Wisconsin Tax Bulletin 112 – January 1999 29 also the corporation’s registered that the taxpayer was a responsible establish that he was a responsible agent. He supervised corporate em- person under sec. 71.83(1)(b)2, Wis. person. ployes in 1991, and he knew that the Stats., with the authority and the corporation was required to remit duty to pay the corporation’s with- The Circuit Court affirmed the deci- withholding taxes to the department holding taxes, and the intention to sion of the Commission. during the period under review. breach that duty. The taxpayer contends that the Commission failed The taxpayer has not appealed this The Circuit Court reviewed the deci- to produce the required evidence to decision.  sion by the Commission, which held

Tax Releases

“Tax releases” are designed to pro- periods open to adjustment. All refer- land contracts, mortgages, stocks, vide answers to the specific tax ences to section numbers are to the bonds, and securities, or from the sale questions covered, based on the facts Wisconsin Statutes unless otherwise of similar intangible personal prop- indicated. In situations where the facts noted. erty, shall follow the residence of the vary from those given herein, the an- individual, estate, or trust. swers may not apply. Unless otherwise The following tax releases are in- cluded: indicated, tax releases apply for all Facts and Question 1: The taxpayer was a legal resident of Wisconsin for Individual Income Taxes Sales and Use Taxes 1998 (i.e., the taxpayer was domiciled in Wisconsin). During 1998 the tax- 1. Rollovers to Roth IRAs (p. 29) 3. Meat Processors May Qualify as payer rolled over a $40,000 Manufacturers (p. 36) distribution from a regular IRA to a 2. Tuition Expense Subtraction: Eli- Roth IRA. The taxpayer will report gible Institutions (p. 30) the taxable distribution over a four- taxable year period ($10,000 per year). The taxpayer filed a 1998 Wis- INDIVIDUAL INCOME TAXES made to include the entire taxable consin income tax return and included amount in taxable income for 1998. the $10,000 on his return. In 1999, the Rollovers to Roth IRAs taxpayer abandons his Wisconsin 1 This federal provision also applies for residency and establishes a new legal Statutes: Sec. 71.04(1)(a), Wis. Wisconsin tax purposes (sec. residence in Florida. Stats. (1995-96) 71.01(6)(m), Wis. Stats., as amended by 1997 Wisconsin Act 237). Is the remaining $30,000 (that is, the Note: This tax release applies only $10,000 portion of the distribution with respect to taxable years begin- Section 71.04(1)(a), Wis. Stats. that is includable in the taxpayer’s ning on or after January 1, 1998. (1995-96), provides that all income or federal adjusted gross income in tax loss of resident individuals and resi- years 1999, 2000, and 2001) taxable Background: Federal law (sec. dent estates and trusts shall follow the by Wisconsin? 408A(d)(3)(A)(iii), Internal Revenue residence of the individual, estate, or Code) provides that a taxpayer who trust. In the case of nonresident indi- Answer 1: Yes. The remaining rolls over a distribution from a regular viduals and nonresident estates and $30,000 of the IRA distribution is IRA to a Roth IRA before January 1, trusts, income or loss from business, taxable by Wisconsin even though the 1999, is to include the taxable amount rents and royalties, sales of real prop- taxpayer is a nonresident of Wiscon- of the distribution