chapter 139 beverage and tobacco taxesdocs.legis.wisconsin.gov/document/statutes/1983/139.pdfchapter...

139.01 BEVERAGE AND TOBACCO TAXES

CHAPTER 139

BEVERAGE AND TOBACCO TAXES

` SUBCHAPTER IBEVERAGE TAXES .

139 01 Definitions,13902 Fermented malt beverages tax13903 Liquor tax :139 . 04 Exclusions,139 ! 05 Payment of malt beverages tax13906 Liquor tax stamps ; exceptions,139 . 061 Returnn payment of liquorr tax139 07 Failure to pay liquor tax139 08 Powers and duties of the secretary of revenue139 09 ` Registration .139 . 10 Refunds by state treasurer139. it Records and reports :139 12 Collection not to be restrained139 18 Presumptions from possession .13920 Compulsory testimony'.`139 22 Confiscation ..139.25 . Penalties .

SUBCHAPTER 11CIGARETTE TAXES

139. 30 ; Cigarette tax ; definitionsf39 . 31

,,Cigaretteimposed ; exceptions'

139315 Cigarette inventory tax imposed ; procedures139 32 Payment of taxes .139 323 Refunds to Indian tribes

SUBCHAPTER I

BEVERAGE TAXES

139.01 Definitions . In ss 139 . Q1 to 139 . 25unless the context or the subject matter other-wise requires :

(1) "Bottler" means any person other than abrewer who places fermented malt beverages inbottles or similar containers ,

(2) "Brewer" means any person who manu-factures fermented malt beverages for sale ortransportation .

(3) "Intoxicating liquors" includes all ardent,spirituous , distilled or vinous liquors, liquids orcompounds, whether medicated , proprietary ,patented or not, and by whatever name called ,containing one-half' of one per cent or more ofalcohol by volume, which are fit for use forbeverage purposes, but does not include "fer-mented malt beverages" as defined in s 125 . . 02 . .

(4) "License," and "fermented malt bever-ages" have the same meaning as in s 125 .. 02 ,and " licensed premises" a re premises des cribedin licenses issued by cities, villages or townsunder the authority of said section ..

(5) A "manufacturer" is a person, other thana rectifier , who manufactures or distills intoxi-cating liquor s, including selling at wholesalesuch intoxicating liquors manufactured or dis-

`139 . 325 Agreement s wit h Indian tribes13933 Use tax1 39: 34 Perm i t s require d . .139 35 Stamps .139 36 Refunds139 37 Salesperson s

. 139 3 8 Record s, retur n s139 39 Administrat io n and enforcement139 :40 Se izure and confisca tion139 , 41 Place to place delivery13942 Nuisance13943 State-wide conce rn'139 44 ' Penalties

SUBCHAPTER IIITOBACCO PRODUCTS TAX

13975 Defi nit ions139 76 Impo si tion ; excepti ons :139 77 Distributors_ monthly return s .1 39 78 Use tax139 99 ' Permits ; distributor ; s ubjo bber.139 80 Refunds, credits139 81 Salespersons .139 82 Records, returns139 83 Administrati on and enforcement.1 .39 . .85 Penaltie s

tilled by the licensee at the premises designatedin the license .

(6) A "rectifier" is a person who rectifies,purifies or refines distilled spirits or wines byany process other than by original and continu-ous distillation fr om mash, wort or wash,through , : continuous closed vessels or pipes,until the. manufacture thereof is complete, orwho has in his possession any , still or leach tubor keeps any other apparatus for the purpose ofrefining in any manner distilled spirits or theother liquors, or who after rectifying and puri-fying distilled spirits, by mixing such spirits orliquors with any materials, manufactures anyspurious, imitation or compound liquors forsale , and any person who , without rectifying ,purifying or refining distilled spirits , by mixingsuch spirits with any materials, manufacturesany spurious, imitation or compound liquorsfor sale under the name of "whiskey,""brandy," "gin," "rum," "spirits," "cordials"or any other name , and who is also a distiller oris under substantially the same management orcontrol as a distiller . A rectifier may sell atwholesale intoxicating liquors rectified by himwithout any other license than that of a rectifier-,

(7) "Retailer" as applied to a seller of fer-mented malt beverages has the same meaning asin s, 125 .. 02, and as applied to a seller ofintoxicating liquors is any person who sells suchliquors to consumers

3018

Electronically scanned images of the published statutes.

(8) "Secretary" means the secretary of (2) TAX CREDIT TO ELIGI BLE PRODUCERS. (a)revenue. Each eligible producer shall receive a credit in

(9) "Sell" or "sold" or "sale" or "selling" the amount of 50% of the tax paid or payableincludes the transfer, gift, barter, trade or ex- by the producer under this section in any givenchange of'intoxicating liquorr of fermented malt _ calendar year on the first 50,000 barrels taxedbeverages; offering or exposing intoxicating li- under this section in that year :,quor or fermented malt beverages for transfer, ,gift, barter, trade or exchange; possession of (b) In this section "eligible producer" meansintoxicating liquor or fermented malt beverages any producer of fermented malt beverages,with intent to transfer, give, barter, trade or whether or not located in this state, producingexchange the same ; or any shift, device, scheme less than 300,000 barrels of fermented maltor transaction whatever whereby intoxicating beverages in the calendar year for which creditliquor or fermented malt beverages may be under par . (a) is claimed, In determining theobtained; but excludes the solicitation of orders number of barrels, all brands or labels of afor, or the sale for future deliveryy producer' shall be combined .. All facilities for -

(10) "Wholesaler" as applied to a seller of the production of fermented malt beveragesfermented malt beverages has the same meaning owned or controlled by the same person shall beas ins 125 .02; and as applied to a seller of deemed a single producer,intoxicating liquors is any person other than amanufacturer or rectifier who se lls such li quors History :. 1973 c 256; 1977 c 203

a-1- a 3 v.-vuici yciuu «cc~ ivt uic

purpose of resale .History : 1981 c 79 s 18; 1983 a 189

139 .02 Fermented malt beverages tax . (1)TAX IMPOSED; RATE ; LIMITATION,, An occupa-tional tax is imposed upon the removal forconsumption or sale or selling of fermentedmalt beverages at the rate of $2 per barrel of 31gallons and at a proportionate rate for anyother quantity or fractional parts thereof'. Notmore than one occupational tax shall be re-quired to be paid on any one container offermented malt beverages . .

Quantity inWine Gallons

Up to and including1 /64 of a gallon

More than 1 /64 of a gallon toand including 1 /32 of a gallon

More than 1/32 gallon to and . . .dincluding 1 / I6 of a gallon

More than 1 / 16 gallon to andincluding 1 /10 gallon

More than 1/10 gallon to andincluding 1 pint. .

More than 1 pint to andincluding 1 /5 gallon

More than i /5 gallon to andincluding 1 quart

More than 1 quart to andincluding 1 / 2 gallon

More than 1 /2 gallon to andincluding l gallon

Up to and including 2 $ 05075

More than 2 to andincluding 4 . 1015

More than. 4 to andincluding 8 20.3

More than 8 to andincluding 12 8 325

More than 12 .. 8 to andincluding 16 406

More than 16 to andincluding 25 . .6 65

More than 25,6 to andincluding 32 8125

More than 32 to andincluding 64 1,625

More than 64 to andincluding 128 325

3019 BEVERAGE AND TOBACCO TAXES 139 .03

Figure 1 .39 ..0.3 (2m) (a) :

139 .03 Liquor tax. An occupational tax isimposed upon the selling of intoxicating liquoras follows :

(2m) The rate of such tax is $3 . .25 per winegallon on intoxicating liquor, except wine con-taining not in excess of 21 % of alcohol byvolume and intoxicating liquor taxed undersub .. (2t) or (2w), containing 0 .5% or, more ofalcohol by volume, and is computed in accord-ance with the following tables, using whichevertable produces the least amount of tax : [SeeFigures 139 03 (2m) (a) and (b) following]

Tax whenalcoholic content

Quantity in is 1/2% or moreOunces by volume


Figure 139 03 (2m) (b) :Tax when alcoholic content is

Quantity in liters 1/2% or more by volume

50 mill iliters _ $ .04293200 milliliter s 17172500 milliliters 4293750 milliliters 64396_ 1 liter 85861 75 liters 1 50255

(2n) The rate of such tax is 25 cents per wine intoxicating liquor, containing 0 5% or more ofgallonn on wine containing 14% or less of alco- alcohol by volume, manufactured or distilled inhol by volume,, and 45 cents per wine gallon on this state from whey which is produced in thiswine containing more than 14% , of alcohol by state . . The tax shall be computed in. accordancevolume , but not in excess 6f'21 % of alcohol by with the following table, and the department ofvolumee revenue shall calculate the equivalent rates for

(2t) The rate of tax, effective on September 1, metric containers : [See Figure . 139 . 03 (2t)1983, and thereafter-, is $1 . . 65 per wine gallon on following]

Figure 139 03 (2t) :Quantity in Wine Gallons Quantity in Ounces Tax.

Up to and including " Up to and including 2 $ 0257811/64 of` a gallon

More than 1 / 64 of" a gallon to - More than 2 to andand including ` 1/32 of 'a gallon including 4 051563 .

