PSC 172.06 Filing returns. (1) Filing. Every person registered or required to be registered for the fee shall electronically file a return.
(2) Accrual basis. A filer under sub. (a) shall collect, report and remit the fee on an accrual, or as-imposed, basis.
(3) Due date. A filer under sub. (1) shall submit the return and remit fees to the department by the last day of the month following the month in which the fees are imposed.
(4) Extensions. The department may, for good cause, extend the time for making any return or remitting any amount under this chapter. The extension may not exceed one month from the due date of the return and may be granted at any time provided a request is filed with the department within or prior to the period for which the extension is requested.
PSC 172.07 Uncollectible amounts and returns. (1)
Uncollectible amounts. (a) A filer under s.
PSC 172.06 (1) may claim a deduction for an unpaid fee if all of the following are met:
1. The communications provider or retailer previously reported and remitted the fee to the department.
2. The communications provider or retailer writes off the fee as uncollectible in its books and records.
3. The unpaid fee is eligible to be deducted as a bad debt for federal income tax purposes, regardless of whether the filer is required to file a federal income tax return.
(b) A deduction shall be claimed in the period in which the filer writes off the unpaid fee as uncollectible in its books and records and in which the amount is eligible to be deducted as a bad debt for federal income tax purposes.
(c) If the filer subsequently collects, in whole or in part, any bad debt for which a deduction under par. (a) is claimed, the filer shall include the amount collected in the return filed for the period in which the amount is collected and shall remit the fee with that return.
(2)
Customer returns. A filer under s.
PSC 172.06 (1) may claim a deduction for a fee that is included in a previously filed return but refunded to the purchaser in cash or in credit. The filer shall claim the deduction on the return for the period in which the refund of the fee is paid.
PSC 172.08 Resale. (1) (a) A reseller shall file a properly completed form PFP-211, Wisconsin Police and Fire Protection Fee Resale Certificate, with the communications provider from which it purchases communications services to resell. The reseller shall certify that the service connections it has purchased are being, or will be, resold. The certificate shall indicate whether the certificate is for a single purchase or for continuous purchases.
(b) Within 30 days of the effective date of this rule, a reseller shall file a form under par. (a) for services it is purchasing at that time. If that form is not for continuous purchases, the reseller shall file a form under par. (a) within 10 days of purchasing additional services , for resale. If a new purchasing relationship is established after the effective date of this rule, the reseller shall file a form under par. (a) within 10 days of purchasing services for resale.
(2)
When filing a return under s.
PSC 172.06 (1), a communications provider selling services for resale to a reseller shall not include communications service connections or prepaid wireless retail transactions involving services for which they have received a certificate under par. (a).
(3) A reseller shall apply, collect, and remit the fee for all communications service connections that it resells to an end-user.
PSC 172.09 Sales and use tax exemption. The fee is not subject to Wisconsin sales or use taxes.
PSC 172.10 Audit. (1) The commission may audit to determine compliance with this chapter.
(2) The department may, by office or field audit and using the procedures in ss.
77.59 (1) to
(5),
(5m) except any penalty or interest provision, (8) and (8m), Stats, determine compliance with this chapter.
(3) The filer under s.
PSC 172.06 (1) shall maintain records to substantiate the number of communications service connections subject to the fee and the number of prepaid wireless retail transactions subject to the fee, as well as records to substantiate sales for resale and uncollectible accounts.
PSC 172.11 Appeals. (1) A communications provider or retailer that disagrees with a notice from the department about an amount due, a refund due, or a refund claim denial relating to the fee may file an appeal with the department.
(2) A communications provider's or retailer's appeal shall be in writing and signed. The appeal shall state the facts and reasons for disagreeing with the adjustments and include supporting documents.
(3) A communications provider or retailer shall mail or fax the appeal within 60 days after receiving a notice of amount due, notice of refund, or notice of refund claim denial from the department. The appeal shall be submitted to the address or fax number provided in the notice. An appeal that is mailed is considered timely if it is postmarked on or before the due date specified and is received by the department within five days of the due date.
(4) The procedures in s.
77.59 (6) (a), Stats., shall apply to an appeal under subs. (1) to (3).
(5) (a) Within 30 days after a redetermination under sub. (4) is mailed, a communications provider or retailer may file an objection with the commission. The objection shall set out in detail the grounds upon which the objector regards the bill to be excessive or erroneous.
(b) The commission, after at least 10 days notice to the objector, shall hold a hearing on the objection. After the hearing the commission shall mail a decision by registered mail that includes the amount, if any, to be paid.
(c) If the amount to be paid under the order in par. (b) is not paid within 10 days after the determination has been sent by registered mail, the commission may proceed under s.
PSC 172.12.
PSC 172.12 Collection action authorized. The commission may bring an action to collect any amount that is required to be remitted under this chapter.
