Last Week in Tax News (June 26-30, 2023)

WRS Partnership for Growth

L. 2023, A245, effective 06/01/2023, authorizes a county in which a first-class city is located (currently, Milwaukee County) to impose an additional sales and use tax at a rate not exceeding 0.4% of the sales price or purchase price of tangible personal property and services.  The tax will not take effect unless the county makes an election to join the Wisconsin Retirement System (WRS) for all new employees. The legislation also permits a first-class city to adopt an ordinance (by two-thirds majority vote) to impose a sales and use tax at a rate of 2.0% of the sales price of tangible personal property and services sold or used in the city. Likewise, the tax imposed by the city does not take effect unless the city makes an election to join the WRS for all new employees.

Catch of the Day: Tax!

Persons providing guided hunting and fishing trips are required to collect and remit sales tax on their charges for this service, regardless of whether customers use their own gear. In addition, income from providing guided hunting and fishing services is subject to business and occupation (B&O) tax under the retailing classification, though this B&O tax liability may be eliminated or reduced by the small business tax credit. The sales tax rate to collect is based on the place where the guide services begin in the state. When a guided hunting or fishing trip is sold as a package deal (one non-itemized charge) that includes retail sales taxable products such as prepared meals or lodging accommodations, as well as non-retail sales or services such as transportation, internet access, or resort fees, sales tax applies to the total charge. The seller is also subject to B&O tax under the Retailing classification on the total charge. Lastly, persons providing guided hunting and fishing services must pay sales tax on all equipment, gear, and supplies used in providing such services; a reseller permit may not be used to make these purchases without paying sales tax.

Aloha, Welcome to Property Tax!

The City and County of Honolulu has adopted an ordinance (Ordinance 23-18 (Bill 14), effective 06/21/2023) establishing a one-time real property tax credit applicable to tax year July 1, 2023 to June 30, 2024. A property owner is entitled to a credit of $350 against the taxes owed for the owner’s property for the 2023- 2024 tax year, provided that for the 2023-2024 tax year, the property owner has been granted a home exemption under Revised Ordinances of the City and County of Honolulu 2021 § 8-10.3. The credit applies only for the 2023-2024 tax year and cannot be carried over to any subsequent tax year. The credit will be applied in equal amounts to the two installments of taxes due. The credit will be applied against taxes owed in the following order of priority: (1) one-time tax credit for the tax year 2023 -2024; (2) low-income homeowner tax credit as provided in Revised Ordinances of the City and County of Honolulu 2021 § 8-13.2; and (3) automatic sprinkler system tax credit, as provided in Revised Ordinances of the City and County of Honolulu 2021 § 8-14.2. The amount of tax on the real property after applying all applicable tax credits must not be less than the minimum tax.

Crypto Tax

The Wisconsin Department of Revenue will hold a virtual public hearing on Tuesday, July 11, 2023, at 10 a.m. to receive public input on the proposed permanent rule creating Chapter Tax 10, which establishes a time period by which virtual currency must be converted to U.S. currency prior to being turned over to the unclaimed property program. People must register to attend and are invited to make an oral presentation at the hearing.  People not attending may submit written comments about the proposed rule order by July 11.

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