stats., or a metropolitan sewerage district organized under ss. 200.01 to 200.15 or 200.21 to 200.65 , Stats.; any other unit of government in this state or any agency or instrumentality of one or more units of government in this state; any federally recognized American Indian tribe or band in this state; any joint local water authority created under s. 66.0823 , Stats.; any corporation, community chest fund, foundation, or association organized and operated exclusively for religious, charitable, scientific, or educational purposes, or for the prevention of cruelty to children or animals, except hospital service insurance corporations under s. 613.80 (2) , Stats., no part of the net income of which inures to the benefit of any private stockholder, shareholder, member, or corporation; a local exposition district under subch. II of ch. 229 , Stats.; a local cultural arts district under subch. V of ch. 229 , Stats. Sales to a cemetery company or corporation described under section 501 (c) (13) of the Internal Revenue Code, are exempt from sales and use tax if the cemetery company or corporation uses the items exclusively for the purposes of the company or corporation. Section 77.55 (1) , Stats., provides an exemption for sales to the United States, its unincorporated agencies and instrumentalities, and any incorporated agency or instrumentality of the United States wholly owned by the United States or by a corporation wholly owned by the United States. Sales to employees of these entities are not exempt, even though the entity may reimburse the employee for the expenditure.

SECTION 10. Tax 11.70 (2) (e) is amended to read:

Tax 11.70 (2) (e) Producing, fabricating, processing, printing, or imprinting tangible personal property or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , Stats., for clients for a consideration, even though the client may furnish the materials used in producing, fabricating, processing, printing, or imprinting of the property, items, or goods. However, the tax does not apply to the printing or imprinting of tangible personal property or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , Stats., that results in printed material, catalogs, or envelopes that are exempt under s. 77.54 (25) or (25m) , Stats.

SECTION 11. Effective date. This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s. 227.22 (2) (intro.) , Stats.

ADMINISTRATIVE RULES FISCAL ESTIMATE AND ECONOMIC IMPACT ANALYSIS
Type of Estimate and Analysis
X Original ⍽ Updated ⍽ Corrected
Administrative Rule Chapter, Title and Number
Chapters Tax 1, 2, and 11 – General administration; income taxation, returns, records and gross income; and sales and use tax.
Subject
General provisions of income taxation and sales and use tax
Fund Sources Affected			Chapter 20 , Stats. Appropriations Affected
⍽ GPR ⍽ FED ⍽ PRO ⍽ PRS ⍽ SEG ⍽ SEG-S
Fiscal Effect of Implementing the Rule
X No Fiscal Effect ⍽ Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs ⍽ Could Absorb Within Agency's Budget ⍽ Decrease Costs
The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers
Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes X No
Policy Problem Addressed by the Rule
The rule does not create or revise policy, other than to reflect current law and department policy.
Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
As indicated in the attached fiscal estimate, since the fiscal impact of any applicable statutory changes has already been reflected in general fund condition statements, the proposed rule has no fiscal effect. No comments concerning the economic effect of the rule were submitted in response to the department's solicitation.
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
Clarifications and guidance provided by administrative rules may lower the compliance costs for businesses, local governmental units, and individuals. If the rule is not implemented, Chapters Tax 1, 2, and 11 will be incomplete in that they will not reflect current law or department policy.
Long Range Implications of Implementing the Rule
No long-range implications are anticipated.
Compare With Approaches Being Used by Federal Government
N/A
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota )
N/A

FISCAL ESTIMATE FORM				2011 Session
X ORIGINAL ⍽ UPDATED	LRB #
	INTRODUCTION #
⍽ CORRECTED ⍽ SUPPLEMENTAL	Admin rule #		Chapters Tax 1, 2, 11: Various provisions SS 074-12
Subject Proposed order of the Department of Revenue relating to general provisions of income taxation and sales and use tax.
Fiscal Effect