from the regular erty, and personal services shall sin. The taxpayer must file a IRA in income ratably over the four- follow the situs of the business, prop- Wisconsin income tax return (Form taxable year period beginning with erty, or services. Other income 1NPR) for each year (1999, 2000, and the taxable year in which the distri- (except certain gambling winnings), 2001) and report $10,000 as Wiscon- bution is made, unless an election is including income or loss derived from sin income each year. 30 Wisconsin Tax Bulletin 112 – January 1999

The entire IRA distribution is consid- IRA distribution occurred before the The tuition must have been paid dur- ered received by the taxpayer in the taxpayer became a Wisconsin resi- ing the taxable year to attend any of year of the rollover (1998) while the dent, no amount would be taxable by the following: taxpayer was a resident of Wisconsin. Wisconsin.  Internal Revenue Code sec. • Classes in Wisconsin at a school 408A(d)(3)(A)(iii) affects only when Tuition Expense Subtrac- which qualifies as a university, the income is reported, not when the 2 tion: Eligible Institutions college, or technical college. distribution creating the income takes place. Therefore, Wisconsin requires Statutes: Section 71.05(6)(b)28, as • Classes in Wisconsin at other the taxpayer to pay tax on the distri- created by 1997 Wisconsin Act 237 post-secondary schools (post- bution for each of the four years in high schools) that have been ap- which the income is reportable, even Note: This tax release applies only proved by the Wisconsin if the taxpayer becomes a nonresident with respect to taxable years begin- Educational Approval Board. of Wisconsin during the four-year pe- ning on or after January 1, 1998. riod. • Classes in Minnesota at a public Background: Section 71.05(6)(b)28, vocational school or public insti- Facts and Question 2: The taxpayer as created by 1997 Wisconsin Act tution of higher education in was a resident of California for 1998. 237, provides a subtraction from fed- Minnesota under the Minnesota- During 1998, the taxpayer rolled over eral adjusted gross income when Wisconsin tuition reciprocity a $80,000 distribution from a regular computing Wisconsin taxable income agreement. IRA to a Roth IRA. The taxpayer will for up to $3,000 of the amount paid report the taxable distribution over a for tuition expenses. The tuition must Question 1: Which institutions lo- four-taxable year period ($20,000 per have been paid for a student who is cated in Minnesota participate in the year). In 1999, the taxpayer moves to the claimant, the claimant’s spouse if Minnesota-Wisconsin tuition reci- Wisconsin and becomes a legal resi- married filing a joint return, or the procity agreement? dent of Wisconsin. Is the $20,000 claimant’s child who is claimed as a which the taxpayer must report on his dependent on the claimant’s federal Answer 1: Following is a list of pub- federal income tax return in each of income tax return. Up to $3,000 may lic institutions in Minnesota that the years, 1999, 2000, and 2001 tax- be claimed for each student. For ex- participate in the Minnesota- able by Wisconsin? ample, if you paid tuition for two Wisconsin tuition reciprocity agree- dependents who are attending a uni- ment. Tuition paid for a student who Answer 2: No. When a person rolls versity, you may claim up to $3,000 is attending one of these institutions