Section Tax 9.69 - Master settlement agreement with tobacco product manufacturers(1) PURPOSE. This section describes requirements and methods relating to collecting, maintaining and reporting data regarding the number of Wisconsin state cigarette excise tax stamps affixed to packages of cigarettes, and the amount of "roll-your-own" cigarette tobacco, sold in Wisconsin each year. Note: The data collected, maintained and reported under this section shall be used to ascertain the amount of Wisconsin excise tax paid on the cigarettes of each tobacco product manufacturer that elects to place funds in a qualified escrow fund under s. 995.10, Stats., for each year, or, if the department deems it appropriate, is a participating manufacturer under the master settlement agreement between the state and tobacco product manufacturers, pursuant to 1999 Wis. Act 122.
(2) DEFINITIONS. In this section: (a) "Cigarette" has the same meaning as in s. 995.10(1) (d), Stats., and includes "roll-your-own" cigarette tobacco.(b) "Master settlement agreement" has the same meaning as in s. 995.10(1) (e), Stats.(c) "Qualified escrow fund" has the same meaning as in s. 995.10(1) (f), Stats.(d) "Sell" or "sale" has the same meaning as in s. 139.30(12), Stats.(e) "Tobacco product manufacturer" has the same meaning as in s. 995.10(1) (i), Stats., and includes both a cigarette manufacturer under subch. II of ch. 139, Stats., and a tobacco products manufacturer under subch. III of ch. 139, Stats., that sells "roll-your-own" cigarette tobacco.(f) "Wisconsin consumer" means a consumer within this state, including a direct consumer, distributor, retailer or intermediary similar to a distributor or a retailer.(3) REPORTING REQUIREMENT. (a) Every tobacco product manufacturer that elects to sell cigarettes to Wisconsin consumers shall, by the 15th day of each month, file a schedule with the department that reconciles the number of Wisconsin state cigarette excise tax stamps affixed to packages of cigarettes sold to Wisconsin consumers and the amount of "roll-your-own" cigarette tobacco sold to Wisconsin consumers in the previous calendar month.(b) The schedule required under par. (a) shall contain all of the following information that is applicable: 1. A listing of each sale of cigarettes other than "roll-your-own" cigarette tobacco manufactured, or the name of the manufacturer of the cigarettes that were delivered to Wisconsin consumers, onto which state cigarette excise tax stamps were affixed.2. A listing of each sale of "roll-your-own" cigarette tobacco manufactured, or the name of the manufacturer of the "roll-your-own" cigarette tobacco, that was delivered to Wisconsin consumers.3. For each manufacturer listed pursuant to subd. 1., a listing of all brands of cigarettes sold and the number of Wisconsin state cigarette excise tax stamps affixed to cigarette packages with respect to each brand.4. For each brand of cigarettes listed for each manufacturer pursuant to subd. 3., the following additional information, if known: a. The name of the manufacturer of the cigarettes.b. The name of the person or entity first responsible for the cigarettes being designated or identified for sale in the United States.5. For each sale of "roll-your-own" cigarette tobacco listed for each manufacturer pursuant to subd. 2., the following additional information, if known: a. The name of the manufacturer of the "roll-your-own" cigarette tobacco.b. The name of the person or entity first responsible for the "roll-your-own" cigarette tobacco being designated or identified for sale in the United States, by brand.6. Any other information the department may deem necessary to administer the provisions of this section.(4) ESCROW FUND CERTIFICATION REQUIREMENTS. (a) Every tobacco product manufacturer that is not a participating manufacturer under the master settlement agreement shall by April 15 of each year certify to the department and to the attorney general that the amounts required under s. 995.10(2) (b), Stats., have been placed into a qualified escrow fund that is designated for Wisconsin judgments or release payments.(b) The certification required under par. (a) shall include all of the following: 1. The name of the qualified financial institution where the escrow fund is maintained.2. The amount of funds placed into the escrow fund since the last reporting period, based on Wisconsin sales.3. The amounts, if any, paid out of the escrow fund in judgments or release payments and the purpose of the disbursements.4. The balance in the escrow fund as of March 31 of each year.5. A copy of the escrow fund balance statement as of March 31 of each year.(5) RECORDKEEPING REQUIREMENTS. Every tobacco product manufacturer required to file a schedule under sub. (3) shall maintain complete and accurate records to support the information reported on the required schedule. These records shall be maintained for a period of 5 years from the date of sale into Wisconsin and shall include all of the following: (a) Purchase records indicating the tobacco product manufacturer of the cigarettes, the date of purchase and the number of cigarettes by brand or amount of "roll-your-own" cigarette tobacco purchased, by brand.(b) Sales records indicating to whom the sale was made, the tobacco product manufacturer of the cigarettes, the date of sale and the number of cigarettes by brand or amount of "roll-your-own" cigarette tobacco sold.(c) The number of Wisconsin cigarette tax stamps placed on packages of cigarettes for sale in the state of Wisconsin.(d) Any additional records deemed necessary by the secretary.(6) REMEDIES FOR NONCOMPLIANCE. The failure of a tobacco product manufacturer to either become a participating manufacturer under the terms of the master settlement agreement or place funds into a qualified escrow fund, as provided in s. 995.10(2) (b) 1, Stats., shall be subject to civil action and penalties under s. 995.10(2) (b) 3, Stats.Wis. Admin. Code Department of Revenue Tax 9.69
Emerg. cr., eff. 8-17-00; cr. Register, December, 2000, No. 540, eff. 1-1-01; corrections in (2) (a) to (e), (4) (a) and (6) made under s. 13.93(2m) (b) 7, Stats., Register September 2006 No. 609.Amended by, CR 17-019: am. (5) (intro.), Register June 2018 No. 750, eff. 7/1/2018Section Tax 9.69 interprets subchs. II and III of ch. 139, Stats., and s. 995.10, Stats.
See s. Tax 2.60 for combined reporting definitions relating to this section. See s. Tax 2.65 for rulesrelating to the designated agent. See s. Tax 2.66 for rulesrelating to the payment of estimated taxes by combined groups. See s. Tax 2.67 for rulesrelating to the filing of a combined return.