State:   X No State Fiscal Effect   Check columns below only if bill makes a direct appropriation or   affects a sum sufficient appropriation ⍽ Increase Existing Appropriation     ⍽ Increase Existing Revenues ⍽ Decrease Existing Appropriation     ⍽ Decrease Existing Revenues ⍽ Create New Appropriation			Increase Costs - May be Possible to Absorb Within Agency's Budget ⍽ Yes ⍽ No ⍽ Decrease Costs
Local: X No Local Government Costs
1.   ⍽ Increase Costs	3   ⍽ Increase Revenues		5. Types of Local Governmental Units Affected:
⍽ Permissive ⍽ Mandatory	⍽ Permissive ⍽ Mandatory		⍽ Towns ⍽ Villages ⍽ Cities
2.   ⍽ Decrease Costs	4.   Decrease Revenues		⍽ Counties ⍽ Others
⍽ Permissive ⍽ Mandatory	⍽ Permissive ⍽ Mandatory		⍽ School Districts ⍽ WTCS Districts
Fund Sources Affected ⍽ GPR ⍽ FED ⍽ PRO ⍽ PRS ⍽ SEG ⍽ SEG-S		Affected Ch. 20 Appropriations
Assumptions Used in Arriving at Fiscal Estimate: The proposed rule updates Chapter TAX 1, 2 and 11 of the Administrative Code. The proposed rule modifies the administrative code to reflect law changes, improve clarity, and update references. The proposed rule includes: •   Changes to reflect the replacement of the Lottery Board with the Lottery Division within the Department of Revenue. •   A note explaining that public utilities may be in a combined group for taxable years beginning on or after January 1, 2009 for combined reporting purposes. •   Changes to update the procedure by which individuals may claim individual income tax refunds due to a decedent. •   Changes to reflect that pension and retirement pay are not part of the statutory definition of "wages" for withholding purposes. •   Changes to reflect the sales and use tax exemption for purchases made by the Wisconsin Economic Development Corporation created under 2011 Wisconsin Act 7. Since the fiscal impact of any applicable statutory changes has already been reflected in general fund condition statements, the proposed rule has no fiscal effect.

Notice of Hearing

Revenue

CR 13-013

NOTICE IS HEREBY GIVEN That, pursuant to s. 125.03 , Stats., the Department of Revenue will hold a public hearing to consider permanent rules revising Chapters Tax 4 , 8 , and 9 relating to general provisions of excise taxation and enforcement.

Hearing Dates and Locations

The hearing will be held:

Date:   Monday, April 1, 2013
Time:   1:00 p.m.
Location:   Events Room
  State Revenue Building
  2135 Rimrock Road
  Madison, WI 53713

Handicap access is available at the hearing location.

Appearances at the Hearing and Submittal of Written Comments

Interested persons are invited to appear at the hearing and may make an oral presentation. It is requested that written comments reflecting the oral presentation be given to the department at the hearing. Written comments may also be submitted to the contact person listed below or to adminrules.wisconsin.gov no later than April 1, 2013 , and will be given the same consideration as testimony presented at the hearing.

Dale Kleven

Department of Revenue

Mail Stop 6-40, 2135 Rimrock Road

P.O. Box 8933

Madison, WI 53708-8933

Telephone: [phone]

E-mail: [e-mail] .

Analysis by the Department of Revenue

Statute interpreted

Sections 139.34 (3) and 995.12 (2) and (4) , Stats.

Statutory authority

Sections 125.03 , Stats.

Explanation of agency authority

Section 125.03 , Stats., provides "[t]he department, in furtherance of effective control, may promulgate rules consistent with this chapter and ch. 139 ."

Related statute or rule

There are no other applicable statutes or rules.

Plain language analysis

The proposed rule makes the following changes:

•   Updates notes and examples throughout Chapter Tax 4 to provide current rates of tax and department contact information.

•   Repeals s. Tax 8.11 concerning the submission of paper reports, as all reports are electronically filed.