More than 1 /32 gallon to and More than 4 to andincluding 1/16 of 'a gallon including.8 103125

More than 1/16 gallon to and More than 8 to. andincluding 1/10 gallon including 118 165

More than 1 / 10 gallon to and More than 12 . . 8 to andincluding 1 pint including 16 20625

More than 1 pint to and More than 16 to andincluding L/S.:gallon including 25 ..6 33

More than 1 ,/5 gallon to and More than 25 .. 6 to andincluding l quart including 32 4125

More than 1 quart to and More than 32 to andincluding : 1/2gallon including 64 825

More than 1 /2 gallon to and More than 64 to andincluding 1 gallon including 128 1 .65

(2w) The rate of tax , effective from June 1, accordance with the following tables, using` 1982 to May 31, 1983 , is $2 25 per, wine gallon whichever table produces the least amount ofon intoxicating liquor containing 0. 5% or more tax, except that the rate of tax effective on .Juneof`aleohol by volume manufactured or distilled 1, 1983, shall be computed in accordance with ssin this state from brewing wastes that are pro- 139 .. 0 .3 (2m) (a) (figure) and (b) (figure) : ' [Seed"aced in this state .. The tax shall be computed in Figures 139 . 03 (2w) (a) and (b) following]

139.03 BEVERAGE AND TOBACCO TAXES- 3020


Tax when alcoholicQuantity in content is 1/2% orOunces more by volume

Up to and including .2 $ 035156

More than 2 to andincluding 4


More than 8 to andincluding 12 .:8

More than 12 .. 8 to andincluding 16

More than ' 16 to andincluding 25 . . 6

More than 25 . . 6 to andincluding 32


More than 64 to andincluding 128 1 2 .25

Tax when alcoholic contentis 1/2% or more by volume

$ 02972611892972644589

. . .594521 .0404

50 milliliters2000 milliliters ' "500 milliliters

'750 milliliters1 liter1 .' 7S liters

(2x) INTOXICATING LIQUOR FLOOR TAX IM-POSED; PROCEDURES . (a) Floor tax imposed. Onthe date tax rate changes become 'eff'ectiveunder this section a floor tax is imposed uponevery manufacturer , rectifier, wholesaler andretailer who is inpossession of any intoxicatingliquor held for resale on which the intoxicatingliquor tax already has been imposed . Thepersonshall determine the'volume of' that intox-icating liquor and shall file with the departmentof ' :cevenue by the i 5th day of the month follow-ng the month in which the new tax rate -be-comes effective a return, together with any taxdue on it, determined under par (b) Thedepartment of revenue shall provide ; the returnsrequired under this subsection .

(b) Floor tax computation . The amount ofany intoxicating liquor ` floor tax shall be com-puted by multiplying the number of gallons of

intoxicating liquor held in inventory as deter-mined under jai . (a) by the difference betweennthe tax rate already paid and the new tax rate, ,,,,and expressing the resulting figure in dollars

(c), Administration Sections 71 10 (10) (d) for

7112 to 71 . . 135, 73 01 and 73 „015 apply , to theadministration of this subsection for the :asses; ~inenf and collection of additional : taxes when: :tax rate changes become effective: .

(d) Late fling fee Any person who fails tofile a floor tax return when due : shall pay a late ,filing fee of $10 A return shall be - considered :filed in time if it is mailed in a properly adsdressed envelope with 1st class postage duly ,prepaid, if the envelope is officially postmarkedon the date due and if ' the return is actuallyreceived by the department within . 5 days of ' thedue date.

3021

Figure 1 .39 . . 03 (2w) (a) .̀

Quantity inWine Gallons

Up to and including .1 / 64 of a gallon

More than 1 /64 of a gallon . toand including 1 /32 of a gallon

More than l / .32 gallon to andincluding 1 /16 of a gallon

More than . 1 / 16 gallon to andincluding 1 /l0 gallon

More than 1 / 10 gallon to andincluding 1 pint

More than 1 pint to andincluding 1 /5 gallon

More than l / S gallon to andincluding I quart

More than 1 quart to andincluding 1 /2 gallon

More than 1/2 gallon to andincluding 1 gallon .

Figure 1 .39 03 (2w) (b):

Quantity in liters

BEVERAGE AND TOBACCO TAXES 139.03

070312

140624

.225

:281248

45

562496


139.03 BEVERAGE AND TOBACCO TAXES 3022

(e) Delinquent interest If the tax imposed inthis subsection is not paid when due, interest atthe rate of 1 , .5°/a per month accrues from thedate the taxx became due until the tax is paid . .

(f) Penalty . If ' any person liable forr the taxunder this subsection files a false or fraudulentreturn, there shall be added to the tax anamount equal to the tax the person evaded orattempted to evade . .

(3) Not more than one occupational tax shallbe required to be paid on any one container ofintoxicating liquor .

(4) Sections 71 . 10 (10) (d) to (g) , 7L 11 (16) ,(17), (19), (2 0), (22) and (23), 71 12 to 71 135,7 .3 . . 01 and 73 015 apply to the administration ofthis section for the assessment and collection ofadditional taxes when a tax rate change be-comes effective ,

(5) (a) No person who enters this state fromanotherr state may have in his possession andbring into the state any intoxicating liquor orwine .. This paragraph shall not apply to intoxi-cating liquor or wine consigned to any personhaving a permit from the secretary to engage inthe sale of such intoxicating liquor or wine ..

(b ) Any person , except a minor , who leaves aforeign country, after spending at least 48 hoursin such foreign country, with the purpose ofentering this state, may have in his possessionand bring into the state intoxicating liquor orwine in sealed original containers in amountsnot to exceed, in the aggregate , one gallon (128ounces) without payment of the tax hereinimposed . . The one gallon of tax-free intoxicat-ing liquor and wines may not be sent, shipped orcarried into the state other than in the immedi-ate possession of the person as qualified by thissubsection ..

(c) Any person who violates any provision ofpers . (a) and (b) by having in his possessionmore than the amount specified may be finednot less than $25 nor more than $500 or impris-oned not more than 90 days or both If any suchperson is convicted of 'a second or subsequentoffense he may be fined not less than $100 normore than $500 or imprisoned not more than 6months or both : .

(d) Any intoxicating liquor or wine involvedin a violation of this, section is declared forfeitand upon confiscation.by the department ofrevenue shall be disposed of in accordance withs : 125 14 (2 ) (e)

History: 1971 c . 125 ; 164, 211, 336; 1973 c. 121 ; 1975 c.224; 1977 c . 12, 81, 203 ; 418 ; 1981 c ' 20; 1981 c . 79 s : 18; 1981c 317 ; 1983 a 27

139.04 Exclusions. No tax is levied by ss .139 02 and `139 0 .3 in respect to :

(1) Making of wine, cider or fermented maltbeverages at home solely for consumption

139 .05 Payment of malt beverages tax. (1)The tax imposed in s 139 02 shall be paid to thedepartment on or before the fifteenth day of themonth following the month in which such maltbeverages are first sold in this state or shippedinto this state . .

(2) Each brewer and bottler in this state andeach wholesaler of malt beverages within thisstate to whom malt beverages are shipped fromoutside this state shall on or before the fifteenthday of each month file with the secretary onforms prescribed by him a verified return con-taining such information as may be required tocompute and show the amount of occupationaltax payable, by him or by the shipper for thenext preceding calendar month on maltbeverages ..11 ( 2a) For the purposes of'subs ._ (1)_ and (2) ; thepayments, reports, and returns therein referredto shall be considered furnished, reported,, filedor made on time, and payments therein referredto shall be considered timely made, if' mailed ina properly addressed, envelope, with,fixst classpostage duly prepaid ; ; which envelope is offi-cially_postmarked before midnight on the dateprescribed for such furnishing, reporting, filingor making , of such payment, provided suchstatement, report, return or payment is actuallyreceived by- the secretary of" revenue within . 5days of the prescribed date . .

(3) The amount of the occupational tax dis-closed by the return shall accompany the returnand shall be paid to the departmentt

therein and use thereof' in such home by thefamily and guests without compensation ..

(2) Furnishing by a brewer of fermented maltbeverages to workmen employed in the brewery .for consumpt i on on the brewery premises with-out charge .

(3) Manufacture or sale of any beveragecontaining less than one-half of one per cent ofalcohol by vol ume..

(4) Sale or shipment of fermented malt bever-ages by a brewer to a bottler or of intoxicatingliquor in bulk between manufacturers, rectifiersand wineries .

(5) Sale, possession or removal of fermentedmalt beverages or intoxicating liquor for ship-ment in interstate or foreign commerce . .

(6) Sale and use of wine for sacramentalpurposes .

(7) Sale of alcohol to industrial permittees tobe used for i ndustrial purposes ..

(8) S ale of'alcohol to medicinal permittees tobe used for hospital or medicinal purposes . .

(9) Sal e of'wine to industrial wine permitteesto be used for industrial purposes .

History : 1973 c 90


compliance by the applicant with the undertak-ings set forth in thee application for the license . .

(c) Thee secretary may suspend or revoke anysuch> license .for, any false statement made in theapplication therefor- and for any prior or subse-quent violation by the licensee , directly or indi-rectly , or: by any person affiliated with or in anyway subject to the direction or control of thelicensee; of any of ' the laws of this state relatingto fermented malt beverages ..

(d) Any such brewer and any other personwho ships or causes or permits to be shippedinto this state any such fermented malt bever-age, and any person who knowingly receiveswithin this state from outside this state any suchfermented malt beverage , at a timee when thebrewer thereo f is not the holder of a valid andsubsisting license as herein provided , is guilty ofa misdemeanor .

(e) The conditions and requirements of thissubsection are in addition to and not in lieu ofthe conditions and requirements of subs . . (1) to(6

)

(f) ~ If ' any law or regulation of any statespecifies uniform or substantially uniform re-quirements with respect to any ingredient offermented malt beverages produced in suchstate and fermented malt beverages producedoutside thereof but sold within such state and ifsuch state or its officials or agencies enforce orgive effect to such provisions as against anymalt beverage produced outside of such statewithout concurrently and to the same extentenforcing and giving effect to such provisions asagainst all malt beverages produced and soldwithin such state, and if the foregoing is foundand determined by the secretary after a publichearing ; it shall thereafter be a misdemeanor forany person with knowledge of' such finding anddetermination to ship into or receive or sellwithin this state any malt beverage produced insuch state unless and until the secretary findsand determines, after- a public hearing, that suchdiscriminatory treatment has beendiscontinued .

History : 1 9177- a 29 ; 1981 c : 79 ,.

139.06 Liquor tax stamps ; exceptions. (1)The taxes imposed in s . :1 .39 . 03 shall be paid, ator before the time of sale, delivery or gift ofintoxicating liquor except, as provided in sub..(2), by affixing,, in suchh manner as the secretaryprescribes by rule, to each bottle in whichintoxicating liquor is placed, received, stored,warehoused, : shipped, delivered or sold , taxstamps of the proper amount purchased fromthe secretary ,

(2) (a) The taxes on wine containing not inexcess af' 21 % of alcohol by volume shall bepaid to and a monthly return filed with the

(4) In order to insure the payment of all stateoccupational taxes imposed by law on maltbeverages together with all interest and penal-ties thereon, all persons required to make re-turns and payment of such tax shall first enterinto asurety bond with corporate surety ,, bothbond and surety to be approved by the secre-tary . Subject to the limitations hereinafterspecified , the amount of the bond required ofany taxpayer shall be fixed by the secretary andmay be increased ox reduced by him at any time . .In fixing the amount the secretary shall requirea bond in total amount equal to twice thetaxpayer ' s estimated maximum" monthly excisetax , asce r tained in such manner as the secretarydeems proper . In any event the amount of suchbond required of any one taxpayer shall not beless than $1 , 000 nor more than $100 ,000 . . Thesebondss shall be filed with the secreta r y

(6) If the occupational tax is not paid whendue, there is added to the amount of the taxinterest at the rate of 1 5% per month orfraction of a month from the date the taxbecame due until paid . .' Any payment of suchtax interest does 'not relieve any person other-wise liable from liability for payment of theoccupational tax .