over a distribution from a regular IRA for each. under the Minnesota-Wisconsin reci- to a Roth IRA during 1998 at a time procity agreement qualifies for the the person is not a resident of Wis- The amount of the subtraction is re- subtraction. consin and will report the income duced as shown in the following over a four-taxable year period, any chart, based on federal adjusted gross (Note: This list was provided by the amount remaining to be included in income (FAGI): Wisconsin Higher Education Board federal income is not taxable by Wis- on November 13, 1998.) Filing Status Subtraction No Subtraction consin if the person subsequently Reduced if Allowed if becomes a Wisconsin resident. Since FAGI is FAGI is ELIGIBLE INSTITUTIONS: federal law provides an election to Between report the entire taxable amount in the Universities and Colleges: year of the distribution, the taxpayer Single or Head $50,000 and $60,000 or of Household $60,000 more Anoka Ramsey CC will be deemed, for Wisconsin tax Central Lakes C & TC purposes, to have elected to report the Married Filing $80,000 and $100,000 or Century C & TC entire amount of income in the year a Joint Return $100,000 more Fergus Falls CC of the distribution when he was a Fond du Lac CC Married Filing $40,000 and $50,000 or nonresident. Therefore, no amount of Hibbing C & TC a Separate $50,000 more Inver Hills CC the distribution will be taxable by Return Itasca CC Wisconsin. Lake Superior C & TC Mesabi C & TC Note Even if this taxpayer had moved Minneapolis C & TC Normandale CC to Wisconsin in 1998, as long as the North Hennepin CC Wisconsin Tax Bulletin 112 – January 1999 31

Northland C & TC Niagara: Niagara Public High School, Rainy River CC 700 Jefferson Avenue Badger State Repair School Ridgewater C & TC 204 W. Centralia Riverland C & TC Academy of Travel. Elkhorn, WI 53121 12700 West Bluemound Road Additional Teaching Locations Rochester C & TC Elm Grove, WI 53122 None Vermillion CC Additional Teaching Locations Worthington CC None Balanced Touch Institute, Inc. (The) Bemidji State University N7576 Timber Drive Mankato State University ACTION Employment and Training Rib Lake, WI 54470 Metropolitan State University 1800 Appleton Road Additional Teaching Locations Moorhead State University Menasha, WI 54952 Rib Lake: Rib Lake Health Care Center, St. Cloud State University Additional Teaching Locations 650 Pearl St. None Wausau: Northcentral Technical College, Southwest Minnesota State University 1000 Campus Dr. Winona State University Allied Computer Group, Inc. University of Minnesota - Twin Cities 600 West Virginia Street, 6th Floor Barbizon School of Modeling University of Minnesota - Crookston Milwaukee, WI 53204 Time Life Building University of Minnesota - Duluth Additional Teaching Locations 541 North Fairbanks University of Minnesota - Morris Appleton: 3011 E. Capitol Dr. Chicago, IL 60611 Additional Teaching Locations American Home Inspectors Training Institute, Ltd. Schaumburg, IL: Barbizon School, Technical Colleges: 212 Wisconsin Avenue 1051 Perimeter Dr. Waukesha, WI 53186 Alexandria Technical College Additional Teaching Locations Becker CPA Review Corp. Anoka-Hennepin Technical College None Devry Inc. One Tower Lane Dakota County Technical College American Institute for Paralegal Studies, Inc. Oakbrook Terrace, IL 60181-4624 Hennepin Technical College 17W705 Butterfield Road, Suite A Additional Teaching Locations