•   Updates notes throughout Chapter Tax 8 to provide current contact information for the department.

•   Amends s. Tax 9.19 to reflect that, due to advances in technology, machines other than fuson machines may be used to affix cigarette stamps.

•   Amends s. Tax 9.21 (3) to be consistent with s. 139.34 (3) , Stats., which prohibits out-of-state distributers from shipping unstamped cigarettes to other distributers.

•   Repeals s. Tax 9.26 (1) to ensure compliance with Master Settlement Agreement requirements concerning the level of trade or transfer of unstamped cigarettes between distributers among themselves and also with manufacturers.

•   Amends ss. Tax 9.47 (4) and 9.51 (1) to be consistent with s. 995.12 (2) and (4) , Stats., which requires records be kept for 5 years.

•   Updates notes and examples throughout Chapter Tax 9 to provide current rates of tax and department contact information.

Summary of, and comparison with, existing or proposed federal regulation

There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.

Comparison with rules in adjacent states

The department is not aware of a similar rule in an adjacent state.

Summary of factual data and analytical methodologies

2012 Executive Order 61 and 2011 Wisconsin Act 46 requires state agencies to work with the Small Business Regulatory Review Committee to review the agency's administrative rules that may be particularly onerous to small businesses in Wisconsin. In response, the department initiated a comprehensive review of all of its administrative rules. The changes described above were identified as part of that review. No other data was used in the preparation of this rule order or this analysis.

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 and Initial Regulatory Flexibility Analysis

This rule order does not affect small business.

Agency Contact Person

Please contact Dale Kleven at [phone] or [e-mail] , if you have any questions regarding this rule order.

Text of Rule

SECTION 1. Tax 4.12 (3) (b) 1. (Example 1) and (Example 2) and 3.a. (Example) are amended to read:

Tax 4.12 (3) (b) 1. (Example 1) An account of a supplier who is still in business becomes worthless and meets the requirements to be charged off for income or franchise tax purposes on January 10, 1995 2011 . The supplier may claim a bad debt deduction on the motor vehicle fuel tax return, form MF-002, filed for the month of January 1995 2011 , even though the bad debt deduction may not be claimed for income or franchise tax purposes until the 1995 2011 income or franchise tax return is filed in 1996 2012 .

(Example 2) Assume the same facts as in Example 1, except the account is that of a wholesaler distributor. Irrespective of when the wholesaler distributor files the income or franchise tax return on which the bad debt deduction is claimed, the wholesaler distributor may file a claim for refund to recover the uncollected motor vehicle fuel tax any time between January 10, 1995 2011 and April 15, 2000 2016 .

3.a. (Example) At the time when the tax rate is 23.2¢ 30.9¢ per gallon, Supplier A sells 8,000 gallons of gasoline to Company B. Company B has an agreement with Supplier A to delay payment of the tax. The amount of the contract is $9,696 $12,942 , consisting of tax, $1,856 $2,472 , and the cost of fuel, $7,840 $10,470 . Company B defaults and discontinues operations, leaving a balance due Supplier A of $2,100, which includes interest of $200 not included in the contract amount. The deductible tax loss is $367 $363 , computed as follows:

Contract amount   $9,696 $12,942

Unpaid contract amount   -1,900

Paid contract amount   $7,796 $11,042

Portion constituting tax*   x.191

Tax paid     $1,489 $2,109

* $1,856 $2,472 tax ÷ $9,696 $12,942 contract amount = .191.

Since $1,489 $2,109 of the tax of $1,856 $2,472 was paid, only the unpaid tax of $367 $363 may be deducted.

SECTION 2. Tax 4.55 (2) (a) (Note) is created to read:

Tax 4.55 (2) (a) (Note) Form MF-100 is available on the department's web site at www.revenue.wi.gov .

SECTION 3. Tax 4.55 (3) (b) (Note 1) is repealed.

