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2023 - 2024 LEGISLATURE
2023 SENATE BILL 1021
February 13, 2024 - Introduced by Senator M ARKLEIN, cosponsored by
Representative WITTKE. Referred to Committee on Universities and Revenue.
***AUTHORS SUBJECT TO CHANGE***
AN ACT to renumber and amend 77.60 (1) (a) and 77.60 (1) (b); to amend 70.38
(1m), 71.03 (7) (intro.), 71.24 (7) (a), 71.44 (3) (a), 71.775 (4) (bm) 1., 71.775 (4)
(bm) 2., 71.775 (4) (em), 71.82 (1), 71.82 (2) (b), 71.82 (2) (d), 71.84 (1), 71.84 (2)
(a), 71.84 (2) (b), 71.84 (2) (c), 71.90 (1), 71.91 (6) (e) 3., 71.91 (6) (f) 5., 73.03 (6),
76.075, 76.13 (2), 76.13 (2a), 76.13 (3), 76.22 (2), 76.28 (4) (a), 76.28 (4) (b), 76.28
(11), 76.39 (4) (d), 76.48 (5), 77.59 (6) (c), 77.96 (5), 78.68 (1), 139.25 (1), 139.44
(9), 168.12 (6) (c), 168.12 (6) (d) 2., 168.12 (6) (e) 1. and 168.12 (6) (e) 3.; and to
create 77.60 (1) (b) 2. of the statutes; relating to: interest rates on late,
nondelinquent taxes and on overpayments.
Analysis by the Legislative Reference Bureau
This bill modifies the interest rates applicable to various late, nondelinquent
taxes and fees owed to the Department of Revenue and to overpayments for those
taxes and fees that are refunded by DOR. Under current law, generally, late,
nondelinquent taxes or fees administered by DOR are subject to an interest rate of
12 percent per year, and DOR must pay interest at the rate of 3 percent per year on
refunds of overpayments of those taxes or fees. Under the bill, the interest rate for
late, nondelinquent taxes or fees administered by DOR is 6 percent per year, and
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DOR must pay interest at the rate of 6 percent per year on refunds of overpayments.
The bill applies to the following taxes and fees: 1) the individual income and
corporate income and franchise tax; 2) the withholding; 3) the sales and use tax; 4)
taxes paid by utilities and insurers; 5) excises taxes on motor vehicle fuel, alcohol
beverages, and cigarettes, tobacco, and vapor products; 6) the economic development
surcharge; 7) the petroleum inspection fee; 8) the metalliferous mining tax; and 9)
the charge imposed by DOR on a city, village, town, or county for the expenses
incurred by DOR in examining city, village, town, or county records regarding the
assessment of property upon failure to return information requested by DOR.
Also, current law requires that an interest rate of 12 percent per year apply to
delinquent individual income and corporate income and franchise taxes in instances
in which the secretary of DOR determines that reduction from an interest rate of 1.5
percent per month for such delinquent taxes is fair and equitable. The bill requires
that an interest rate of 6 percent per year apply to such delinquent taxes in instances
in which the DOR secretary determines that the reduction is fair and equitable.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SECTION 1. 70.38 (1m) of the statutes is amended to read:
70.38 (1m) ESTIMATED LIABILITY. Upon written request and for sufficient reason
shown, the department shall allow a person subject to the tax under s. 70.375 to file,
on or before June 15, a net proceeds tax return and to pay that tax based upon
estimated tax liability. On or before September 15, that person shall file a final report
and pay any additional tax due along with interest at the rate of 1 0.5 percent per
month from June 15 until the date of payment. If the additional tax exceeds 10
percent of the person's tax under s. 70.375 for the previous year, the penalty and
interest under s. 70.39 (1) apply. If the final report indicates that the person overpaid
the person's liability, the department shall refund the overpayment.
