Wisconsin Taxation Committee

January 18, 2007 Minutes

The meeting was called to order at 12:06 PM.

Motion to approve the September 6, 2006 minutes was made by Brian Ertmer, seconded by Ruth Kallio-Mielke.

Dennis Tomorsky provided an update on the following issues:

• Being his first address to the committee, Dennis provided an overview of his experience prior to becoming the Executive Director of WICPA. 
• Dennis has been meeting with WICPA members to solicit input on how the WICPA may be of more service to its membership. 
• The Young Professional Task Force and WICPA programs designed at encouraging young professionals to join the CPA profession.
• The financial literacy initiative.
• The Reality Store program.
• The Public Policy Committee’s efforts to stave off legislative efforts proposing sales tax on additional services.  Through the committee’s efforts the Governor and other prominent legislators have publicly commented that they are not in favor of additional services being subject to sales taxation.
• A review of the State Bar’s new proposal to the Wisconsin Supreme Court regarding unauthorized practice of law. 
• A review of the WICPA’s efforts to update its website.

Brian Ertmer provided the Sales & Use Tax Update and there was a brief discussion of the following issues:

• Attention was called to the new sales tax exemption for “Internet Equipment Used in the Broadband Market” that will become effective July 1, 2007.
• An update on Streamlined Sales Tax.
• Discussion of WDOR’s policies with respect to:
  1. Internet Access Services
  2. The Primary Purpose test used in evaluating the taxation of some services, such as, Health Club access, fitness facilities, and temporary staffing.
  3. No pass-through of common or contract carrier exemption to 3^rd party truck operators that haul for a common or contract carrier.
• Cases discussed included:  DaimlerChrysler, Milwaukee Symphony Orchestra and Butcher. 

Greg Butler facilitated the Income Tax Update and there was a brief discussion of the following issues:

• Update on the differences between Federal and Wisconsin tax laws.

• A discussion cautioning practitioners from relying upon Wisconsin forms that were printed prior to a number of federal legislative changes being adopted.

• Tax Rule 2.39 regarding taxation of services. 

• Cases discussed included:  Andover, Nutra Brands, Reynolds Aluminum and Ameritech Publishing.

John Austin provided an update on the Menasha case and some observations regarding trends with the Tax Appeal Commission.

Other Items Discussed during the Open Forum included:

• Federal Excise Tax Refunds.
• There was a brief discussion about whether or not this Committee should proactive pursue certain issues with the WDOR.
• Rocky Cummings will serve as Chairperson and Ruth Kallio-Mielke, as Vice-Chairperson beginning with our next meeting.  They will serve a two year term ending April 30, 2009. 

The next meeting is scheduled for May 23, 2007.

Motion to adjourn was made by Greg Butler, seconded by Richard Gerhard.

Meeting adjourned at 1:20 PM.

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