SECTION 4. Tax 4.65 (3) (f) (Note 1) is amended to read:

Tax 4.65 (3) (f) (Note 1) Copies of vendor registration form MF-112, exemption certificate form MF-209 , and refund claim form MF-012 may be obtained by writing or calling Wisconsin Department of Revenue, Audit Bureau, P.O. Box 8906, Madison, WI 53708-8906, [phone] are available on the department's web site at www.revenue.wi.gov .

SECTION 5. Tax 8.001 (2) (c) 1. (Note) is amended to read:

Tax 8.001 (2) (c) 1. (Note) Written requests should be e-mailed to [e-mail] , faxed to [phone], or addressed to Mandate Waiver Request, Wisconsin Department of Revenue, Excise Tax Section - Mail Stop 5-107 6-107 , PO Box 8900, Madison WI 53708-8900.

SECTION 6. Tax 8.03 (2) (Note) is amended to read:

Tax 8.03 (2) (Note) Wine collector registrations may be addressed to Wisconsin Department of Revenue, Excise Tax Section – Mail Stop 6-107, PO Box 8900, Madison, Wisconsin 53708-8900.

SECTION 7. Tax 8.11 is repealed.

SECTION 8. Tax 9.001 (2) (c) 1. (Note) is amended to read:

Tax 9.001 (2) (c) 1. (Note) Written requests should be e-mailed to [e-mail] , faxed to [phone], or addressed to Mandate Waiver Request, Wisconsin Department of Revenue, Excise Tax Section - Mail Stop 5-107 6-107 , PO Box 8900, Madison WI 53708-8900.

SECTION 9. Tax 9.19 (Title) is amended to read:

Tax 9.19 (Title) Fuson Stamp application machines and stamps.

SECTION 10. Tax 9.19 (1) is repealed.

SECTION 11. Tax 9.19 (2) is amended to read:

Tax 9.19 (2) The use of fuson stamps and any machines or devices for their application by any distributor shall be subject to the approval of the secretary of revenue and the approval may be withdrawn at any time at the discretion of the secretary of revenue.

SECTION 12. Tax 9.21 (3) is amended to read:

Tax 9.21 (3) All out-of-state manufacturers or distributors may ship cigarettes either stamped or unstamped directly to any Wisconsin manufacturers or distributors who hold the proper permit issued by the department.

SECTION 13. Tax 9.26 (1) is repealed.

SECTION 14. Tax 9.47 (4) is amended to read:

Tax 9.47 (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 at least 2 5 years from the date of the invoice, in groups covering a period of one month each.

SECTION 15. Tax 9.51 (1) is amended to read:

Tax 9.51 (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 2 5 years.

SECTION 16. Tax 9.68 (2) (a) (Note) is created to read:

Tax 9.68 (2) (a) (Note) Form CTP-129 is available on the department's web site at www.revenue.wi.gov .

SECTION 17. Tax 9.68 (3) (b) (Note 1) is repealed.

SECTION 18. Tax 9.70 (3) (d) (Example 1) and (Example 2) are amended to read:

Tax 9.70 (3) (d) (Example 1) At a time when the cigarette tax rate is 3.85¢ 12.6¢ per stick, Person A sells cigarettes to Customer B. The amount of the invoice is $10,000 $20,000 , consisting of cigarette tax of $1,540 $5,040 , cost of cigarettes of $6,000 $12,000 and sundries of $2,460 $2,960 . Customer B defaults and discontinues operations, leaving a balance due to Person A of $2,100, which includes interest of $200 not included in the original invoice amount. The deductible tax is $292.60 $478.80 , computed as follows:

Tax per invoice     $1,540.00 $5,040.00

Invoice amount   $ 10,000.00 20,000.00

Unpaid invoice amount - -1,900.00

Paid invoice amount   $ 8,100.00 18,100.00

Portion constituting tax* x .154 .252

Tax paid       - $1,247.40 $4,561.20

Tax that may be deducted   $ 292.60 478.80

* $1,540 $5,040 tax ÷ $10,000 $20,000 invoice amount = .154 .252 .

