The Department of Public Instruction is repealing a rule that no longer has any statutory authority.

None.

This proposed rule change is a technical change that would repeal a rule that no longer has any statutory authority.

N/A.

N/A.

N/A.

N/A.

N/A.

The proposed rules will have no economic impact on small businesses, as defined in s. 227.114 (1), Stats.

SECTION 1. Chapter PI 42 is repealed.

SECTION 2. EFFECTIVE DATE:

The proposed rules contained in this order shall take effect on the first day of the month commencing after the date of publication in the Wisconsin Administrative Register, as provided in s. 227.22(2)(intro.), Stats.

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA 2049 (R 07/2011) ADMINISTRATIVE RULES FISCAL ESTIMATE AND ECONOMIC IMPACT ANALYSIS
Type of Estimate and Analysis
X Original ⍽ Updated ⍽ Corrected
Administrative Rule Chapter, Title and Number
PI 42, School Breakfast Program
Subject
Repeal of PI 42
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
There is no longer funding or statutory authority for School Breakfast Program grants. Thus, the rule needs to be repealed.
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)
Local: None. Grants for School Breakfast Programs were eliminated in 2011 Act 32; repeal of the rule will have no fiscal effect. State: No fiscal effect.
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
The rule needs to be repealed since there is no longer any statutory authority for the grant program. Otherwise, the rule will not reflect current law.
Long Range Implications of Implementing the Rule
Elimination of the rule will align the DPI Administrative Code with statutes.
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.
Name and Phone Number of Contact Person
Katie Schumacher, Department of Public Instruction Administrative Rules Coordinator, (608) 267-9127.

NOTICE IS HEREBY GIVEN That, pursuant to ss. 77.58 (5), 77.65 (3), and 227.11 (2) (a), Stats., the Department of Revenue will hold a public hearing to consider emergency rules revising Chapter Tax 11, relating to sales tax filing frequency.

The hearing will be held:

Date:   Monday, January 27, 2014
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.

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 January 27, 2014, and will be given the same consideration as testimony presented at the hearing.

Comments may be submitted to the contact person shown below no later than the date on which the public hearing on this rule is conducted.

Section 77.58 (1) (a) and (5), Stats.

Sections 77.58 (5), 77.65 (3), and 227.11 (2) (a), Stats.

Section 77.58 (5), Stats., provides “The department, if it deems it necessary to ensure payment to or facilitate the collection by the state of the amount of taxes, may require returns and payments of the amount of taxes for other than quarterly periods. The department may, if satisfied that the revenues will be adequately safeguarded, permit returns and payments of the amount of taxes for other than quarterly periods…"

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..."

There are no other applicable statutes or rules.

This proposed rule amends the reference in s. Tax 11.93 to increase the annual filing standard to $600 (currently $300) to allow more retailers to file sales tax returns annually. This is consistent with changes made to s. 77.58 (1) (a), Stats., by 2013 Wis. Act 20, to allow more retailers to file sales tax returns less frequently (quarterly rather than monthly).

There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.

Illinois (86 ILL. Adm. Code 130.502), Iowa (Rule 701 12.1(422)), and Minnesota (Rule 8130.7300) also address sales tax filing frequency in their rules. As with Wisconsin, each of these state's rules are based on unique underlying statutes and policy. Because of this, a meaningful comparison cannot be made.

2013 Wis. Act 20 doubled the threshold upon which a monthly sales tax return is required to be filed ($600 to $1200). The department has created this proposed rule order to be consistent with this statutory change by doubling the threshold upon which an annual sales tax return may be filed ($300 to $600). No other data was used in the preparation of this rule order or this analysis.

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.

This rule does not have a fiscal effect on the private sector.

This rule does not affect small business.

Please contact Dale Kleven at (608) 266-8253 or dale.kleven@revenue.wi.gov, if you have any questions regarding this rule.

The Department of Revenue finds that an emergency exists and that the attached rule order is necessary for the immediate preservation of the public peace, health, safety or welfare. A statement of the facts constituting the emergency is:

Section 77.58 (1), Stats., provides that retailers must file sales tax returns quarterly, except as provided in s. 77.58 (1) (a) and (b), Stats., which allows for sales tax returns to be filed monthly.

Section 77.58 (5), Stats., provides that the department may require returns and payments on the amount of taxes for other than a quarterly period if it deems it necessary to ensure payment to or facilitate the collection by the state of the amount of taxes. The department has provided for annual sales tax returns by rule in s. Tax 11.93 (1) for retailers that have an annual tax liability of $300 or less.

Section 77.58 (1) (a), Stats., as amended by 2013 Wis. Act 20, requires retailers to file sales tax returns monthly if their tax liability exceeds $1,200 in any quarter. This change goes into effect on January 1, 2014. Under prior law, retailers were required to file monthly sales tax returns if their tax liability exceeded $600 in any quarter.

Because 2013 Wis. Act 20 doubles the threshold upon which a monthly sales tax return is required to be filed ($600 to $1200), s. Tax 11.93 (1) should also be changed to reflect a similar increase in the threshold upon which an annual sales tax return can be filed.

As the statutory change to the monthly filing standard goes into effect on January 1, 2014, the corresponding change to the annual filing standard in s. Tax 11.93 (1) should also go into effect on January 1, 2014. There is insufficient time for the permanent rule to be effective on January 1, 2014.