Northwest Technical College Oakbrook Terrace, IL 60181 Madison: Madison College, 31 S Henry Street Pine Technical College Additional Teaching Locations Milwaukee: Keller Graduate School of Manage- Red Wing/Winona Technical College DePere: St. Norbert College, College Avenue ment, 100 East Wisconsin Avenue Suite 2550 South Central Technical College Madison: Inntowner, Best Western, Waukesha: Keller Graduate School of Manage- St. Cloud Technical College 2424 University Ave. ment, 20935 Swenson Drive Suite 450 St. Paul Technical College Milwaukee: Milwaukee Marriott Brookfield, Waukesha: Holiday Inn, 2417 Bluemound Rd. 375 S. Moorland Rd. Whitewater: University of Wisconsin, 5019 Carlson Hall Question 2: Which post-secondary American Institute of Taxidermy schools have been approved by the 4552 Hwy 51 North Brown Institute Boulder Junction, WI 54512 1440 Northland Drive Wisconsin Educational Approval Additional Teaching Locations Mendota Heights, MN 55120 Board? None Additional Teaching Locations None Art Instruction Schools - Palmer Writers School Answer 2: Following is a list of 3309 Broadway, NE Bryant & Stratton College schools which have been approved by Minneapolis, MN 55413 1300 N Jackson St Additional Teaching Locations Milwaukee, WI 53202 the Wisconsin Educational Approval None Additional Teaching Locations Board as of November 13, 1998. Tui- None tion paid for classes taken in Associated Institute of Travel 2215 South Oneida Street Business and Banking Institute Wisconsin from one of these schools Green Bay, WI 54304 323 West Wells Street qualifies for the subtraction. Additional Teaching Locations Milwaukee, WI 53203 Green Bay: 2050 Riverside Drive Additional Teaching Locations None (Note: This list was provided by the Associated Training Services Corporation Wisconsin Educational Approval 7190-C Elder Lane Capri College Sun Prairie, WI 53590 6414 Odana Road Board on November 13, 1998.) Additional Teaching Locations Madison, WI 53719 None Additional Teaching Locations APPROVED SCHOOLS: None Astron, Inc. 112 South Mountain Way Drive Careers in Travel A SpiriTouch Institute, Inc. (ASI) Orem, UT 84058 428A Division St. 6225 University Avenue Additional Teaching Locations Stevens Point, WI 54481 Madison, WI 53705 None Additional Teaching Locations Additional Teaching Locations None None Aurora University Lake Geneva Campus Carlson Travel Academy ABC School of Real Estate P.O. Box 210 9072 North Deerbrook Trail 650 Westhill Blvd. Williams Bay, WI 53191-0210 Brown Deer, WI 53233 Appleton, WI 54914 Additional Teaching Locations Additional Teaching Locations Additional Teaching Locations New Berlin: Eisenhower High and Middle School, None Appleton: 1050 N. Lynndale 4333 Sunnyslope Rd. 32 Wisconsin Tax Bulletin 112 – January 1999

Central Wisconsin School of Real Estate OH, Columbus: 1350 Alum Creek Dr. Graceland College 3017 Church Street TX, Irving: 4800 Regent Blvd. Division of Health Care Professionals Stevens Point, WI 54481 700 College Avenue Additional Teaching Locations Diesel Truck Driver Training School, Inc. Lamoni, IA 50140 Schofield: 1030 Grand Avenue Hwy 151 & Hwy VV Additional Teaching Locations P.O. Box 560 None Century 21 Affiliated School of Real Estate Sun Prairie, WI 53590 2800 Royal Avenue Additional Teaching Locations Great Plains Educational Services Madison, WI 53713 None 6318 Hartford Drive Additional Teaching Locations P. O. Box 44344 None