(Example 2) At a time when the tobacco products tax rate is 25% 71% of the manufacturer's wholesale established list price, Distributor A sells tobacco products to Customer B. The amount of the invoice is $9,500 $11,800 , consisting of tobacco products tax of $1,250 $3,550 , cost of tobacco products of $5,000 and sundries of $3,250. Customer B defaults and discontinues operations, leaving a balance due to Distributor A of $3,000, which includes interest of $200 not included in the original invoice amount. The deductible tax is $365.60 $841 , computed as follows:

Tax per invoice     $1,250.00 $3,550

Invoice amount   $ 9,500.00 11,800

Unpaid invoice amount – - 2,800.00 2,800

Paid invoice amount   $ 6,700.00 9,000

Portion constituting tax* x .132 .301

Tax paid       - $884.40 $2,709

Tax that may be deducted   $ 292.60 841

* $1,250 $3,550 tax ÷ $9,500 $11,800 invoice amount = .132 .301 .

SECTION 19. Effective date. This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s. 227.22 (2) (intro.) , Stats

ADMINISTRATIVE RULES FISCAL ESTIMATE AND ECONOMIC IMPACT ANALYSIS
Type of Estimate and Analysis
X Original Updated Corrected
Administrative Rule Chapter, Title and Number
Chapters Tax 4, 8, and 9 – Motor vehicle and general aviation fuel taxation; intoxicating liquors; and cigarette tax.
Subject
General provisions of excise taxation and enforcement.
Fund Sources Affected			Chapter 20 , Stats. Appropriations Affected
⍽ GPR ⍽ FED ⍽ PRO ⍽ PRS ⍽ SEG ⍽ SEG-S
Fiscal Effect of Implementing the Rule
X No Fiscal Effect ⍽ Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs ⍽ Could Absorb Within Agency's Budget ⍽ Decrease Costs
The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers
Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes X No
Policy Problem Addressed by the Rule
The rule does not create or revise policy, other than to reflect current law and department policy.
Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
As indicated in the attached fiscal estimate, the revisions in the proposed rule will have no impact on either state tax revenues or the department's administrative costs. No comments concerning the economic effect of the rule were submitted in response to the department's solicitation.
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
Clarifications and guidance provided by administrative rules may lower the compliance costs for businesses, local governmental units, and individuals. If the rule is not implemented, Chapters Tax 4, 8, and 9 will be incomplete in that they will not reflect current law or department policy.
Long Range Implications of Implementing the Rule
No long-range implications are anticipated.
Compare With Approaches Being Used by Federal Government
N/A
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota )
N/A

FISCAL ESTIMATE FORM				2012 Session
X ORIGINAL ⍽ UPDATED	LRB #
	INTRODUCTION #
⍽ CORRECTED ⍽ SUPPLEMENTAL	Admin rule #		Chapter Tax 4, Chapter Tax 8, and Chapter Tax 9
Subject Proposed order of the Department of Revenue relating to general provisions of excise taxation and enforcement.
Fiscal Effect

