Statement of Scope
Department of Revenue
Rule
No.
:
|
Chapter Tax 11
|
Relating
to
:
|
Sales and use tax
provisions
|
1.
Detailed d
escriptio
n of the objective of the
proposed
rule:
The object
ive
s
of t
he
rule
are
(1)
reflect law c
hanges
,
and
(2) clarify multiple rules
.
a.
Building
Materials for Local Government or Nonprofit Facility.
Create sec. Tax 11.68 (4)
(i) to explain the new exemption provided in
2015 Wis. Act 126
for building materials that become a part of a facility for a local unit of government or nonprofit organization.
b.
Coin
-Operated Laundry
.
Amend s.
Tax 11.72
(1)
(b)
2.
, to state that all receipts from self-service laundry machines are exempt, not just coin-operated
, pursuant to
2013 Wis. Act 20
.
c.
Digital
Goods.
Amend s.
Tax 11.67
(3)
(b)
to exclude sheet music from taxable digital goods, if the sheet music is not a
digital
book.
d.
Distribution
Facilities.
Amend s.
Tax 11.55
to r
eflect
2015 Wis. Act 55
, which amends the definition o
f "retailer"
to, under certain conditions, allow a person to operate a
distribution facility and make
sales of taxable property on behalf of third-party sellers without becoming
l
i
a
ble for the tax on such sales.
e.
Diplomatic
E
xemption.
Amend sec. Tax 11.05
(4)
(f) to state that purchases by diplomats from American Institute in Taiwan
are
now
exempt from tax.
f.
Exemption
Certificate Requirements.
Amend s.
Tax 11.14 (2) (b)
to remove the phrase "the name and address of the seller" from
the required list of data elements needed on an exemption certificate, to be consistent with the provision of the Streamlined Sales and Use Tax Agreement.
h.
Federal
Excise Tax on Heavy Trucks.
Amend
sec. Tax 11.26
to provide that the taxable sales price and purchase price does not include the federal excise tax imposed on the first retail sale of heavy trucks and trailers under s. 4051 of the Internal Revenue Code, pursuant to
2015 Wis. Act
361
.
i
.
Fuel
and Electricity Used in Manufacturing.
Amend sec. Tax 11.41
(4) to
define the phrase "consumed in manufacturing"
consistent with the definition in
s.
Tax 2.11
, which explains that fuel and electricity used in providing plant heating, cooling, etc. is not considered to be used in manufacturing.
The income tax credit was replaced with a sales tax exemption in
200
3 Wis. Act 99
.
j.
Insulin
I
njection
E
quipment.
Amend second note following s.
Tax 11.08
to state that apparatus and equipment for the injection of insulin or the treatment of diabetes qualify for exemption under s.
77.54
(22b)
, Stats., if they meet the definition of "durable medical equipment" in s.
77.51
(3pm)
, Stats., and are for use in a person's home, pursuant to
2009 Wis. Act 2
.
m.
Occasional
S
ale
E
xemption for
N
onprofits.
Amend s.
Tax 11.35
to reflect changes to the occasional sale exemption
,
as provided in
2015 Wis. Act
364
.
n.
Off
-Road Motorcycles.
Update Chapter
Tax 11
to reflect
2015
Wis
.
Act
170
, which relates to the registration and operation of
off-road motorcycles
..
o.
Sports
and Entertainment Arena Facilities.
Create sec. Tax 11.68 (4) (h) to
explain the new exemption provided in
2015 Wis. Act 60
for building materials, supplies, and equipment used in the construction or development of sports and entertainment arena facilities.
p.
Video
Service F
ranchise
F
ees.
Amend s.
Tax 11.26
to state that the annual video service provider fee imposed under s.
66.0420
(3)
(k)
,
Stats.,
is included in sales price and purchase price
and
that the percentage-based state-issued video service provider fee imposed under s.
66.0420
(7)
, Stats., is not included in sales price and purchase price.
2.
Description of existing policies relevant to the rule
,
new policies proposed to be included in the rule
,
and an a
nalysis of policy alternatives:
Existing policies are as set forth in Chapter
Tax 11
.
Additional language is needed
to reflect the law changes described above. If the rules are not changed, they will not correctly and clearly reflect current law or current department policy.
3.
Detailed explanation of s
t
atutory authority for the rule (including
the
statutory citation and language):
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...”
4.
Estimate of amount of time that state employees will spend develop
ing
the rule and of other resource
s necessary to develop the rule:
The department estimates it will take approximately 1
0
0
hours to develop the rule
.
5.
List with d
escription of all entities that may be
affec
ted by the
proposed
rule:
P
urchasers and sellers
of
the products described above.
6.
Summary and preliminary comparison
with
any existing or proposed federal regulation that is intended to address the activities to be regulated by the
proposed
rule
:
There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.
7. Anticipated economic impact of implementing the rule (note if the rule is likely to have a significant economic impact on small businesses):
No economic impact is anticipated.
Contact Person:
Janet Abrams
(608) 26
4-7779