Educational Center for Financial Services Madison, WI 53744 11805 West Hampton Avenue Additional Teaching Locations Century 21 Savaglio School of Real Estate Milwaukee, WI 53225 Madison: Radisson Hotel, 517 Grand Canyon Dr. 1557 S. Green Bay Road Additional Teaching Locations Madison: Howard Johnson Downtown, Racine, WI 53406 Appleton: Woodfield Suites, 525 W. Johnson St. Additional Teaching Locations 3730 W. College Ave. Madison: Cardinal Stritch College, None Eau Claire: Howard Johnson, 8017 Excelsior Dr. 809 W. Clairemont Ave. Charles Training Institute Green Bay: Holiday Inn, 2580 S. Ashland Ave. H & R Block 3417 Douglas Avenue Madison: Howard Johnson Plaza Hotel, P. O. Box 25397 Racine, WI 53402 525 West Johnson Street Milwaukee, WI 53225 Additional Teaching Locations Madison: Herzing College of Technology, Additional Teaching Locations None 1227 N. Sherman Ave. Antigo: 531 Clermont Madison: Radisson Inn, 517 Grand Canyon Appleton: 339 W. Wisconsin Ave. CHI Energy Resource Center Wauwatosa: Holiday Inn Express Mayfair, Beaver Dam: 228 Front St. 4222 Milwaukee St., Suite 12 11111 W. North Ave. Beloit: 1731 Madison Rd. Madison, WI 53714 Beloit: 2632 Prairie Ave. Additional Teaching Locations English Language Center Black River Falls: 13 N. First St. None P.O. Box 5234 Burlington: 132 W. Chestnut Madison, WI 53705 Chippewa Falls: 337 E. Prairie View Rd. College of St. Scholastica (The) Additional Teaching Locations Delavan: 218 E. Walworth 1200 Kenwood Avenue None Eau Claire: 1035 N. Hastings Way Duluth, MN 55811 Eau Claire: 2525 E. Clairemont Ave. Additional Teaching Locations Entre Computer Center Eau Claire: 2639 N. Clairemont Ave. DePere: Ministry and Life Retreat Center, St. 13400 Bishops Lane, Suite 270 Fond du Lac: 171 S. Main St. Norbert Abbey, 1016 N. Broadway Brookfield, WI 53005 Fort Atkinson: 116 N. Main St. Marathon: St. Anthonys Retreat Center, Additional Teaching Locations Friendship: 511A Main St. 300 E. 4th St. None Green Bay: 601 S. Military Ave. Greenfield: 6015 W. Forest Home Ave. Dairyland Diesel Driving School Executrain of Wisconsin Hales Corners: 5300 S. 108th Street Highway 12 and Plaza Dr 18650 West Corporate Drive, Suite 115 Hartford: 225 N. Main St., In Times Press P. O. Box 131 Brookfield, WI 53045 Building Wisconsin Dells, WI 53965 Additional Teaching Locations Janesville: 2020 E. Milwaukee Additional Teaching Locations Appleton: 501 Nicolet Janesville: 2511 Milton Ave. None Madison: 4600 American Pkwy., Suite 102 Jefferson: 130 E. Racine Milwaukee: 720 N. Water St. Jefferson: 109 N. Main Street, Suite 101 Dearborn Financial Institute Kenosha: 3456 52nd St. 11805 West Hampton Ave. Focuscorp, Inc. Kenosha: 6124 - 22nd Avenue Milwaukee, WI 53225 3201 Latham Drive LaCrosse: 1527 Losey Blvd. Additional Teaching Locations Madison, WI 53713-4615 LaCrosse: Bridgeview Plaza, 2344 Rose St. Madison: Quality Inn South, 4916 East Broadway Additional Teaching Locations Madison: 1205 N. Sherman Ave. Oshkosh: Hilton Inn, 1 North Main Street None Madison: 1240 S. Park St. Madison: 2617 E. Washington Avenue Dental Assisting Careers Institute Fox Valley School of Massage Madison: 6754 Odana Rd. 9302 West Bluemound Road P.O. Box 615 Manitowoc: Shopko Plaza Milwaukee, WI 53226-4449 Neenah, WI 54957-0615 Marshfield: 405 S. Central Additional Teaching Locations Additional Teaching Locations Medford: 201 S. Main St. None Appleton: 2003 N. Meade St., Suites 211 & 