(7) (a) If' any present or future law or regula-tion effective in any state prohibits a personfrom shipping into such state a fermented maltbeverage produced outside thereof except uponcondition that the person shipping such fer-mented malt beverage into such state first ob-tain a license therefor' from such state and if 'such license or a renewal thereof may be refusedfor violation of any law of such state relating tofermented malt beverages, it is unlawful to shipinto this state or to purchase or sell within thisstate any fermented malt beverage produced insuch state, unless and until the brewer thereof isthe holder of a valid subsisting license as pro-vided in this subsection .

(b) Such license shall be issued by the secre-tary for the period of one year and must berenewed annually . The application for suchlicense shall be verified and shall contain anagreement on the part of the brewer that thebrewer shall observe all laws of ' 4His state relat-ing to fermented malt beverages, and such otherinformation and statements as the: secretarymay require , Any such brewer who has, directlyor indirectly, violated ' any law of this staterelating to fermented malt beverages shall notbe entitled to such a license No fee shall berequired for any such ' license The secretarymay require the applicant to furnish and file abond to be approved by the secretary payable tothe state in an amount not less than $1,000 normore than $5,000 conditioned upon the faithful

3023 BEVERAGE AND TOBACCO TAXES 139.06



department on or before the 15th of the monthfollowing the month in which tax . liability isincurred . Tax liability is incurred by the shipperwhen wine is shipped into the state In the caseof wine produced or bottled within the state andwine imported directly from a foreign countryinto the state by a Wisconsin permittee orwinery licensee, tax liability is incurred by thepermittee or winery licensee at the time of firstsale within the state .

(b) All persons required to make returnandpayment of wine taxes, shall first enter intosurety bond with corporate surety to securepayment of tax with bond and surety to beapproved by the department . Such bond shallbe twice the department's estimate of the tax-payer's maximum monthly tax liability but shallnot be less than $1,000 nor more than $100 , 000 ..The bonds shall be filed with the department . .

(c) To further secure the payment of the taxeson wine , the department shall require all per-sons liable for the return and payment of suchtaxes to maintain deposit of the department'sestimate of tax liabilities in an amount equal to150% of the estimated maximum monthly taxliability . Such deposit payment shall be paid tothe department no later than 30 days after thedate of the permit . This deposit shall bedeposited in the general fund as taxes collectedfor apportionment purposes .. Twelve monthsafter the deposit is received from each personthe department shall refund 25% of the deposit . .At the end of each succeeding 12-month periodthe department shall refund 25% of the originaldeposit until - 100% of each deposit has beenrefunded . If any petmittee or winery licenseehas an unpaid tax liability at the time that arefund would be due the permittee or licensee,the department shall not make the refund untilthe liability is paid in full ..

(3) In shipping intoxicating liquor in bulk forthe purpose of bottling or- r to a .cecti-fier located within the state, the manufacturershall not be required to place stamps upon thecontainer in which shipment is made , but shall

. : securelyy affix thereto a label or statement, insuch form as is prescribed by the secretary,reciting that the shipment is made for the pur-pose of bottling or rectifying : Each manufac-turer making such shipments shall file withh thesecretary on or before the fifteenth day of eachcalendar month a report for the preceding cal-endar month, in the form the secretarypresc r ibes , showing the dates and quantities ofshipments and the name and address of eachconsignee . Stamps shall be affixed by saidrectifier on all containers on which a tax isrequ ired before sale or delivery to any permitteeor licensee within this state .

(4) When intoxicating liquor is stored in analcohol beverage warehouse for which a permithas been issued under s . 125 . . 19 , by a manufac-turer or rectifier holding a permit under s .125 52 as a pledge for the loan of money , it isnot necessary to affix to the containers eitherfront labels : or tax stamps until the liquor is soldor removed from the . warehouse . . When itbecomes necessary for a pledgee to sell suchintoxicating liquor in good faith pursuant to theteams of the pledge, and not for the purpose ofavoiding ss . 139 01 to 1 .39 . . 25 or ch . 125 , it shallbe sold to a manufacturer ,, rectifier or whole-saler holding a permit under s . 125 52 for thepurpose of affixing front labels and tax stamps..All such sales shall be reported to the secretaryby the pledgee.

(5) Vendor ' s of intoxicating liquor withoutthis state having Wisconsin permits maypurchase tax stamps from the secretary andaffix the proper amount thereof ' in the mannerprescribed by him to containers of intox icatingliquor; except wine containing not in excess of21 % alcohol by volume, to be sold in the stateandd the affixingg thereof' shall constitute pay-ment of such tax so that the recipient of suchintoxicating liquor within this state and allpersons who deal with the same thereafter shallnot be required to affix stamps thereon .

(6) No retailer shall sell or remove any intoxi-cating liquor , except wine contain ing not inexcess of 21 % alcohol by volume , from anycontainer , unlesss it has affixed thereto taxstamps of the proper amount . Every manufac-turer; rectifier and wholesaler who is liable forthe payment of ' the tax on sales made for resaleof consumption within this state is required toaffix stamps of the proper amount on everycontainer containing intoxicating liquor, exceptwine containing not in excess of 21 % alcohol byvolume, including intoxicating liquor importedfromwithout the state, which is sold , deliveredor' given to any purchaser or consumer withinthis state, unless the proper amount of stampshas been previously affixed thereto .

(7) Except as otherwise herein provided, noperson shall sell intoxicating liquor , except winecontaining not in excess of 21 % alcohol byvolume, without having affixed to the containerthe stamps required : A manufacturer or recti-fier may have upon his premises intoxicating

:liquor in unstamped containers, but the same,except wine containing not in excess of 21%alcohol by volume, shall not be removed f romhis premises except for shipment in interstatecommerce or f 'or' shipment in bulk to a rectifierwithout stamps being affixed thereto .

(8) , No person, may sell , give or lend anystamps No person may purchase, accept, re-


139 . 061 Return payment of liquor tax . (1) Inlieu of-.the method prescribed by s . 139 . .06. forpayment of the tax on intoxicating liquor bystamp, the secretary may by rule provide for thepayment of such tax by a monthly return filedwith the secretary on or before the 15th day ofthe month following the month in which suchintoxicating liquors are first sold in this state orshipped into this state . . Payment of the tax shallaccompany the return .

(2) In the event of the institution of suchreturn method of'payment of'the tax on intoxi-cating liquor; all persons required to makereturns and payment of such tax, shall firstenter into a surety bond with corporate suretyto secure payment of the tax, both bond andsurety to be approved by the secretary . Suchbond shall be equal to twice the taxpayer'sestimated maximumm monthly tax liabilitybutshall not be less than $1 ;000 nor more than$100,000. The bonds shall be filed with thesecretary .

(3) To further secure the paymentt of the taxon intoxicating liquor, the secretary may re-quire"all'persons liable for payment of such taxto maintain advance payment of estimated taxliabilities in an amount equal to 1 1/2 times theestimated maximum monthly tax liability . Suchadvance payments shall be paid to the secretary . .

(4 ) The exercise by the secretary of the au-thority vested in him by this section.n shall bewithout' prejudice to his authority to rescindsuch actionn and repeal the rule by which suchauthority shall have been exercised ; in whichevent the taxes on intoxicating liquor shall bepaid by stamp as provided in s . 1 .39 06 .

139.07 Failure to pay liquor tax . If the taximposed in s 139 03 is not paid when due,interest at the rate of` 1 :5% per month orfraction of a month shall accrue from the datethe tax became due until paid : If any personliable for such tax files a false of fraudulentreturn, there shalll be added to the tax anamount equal to the tax evaded or, attempted tobe evadedHistory : 1977' c 29

139 . 08 Powers and duties of the secretary ofrevenue . (1) ADMINISTRATION ; P E RSONNEL.,

139 .09 Registration . Every brewer, bottler,manufacturer, rectifier, wholesaler or retailerliable for payment of the occupational tax im-posed in ss . 1 .39 01 to, 139,25 shall upon makingapplication therefor be assigned a registrationnumber by the secretary The form of theapplication shall be prescribed by the secretary .

139.10 Refunds by state treasurer . (1) On thecertificate of' the secretary the state treasurershall refund to any purchaser or any banking

3025

ceive or borrow any stamps from any person . .Sales and transfers of stamps may be made onlyby the secretary . The secretary shalll not sell orissue any stamps to any person other than alicensed manufacturer, rectifier or wholesaler , .This subsection does not prevent the pledgingof any ' stamps legally secured to any bankinginstitution in this state as security for- moan .

History : 1973 c 121 ; 1977 c 142, 203 ; 1981 c 79.

BEVERAGE AND TOBACCO TAXES 13 9.10

STAMPS. The secretary of revenue shall adminis-ter ss 139,01 to 139 25 . He shall design , pro-cure and sell the stamps herein provided I or andshall prescribe the manner in which stamps areaffixed and canceled . He shall collect and keepa record of all taxes collected .. He shall keep arecord of the sale of all stamps which shall showthe dates of' the sale thereof and the names of thepurchasers .

(2) RULES . The secretary of revenue shalladopt rules necessary to carry out the secre-tary's duties under this chapter..

(3) POLICE POWERS The department of reve-nue shall enforce and the duly authorized em-ployes of the department shall have all neces-sary police powers to prevent violations of ss .134 . 65 and 1 .39 01 to 1 .39 .. 44 and ch . 125 .

