CR_16-058 Income, franchise, and excise tax provisions

ADMINISTRATIVE RULES

FISCAL ESTIMATE

AND ECONOMIC IMPACT ANALYSIS

Type of Estimate and Analysis

☑ Original ☐ Updated ☐ Corrected

Administrative Rule Chapter, Title and Number

Chapter Tax 13 – Investment and Local Impact Board

Subject

Various changes to Chapter Tax 1 3

Fund Sources Affected

Chapter 20 , Stats. Appropriations Affected

☐ GPR ☐ FED ☐ PRO ☐ PRS ☐ SEG SEG-S

Fiscal Effect of Implementing the Rule

☑ 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 ☑ 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)

The proposed rule modifies Chapter Tax 13 of the administrative code to reflect statutory changes, eliminate repetitive rules, eliminate rules lacking authority, and correct an error in the current rule provisions. 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 1 3 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

2015 Session

☑ ORIGINAL ☐ UPDATED

LRB #

INTRODUCTION #

☐ CORRECTED ☐ SUPPLEMENTAL

Admin rule #

SS 065-14

Subject

Proposed order of the Department of Revenue relating to Investment and Local Impact Board administration.

Fiscal Effect

State: ☑   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: ☑ 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 modifies Chapter TAX 13 of the administrative code to reflect statutory changes, eliminate repetitive rules, eliminate rules lacking statutory authority , and correct an error in the current rule provisions.

The proposed rule includes:



Repealing unnecessary and confusing provisions related to the investment and local impact board's distribution of funds to local communities.



Amends Tax 13 reflecting the statutory changes of 2013 WI Act 1 : adjusting the "notice of intent payment" to $225,000, which is to be paid in 3 increments of $75,000. The payment changes were included in fiscal estimate prepared for Act 1.

The proposed rule has no fiscal effect.

FISCAL ESTIMATE WORKSHEET

Detailed Estimate of Annual Fiscal Effect      2015 Session

☑ ORIGINAL   ☐ UPDATED   ☐ CORRECTED ☐ SUPPLEMENTAL

LRB #

Admin. Rule # SS 065-14

INTRODUCTION #

Subject

Proposed order of the Department of Revenue relating Investment and Local Impact Board administration.

I. I. One-Time Costs or Revenue Impacts for State and/or Local Government (do not include in annualized fiscal effect):
         

II. II. Annualized Costs:

Annualized Fiscal impact on State funds from:

A. A. State Costs by Category State Operations - Salaries and Fringe

Increased Costs $ $

Decreased Costs $ $ -

(FTE Position Changes)

(           )

-

State Operations-Other Costs

- -

Local Assistance

- -

Aids to Individuals or Organizations

- -

TOTAL State Costs by Category

$ $

$ $

B. B. State Costs by Source of Funds GPR

In Increased Costs $ $

Decreased Costs $ $

FED

- -

PRO/PRS

- -

SEG/SEG-S

$

- -

III. State Revenues - Complete this only when proposal will increase or decrease state     revenues (e.g., tax increase, decrease in license fee, etc.)

In Increased Rev .

D Decreased Rev.

GPR Taxes

$ $

$ $ -

GPR Earned

- -

FED

- -

PRO/PRS

- -

SEG/SEG-S

- -

TOTAL State Revenues

$ $

$ $

NET ANNUALIZED FISCAL IMPACT

STATE

LOCAL

NET CHANGE IN COSTS

$

$

NET CHANGE IN REVENUES   age 2   10/17/2016

$

$

Agency/Prepared by Wisconsin Department of Revenue

Authorized Signature/Telephone No. Wisconsin Department of Revenue

Date

Craig Steinfeldt

Bob Schmidt

9/29/2016

608 266-5705

608 266-5773