212 Menomonee Falls: N85 W15768 Appleton Ave. Appleton: Appleton Medical Center, Menomonie: 815 E. Sixth Ave. DeVry Institutes 1818 S. Merde St. Middleton: 2530 Allen Blvd. One Tower Lane Milwaukee: 1201 N. 35th St. Oakbrook Terrace, IL 60181 Fox Valley Travel School Milwaukee: 1842 S. 15th Additional Teaching Locations 2444 W. College Ave. Milwaukee: 3254 S. 27th St. AZ, Phoenix: 2149 W. Dunlap Ave. Appleton, WI 54911 Milwaukee: 4885 S. 27th St. CA, Fremont: 6800 Dumbarton Circle Additional Teaching Locations Milwaukee: 5209 W. Fond du Lac Ave. CA, Long Beach: 3880 Kilroy Airport Way Appleton: Comfort Suites and Amora Villa Milwaukee: 6806 W. Brown Deer Rd. CA, Pomona: 901 Corporate Center Dr. De Pere: St. Norbert College, College Ave. Milwaukee: 7600 W. Capitol Dr. GA, Alpharetta: 2555 Northwinds Parkway Milwaukee: 809 E. Capitol Drive GA, Decatur: 250 North Arcadia Ave. Gered Models International, Ltd. Monroe: 1821 6th St. IL, Chicago: 3300 N. Campbell Ave. 2702 Monroe Street Mukwonago: 101 Lake St. IL, Addison: 1221 N. Swift Rd. Madison, WI 53711 Neenah: 796 Winneconne Avenue MO, Kansas City: 11224 Holmes Rd. Additional Teaching Locations Neillsville: 624 Hewitt NY, Long Island City: 30-20 Thomson Ave. None New Berlin: 15429 W. National Ave. New Holstein: 2014C Wisconsin Wisconsin Tax Bulletin 112 – January 1999 33

New Richmond: 340 S. Knowles Additional Teaching Locations CA, Long Beach: 3880 Kilroy Airport Way Oconomowoc: 112 N. Main None CA, Pomona: Pomona Center, Oshkosh: 937 N. Main St. 901 Corporate Center Drive Oshkosh: 1092 S. Koeller Rd. Insurance Agent Prelicensing School (The) GA, Alpharetta: 2555 Northwinds Parkway Pewaukee: Silvernail Shopping Center, 2033 South 104th Street GA, Atlanta: Atlanta/Perimeter Center, 2110 W. Silvernail West Allis, WI 53227 Two Ravinia Dr. Platteville: 15 W. Main St. Additional Teaching Locations GA, Atlanta: Buckhead Center, 4 Piedmont Plymouth: 2621 Eastern Avenue Appleton: Woodfield Suites, 3730 West Center, 3565 Piedmont Rd., NE, Suite 240 Prairie du Chien: 702 E. Blackhawk College Avenue GA, Decatur: Decatur Center, Racine: 2310A South Green Bay Rd. Appleton: Paper Valley Hotel, 333 West 250 N. Arcadia Ave. Racine: 3701 Durand Ave., Elmwood Plaza College Avenue IL, Elgin: Elgin Ctr, 385 Airport Rd. Racine: 3900C Erie St. Brookfield: Midway Hotel, 1005 South IL, Oakbrook Terrace: One Tower Lane Reedsburg: 1030 E. Main Street Moorland Road IL, Orland Park: South Surburan Ctr, Rhinelander: 76 S. Brown Brookfield: Primerica Financial Services, 15255 S. 94th Ave., Suite 400 Rice Lake: 800 South Main Street 1335 S. Moorland Rd. IL, Chicago: Chicago Loop Center, River Falls: 107 W. Walnut Green Bay: Primerica Financial Services, 225 W. Washington, Suite 100 St. Francis: 4698 S. Whitnall Ave. 1066 Mather St. IL, Lisle: Lisle Center, 6200 Rt. 53, Suite G-11 Salem: 2763 6 - 75th St. La Crosse: Primerica Financial Services, IL, Schaumburg: Northwest Suburban Ctr, 1051 Sauk City: 205 Phillips Blvd. 200 Main St., Ste. 210 Perimeter Dr., 9th Fl., Woodfield Exec. Plaza Sheboygan: 2821 N. 15th La Crosse: Primerica Financial Services, IL, Lincolnshire: North Suburban Ctr, Sheboygan: 2233 Calumet Drive 205 5th Ave. Tri-State Int’l, Bldg 25, Suite 130 Sheboygan: 2613 S. Business Drive Madison: Primerica Financial Services, IN, Merrillville: Merrillville Center, Twin Towers, South Milwaukee: 2901 S. Chicago 2317 International Lane, Ste. 