(4) INSPECTION FOR ENFORCEMENT Duly au-thorized employes of ' the department of justiceand the department of revenue and any sheriff ',policeman, marshal or constable , within theirrespective jurisdictions, may at all reasonablehours enter any licensed premises, and examinethe books, papers and records of any brewer ,manufacturer , bottler, rectifier , wholesaler orretailer, for the purpose of inspecting the sameand determining whether the tax imposed by ss .1 .39 : 01 t o 139 .25 has been f ully paid , and mayinspect andd examine, according to law, anypremises where fermented malt beverages orintoxicating liquors are manufactured , sold ,exposed for sale , possessed or stored , for thepurpose: of inspecting the same and determiningwhether the tax imposed by ss 139,01 to 139 25has been fully paid , and whether ss 139 01 to139 .25 and ch 125 are being complied with . .Any refusal to permit such examination of suchpremises shall constitute sufficient reason forthe refusal of the secretary to furnish to suchperson so refusingg any stamps .. Such refusalshall constitute sufficient grounds underr s .12512 . for revocation or suspension of anylicense or permit granted for the sale of anyfe rmented malt beverages or intoxicating li-quorsand in addition shall be deemed a misde-meanor, punishable under s 1 .39 25 (5)

History : 1975 c . 39, 199; 1977 c 289 ; 1981 c 79 s 18 ;1981 c ` .391 .



If such requirementss are not complied withwithin 30 days after the date of the notice, thebrewer, bottler, manufacturer, rectifier, whole-saler or retailer shall pay thee expenses reason-ably. attributable to the determination of tax atthe rate of $30 per day for each auditor . . Thesecretary shall render a bill therefor by regis-texed mail to the person charged with paymentat the conclusion of the audit, which bill shallconstitute notice of assessment and demand ofpayment thereof. . The brewer, bottler, manu-facturer, rectifier, wholesaler or retailer shall,within 10 days after the mailing of the bill, payits amount, and such payment shall be creditedto the appropriation made in s . 20566 (1) (a) .

Hist ory: ' 1981 c 20 .'

139.12 Collection not to be restrained . Nosuit shall be maintained in any court to restrainor delay the collection or payment of the taxlevied in,ss : :1 . .39 . .01 to 139 .25. The aggrievedtaxpayer shall pay the tax when due, and, i£paidunder protest, may at any time within . 90 daysfrom the date of such payment, sue, the state torecover the tax so paid, the summons andcomplaint to be served by delivering a copy asprovided in x;,801 .11 .(3) .. If it is determined thatthe tax, or any part thereof, was wrongfullycollected, the departmentt of administrationshall issue a warrant on the state treasurer forthe amount adjudged to have been wrongfullycollected, and the treasurerr shall pay the war-rant out .o£ .the general fund . . A, separate, suitneed not be filed for eachh separate paymentmade by any taxpayer, but a recovery may behad in one suit for as many payments as havebeen made .His t ory : Sup. . Ct: Order, 67 W (2d) 774; 1975 c 218

139 .18 Presumptions from possession . (1)The possession of any fermented malt beverageson any licensedd premises, other thann upon thepremises of a brewer or bottler, shall be deemedprima facie evidence that such products are keptwith intent to sell and that such products aresubject to the tax herein imposed . .

(2) The possession of unstamped intoxicatingliquor; other than wine or unadulterated applecider ; except upon the premises of a manufac-turer, rectifier or wholesaler, or any licensedpublic warehouse shall be deemed prima facieevidence that such liquor is possessed withh theintent to sell the same contrary to law .,

139 .20 Compulsory testimony .. Any personmay be compelled to testify in regard to anyviolation of this chapter of which he may haveknowledge, even though such testimony maytend to incriminate him, upon being grantedimmunity from prosecution in connection

139.11 Records and reports . (1) PRESERVA-TION OF RECORDS . Every person who manufac-tures, rectifies , distributes, imports, transports ,stores ; warehouses or sells intoxicating liquoror fe rmented` malt beverages shall keep com-plete and accurate records of all such liquor ormalt beverages purchased , sold , manufactured ,rectified, brewed , fermented, ' distilled , pro-duced , stored , warehoused , imported or trans-ported within this state. Such records shall beof a kind and in the form prescribed by thesecreta ry and shall be safe l y preserved for 2years ' in such manner as to insure permanencyand accessibility for inspection by the secretary .

(2) REPORT Each brewer , bottler , manufac-turer, rectifier and wholesaler shall on or beforethe 15th day of each calendar month make averified return to the department of ' revenue ofall fermented malt beverages ' or intoxicatingliquor manufactured , received, sold, deliveredor shipped by him or her during the precedingcalendar month ,, except that the departmentmay allow wholesale, winery and out-of'-stateshipper permttees whose tax liability is ` lessthan $500 per quarter to file on a quarterlybasis Quarterly reports shall be mailed on orbefore the 15th of the next month following theclose of' the calendar quarter . Such return shallbe made upon forms furnished by the depart-ment of ' revenue and shall contain the informa-tion it deems necessary for the collection andenforcement of ' the -tax,.

(3) SECRETARY'S POWERS, When the secretaryfinds that the records kept by any brewer ,bottle s, manufacturer,: rectifier, wholesaler orretailer are in such condition than an ` unusualamount of time is required to determine there-from the amount of tax due, he may give noticeof such fact to such person and may require therecords to be kept in such form as he prescribes

institution in Wisconsin the money paid for anyunused stamps returned , the tax paid on intoxi-cating ` liquor or on whole cases or full kegss offermented malt beverages which are spo iled orunfi t to drink and the tax paid on fermentedmalt beverages sold to the armed forces of theUnited States, or the secretary may make allow-ance of the amount of the tax :.

(2) When the tax has been paid on intoxicat-ing liquor supplied to hospitals (for hospital ormedicinal purposes) , or on alcohol supp l ied toinstitutions of learning or museums for nonbev-erage purposes , this purchaser shall, upon ap-plication to the secretary , be entitled to a refundof the tax ..

(3) The secretary shall prescribe the methodof" proof and the forms of application for refundor allowance . .


therewith, and upon the givingg of such testi-mony, such person shall not be prosecuted foror because of the violation relative to which hehas testified :

139.22 Confiscation. If a duly authorized em-ploye of the department of revenue or thedepartment of justice or any sheriff; policeofficer, marshal or constable, within his or herrespective jurisdiction, discovers any fermentedmalt beveragesupon any premises other thanthe premises of a brewer or bottler, or anyintoxicating liquor upon any premises otherthan the premises of a manufacturer, rectifier,winery or wholesaler, and upon which the taxhas not been paid or which was possessed, kept,stored, manufactured, sold, distributed, ortransported in violation of ss . 139 01 to 139 25and ch. 125, the employe or any such officermay immediately seize the fermented malt bev-erages or intoxicating liquors . Any such fer-mented malt beverages or intoxicating liquorsso seized shall be held by the department ofrevenue and disposed of under s . 125 .14 (2) (e) .

Histary: 1975 c. 39, 199;'1977 c . 29; 1981 c 79 s 18'

139 .25 Penalties (1) COUNTERFEIT STAMPAny person who falsely or fraudulently makes,forges, alters or counterfeits any stamp pre-scribed by s 139 :06, or procures or causes to befalsely or fraudulently made, forged, altered orcounterfeited any such stamp, or who know-ingly possesses, utters, publishes, passes or ten-ders as true any false, altered, forged or coup-terfe ted stamp, or affixes the same to anycontainer, or uses any container upon which thestamp or stamps have been canceled, for thepurpose of placing therein for sale,-any intoxi-cating liquor without placing thereon stamps inthe amount and of the kind and characterherein provided, except for shipment in inter-state commerce, or for shipment by a manufac-turer to a rectifier shall be imprisoned in theWisconsin state prisons not less than one yearnor mote than 10 years

( 2) FALSE REPORTS Any person required tomake, render ; sign or verify any report . whomakes any false or fraudulent return, or whoattempts to evade the tax imposed by thischapter, or any person who aids or abets in theevasion or attempted evasion of such tax, shallbe fined not less than $1,000 nor more than$5,000 or imprisoned for not lesss than 90 daysnor moree than one year, or both

(3) FAILURE TO FILE REPORTS . Failure to file areport when due shall subject the person to a$10 late filing fee,

(4) FAILURE TO KEEP RECORDS, Failure tocomplywiths 139,11 (1) shall carry a penalty of'revocation by the secretary of revenue of' the

139 .30 Cigarette tax ; definitions. In ss .139,30 to 1 .39 .44, unless the context otherwiserequires :

( 1) "Cigarette" means any roll of tobaccowrapped in paper or any substance other thantobacco.:

(2) "Department" means the department ofrevenue .

(3) "Distributor" means any person whoacquires unstamped cigarettes from the manu-f"acturec thereof', affixes stamps to the packagesor other container's,, stores them and sells themto other petmittees or to retailers for resale . Hemay also acquire stamped cigarettes from an-other permittee for such sales .

(4) "Enrolled member" means a personwhose name appears on the tribal role of anIndian tribe' or whose status as an enrolledmember of a tribe is recognizedd by the tribalcouncil of that tribe .

(5) "Indian tribe" means a federally recog-nized Indian tribe in this state . .

(6) ".Jobber", means any person who acquiresstamped cigarettes from manufacturers or dis-tributors, stores them and sells them to retailersfor resale

(7) "Manufacturer" means any person whomanufactures cigarettes for the purpose of sale.

( 8) "Multiple retailer" means any personwho acquires stamped cigarettes from manufac-turers or permittees, stores them and sells themto consumers through 10 or more retail outlets

3027 BEVERAGE AND TOBACCO TAXES 139.30

license issued together with a fine of not lessthan $100 nor more than $500 for each offense

(5) MiscEr.LaNEOUS. Any person who violatesany provision of ss. 139 01 to 1 .39 . . 22 for whichspecific penalty is not provided shall be finednot more than $500 nor less than $50 , or impris-oned not more than 90 days , nor less than 10days or both, and any license or permit issued tohim shall be subject to revocation . The licenseof any licensee convicted of evading payment ofthe tax on intoxicating liquor, or any attempt toevade payment of such tax , shall be deemedforfeited immediately upon conviction . .

(6); SECOND OFFENSES If any person is con-victed of a second offense under the provis ionsof ' ss : 139 01 to 139 . . 22 , he shall , in addition tothe penalties herein provided , forfeit the right topurchase any stamps from the secretary , and allrights confer red upon him by any license issuedto him by any city,, village or town shall withoutnotice be deemed forthwith forfeited..

History :' 1977 c 418 s 924 (18) (e).

SUBCHAPTER II

CIGARETTE TAXES


139:30 BEVERAGE AND TOBACCO TAXES 3028

which he or she owns and operates within orwithout this state .