SECTION 2. 71.03 (7) (intro.) of the statutes is amended to read:
71.03 (7) EXTENSION OF TIME TO FILE. (intro.) Returns of natural persons and
fiduciaries that require a statement of amounts or information contained or entered
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on a corresponding return under the internal revenue code shall be filed within the
time fixed under that code for filing of the corresponding federal return. Any
extension of time granted by law or by the internal revenue service for the filing of
that corresponding federal return extends the time for filing under this chapter if a
copy of the taxpayer's application to the internal revenue service requesting the
extension is filed with the return under this chapter or if a copy of any request for
an extension required by the internal revenue service is filed with the return under
this chapter or at an earlier date that the department prescribes by rule and if the
taxpayer pays the Wisconsin tax in the manner applicable to federal income taxes
under the internal revenue code. Taxes payable upon the filing of the return do not
become delinquent during the period of an extension but are subject to interest at the
rate of 12 6 percent per year during such period except as follows:
SECTION 3. 71.24 (7) (a) of the statutes is amended to read:
71.24 (7) (a) In the case of a corporation required to file a return, the
department of revenue shall allow an automatic extension of 7 months or until the
original due date of the corporation's corresponding federal return, whichever is
later. Any extension of time granted by law or by the internal revenue service for the
filing of corresponding federal returns shall extend the time for filing under this
subchapter to 30 days after the federal due date if the corporation reports the
extension in the manner specified by the department on the return. Except for
payments of estimated taxes, income or franchise taxes payable upon the filing of the
tax return shall not become delinquent during such extension period, but shall,
except as provided in par. (b), be subject to interest at the rate of 12 6 percent per year
during such period.
SECTION 4. 71.44 (3) (a) of the statutes is amended to read:
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71.44 (3) (a) In the case of a corporation required to file a return, the
department of revenue shall allow an automatic extension of 7 months or until the
original due date of the corporation's corresponding federal return, whichever is
later. Any extension of time granted by law or by the internal revenue service for the
filing of corresponding federal returns shall extend the time for filing under this
subchapter to 30 days after the federal due date if the corporation reports the
extension in the manner specified by the department on the return. Except for
payments of estimated taxes, income or franchise taxes payable upon the filing of the
tax return shall not become delinquent during such extension period, but shall,
except as provided in par. (b), be subject to interest at the rate of 12 6 percent per year
during such period.
SECTION 5. 71.775 (4) (bm) 1. of the statutes is amended to read:
71.775 (4) (bm) 1. For the return under par. (a), the department shall allow an
automatic extension of 7 months or until the corresponding due date of the
pass-through entity's federal income tax return or return of partnership income,
whichever is later. Except for payments of estimated taxes, and except as provided
in subd. 2., withholding taxes payable upon filing the return are not delinquent
during the extension period but shall be subject to interest at the rate of 12 6 percent
per year during that period.
SECTION 6. 71.775 (4) (bm) 2. of the statutes is amended to read:
71.775 (4) (bm) 2. For taxable years beginning after December 31, 2008, for
persons who qualify for a federal extension of time to file under 26 USC 7508A due
to a presidentially declared disaster or terroristic or military action, withholding
taxes that are otherwise due from a pass-through entity under sub. (2) are not
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subject to 12 6 percent interest as otherwise provided under subd. 1. during the
extension period and for 30 days after the end of the federal extension period.
SECTION 7. 71.775 (4) (em) of the statutes is amended to read:
71.775 (4) (em) Except as provided in par. (fm), in the case of any underpayment
of estimated withholding taxes under par. (cm), interest shall be added to the
aggregate withholding tax for the taxable year at the rate of 12 6 percent per year
on the amount of the underpayment for the period of the underpayment. In this
paragraph, “period of the underpayment" means the time period beginning with the
due date of the installment and ending on either the unextended due date of the
return under par. (a) or the date of payment, whichever is earlier. If 90 percent of
the tax due under sub. (2) for the taxable year is not paid by the unextended due date
of the return under par. (a), the difference between that amount and the estimated
taxes paid, along with any interest due, shall accrue delinquent interest in the same
manner as income and franchise taxes under s. 71.82 (2) (a).