State:   X No State Fiscal Effect   Check columns below only if bill makes a direct appropriation or   affects a sum sufficient appropriation ⍽ Increase Existing Appropriation     ⍽ Increase Existing Revenues ⍽ Decrease Existing Appropriation     ⍽ Decrease Existing Revenues ⍽ Create New Appropriation			Increase Costs - May be Possible to Absorb Within Agency's Budget ⍽ Yes ⍽ No ⍽ Decrease Costs
Local: X No Local Government Costs
1.   ⍽ Increase Costs	3   ⍽ Increase Revenues		5. Types of Local Governmental Units Affected:
⍽ Permissive ⍽ Mandatory	⍽ Permissive ⍽ Mandatory		⍽ Towns ⍽ Villages ⍽ Cities
2.   ⍽ Decrease Costs	4.   Decrease Revenues		⍽ Counties ⍽ Others
⍽ Permissive ⍽ Mandatory	⍽ Permissive ⍽ Mandatory		⍽ School Districts ⍽ WTCS Districts
Fund Sources Affected ⍽ GPR ⍽ FED ⍽ PRO ⍽ PRS ⍽ SEG ⍽ SEG-S		Affected Ch. 20 Appropriations
Assumptions Used in Arriving at Fiscal Estimate: The proposed rule order modifies several sections in Chapter Tax 4 (Motor vehicle and general aviation fuel taxation), Chapter Tax 8 (Intoxicating Liquors), and Chapter Tax 9 (Cigarette tax). It makes several changes to reflect current law and the technology now available to administer current law. The proposed rule updates department contact information and updates examples to utilize current tax rates. The revisions in the proposed rule will have no impact on either state tax revenues or the department's administrative costs.

Long-Range Fiscal Implications:
Agency/Prepared by Wisconsin Department of Revenue	Authorized Signature/Telephone No. Wisconsin Department of Revenue	Date
Jacek Cianciara	Paul Ziegler	Nov. 12, 2012
608 266-8133	608 266-5773

Notice of Hearing

Safety and Professional Services
Optometry Examining board

CR 13-017

NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Optometry Examining Board in s. 15.08 (5) (b) , Wis. Stats., and interpreting s. 449.08 , Wis. Stats., the Optometry Examining Board will hold a public hearing at the time and place indicated below to consider an order to amend Opt 5.02 (4) relating to lens prescription.

Hearing Dates and Locations

The hearing will be held:

Date:   Thursday, March 28, 2013
Time:   9:00 a.m.
Location:   1400 East Washington Avenue
  Room 121C
  Madison, Wisconsin

Appearances at the Hearing

Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions and argument in writing as well. Facts, opinions and argument may also be submitted in writing without a personal appearance by mail addressed to the Department of Safety and Professional Services, Division of Policy Development, P.O. Box 8935, Madison, Wisconsin 53708. Written comments must be received at or before the public hearing to be included in the record of rule-making proceedings.

Place where Comments are to be Submitted and Deadline for Submission

Comments may be submitted to Sharon Henes, Paralegal, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8935, Madison, WI 53708-8935, or by email to [e-mail] . Comments must be received at or before the public hearing to be held on March 28, 2013 at 9:00 a.m. to be included in the record of rule-making proceedings.

Copies of Rule

Copies of this proposed rule are available upon request to Sharon Henes, Paralegal, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, P.O. Box 8935, Madison, Wisconsin 53708, or by email at [e-mail] .

Analysis Prepared by the Department of Safety and Professional Services

Statutes interpreted

Section 449.08 , Wis. Stats.

Statutory authority

Section 15.08 (5) (b) , Wis. Stats.

Explanation of agency authority

Each examining board shall promulgate rules for its own guidance and for the guidance of the trade or profession to which it pertains, and define and enforce professional conduct and unethical practices not inconsistent with the law relating to the particular trade or professional.

Related statute or rule

Chapter Opt 5 .

Plain language analysis:

Modification of the definition for lens prescription would provide clarity and create a consistency between lens prescriptions and contact lens prescriptions. Health care entities are increasingly utilizing electronic prescriptions and signatures as a way to improve patient safety, and control costs.

Summary of, and comparison with, existing or proposed federal regulation

None.

Comparison with rules in adjacent states

Illinois: In Illinois no ophthalmic lenses, prisms or contact lenses may be sold or delivered to an individual without a prescription signed by a licensed optometrist or a physician licensed to practice medicine in all of its branches. It does not specifically address electronic prescription.

Iowa: In Iowa a person shall not dispense or adapt an ophthalmic spectacle lens or lenses without first receiving authorization to do so by a written, electronic or facsimile prescription from a person licensed as an optometrist or physician.