(9) "Reservation" means all land within theboundaries of the Bad River, Forest CountyPotowatomi, Lac Courte Oreilles, ' Lac duFlambeau, Menominee, Mole Lake, Oneida,Red Cliff, St Croix and Stockbridge-Munseereservations and the Winnebago Indiancommunities .

(10) "Retailer" means any person who sells,exposes for sale or possesses with intent to sellto consumers' any cigarettes .

(11) "Secretary" means the secretary ofrevenue..

(12) "Sell" or "sale" includes the transfer,gift, barter, trade or exchange or any shift,device, scheme or transaction whereby ciga-re ttes may be obtained, but does not include thesolicitation of orders for or the sale for futuredelivery of cigarettes .

(13) "Stamp" means the authorized indiciaof'cigarette tax payment including water trans-fer stamps, heat applied stamps and meter im-pressions. I n provisions relating to the sale ortransfer of stamps the term also includes metersettings . .

(14) "Vending machine" is any mechanicaldevice which automatically dispenses cigarettesupon the deposit therein of specified coins inpayment for suchh cigarettes ..

(15) "Vending machine operator" means aperson who acquires stamped cigarettes frommanufacturers or pecmittees, .stores them andsells them through the medium of vending ma-chines which he or she owns,, operates or ser-vices and which are located on premises whicharee owned or under the control of otherpersons.

(16) "Warehouse" means the premises whereany person is lawfully engaged in the business ofstoring cigarettes for profit but shall not includethe premises where common carriers store ciga-rettes which are received by them as commoncarriers and are in transit in interstatecommerce,

History : 1 979 c . .34, 221 ; 1983 a 27, 1 89 .

139.31 Tax imposed ; exceptions . (1). An ex-cise tax is imposed on the sale, offering orexposing forr sale, possession with intent to sellor removal for consumption or sale of cigarettesor other disposition for any purpose' whatso-ever. The tax is imposed at the time and place ofthe first taxablee event' occurring in this state . .The tax shall be passed ontothe ultimateconsumer of the cigarettes : All cigarettes re-ceived in this state for sale or distribution withinthis state,:- except cigarettes' actually sold asprovided in sub .. ( .3) ; shall be subject to such tax. .

Any person licensed under ch . 100 and thischapter to have untaxed cigarettes in his or herpossession which are lost,, stolen, destroyed orwhich have mysteriously disappeared shall beliable for and shall pay the tax thereon . The taxshall be at thee following rates :

(a) On cigarettes weighing not more than 3pounds per thousand, 12 .5 mills on eachcigarette.

(b) On cigarettes weighing more than 3pounds per thousand, 25 mills on each cigarette .

(3) Cigarettes sold to post exchanges of thearmed forces of'the United States and to feder-ally or state operated veterans hospitals in thisstate and cigarettes sold to an interstate carrierof passengers for hire to be resold to bona fidepassengers actually being transported and ciga-rettes sold forr shipment outside this statee ininterstate commerce are not subject to the tax ..

Hi story : 1971 c 125; .1981 c 20, 317, 390; 1983 a 2, 27, .State cigarette tax laws do not apply to Indian selling ciga-

rettes on reservation. 68 At ty,Gen . 151 .

139.315 Cigarette inventory tax , imposed ;procedures . (1) INVENTORY TAX IMPOSED Onthe effective date of any increase in the rate ofthe tax imposed under s : 139 .31, an inventorytax is imposed upon cigarettes heldd in inventoryfor sale or resale on which the cigarette tax hasbeen, paid at the prior rate and upon unaffixedstamps in the possession of distributors . Anyperson who is in possession of any such ciga-rettes or unaffixed stamps is liable f'or, paymentof the tax imposed underr this section . Anyperson liable for this tax shall determine thenumber of cigarettes and unaffixed stamps inthe person's possession on the effective date ofthe increase, and, by the 15th day after theeffective date of the increase the person shall filewith the department a return on a form : pro-vided by the .department and shall by that datepay to the department the tax due .`(2) INVENTORY TAX COMPUTATION . The ciga-

rette inventory tax under this section is com-puted by multiplying the number of cigarettesheld in inventory, forr sale or resale by, thedifference between the prior tax ratee and thenew tax rate and adding to thatt amount anamount determined by multiplying the numberof unaffixed stamps held by the difference be-tween the prior tax rate and the new tax rate .

(3) ADMINISTRATION Sections 71 . 10 ( 1 0) (d)to (g) 71 .11 (16), (17), (19), (20), (22) and (23),71,12 to 71 . .135; 73,01 and 73 .015 apply to thissection .

(4)LATE FILING FEE; Any person who fails tofile a cigarette inventory tax return when dueshall pay a late filing fee of $10 . A return istimely filed if it is mailed in a properly addressedenvelope with LsY class : postage prepaid, if the


3029 . BEVERAGE AND TOBACCO-TAXES 1 39.33

envelope is postmarked on the due date andd if'the retur n is actually received by the departmentwithin 5 days of the due date .

(5) INTEREST ON DELINQUENT PAYMENTS . I fany pet son does not timely pay the tax imposedunder this section, that person is liable forinterest at the rate of 1 5% per month orfraction of 'a month from the date the tax is dueuntil the date when the tax is paid .

(6) PENALTY . If' any person who is liable forthe tax under this section files a false or fraudu-lent return, that person is also liable, in additionto the tax due, for an amount equal to theamount of tax the person evaded or attemptedto evade

History: 198 1 c . 3 1 7 .

139.32 Payment of taxes . (1) The tax imposedby s . 139,31 (1) shall be paid by purchase ofstamps from the department To evidence thepayment; stamps of the proper denominationshall be affixed to each package in which ciga-rettes are packed, prior to the firstt sale withinthis state First sale does not include, a sale by amanufacturer to a distributor or by a,dstcibu-tar to a .petrnittee who has obtained departmentapproval as provided for- in sub: (8) (a) 2 Thetax shall be paid only once on each package orcontainer

(2) The secretary shall prepare and haveavailable for sale stamps of'such denominationsand quantities as he deems necessary .for thepayment of the taxes imposed by s, 139 ..31, Thestamps shall be of suchh designs and materials asto make the removal and reuse thereof impossi-ble after, being once affixed .

(3) Stamps shall be affixed in the mannerprescribed by the secretary

(4) In lieu of'stamps the secretary may autho-iize impressions applied by the use of metermachines .. He shall prescribe by rule the type ofimpression and the kind of'machines which maybe used . .

(5) Manufacturers and distributors having apermit from the secretary may purchase stampsat a discount of 2 0%

(6) Manufacturers and distributors having apermit from the secretary may purchase stampson credit upon filing a payment guarantee bondin the 'amount and under the conditions pie-scribed ,by the secretary by rule :

(7) If'the tax imposed by s . 139 :31 (1) is notpaid when due ; interest shall accrue at the rateof 1 . :5% per month or a fraction of 'a monthfrom the date the tax became due until paid . .

(8)' It is unlawful for any person to possess inexcess ' of 400` cigarettes unless- the requiredstamps are properly affixed as provided in sub .(1) and `s: 139.33 (4) .

(a) This subsection shall not apply to thefollowing:

1 . Manufacturers ; distributors or warehouseoperators possessing valid permits issuedd by thesecretary .,

2. Any peirnittee -under s . 139 . . .34 havingdepartment approval or person authorized toacquire, possess or sell unstamped cigarettesunder s. 139, 31 (3) provided that said permitteeor person maintains- a separate inventorythereof and records pertaining thereto in suchmanner and form as the department prescribesby rule .,' 3 . Common carriers licensed by the interstatecommerce commission to carry such commodi-ties in interstate commerce who are in posses-sion of proper bills of lading covering each suchshipment . . The department may by rule requirethat copies of all such bills of lading, clearlyindicating thereon the quantities of cigarettestransported, be furnished to it . .

(b) Any person violating this subsection shallbe punished as provided in s . 139,44 (8) .

History: 1971 c. 125 ; 1977 c 29 ;' 1983 a. 27

139 . 323 Refunds to Indian tribes. The depart-ment shalll refund 70% of the taxes collectedunder- s, 139, 31 (1) in respect to sales on reserva-tions or trust lands of an Indian tribe to thetribal council of the tribe having jurisdictionover the reservation or, trust land on which thesale is made if' all the following conditions arefulfilled :

(1 ) The tribal council has filed a claim for therefund with the department .

(2) The tribal council has approved theretailer .

(3) The land on which the sale occurred wasdesignated a reservation or, trust land on orbefore' .Januacy 1, -1983 .

(4) The cigarettes were not delivered by theretailer to the buyer by means of a commoncarrier, a contract carrier or the U .S, postalservice :

. . His tory : 1983 a, 27

139 .325 ` Agreements with Indian tribes . Thedepartment may enter into agreements withIndian tribes to provide for-'the refunding of thecigarette tax imposed under s 139 31 (1) oncigarettes sold on reservations to enrolled mem-bers of the tribe residing on the tribalreservation

History:" 1983 a 2'7 .

139 .33 Use tax . (1) A use tax is imposed andlevied upon the use of cigarettes in this state byany person for any purpose if' the excise taximposed by s . 1 .39 .3i has not been paid on suchcigarettes, Such tax is levied and shall be



collected at the same rates as provided ` for ins .139..31 .. The tax imposed by this section is notapplicable to cigarettes subject to the excise taximposed by s . 139 31 nor to cigarettes exemptfrom that tax under s 139,31 (.3) .

(3) No person other than a licensed distribu-tor may import into this state more than 40,0cigarettes on which the excise tax imposed by s .:139 , 31 has not been paid and the container ofwhich does not bear proper stamps .. Within 15days, any such person importing cigarettes shallfile with the department a declaration of suchcigarettes imported and shall remit the rewiththe tax : on such cigarettes imposed by this

- section . .: Members of the armed forces shall notbe required to report or pay the tax on cigarettesin their possession if such cigarettes are i ssuedto them by the U. S. government or any of itssubd i visions or. were purchased in any armedforces post exchange or service store , If the usetax imposed by this section is not paid whendue, itshall become delinquent and the personliable for it shall pay, in addition, a penaltyy of$25 for each 200 cigarettes . Interest on thedelinquent tax and penalty shall accrue at therate of 1' . 5%o per month or each fraction of amonth from the date the tax became due untilpaid

(4) Sections 139 30 to 139 44 relating to en-forcement of the excise tax imposed by s. 13931apply to enforcement of the use tax imposed bythis section .

