CR_13-013 Hearing to consider rule revising Chapters Tax 4, 8, and 9, relating to general provisions of excise taxation and enforcement.

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 Tax 2.90 (6) is repealed.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 Tax 2.97 is repealed.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.