Notice of Hearings
Revenue
NOTICE IS HEREBY GIVEN That pursuant to ss.
227.11 (2) (a) and
227.24, Stats., the Department of Revenue will hold public hearings to consider emergency rules and the creation of permanent rules revising Chapter
Tax 11, relating to sales and use tax.
The proposed rule order will:
•
Reflect the changes in Wisconsin's sales and use tax laws due to the adoption of the statutory changes needed to bring Wisconsin's sales and use tax laws into compliance with the Streamlined Sales and Use Tax Agreement
•
Provide guidance to Department employees and taxpayers so that they can properly apply the Wisconsin sales and use tax laws.
Hearing Information
The hearings will be held:
Date and Time: Location:
December 1, 2009 Events Room
at 1:00 p.m. State Revenue Building
2135 Rimrock Road
Madison, Wisconsin
December 15, 2009 Events Room
at 1:00 p.m. State Revenue Building
2135 Rimrock Road
Madison, Wisconsin
Handicap access is available at the hearing location.
Copies of Proposed Rules
A copy of the full text of the proposed rule order and the full fiscal estimate may be obtained at no cost by contacting the department. See Agency Contact Person listed below.
Submission of Written Comments
Interested persons are invited to appear at the hearings and may make an oral presentation. It is requested that written comments reflecting the oral presentation be given to the department at the hearings. Written comments may also be submitted to the contact person shown under Agency Contact Person listed below no later than December 15, 2009, and will be given the same consideration as testimony presented at the hearings.
Agency Contact Person
Dale Kleven
Department of Revenue
Mail Stop 6-40
2135 Rimrock Road — PO Box 8933
Madison WI 53708-8933
Telephone: (608) 266-8253
Analysis Prepared by Department of Revenue
Statute interpreted
Statutory authority
Explanation of agency authority
Section
227.11 (2) (a), Stats., provides that each agency may promulgate rules interpreting the provisions of any statute enforced or administered by it, 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 does the following:
•
Reflects the changes in Wisconsin's sales and use tax laws due to the adoption of the statutory changes needed to bring Wisconsin's sales and use tax laws into compliance with the Streamlined Sales and Use Tax Agreement (SSUTA).
•
Provides guidance to Department employees and taxpayers so that they can properly apply the Wisconsin sales and use tax laws.
•
Removes incorrect and outdated information.
•
Revises punctuation to improve readability and conform to Legislative Clearing House rules and requirements.
•
Removes the term “gross receipts" from the rules and replaces it with “sales price," which is a newly defined term under the SSUTA.
•
Changes numerous references to “tangible personal property" that were previously contained in the rules to “tangible personal property and items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats." because the definition of “tangible personal property" under previous law was amended and some items that were previously included in the definition of “tangible personal property" now have the sales and use tax specifically imposed on them in new sections of the statutes, specifically secs. 77.52 (1) (b), (c), and (d), Stats.
•
Renumbers various sections within the rules to improve readability.
•
Adds additional information related to numerous statutory changes that were not previously reflected in the rules, including information related to new exemptions on items such as durable medical equipment for home use, mobility–enhancing equipment, prosthetic devices and food and food ingredients and certain admissions.
•
Creates a new rule (s.
Tax 11.945), specifically relating to the proper sourcing of transactions so a person will know whether the transaction is subject to Wisconsin sales or use tax and adds information relating to the sourcing of leases and rentals in s.
Tax 11.29.
•
Adds additional information pertaining to exemption certificates in s.
Tax 11.14.
Comparison with federal regulations
There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule. However, the Streamlined Sales Tax Project (SSTP) is a nationwide project that is intended to modernize and simplify the sales and use tax reporting in the states who choose to conform their laws to the requirements contained in the Streamlined Sales and Use Tax Agreement (SSUTA). Adopting the requirements of the SSUTA will help make Wisconsin's sales and use tax laws more uniform with the sales and use tax laws of the other states that have also conformed their laws to the requirements of the SSUTA.
Comparison with rules in adjacent states
Minnesota, Michigan and Iowa have conformed their laws to the requirements of the SSUTA and therefore, like Wisconsin, must administer their laws in a manner consistent with the requirements of the SSUTA. These states do this through a combination of statutory provisions and administrative rules.
Illinois has not conformed their laws to the requirements of the SSUTA and is not bound by the requirements contained in the SSUTA.
Summary of factual data and analytical methodologies
2009 Wisconsin Act 2 adopted statutory changes to bring Wisconsin's sales and use tax statutes into conformity with the Streamlined Sales and Use Tax Agreement. The department has created this proposed rule to reflect these changes in Wisconsin's sales and use tax laws.
Analysis and supporting documents used to determine effect on small business