(5) Sections '71 .. 10 (10) (d) to (g) , 71 . 11 (P6) ,(17), (19) , (20), (22) and (23), 71 12 to 71 , 135 ,7 .3 01 and '73 .015 apply to the administration ofthis section ..

History: 1977 c 289 ; 1983 a 27 .

139,34 Permits required . (1) (a) It is unlawfulfor any person to manufacture cigarettes in thisstate or sell cigarettes in this state as a distribu-tor,, jobbcr, vending machine operator or multi-ple, retai ler and no person shalll operate a ware-house in this state for the storage of cigarettesfor another person without first obtaining theproper permit to perform such operations fromthe department ofrevenue The application fora permit and thee permit shalll be in the formprescribed by the department and the, applica-tion form shall require such information as isnecessary to administer this section..

(b) This sectionn applies to all officers, direc-tors, agents and stockholders holding 5% ormore of the stock of any corporation applyingfor a permit under this section,

,(c) Subject to ss . 111 321, I11 .322 and111,335, no permit under this section may begranted to any person who :

1 . Has been convicted of a misdemeanor, notinvolving chs : 340 to 349, at least 3 times ;

2 Has been convicted of a felony, unlesspardoned;

3 . Is addicted to the use of a controlledsubstance under ch . 161 ;

4 . Has income which comes principally fromgambling,, or who hass been convicted of '2 ormore gambling offenses;S . Has been guilty of crimes relating to pros-

titution ; or,6 Has been guilty of crimes relating to loan-

ing money or anything of valuee to personsholding licenses or permits pursuant to ch . 12.5 , .

(d) Upon denial of a permit the departmentof revenue shall immediately notify such personin writing of the denial and the reasons therefor .

(e) A denial of 'a permit by the department ofrevenue shall be subject to judicial review underch 227 ..

(2) Each permit shall expire on June 30 ofeach year ,

(3) The annual fee for each permit issuedunder this section is $50 :

(4) A separate permit shall be required of and` issued to each class of" permittee and the holder-of any permit shall perform only the operationsthereby authorized ; Such permit shall not betransferable from one person to another orfrom One premises' to another : A separatepermit shall be required for each place wherecigarettes are stamped or where cigarettes arestored for sale at wholesale or through vendingmachines or multiple retail outlets ,

(5) The ownership and operation of a retailoutlet shall not preclude a person from receiv-ing a permit as a ' distributor, or jobber Nopermit shall be issued to a person who owns oroperates such a retail outlet unlessa substantialpart of his sales of cigarettes are at wholesale .

(6) A vending machine operator or a multipleretailer may acquire unstamped cigarettes fromthe manufacturers thereo fand affix the stampsto packages or other containers only f' he alsoholds a permit as a distributor ..

(7) The secretary may : require : by rule, thatstamps affixed to cigarette packages be identi-fied by apermit or code number assigned to theperson affixing them .

(8) The . holder of a warehouse permitt isentitled to store cigarettes on the premises de-scribed in thee permit . The warehouse permitshall not authorize the holder to sell ciga r ettes .Unstamped cigarettes stored in a warehouse fora manufacturer or distributor may be deliveredonly to a person holding a permit as a manufac-turer: or distributor ,

(9) The applicant for a permit, if' a nonresi-dent or foreign corporation, shall file proof thathe has appointed the secretary of state his agentfor the service of process on any matterr arising


3 . Is addicted to the use of a controlledsubstance under ch 161 ;

4 Has income which comes principally fromgambling, or who has been convicted of 2 ormore gambling offenses ;

5 . Has been guilty of crimes relating to pros-titution ; or

6 . Has been guilty of ' crimes relating to loan-ing money or anything of value to personsholding licenses or permits pursuant to ch . 125 . .

(d) The department of revenue shall immedi-ately notify any person who is denied a permitin writing of,the denial and the reasons therefor .

(e) A denial of a permit by the department ofrevenue is subject to judiciall review under ch .227

(2) No representative , of anyy manufacturershall sell more than 3 cartons of ' any one kind ofcigarettes to any retailer at one time .

History : . 1971 c 219; 1973 c. 198 ; 1 975 c. 39 s . 732 (2m);1915 c . 199 ; 1977 c 125 ; 19 '79 c 89; 1981 c 79 s . 18 ; 1981 c334 s. 25 (1); 1981 c . 380, 391 ; 1983 a 27 s . 2200 (45).

139.38 Records, returns . (1) Every manufac-turer located out of the state shall keep recordsof all sales of cigarettes shipped into this state . .Every manufacturer located in the state shallkeepp records of production , sales and with-drawals of cigarettes . Every distributor shallkeep records of purchases andd sales of ciga-ettes . Every manufacturer and distributorholding a permitt from the secretary with theright to purchase and , apply stamps shall alsokeepp records of purchases and disposition ofstamps . Every jobber, multiple retailer andvending machine operator shall keep records ofall purchases and disposition of cigarettesEvery warehouse operator shall keep records ofreceipts and withdrawals of cigarettes . All suchrecords shall be accurate and complete and bekept in a mariner prescribedd by the secretary . .These reco rds shall be preserved on the prem-ises described in the permit or license for 2 yearsin such a manner as to insure permanency andaccessibility for inspection at reasonable hoursby authorized personnel of' the department.

(2) (a) Except as provided in par. (b) , everypermittee shall render a true and correct invoiceof every sale of ' cigarettes at wholesale and shallon or before the 15th day ' of each calendarmonth make a verified report to the departmentof all cigarettes purchased , sold , received , ware-housed or withdrawn during the preceding cal-endar month .

(b) The department may allow any jobber ,multiple retailer or vending machine operatorpermittee who does not sell cigarettes , exceptfor those on which the tax under this chapter ispaid; to file a quarterly report The quarterlyreport shall be filed on or before the 15th day of

139.37 Salespersons. (1) (a) No person shallsell or take orders for cigarettes for resale in thisstate for any manufacturer or permittee withoutfirst obtai ning a salesperson ' s permit from thedepartment of revenue. No manufacturer orpermittee shall authorize any person to sell ortake orders for cigarettes in this state withoutfirst having such person secure a salesperson ' spermit The fee for such permit is $2 . Eachapplication for a permit shall disclose the nameand address of the employer and such permitshall remain effective only while the salespersonrepresents such named employer,. If such sales-person is thereafter- employed by another manu-facturer or permittee the salesperson shall ob-tain a new salesperson's permit . Eachmanufacturer and permittee shall notify thedepartment within 10 days after the resignation ,or dismissal of any such , salesperson holding apermit .

(c) Subject : to ss . 111 . 321 , 11 . 1 .. 322 and1 . 11 335, , no permit under this section : may begranted to any personn who : .

1 . Has been convicted of a misdemeanor not,involving chs. 340 to 349, at least 3 times ;

2. Has been convicted of a felony, unlesspardoned ;

3031

under ss. 139 .30 to 1. 39 . 44 . A foreign corpora-tion without a place of business in this stateneed not obtain a certificate of authority unders . . 180 . 801

(10) Every vending machine operator shall inhis application for a permit list each county inwhich he operates such machines and state thenumber of such machines he is then operating ineach such county .

History : 1971 c . 219 ; 1973 c. 198; 1975 c 39 s. " 732 (2m) ;1977 c . 125 ; 1979 c 34, 89, 221 ; 1981 c . 79 s : 18 ; 1981 c . 334 s25 (1); . 1981 c. .3&0,. 391 .

139.35 Stamps. (1) , TxANSFExs . No personmay give, sell or lend any stamps to another andno person may accept , purchase or borrow anystamps from another . All sales and transfers ofstamps may be made only by the secretary topermit holding manufacturers and distributors,

(2) RECORDS. The secretary shall keep arecord of the sale of all stamps including thenames of' the purchasers and the date of sale .

439.36 Refunds . The secretary shall r efund toany purchaser the money paid for any stampsreturned unfit for use or othe rwise unused orwhich have been affixed to packages which areunsalable He shall prescribe by rule the proofrequired to obtain such refund The permitteeshall pay the expenses of determining theamount of such refund .

BEVERAGE AND TOBACCO TAXES 139.38



thee next month following the close of eachcalendar quarter , The report shall specify thenumber of cigarettes purchased and sold duringthe preceding calendar quarter .

(3) The secretary shall prescribe reasonableand uniform methods of keeping records andmaking reports . He shall prescribe and furnishthe necessary . report forms. ;

(4) If' the secretary finds that the records ofany permittee are not kept in the prescribedform or are in such condition that an unusualamount of' time is required to determine there-from the amount of ' tax due, he shall give noticeof such fact to such permittee and, in suchnotice, require that the records be revised andkept in the prescribed form . If such permitteefails to complyy within 30 days he shall pay theexpenses reasonably attributable to a properexamination and tax determination at the rateof $30 per day of each auditor . . The secretaryshall sendd a b ill for- such expenses and thepermittee shall pay the amount of such billwithin 10 days .

(5) If any permittee fails to file a repoit whendue he shall be required to pay a late filing fee of$10 . . A report shall be considered filed in time if 'it is- :mailed in a properly addressed envelopewith first class postage duly prepaid, whichenvelope is officially postmarked on the datedue , and if ' the report is actually received by thesecretary within 5 days of the -due. date.

(6) ` Section ' 71 . . 11 (44) (a) and (c) to (h) ,relating to confidentiality ofincome and gift taxreturns, applies to any information obtainedfrom any person on a cigarette tax return,report , schedule, exhibitt or other document orfrom an audit report pertaining to the same . .

(7) The department mayy inspect the businessrecords of any retailer doing business on areservation or on an Indian tribe's trust ]and ..

History: . 19 '77 a 289 ss , 9, 11m; 1981 c 20; 1983 a 27 .

139.39 Administration and enforcement . (1)The department shall administer and enforce ss ..139 . 30 to 139 44, 139 . 75 to 139 . 85 and 134 .. 65 ..The department shall adopt rules necessary toadminister and enforce' its duties ,

(2) Authorized personnel of the departmentof justice and the department of revenue , andany sheriff, policeman; marshal or constable,,within their respective jurisdictions , may at allreasonable hours enter the premises of ' anypeimittee or retailer and examine the books andrecords to deter-mine whether the tax imposedby s . 139,31 has been fully paid and may enterand inspect any premises where cigarettes aremade, sold or stored to determine whether ss .1,3930 to 139,44 are being complied with .