SECTION 8. 71.82 (1) of the statutes is amended to read:
71.82 (1) NORMAL. (a) In assessing taxes interest shall be added to such taxes
at 12 6 percent per year from the date on which such taxes if originally assessed
would have become delinquent if unpaid, to the date on which such taxes when
subsequently assessed will become delinquent if unpaid.
(b) Except as otherwise specifically provided, in crediting overpayments of
income and surtaxes against underpayments or against taxes to be subsequently
collected and in certifying refunds of such taxes interest shall be added at the rate
of 3 6 percent per year from the date on which such taxes when assessed would have
become delinquent if unpaid to the date on which such overpayment was certified for
refund except that if any overpayment of tax is certified for refund within 90 days
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after the last date prescribed for filing the return of such tax or 90 days after the date
of actual filing of the return of such tax, whichever occurs later, no interest shall be
allowed on such overpayment. For purposes of this section the return of such tax
shall not be deemed actually filed by an employee unless and until the employee has
included the written statement required to be filed under s. 71.65 (1). However when
any part of a tax paid on an estimate of income, whether paid in connection with a
tentative return or not, is refunded or credited to a taxpayer, such refund or credit
shall not draw interest.
(c) Any assessment made as a result of the adjustment or disallowance of a
claim for credit under s. 71.07, 71.28 or 71.47 or subch. VIII or IX, except as provided
in sub. (2) (c), shall bear interest at 12 6 percent per year from the due date of the
claim.
SECTION 9. 71.82 (2) (b) of the statutes is amended to read:
71.82 (2) (b) Department may reduce delinquent interest. The department shall
provide by rule for reduction of interest under par. (a) to 12 6 percent per year in
stated instances wherein the secretary of revenue determines that reduction is fair
and equitable.
SECTION 10. 71.82 (2) (d) of the statutes is amended to read:
71.82 (2) (d) Withholding tax. Of the amounts required to be withheld any
amount not deposited or paid over to the department within the time required shall
be deemed delinquent and deposit reports or withholding reports filed after the due
date shall be deemed late. Delinquent deposits or payments shall bear interest at
the rate of 1.5 percent per month from the date deposits or payments are required
under this section until deposited or paid over to the department. The department
shall provide by rule for reduction of interest on delinquent deposits to 12 6 percent
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per year in stated instances wherein the secretary of revenue determines reduction
fair and equitable. In the case of a timely filed deposit or withholding report,
withheld taxes shall become delinquent if not deposited or paid over on or before the
due date of the report. In the case of no report filed or a report filed late, withheld
taxes shall become delinquent if not deposited or paid over by the due date of the
report. In the case of an assessment under s. 71.83 (1) (b) 2., the amount assessed
shall become delinquent if not paid on or before the first day of the calendar month
following the calendar month in which the assessment becomes final, but if the
assessment is contested before the tax appeals commission or in the courts, it shall
become delinquent on the 30th day following the date on which the order or judgment
representing final determination becomes final.
SECTION 11. 71.84 (1) of the statutes is amended to read:
71.84 (1) INDIVIDUALS AND FIDUCIARIES. Except as provided in s. 71.09 (11), in
the case of any underpayment of estimated tax by an individual, estate or trust,
except as provided under s. 71.09, there shall be added to the aggregate tax for the
taxable year interest at the rate of 12 6 percent per year on the amount of the
underpayment for the period of the underpayment. In this subsection, “the period
of the underpayment" means the time period from the due date of the installment
until either the 15th day of the 4th month beginning after the end of the taxable year
or the date of payment, whichever is earlier.
