These rules will have no significant economic impact on a substantial number of small businesses, as defined in s. 227.114 (1) (a), Wis. Stats.

Copies of this proposed rule are available without cost upon request to: Pamela Haack, Department of Regulation and Licensing, Office of Administrative Rules, 1400 East Washington Avenue, Room 171, P.O. Box 8935, Madison, Wisconsin 53708 (608) 266-0495.

NOTICE IS HEREBY GIVEN That pursuant to ss. 73.01 (5) (b) and 227.11 (21), Stats., and interpreting s. 73.01 (5) (b), Stats., and according to the procedure set forth in s. 227.16 (2) (e), Stats., the Tax Appeals Commission will create s. TA 1.15 (2m), relating to petitions for review, as proposed in this notice, without public hearing unless, within 30 days after publication of this notice May 1, 2003, the Tax Appeals Commission is petitioned for a public hearing by 25 natural persons who will be affected by the rule; a municipality which will be affected by the rule; or an association which is representative of a farm, labor, business or professional group which will be affected by the rule.

Statutory authority: s. 73.01 (5) (b), Stats.

Statute interpreted: s. 73.01 (5) (b), Stats.

An appeal to the tax appeals commission is, in most cases, preceded by either the department of revenue or department of transportation issuing an assessment to a person, or by a person filing a claim for refund of a tax or fee. If a person disagrees with the assessment, the person may ask the department to reconsider. The document requesting reconsideration is commonly in letter form and is called a “petition for redetermination."

If a department denies a claim for refund, partially or entirely, the department will issue a notice of the denial. The claimant may ask the department to reconsider the denial. The document requesting reconsideration is commonly in letter form and is called a “petition for redetermination."

If a department denies a petition for redetermination, it will issue a “notice of action." The person aggrieved by the denial may then file an appeal (“petition for review") with the tax appeals commission.

This proposed rule requires each person filing a petition for review with the tax appeals commission to file a separate petition. However, two or more persons may file a single petition for review if each person is aggrieved by a department action (ex., two related corporations are the subject of a single assessment; or a married couple appeal on the same issue with respect to a joint income tax return).

The Wisconsin tax appeals commission proposes an order to create s. TA 1.15 (2m), relating to petitions for review.

SECTION 1. TA 1.15(2m) is created to read:

TA 1.15(2m) A separate petition for review shall be filed with the commission by an aggrieved party from each notice of action of the department of revenue or the department of transportation on a petition for redetermination, except that a single petition for review may be filed by more than one person if each person is aggrieved by the department's action; a separate filing fee shall accompany each petition for review.

SECTION 2. INITIAL APPLICABILITY. This rule first applies to a petition for review filed with the tax appeals commission on the effective date of this rule.

SECTION 3. 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.

NOTE: Examples of how the proposed rule will be administered follow:

(1) The department of revenue denies 5 petitions for redetermination of 5 unrelated people on a similar or the same issue. Each person must file a separate petition for review with the commission and pay a filing fee.

(2) The department of revenue denies one petition for redetermination of a corporation and its subsidiary, or a limited liability company (“LLC") and one of its members, on similar or related issues. The corporation and its subsidiary, and the LLC and its member, may file a single petition for review with the commission and pay a single filing fee.

(3) The department of revenue issues an assessment to a married couple with respect to a tax issue arising out of their joint income tax return, then denies the married couple's petition for redetermination. The married couple may file a single petition for review with the commission and pay a single filing fee.

A “small business," as defined under s. 227.114 (1), Stats., which files an appeal with the tax appeals commission will be affected by this rule. However, the statute prescribing appeal procedures (s. 73.01) does not authorize treating a small business differently from any other person filing an appeal. The impact on a small business will be negligible.

This proposed rule has no fiscal effect on the state or any county, city, village, town, school district, technical college district or sewerage district.

Thomas M. Boykoff, Commissioner

(608)266-1391