139.40 Seizure and confiscation . (1) All ciga-rettes owned; possessed, kept, stored, made,sold, distributed or transported in violation ofthis chapter, and all personal property used inconnection therewith is unlawful property andsubject to seizure by the secretary or any peaceofficer .

(2) If cigarettes which do not bear the propertax stamps or on which the tax has not beenpaid are so seized they may be sold to qualifiedbuyers by the secretary, without notice, andafter deducting the costs of the sale and thekeeping of'the property, the proceeds of'the saleshall be paid into the state treasury . When thesecretary finds that such cigarettes may deterio-rate or become unfit for sale or that such salewould otherwise be impractical he may orderthem destroyed or give them to a charitable orpenal institution for free distribution to patientsor inmates . .

(3) If' cigarettes on which the tax has beenpaid and which bear the proper tax stamps areseized they shall be returned to the true owner ifownership, can be ascertained and such owneror his agent is not involved in the violationresulting, in such seizure .. If such ownershipcannot be ascertained or if' the owner or his

(3) The secretary may suspend or revoke thepermit of' an ,y permittee who violates ss 100 30or 139 :30 to 139 44 or any rules adopted undersub . (1) . The secretary shall revoke the permitof any permittee who violates s 100,30 3 ormore times within a 5-year period .

(4) No suit shall be maintained in any courtto restrain or delay the collection or payment ofthe tax levied in s . 1 .39 . 31 ., The aggrievedtaxpayer shall pay the tax when due and , if paidunder: protest, may at any time within 90 daysfrom the date of payment, sue the state torecover the tax paid . If it is finally determinedthat any part of the tax was wrongfully col-lected, the department of administration shallissue a warrant on the state treasurer for theamount wrongfully collected , and the treasurershall pay the same out of the general fund .. Aseparate suit need not be filed for each separatepayment made by any taxpayer , but a recoverymay be had in one . suit for' as many payments asmay have been made . .

(5) Any person may be compelled to testify inregard to any violation of ' ss . 134 . 65 and 1 .39 .30to 139,44 of, which : he may have knowledge ,even though such testimony may tend to incrim-inate him, upon being granted immunity fromprosecution in connection therewith, and uponthee giving of such testimony , he shall not beprosecuted because of thee violation relative towhich he has testified . .

History: 1975 c. .39, 199; 19'79 c 34; 1981 c. 20


any package or container of cigarettes, or whopossesses with the intent to sell any cigarettes incontainers to which false , altered or counterfeitstamps have been affixed shall be imprisonedfor not less than one year nor more than 10years..

(2) Any permittee who makes or verifies anyfalsee or fraudulent report or who attempts toevade the tax imposed by s 139 .. .31 or 139 . . 76 , orwho aids in or abets the evasion or attemptedevasion of that tax shall be fined not less than$1,000 nor more than $5,000 or imprisoned notless than 90 da ys not more than one year orboth .

(3) Any permittee who fails to keep therecords required by ss . 139 .30 to 13942 or139 77 to 139,82 shall be fined not less than$100 nor more than $500 or imprisoned notmore than 6 months or both .

(4) Any person who refuses to permit theexamination or inspection authorized in s .139 . 39 (2) or 1 .39 . . 83 may be fined not more than$500 or imprisoned not more than 90 days orboth ; Such refusal shall because for immediatesuspension or revocation of permit by thesecretary

(5) Any person who violates any of the provi-sions of' ss 139 30 to 1 .39..41 or 139 . .' 75 to 139 .. 8 :3for which no other penalty i s prescribed shall befined not less than $100 nor more than $1,000 orimprisoned not less than 10 days nor more than90 days or both ,

(6) Any person who violates any of the rulesof the department shall be fined not less than$100 nor mote than $500 or be imprisoned notmore than 6 months or both .

(7) In addition to the penalties imposed forviolation of ss : 139 . 30 to 139 41 or 139 .. 75. to139 . 83. or any of the rules o f' the department, thepermit of any person convicted shall be auto-matically revoked and he or she shall not begranted another permit for a period of 2 yearsfollowing such revocation .

(8) Penalties for violation of s . 1 .39 . . 32 (8)shall be as follows:

(a) If the number of cigarettess does notexceed 6 , 000, a fine of not more than $200 orimprisonment for not more than 6 months orboth . .

.

(b) If the number of cigarettes exceeds 6 , 000but doess not exceed 36,000, a . fine of not morethan $1,000 or imprisonment for not more thanone year in the county jail or both .

(c) If ' the number of cigarettes exceeds 36 ,000 ,a fine of not more than $10,000 or imprison-ment for not more than 2 years or both . .

History : 1981 c . 20 ; 1 983 a 63 .

139 .43 State-wide concern . Sections 1 .39 . .30to 139 44 shall be construed as an enactment ofstate-wide concern for the purpose of providinga uniform regulation of the sale of cigarettes ..

139.44 Penalties. (1) Any person who falselyor fraudulently makes, alters or counterfeitsany stamp or procures or causes the same to bedone, or who knowingly utters, publishes,,passes or tenders as true any false, altered orcounterfeit stamp, or who affixes the same to

3033

agent was guilty of a violation of any of theprovisions of ss . 139.30 to 139 ..44, which re-sulted in the seizure of such cigarettes, they maybe sold or otherwise disposed of as provided insub .: (2)

(4) If'personal property other than cigarettesis so seized the secretary shall advertise the samefor sale by publication of a class 2 notice underch 985. If no claimant, either of lien or owner-ship, has notified the secretary within 10 daysafter last insertion of such notice, the propertyshall be sold . If' such sale is not practical theproperty may be destroyed . If a claimant of alien or ownership notifies the secretary withinthe prescribed time, the secretary may apply toa court of record in the county where theproperty was seized f'or, an order directing dis-position of said property or the proceedsthereof. If a sale of` such seized property isordered, all liens, if any, may be transferredfrom the property to the proceeds of such saleNeither the property seized not the proceedsfrom the sale thereof shall be turned over to anyclaimant of lien or ownership unless such claim-ant first establishes that the property was notused in connection with any violation of ss .1 .39 30 to 139 .44 or that, if so used, it was donewithout his knowledge or consent and withouthis knowledge of such `facts as should havegiven him reason to believe it would be put tosuch use .. If no claim of lien or ownership is soestablished the property may be ordered de-stcoyed . In case of sale, the net proceeds afterdeducting costs expenses and establishedclaims shall be paid' into the state treasury ..

139 . 41 Place to place delivery . No personshall peddle any cigarettes from house to house;where the sale is consummated and deliverymade concur rently

139 .42 Nuisance. Any building or place ofany kind where cigarettes are sold, possessed ;stored or manufactured without a lawful permitin violation of ss . 139 .. .30 to 139 . :41 is declared apublic nuisance and may be closed and abatedas such .

BEVERAGE AND TOBACCO TAXES 139 .44



139.75 Definitions. In this subchapter :(1) "Business" means any trade, occupation,

activity or enterprise engaged in for the purposeof selling or distributing tobacco productss inthis state .. .

(2) "Consumer" means any person who . hastitle to or possession of tobacco products instorage for use or other consumption in thisstate,.

(3) "Department" means the department of'revenue . .

(4) "Distributor" means :(a) Any person engaged in the business of

selling tobacco products in this state whobrings, or causes to be brought, into this statefrom outside the state any tobacco products for-

;sale ;(b) Any person who makes, manufactures or

fabr icates. tobacco products in this state for salein this state ; or

(c) Any person engaged in the business ofselling tobacco products outside thi s state whoships of transports tobacco products to retailersin this state to be sold by those retailers .

(5) "Manufacturer" means any person whomanufactures and sells tobacco products . . .

(6) "Placee of business" means any placewhere , tobacco products are sold, manufac-tured, stored or kept for the purpose of sale orconsumption,, including any vessel, vehicle, air-plane , train or vending machine . .

(7) "Retail outlet" means each place of busi-ness from whichh tobacco products are sold " toconsumers ,

(8) "Retailer" means any person engaged inthe business of selling tobacco products toultimate consumers

(9) "Sale" means any transfer, exchange .: orbarter for a consideration . . It includes a gift by aperson engaged in the business of' selling to-bacco products forr advertising or as a means ofevading this subchapter or for any otherpurpose ..

(10) "Storage" means any keeping or reten-tion of tobacco products for use or consump-tion in this state ..'

(11) "Subjobber" means any person otherthan a manufacturer or distributor, who buystobacco products from a distributor and sellsthem to persons other than the ultimateconsumers .

(12) "Tobacco products" means cigars, che-roots; stogies ; pexiques; granulated, plug cut,crimp cut , ready-rubbed and other smoking

139 . 77 Distributors, monthly returns. (1) Onor before the 15th day of each month, everydistributor with a place of business in this stateshall file a return with the department showingthe quantity and taxable price of each tobaccoproduct brought, or caused to be brought, intothis state 'f'or, sale; or made, manufactured orfabricated in this state for sale in this state,during the preceding month . 'Every distributoroutside this state shall file a return showing thequantity and taxable price of each tobaccoproduct shipped or transported to retailers in

SUBCHAPTER III

TOBACCO PRODUCTS TAX

tobacco; snuff '; snuff flour' ; cavendish ; plug andtwist tobacco ; fine cut and other chewing tobac-cos; shorts ; refuse scraps, clippings , cuttingsandd sweepings of tobacco and other kinds andforms of' tobacco prepared in such manner as tobe suitable for chewing or smoking in a pipe orotherwise ,, or both for chewing and smoking;but "tobacco products " does not include ciga-rettes, as defined under s. 1 .3930 (1) . .

(13) "Use" means the exercise of any right orpower incidental to the ownership of tobaccoproducts ..

History: 1981 c 20

139 .76 Imposition ; exceptions . (1) An occu-pational tax is imposed upon the sale, offeringor exposing for sale, possession with intent tosell or removal for consumption or sale or otherdisposition for any purpose on or after October1, 1981, of' tobacco products by any personengaged as a distributor of them at the rate of20°7o.of the manufacturer's established list priceto distributors without diminution by volumeor other discounts on domestic products .. Onproducts imported from another country therate of tax. is 20%, of the amount obtained byadding the manufacturer's list price to the fed-etal tax, duties and transportation costs to theUnited States. . The tax attaches at the time thetobacco products are received by the distributorin this state.. The tax applies to distributors'floor stocks in this state at the close of businesson September 30, 1981

(2) Tobacco products sold to or by postexchanges of the U . S armed forces, to or byfederally or state-operated veterans hospitals inthis state, and tobacco products sold to aninterstate carrierof passengers for hire to beresold to bona fide passengers actually beingtransported and tobacco products sold for ship-ment outside this state in interstate commerceare not subject to the tax. The,tax imposed bysub ., (1) and s . 139 78 shall not apply withrespect. to any tobacco products which underthe constitutionn and laws of the United Statesmay not be taxed :by this state .