SECTION 12. 71.84 (2) (a) of the statutes is amended to read:
71.84 (2) (a) Except as provided in s. 71.29 (7), in the case of any underpayment
of estimated tax by a corporation under s. 71.29 or 71.48, there shall be added to the
aggregate tax for the taxable year interest at the rate of 12 6 percent per year on the
amount of the underpayment for the period of the underpayment. In this paragraph,
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“period of the underpayment" means the time period from the due date of the
installment until either the date on which the corporation is required to file for
federal income tax purposes, not including any extension, under the Internal
Revenue Code or the date of payment, whichever is earlier. If 90 percent of the tax
shown on the return is not paid by the date on which the corporation is required to
file for federal income tax purposes, not including any extension, under the Internal
Revenue Code, the difference between that amount and the estimated taxes paid,
along with any interest due, shall accrue delinquent interest under s. 71.91 (1) (a).
SECTION 13. 71.84 (2) (b) of the statutes is amended to read:
71.84 (2) (b) For corporations that are subject to a tax under this chapter on
unrelated business taxable income, as defined under section 512 of the internal
revenue code, and virtually exempt entities, “period of the underpayment" means the
time period from the due date of the installment until either the 15th day of the 5th
month beginning after the end of the taxable year or the date of payment, whichever
is earlier. If 90 percent of the tax shown on the return is not paid by the 15th day of
the 5th month following the close of the taxable year, the difference between that
amount and the estimated taxes paid along with any interest due, shall accrue
delinquent interest under s. 71.91 (1) (a).
SECTION 14. 71.84 (2) (c) of the statutes is amended to read:
71.84 (2) (c) If a refund under s. 71.29 (3m) results in an income or franchise
tax liability that is greater than the amount of estimated taxes paid when reduced
by the amount of the refund, the taxpayer shall add to the aggregate tax for the
taxable year interest at an annual rate of 12 6 percent on the amount of the unpaid
tax liability for the period beginning on the date the refund is issued and ending on
either the date on which the taxpayer is required to file for federal income tax
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purposes, not including any extension, under the Internal Revenue Code or the date
the tax liability is paid, whichever is earlier.
SECTION 15. 71.90 (1) of the statutes is amended to read:
71.90 (1) DEPOSIT. The department shall notify any person who files a petition
for redetermination that the person may deposit the amount of an additional
assessment, including any interest or penalty, with the department, or with a person
that the department prescribes, at any time before the department makes its
redetermination. The department shall notify spouses jointly except that, if the
spouses have different addresses and if either spouse notifies the department in
writing of those addresses, the department shall serve a duplicate of the original
notice on the spouse who has the address other than the address to which the original
notice was sent. Amounts deposited under this subsection shall be subject to the
interest provided by s. 71.82 only to the extent of the interest accrued prior to the first
day of the month succeeding the date of deposit. Any deposited amount which is
refunded shall bear interest at the rate of 3 6 percent per year during the time the
funds were on deposit. A person may also pay any portion of an assessment which
is admitted to be correct and the payment shall be considered an admission of the
validity of that portion of the assessment and may not be recovered in an appeal or
in any other action or proceeding.
SECTION 16. 71.91 (6) (e) 3. of the statutes is amended to read:
71.91 (6) (e) 3. For purposes of an adjudication under this paragraph, the
assessment of the tax upon which the interest or lien of the department is based is
conclusively presumed to be valid. Interest shall be allowed for judgments under this
paragraph at the rate of 12 6 percent per year from the date the department receives
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the money wrongfully levied upon to the date of payment of the judgment or from the
date of sale to the date of payment.
SECTION 17. 71.91 (6) (f) 5. of the statutes is amended to read:
71.91 (6) (f) 5. Before the sale, the department shall determine a minimum
price for which the property shall be sold. If no person offers for that property at the
sale at least the amount of the minimum price, the state shall purchase the property
for the minimum price; otherwise, the property shall be sold to the highest bidder.
In determining the minimum price, the department shall take into account the
expense of making the levy and sale in addition to the value of the property. If
payment in full is required at the time of acceptance of a bid and is not paid then, the
department shall sell the property in the manner provided under this paragraph.
