Income/Franchise Tax - Wisconsin: Department issues emergency amendments to rules on apportionment and nexus
Amended Rules Secs. Tax 2.39, 2.49, 2.495, 2.502, 2.82; 2.46, 2.47, 2.475, 2.48, 2.50, Wis. Dept. of Rev. (12/31/09). The department has issued emergency rule amendments to help implement select 2009 legislation, including provisions involving sales factor "throwback," combined reporting, and nexus. The amendments reflect new law applicable to tax years beginning on January 1, 2009, which repeals Wisconsin's previous "50%" sales factor throwback rule on sales shipped from Wisconsin to a destination state where the seller is not taxable, now requiring that 100% of such sales be included in the sales factor. The revisions also reflect certain sales factor throwback and sourcing changes relating to sales of other than tangible personal property. Other rule amendments include:
- Explaining how certain income tax nexus and apportionment provisions apply to corporations that are required to use combined reporting,
- Amending the definition of "financial institution" in certain instances to include credit card banks and investment subsidiaries of banks, and
- Clarifying that nexus for part of a taxable year is recognized as nexus for the entire taxable year.