Hist ory : 1981 c 20; 1983 a 27


this state to be sold by those retailers during thepreceding month .. Returns shall be made uponforms furnished and prescribed by the depart-ment and shall . contain other information thatthe department requires . Each return shall beaccompanied by a remittance for the full taxliability shown .

.(2) As soon as practicable after any return isfiled , the department shall examine each returnand correct it, if necessary , according to its bestjudgment and information . If the departmentfinds that any amount of tax is due from thetaxpayer andd unpaid , it s hall notify the taxpayerof the deficiency, stating that it proposes toassess thee amount due together with interestand penalties . If a deficiency disclosed by thedepartment's examination cannot be al l ocatedto one or more particular months ; the depart-ment shall notify the, taxpayer of the deficiency ,stating its intention o assess the amount due fora given period without allocating it to , anyparticular months,

(3) If ', within. 60 days after the mailing ofnotice of the proposed assessment , the taxpayerfi less a protest to the proposed assessment andrequests a hearing on it, the department shallgive notice to the taxpayer ; of the time andd placefixed for the hearing , shall hold a hearing on theprotest and shall issue a final assessment to thetaxpayer for the amount found to be due as aresult of the hearing . If a protest is not filedwithin 60 days, the department shall issue afinal assessment to the taxpayer' .. In any actionor proceed ing in respect to the proposed assess-ment the, taxpayer shall have the burden ofestablishing the incorrectness or invalidity ofany final assessment made by the department.

(4) If any taxpayer required to file any returnfails to do so within the time prescribed , thetaxpayer shall , on the written demand of thedepartment, file the return within 20 days afterthe mailing of' it and at the same time pay the taxdue on its basis . . If the taxpayer fa ils within thattime to file the return, the . department shallprepare the return from its own knowledge andfrom the information that it obtains and on thatbasis shall assess a tax , which shall be paidwithin 10 days after the department has mailedto the taxpayer ; a written notice of the amountand a, demand for its payment . . In any action orproceeding in respectt to the assessment , thetaxpayer shall have the burden of establishingthe incorrectness or invalidity of any return orassessment made by the department because ofthe failure of the taxpayer to make a return .

,(5) All taxes are due : not later than the 15thday of the month following the calendar monthin which they were incurred ; and thereafter shallbear interest at the annual rate of 12% If the

139.78 Use tax . (1) A tax is imposed upon theuse or storage by consumers of tobacco prod-ucts in this state at the rate of 20% of the cost ofthe tobacco products . The tax does not apply ifthe tax imposed by s. 139 ~ 76 (1) on the tobaccoproducts has been paid or if the tobacco prod-ucts are exempt from the tobacco products taxunder s 139 . 76 (2) .

(2) On or before the 15th day of each month,every consumer who during the precedingmonth has acquired title to or possession for useor storage in this state of tobacco productsupon which the tax imposed by s . 139 .. 76 (1)" hasnot been paid shall file a return with the depart-ment showing the quantity of tobacco productsacquired : The return shall be made upon a formfurnished and prescribed by the department 'andshall contain the information that the depart-mentrequires . The return shall be accompaniedby a remittance for the full unpaid tax liability .

(3) If any return is not filed within the timespecified in this section , a penalty of '5% of thetax, with an additional 5% for each additional30 days or fraction thereof up to a maximum of25% is imposed, but the penalty for failing tofile timely shall not be less than $10 ' Thedepartment may for good cause shown extendthe time for filing the return without penalty ,

(4) Sections 139,30 to 1. 39 . : 44 relating to en-forcement of' the occupational tax imposed by s139.31 apply to enforcement of the use taximposed by this section .

(5) Sections 7 i ; io (10) (d) to (g), 71 1i i d i d>,(17), ( 1 9), (20), (22) and (23), 71 .12 to 71 .135,' 73 . . 01 and 73 015 apply to the administration ofthis section . .

History : 1981 c 20 .

3035 BEVERAGE AND TOBACCO TAXE S 1 39.78

amount of tax due for agiven period is assessedwithout allocating it to any particular month,the interest shall begin with the date of theassessment .

(6) In issuing its final assessment, the depart-ment shall add to the amount of tax found dueand unpaid a penalty of 10%, but if it finds thatthe taxpayer has made a false return with intentto evade the tax, the penalty shall be 50% of theentire tax' as shown by the corrected, return ; Inassessing a tax on the basis of a return madeunder sub. (4), the department shall add to theamount of tax found due and unpaid a penaltyof', 25% .

(7) T he department may recover the amountof any tax due and unpaid, interest and anypena l ty in a civil action The collection of thetax, interest or penalty is not a ba r to anyprosecution under s . 1:39 :85 .

History : 19 8 1 c 20


139.79 BEVERAGE AND TOBACCO TAXES

tobacco products salesperson's permit at nocharge .

History : 1981 c 20 ; 1983 a . 27 .

139.82 Records, returns. (1) Every manufac-turer located out of the state shall keep recordsof' all sales of tobacco products shipped into thisstate . . Every manufacturer located in this stateshall keep records of production, sales andwithdrawals of tobacco products . Every dis-tributor shall keep records of purchases andsales of tobacco products . . Every subjobbershall keep records of all purchases and disposi-tion of tobacco products Every warehouseoperator shall keep records of receipts andwithd rawals of tobacco products All recordsshall be accurate and complete and be kept in amanner prescribed by the department , Theserecords shall be preserved on the premises de-scribed in the permit for 2 years in such amanner as to ensure permanency and accessibil-ity for inspection at reasonable hours by autho-rized personnel of ' the department..

(2) (a)' Except as provided in par . (b), everypermittee shall render a true and correct invoiceof every sale of Tobacco products at wholesaleand shall on or before the - 15th day of eachcalendar month make a verified report to thedepartment of all tobacco products purchased,sold, received, warehoused or withdrawn dur-ing the preceding calendar month,

(b) The department may allow any subjobberpermittee who does not sell tobacco products,except for those on which the tax under - thissubchapter is paid, to, file a quarterly reportThe quarterly report shall be filed on or beforethe 15th day of the next month following theclose of' each calendar quarter . The report shallspecify the value oftobacco products put chasedand sold during the preceding calendar quarter

(3) The department shall prescribe - reason-able and uniform methods of keeping recordsand making reports and shall presc ribe andfurnish the necessa r y report forms

(4) If' the department finds that the records ofany peimittee are not kept in the prescribedform or are in such condition that an unusualamount of time is required to determine f romthem the .e amount of tax due, the departmentshall : give notice of such fact to that permitteeand require that the records be revised and keptin the prescribed form . If that permittee fails tocomply within ' 30 days that peimittee shall paythe expenses reasonably attributable to a properexamination and tax determination at the rateof $30 per day of each auditor . The departmentshall send a bill for expenses and the perzn i tteeshall pay the amount of the bill within 10 days . .

(5) If' any permittee fails to file a report whendue the permittee shall be required to pay a late

139 .80 Refunds , credits. If tobacco productsupon which the tax has been reported and paidare shipped or transported by the distributor toconsumers to be consumed outside the state orto retailers or subjobbers outside the state to besold by those retailers or subjobbers outside thestate or are returned to themanufacturer by thedistributor or destroyed by the distributor, thetax mayy be refunded or credited to the distribu-tor, as prescribed by the department .. Anyoverpayment of the tax imposed under s . 139 '78may be refunded or credited to the taxpayer, asprescribed by the department ..

History: 19,81 c 20

139 . 81 . . Salespersons . (1) No person may sellor take orders for tobacco products for resale inthis. state for any manufacturer, or permitteewithoutt first obtaining a salesperson's permitfrom the department. No manufacturer orperrnittee shall authorize any person to sell ortake orders for tobacco products in this statewithout first having such person secure a sales-person's permit . The fee for the permit is $2 .Each application for a permit shall' disclose thename and address of the employer and shallremain effective only while the salesperson rep-resents the named employer, : If'the salespersonis thereafter employed by another manufactureror petinitfee the salesperson shall obtain a newsalesperson's permit Each manufacturer and

'permitted shall notify the department within 10days after the resignation or dismissal of anysalesperson holding a permit .

(2) Section 139'.34 (1) (b) to (e) applies to thepermits under this section .

(3) Any person holding a cigarette salesper-son's permit under s .. 1.3937 may obtain a

3036

139.79 Permits ; distributor ; subjobber. (1)On and after October 1, 1981, no person mayengage in the business of a distributor or sub-jobber of tobacco products at any place ofbusiness without first having obtained a permitfrom the department to engage in that businessat such place. Every application for a permitshall . be made on a form prescribed by thedepartment, and the application form shall re-quire,the information that is necessary : to ad-minister this section,

(2) Section 139 .34 (1) (b) to (e), (2) to (4) and(9) applies to the permits under this section . .

(3) Any person holding a cigarette distributorpermit under s. 139 . . .34 may obtain a tobaccoproducts distributor permit at no charge, andany person holding a cigarette jobber permitunder s . 139 34 may obtain a tobacco productssubjobber permit at no charge .History : 1981 c . 20 ; 1983 a . 27 .


3037 BEVERAGE AND .TOBACCO TAXES 139.85

filing fee of $10 . A report shall be considered ment or from an audit report pertaining to thefiled in time if it is mailed in a properly ad- same .edressed envelope with first class postage pre- History : 1981 c 20paid, if the envelope is officially postmarked onthe date due, and ifthe report is actually re- 139 .83 Administration and enforcement.ceived by the department within 5 days of the Section 139,39 applies to the administration ofdue date., this subchapter.

(6) Section 71 11 (44) (a) and (c) to (h), History: 1981 c. 20

relating to confidentiality of income and gift taxreturns, applies to any information obtained 139 .85 Penalties. The penalties under s .

from any person on a tobacco product tax 1 .39 ..44 (2) to (7) apply to this subchapter . .

return, report, schedule, exhibit or other' docu- History: 1981 c 20.


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