If the conditions of the sale permit part of the payment to be deferred and if that part
is not paid within the prescribed period, the department may sue the purchaser in
the circuit court for Dane County for the unpaid part of the purchase price and
interest at the rate of 12 6 percent per year from the date of the sale or the department
may declare the sale void and may sell the property again under this paragraph. If
the property is sold again, the 2nd purchaser shall receive it free of any claim of the
defaulting purchaser and the amount paid upon the bid price by the defaulting
purchaser is forfeited.
SECTION 18. 73.03 (6) of the statutes is amended to read:
73.03 (6) In its discretion to inspect and examine or cause an inspection and
examination of the records of any town, city, village, or county officer whenever such
officer shall have failed or neglected to return properly the information as required
by sub. (5), within the time set by the department of revenue. Upon the completion
of such inspection and examination the department of revenue shall transmit to the
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clerk of the town, city, village, or county a statement of the expenses incurred by the
department of revenue to secure the necessary information. Duplicates of such
statements shall be filed in the office of the secretary of administration. Within 60
days after the receipt of the above statement, the same shall be audited, as other
claims of towns, cities, villages, and counties are audited, and shall be paid into the
state treasury, in default of which the same shall become a special charge against
such town, city, village, or county and be included in the next apportionment or
certification of state taxes and charges, and collected with interest at the rate of 10
6 percent per year from the date such statements were certified by the department,
as other special charges are certified and collected.
SECTION 19. 76.075 of the statutes is amended to read:
76.075 Adjustments of assessments. Within 4 years after the due date, or
extended due date, of the report under s. 76.04, any person subject to taxation under
this subchapter may request the department to make, or the department may make,
an adjustment to the data under s. 76.07 (4g) or (4r) submitted by the person. If an
adjustment under this section results in an increase in the tax due under this
subchapter, the person shall pay the amount of the tax increase plus interest on that
amount at the rate of 1 0.5 percent per month from the due date or extended due
date of the report under s. 76.04 until the date of final determination and interest
at the rate of 1.5 percent per month from the date of final determination until the
date of payment. If an adjustment under this section results in a decrease in the tax
due under this subchapter, the department shall refund the appropriate amount plus
interest at the rate of 0.25 0.5 percent per month from the due date or extended due
date under s. 76.04 until the date of refund. Sections 71.74 (1) and (2) and 71.75 (6)
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and (7), as they apply to income and franchise tax adjustments, apply to adjustments
under this section. Review of the adjustments is as stated in s. 76.08.
SECTION 20. 76.13 (2) of the statutes is amended to read:
76.13 (2) Every tax roll upon completion shall be delivered to the secretary of
administration. The department shall notify, by certified mail, all companies listed
on the tax roll of the amount of tax due, which shall be paid to the department. The
payment dates provided for in sub. (2a) shall apply. The payment of one-fourth of
the tax of any company may, if the company has brought an action in the Dane
County circuit court under s. 76.08, be made without delinquent interest as provided
in s. 76.14 any time prior to the date upon which the appeal becomes final, but any
part of the tax ultimately required to be paid shall bear interest from the original due
date to the date the appeal became final at the rate of 12 6 percent per year and at
1.5 percent per month thereafter until paid. The taxes extended against any
company after the same become due, with interest, shall be a lien upon all the
property of the company prior to all other liens, claims, and demands whatsoever,
except as provided in ss. 292.31 (8) (i) and 292.81, which lien may be enforced in an
action in the name of the state in any court of competent jurisdiction against the
property of the company within the state as an entirety.
SECTION 21. 76.13 (2a) of the statutes is amended to read:
76.13 (2a) Taxes levied under this section shall be paid to the department in
semiannual installments, on May 10 and November 10, on a partially estimated
basis. The May 10 payment shall be at least 50 percent of the total tax assessed for
the previous calendar year or 40 percent of the tax assessed for the current calendar
year. Any amounts not paid when due shall become delinquent and shall be subject
to interest under s. 76.14. The payment of 25 percent of the tax of any company may,
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if the company has brought an action in the Dane County circuit court under s. 76.08,
be made without delinquent interest as provided in s. 76.14 any time prior to the date
upon which the appeal becomes final, but any part thereof ultimately required to be
paid shall bear interest from the original due date to the date the appeal becomes
final at the rate of 12 6 percent per year and at 1.5 percent per month thereafter until
paid. Companies with a tax liability under this section of less than $2,000 are not
required to make semiannual payments but shall pay the full amount of taxes due
on or before November 10.