Michigan: Michigan optometry statutes and rules do not have a definition of an optometrist prescription.

Minnesota: Minnesota requires prescriptions furnished to the patient to be signed by the examining optometrist. It does not specify whether the prescription may be electronic.

Summary of factual data and analytical methodologies

The Optometry Examining Board reviewed their rules with the goal of reducing the burden on small business while continuing to ensure public safety. The Board recognized the efficiencies and accuracy which could be obtained with electronic lens prescriptions. The allowance of electronic lens prescriptions brings the rule in line with contact lens prescriptions.

This rule change was highlighted in the SBRRB's 2013 Wisconsin Regulatory Review Report. As noted in the report, thousands of patients will be able to enjoy the increased speed and accuracy of electronic prescriptions for eyeglasses.

Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis:

This rule was posted for public comment on the economic impact of the proposed rule, including how this proposed rule may affect businesses, local government units and individuals, for a period of 14 days. No comments were received relating to the economic impact of the rule.

Fiscal estimate and Economic Impact Analysis

The Fiscal Estimate and Economic Impact Analysis is attached.

Initial Regulatory Flexibility Analysis or Summary

The proposed rule will not have an effect on small businesses.

Agency Contact Person

Sharon Henes, Paralegal, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8935, Madison, Wisconsin 53708; telephone [phone]; email at [e-mail] .

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2049 (R03/2012)	Division of Executive Budget and Finance 101 East Wilson Street, 10th Floor P.O. Box 7864 Madison, WI 53707-7864 FAX: [phone]
ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis

1. Type of Estimate and Analysis
X Original   ⍽ Updated   ⍽ Corrected
2. Administrative Rule Chapter, Title and Number
Chapter Opt 5.02 (4).
3. Subject
Relating to lens prescription.
4. Fund Sources Affected			5. Chapter 20, Stats. Appropriations Affected
⍽ GPR   ⍽ FED   ⍽ PRO   ⍽ PRS   ⍽ SEG   ⍽ SEG-S
6. Fiscal Effect of Implementing the Rule
X No Fiscal Effect ⍽ Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs ⍽ Could Absorb Within Agency's Budget ⍽ Decrease Cost
7. The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers ⍽ Small Businesses (if checked, complete Attachment A)
8. Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes   X No
9. Policy Problem Addressed by the Rule
The current definition for lens prescription states a "written order" which could be interpreted to not allow for an electronic signature. A contact lens prescription does not have the requirement of "written order" and requires a signature. Modification of the current definition for lens prescription would provide clarity and create a consistency between lens prescriptions and contact lens prescriptions.
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
This rule was posted for 14 days for economic impact comments and none were received.
11. Identify the local governmental units that participated in the development of this EIA.
None. This rule does not affect local governmental units.
12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
This rule will not have an economic or fiscal impact on specific businesses, business sectors, public utility rate payers, local governmental units or the state's economy as a whole.
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
The benefit to the proposed rule is bring the rules for lens prescriptions in line with contact lens prescriptions. Health care entities are increasingly utilizing electronic prescriptions and signatures as a way to improve patient safety, inefficiencies and control costs. With this change, thousands of patients will be able to enjoy the increased speed and accuracy of electronic prescriptions for eyeglasses. The alternative is to continue to have different requirements for a lens prescription and a contact lens prescription.
14. Long Range Implications of Implementing the Rule
The long range implication is increased patient safety and efficiencies.
15. Compare With Approaches Being Used by Federal Government
None.
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota )
Iowa allows electronic prescriptions. Illinois and Minnesota laws do not specify whether a prescription may be electronic. Michigan does not appear to have a definition of an optometrist prescription.
17. Contact Name				18. Contact Phone Number
Sharon Henes				[phone]

This document can be made available in alternate formats to individuals with disabilities upon request.