216 1000 East 80th Place, Suite 609 Stevens Point: 2607 Post Rd Madison: Primerica Financial Services, MO, St. Louis: St. Louis Center, Suite 260, Stoughton: 1060 W. Main St., #4, 5310 Wall St., #500 1801 Park 270 Drive Stoughton Plaza Shopping Center Madison: Quality Inn South, 4916 E. Broadway MO, St. Louis: St. Louis !! Center, Tomah: 115 East Clifton Marshfield: Marshfield Innkeeper, 1010 Market St., Suite 550 Two Rivers: 1608 Washington St. 2700 South Roddis Avenue MO, Kansas City: South Ctr, 11224 Holmes Rd. Viroqua: 101 S. Rock Milwaukee: Quality Inn-Airport, MO, Kansas City: Downtown Ctr, City Ctr Sq, Waterloo: 112 E. Madison Street 5311 S. Howell Ave. 1100 Main St. Watertown: 409 E. Main St. Tomah: Holiday Inn, Hwy 21 & Jct I-94 VA, McLean, Tysons Corner Center, Waukesha: 121 W. Sunset Drive 1751 Pinnacle Dr. Waukesha: 21505 Hwy 18 ITT Technical Institute WI, Milwaukee: Milwaukee Center, Waupun: 310 E. Main St. 6300 West Layton Avenue 100 E. Wisconsin Ave., Suite 2550 Wautoma: Hwy. 21E Greenfield, WI 53220-4612 WI, Waukesha: Waukesha Center, West Allis: 2261 S. 108th St. Additional Teaching Locations 20935 Swenson Drive, Suite 450 West Allis: 6755 W. Greenfield Ave. None West Bend: 703 Cedar St. Kenosha School of Real Estate Whitewater: 135 W. Center St. Jackson Hewitt Tax School of Wisconsin 4721 75th Street Wisconsin Rapids: 641 8th Street, South. 4575 Bonney Road Kenosha, WI 53142 Virginia Beach, VA 23462 Additional Teaching Locations Herzing College Additional Teaching Locations None 1227 North Sherman Ave. None Madison, WI 53704 Lakeside School of Massage Therapy Additional Teaching Locations John Casablancas Modeling and Career Center 1726 N. 1st Street, 1st Floor None Brookfield Lakes Corporation Center IV Milwaukee, WI 53212 200 North Patrick Boulevard, # 700 Additional Teaching Locations High-Tech Institute Brookfield, WI 53045 None 1515 E. Indian School Road Additional Teaching Locations Phoenix, AZ 85014 None LAN Masters Technical Education Services Additional Teachning Locations 1218 South Military Avenue None John Rinehart Taxidermy School Green Bay, WI 53404 3032 McCormick Drive Additional Teaching Locations Howard Academy for the Metal Arts P.O. Box 5010 Milwaukee: 10201 W. Lincoln Ave., Suite 102 188-194 West Main Street Janesville, WI 53547-5010 Lesley College Stoughton, WI 53589 Additional Teaching Locations 29 Everett Street Additional Teaching Locations None Cambridge, MA 02138-2790 None Additional Teaching Locations Johns Hopkins University Green Bay: Northeast Wisconsin Technical Hypnosis Wellness & Training Center 3400 North Charles Street College, 2340 Mason St. 20 South Main St., Suite 24 Baltimore, MD 21218 Green Bay: Lombardi Middle School, Janesville, WI 53545 Additional Teaching Locations 1520 South Pointe Road Additional Teaching Locations Milwaukee: Plankinton Center, Kenosha: Lakeview Technology Academy, None 161 W. Wisconsin Ave. 9449 88th Ave. Milwaukee: Maple Dale School, IKON Technology Services Keller Graduate School of Management 8377 N. Port Washington Rd. 11425 West Lake Park Drive 100 East Wisconsin Ave., Suite 2550 Verona: Verona Senior High School, Milwaukee, WI 53224 Milwaukee, WI 53202 300 Richard St. Additional Teaching Locations Additional Teaching Locations West Allis: Nathan Hale High School, None AZ, Mesa: Mesa Center, Suite 5450, 11601 W. Lincoln Ave. 1201 South Alma School Road Institute of Dental Assisting AZ, Phoenix: Phoenix/Northwest Ctr, Lincoln Technical Institute 6641 University Ave. 2149 W. Dunlap Ave. 7320 W. Agatite Middleton, WI 53562 CA, Irvine: 3333 Michelson Drive Norridge, IL 60656 34 Wisconsin Tax Bulletin 112 – January 1999