SECTION 22. 76.13 (3) of the statutes is amended to read:
76.13 (3) If the Dane County circuit court, after such roll is delivered to the
secretary of administration, increases or decreases the assessment of any company,
the department shall immediately redetermine the tax of the company on the basis
of the revised assessment, and shall certify and deliver the revised assessment to the
secretary of administration as a revision of the tax roll. If the amount of tax upon
the assessment as determined by the court is less than the amount paid by the
company, the secretary of administration shall refund the excess to the company with
interest at the rate of 3 6 percent per year. If the amount of the tax upon the
assessment as determined by the court is in excess of the amount of the tax as
determined by the department, interest shall be paid on the additional amount at the
rate of 12 6 percent per year from the date of entry of judgment to the date the
judgment becomes final, and at 1.5 percent per month thereafter until paid.
SECTION 23. 76.22 (2) of the statutes is amended to read:
76.22 (2) The action to recover taxes and interest and to enforce the same as
a lien shall be an action in equity and shall be commenced and carried on and
judgment entered according to the laws of the state and the rules and practice of
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courts of equity so far as applicable. No reference shall be made to take testimony
or to hear, try and determine the issues of fact in the action. The judgment shall fix
the amount of taxes and interest, adjudge the same a lien on the property of the
company and provide for the sale of such property in 90 days after the entry of
judgment upon publication of the notice of sale as a class 3 notice, under ch. 985. The
judgment shall bear interest at the rate of 10 6 percent per year from the date of entry
until finally paid.
SECTION 24. 76.28 (4) (a) of the statutes is amended to read:
76.28 (4) (a) If after filing the reports specified in sub. (7) and after the
department's computation and assessment of license fees under sub. (2) it is
determined that the amount of gross revenues reported is in error, the department
shall compute the additional license fee to be paid or the amount of the overpayment
of license fee to be refunded, as the case may be. If an additional license fee is due,
the department shall give notice to the light, heat and power company against whom
the license fee is to be levied. All such additional assessments and claims for refunds
for excess license fees paid are subject to the same procedure for review and final
determination as additional income or franchise tax assessments and claims for
refunds under ch. 71 as far as the same may be applicable, except that appeals of
denials of claims for refunds shall be made directly to the tax appeals commission
and except that the additional license fees shall become delinquent 60 days after
notice provided in this subsection or, if review proceedings are held, 60 days following
final determination of the review proceedings. All additional license fees shall bear
interest at the rate of 12 6 percent per year from the time they should have been paid
to the date on which the additional fees shall become delinquent if unpaid.
SECTION 25. 76.28 (4) (b) of the statutes is amended to read:
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SECTION 25
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76.28 (4) (b) In the case of overpayments of license fees by any light, heat and
power company under par. (a), the department shall certify the overpayments to the
department of administration, which shall audit the amount of the overpayments
and the secretary of administration shall pay the amounts determined by means of
the audit. All refunds of license fees under this subsection shall bear interest at the
annual rate of 3 6 percent from the date of the original payment to the date when
the refund is made. The time for making additional levies of license fees or claims
for refunds of excess license fees paid, in respect to any year, shall be limited to 4
years after the time the report for such year was filed.
SECTION 26. 76.28 (11) of the statutes is amended to read:
76.28 (11) PAYMENT BEFORE CONTESTING. No action or proceeding, except a
petition for redetermination under sub. (4), may be brought by a light, heat or power
company against this state to contest any assessment of a tax under this section
unless the taxpayer first pays to this state the amount of tax assessed. If the
taxpayer prevails in an action or proceeding, this state shall settle with the taxpayer,
including payment of interest at 3 6 percent per year on the amount of the money
paid from the date of payment until the date of judgment.
SECTION 27. 76.39 (4) (d) of the statutes is amended to read:
76.39 (4) (d) All refunds shall be certified by the department to the department
of administration which shall audit the amount of the refunds and the secretary of
administration shall pay the amount, together with interest at the rate of 3 6 percent
per year from the date payment was made. All additional taxes shall bear interest
at the rate of 12 6 percent per year from the time they should have been paid to the
date upon which the additional taxes shall become delinquent if unpaid.
SECTION 28. 76.48 (5) of the statutes is amended to read:
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SECTION 28 SENATE BILL 1021
76.48 (5) Additional assessments may be made, if notice of such assessment is
given, within 4 years of the date the annual return was filed, but if no return was
filed, or if the return filed was incorrect and was filed with intent to defeat or evade
the tax, an additional assessment may be made at any time upon the discovery of
gross revenues by the department. Refunds may be made if a claim for the refund
is filed in writing with the department within 4 years of the date the annual return
was filed. Refunds shall bear interest at the rate of 3 6 percent per year and shall
be certified by the department to the secretary of administration who shall audit the
amounts of such overpayments and pay the amount audited. Additional
assessments shall bear interest at the rate of 12 6 percent per year from the time they
should have been paid to the date upon which they shall become delinquent if unpaid.
SECTION 29. 77.59 (6) (c) of the statutes is amended to read:
77.59 (6) (c) The department shall notify any person who files a petition for
redetermination that the person may deposit the entire deficiency determination,
including any penalty or interest, with the department when the petition is filed or
at any time before the department makes its redetermination. Any deposited
amount which is refunded shall bear interest at the rate of 3 6 percent per year
during the time the funds were on deposit. A person may also pay any portion of a
deficiency determination admitted to be correct and the payment shall be considered
an admission of the validity of that portion of the deficiency determination and may
not be recovered in an appeal or in any other action or proceeding.
SECTION 30. 77.60 (1) (a) of the statutes is renumbered 77.60 (1) (a) (intro.) and
amended to read:
77.60 (1) (a) (intro.) Except as provided in par. (b), unpaid the following interest
rates apply:
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1. Unpaid taxes shall bear interest at the rate of 12 6 percent per year from the
unextended due date of the return until paid or deposited with the department.
2. Taxes refunded to the seller shall bear interest at 3 6 percent per year from
the due date of the return to the date on which the refund is certified on the refund
rolls. An extension of time within which to file a return shall not extend the due date
of the return for purposes of interest computation.
3. Taxes refunded to the buyer shall bear interest at 3 6 percent per year from
the last day of the month following the month during which the buyer paid the tax
to the date on which the refund is certified on the refund rolls.
SECTION 31. 77.60 (1) (b) of the statutes is renumbered 77.60 (1) (b) 1. and
amended to read:
77.60 (1) (b) 1. Any unpaid taxes for a calendar year or a fiscal year resulting
from a field audit shall bear interest at the rate of 12 6 percent per year from the
unextended due date of the taxpayer's Wisconsin income or franchise tax return for
that calendar or fiscal year or, if exempt the filing of an income or franchise tax return
under ch. 71 is not required, from the 15th day of the 4th month of the year after the
close of the calendar or fiscal year for which the taxes are due to the date on which
the taxes are paid or, if unpaid, become delinquent, whichever is earlier.
SECTION 32. 77.60 (1) (b) 2. of the statutes is created to read:
77.60 (1) (b) 2. Taxes refunded as a result of a field audit shall bear interest at
the rate of 6 percent per year from the unextended due date of the taxpayer's income
or franchise tax return for that calendar or fiscal year or, if the filing of an income
or franchise tax return under ch. 71 is not required, from the 15th day of the 4th
month of the year after the close of the calendar or fiscal year to the date on which
the refund is certified on the refund rolls.
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SECTION 33 SENATE BILL 1021
SECTION 33. 77.96 (5) of the statutes is amended to read:
77.96 (5) Each person subject to a surcharge under s. 77.93 shall, on or before
the due date, including extensions, for filing under ch. 71, file an accurate statement
of its gross tax liability. Payments made after the due date under sub. (2) and on or
before the due date under this subsection are not delinquent but are subject to
interest at the rate of 12 6 percent per year.
SECTION 34. 78.68 (1) of the statutes is amended to read:
78.68 (1) Unpaid taxes shall bear interest at the rate of 12 6 percent per year
from the due date of the tax until paid or deposited with the department, and all
refunded taxes bear interest at the rate of 3 6 percent per year from the due date
of the return to the date on which the refund is certified on the refund rolls.
SECTION 35. 139.25 (1) of the statutes is amended to read:
139.25 (1) INTEREST AND PENALTIES. Unpaid taxes bear interest at the rate of
12 6 percent per year from the due date of the return until paid or deposited with the
department, and all refunded taxes bear interest at the rate of 3 6 percent per year
from the due date of the return to the date on which the refund is certified on the
refund rolls.
SECTION 36. 139.44 (9) of the statutes is amended to read:
139.44 (9) Unpaid taxes bear interest at the rate of 12 6 percent per year from
the due date of the return until paid or deposited with the department, and all
refunded taxes bear interest at the rate of 3 6 percent per year from the due date
of the return to the date on which the refund is certified on the refund rolls.
SECTION 37. 168.12 (6) (c) of the statutes is amended to read:
168.12 (6) (c) The department of revenue shall investigate the correctness and
veracity of the representations in the claim and may require a claimant to submit
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SECTION 37
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records to substantiate the claim. The department of revenue shall either allow or
deny a claim under this subsection not later than 60 days after the filing of the claim.
If the department of revenue allows the claim, it shall pay the claimant the amount
allowed from the moneys appropriated under s. 20.855 (4) (r). If the department of
revenue does not pay the allowance by the 90th day after the date on which the
purchaser files the claim, the department of revenue shall also pay interest on the
unpaid claim beginning on that day, at the rate of 3 6 percent per year, from the
moneys appropriated under s. 20.855 (4) (r).
SECTION 38. 168.12 (6) (d) 2. of the statutes is amended to read:
168.12 (6) (d) 2. If the department of revenue has paid the claim, require the
purchaser to refund to the department of revenue that portion of the amount paid
under par. (c) to which the purchaser is not entitled and impose a penalty on the
purchaser equal to 25 percent of the allowance, plus interest on the sum of the unpaid
penalty and the amount required to be refunded, accruing from the date that the
penalty is imposed, at the rate of 12 6 percent per year.
SECTION 39. 168.12 (6) (e) 1. of the statutes is amended to read:
168.12 (6) (e) 1. If the claim has not been paid and the department of revenue
allows no portion of the claim, impose a penalty on the purchaser equal to 50 percent
of the amount claimed by the purchaser, plus interest on the unpaid penalty, accruing
from the date that the penalty is imposed, at the rate of 12 6 percent per year.
SECTION 40. 168.12 (6) (e) 3. of the statutes is amended to read:
168.12 (6) (e) 3. If the claim has been paid, require the purchaser to refund to
the department of revenue that portion of the amount paid under par. (c) that the
department of revenue determines was fraudulently obtained and impose a penalty
on the purchaser equal to 50 percent of the amount claimed by the purchaser, plus
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SECTION 40 SENATE BILL 1021
interest on the sum of the unpaid penalty and the amount required to be refunded,
accruing from the date that the penalty is imposed, at the rate of 12 6 percent per
year.
SECTION 41.0Initial applicability.
(1) INTEREST ON UNDERPAYMENTS AND OVERPAYMENTS. This act first applies to
assessments issued and refunds paid on December 31, 2024, regardless of the taxable
periods to which the assessments or refunds pertain.
(END)
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