Additional Teaching Locations National-Louis University Nova Southeastern University None Milwaukee/Beloit Campus 3301 College Avenue 325 North Corporate Drive, Suite 200 Fort Lauderdale, FL 33314 Loyola University Chicago Brookfield, WI 53045-5861 Additional Teaching Locations 820 N. Michigan Avenue Additional Teaching Locations Milwaukee: The Grand Milwaukee Hotel, Chicago, IL 60611 Beloit: Beloit Memorial High School, 4747 S. Howell Ave. Additional Teaching Locations 1225 Fourth St. Wausau: Best Western Midway Motel, None Brookfield: Brookfield Academy, 2901 Martin Ave. 3460 N. Brookfield Rd. Madison English as a Second Language School, Brown Deer: Brown Deer Methodist Church, Ottawa University - Milwaukee LLC 5736 W. Brown Deer Rd. 300 N. Corporate Drive, Suite 110 3009 University Avenue Dousman: Kettle Moraine Middle School, Brookfield, WI 53045-5865 Madison, WI 53705 301 E. Ottawa Ave. Additional Teaching Locations Additional Teaching Locations Glendale: Nicolet High School, None Madison: 3009 University Ave., Room 103 6701 N. Jean Nicolet Rd. Grafton: Grafton High School, Professional Bartending School of Wisconsin Madison Media Institute 1950 Washington Street 739 S. 108th Street One Point Place Kenosha: Bradford High School, West Allis, WI 53214 Office Building, Suite 1 3700 Washington Rd. Additional Teaching Locations Madison, WI 53719 Kenosha: Bullen Junior High School, None Additional Teaching Locations 2804 39th Ave. None Madison: Cherokee Middle School, Professional CDL Training Institute, Inc. 4301 Cherokee Drive 3865 West Wells Street MBTI Business Training Institute Madison: LaFollette High School, 702 Pflaum Rd. Milwaukee, WI 53208 606 W. Wisconsin Ave. Madison: Quality Inn South, 4916 E. Broadway Additional Teaching Locations Milwaukee, WI 53203 Mequon: Homestead High School, None Additional Teaching Locations 5000 W. Mequon Rd. None Milwaukee: Grand Avenue Middle School, Professional Dental Assistant Training (PDAT) 2340 W. Wisconsin Ave. 510 Hartbrook Drive McConnell School, Inc. (The) Milwaukee: Lady Pitts School, Hartland, WI 53029 1201 Marquette Avenue, Suite 100 4920 Capitol Dr., #232 Additional Teaching Locations Minneapolis, MN 55403 Milwaukee: Marshall High School, None Additional Teaching Locations 4141 N. 64th St. None Milwaukee: Sheraton Inn Mayfair, Professional Institute of Dental Assisting, Inc. 2303 N. Mayfair Rd. 1714 N. Randall Ave. Midwest Center for Career Education Milwaukee: St. Catherine’s High School, Janesville, WI 53545 408 Archery Road 2647 N. 51st St. Additional Teaching Locations Manitowish Waters, WI 54545 Milwaukee: War Memorial Center, None Additional Teaching Locations 750 N. Lincoln Memorial Dr. None Oak Creek: Oak Creek High School, ProStaff Training Plus 340 Puetz Rd. 1033 North Mayfair Road, Suite 304 Midwest Center for the Study of Oriental Racine: Case High School, 7345 Washington Ave. Wauwatosa, WI 53226-3240 Medicine Salem: Central High School, P.O. Box 38, Additional Teaching Locations 6226 Bankers Road, Suites 5 & 6 24617 75th St. None Racine, WI 53403 Sheboygan: South High School, 3128 S. 12th St. Additional Teaching Locations Shorewood: Lake Bluff Elementary School, Rasmussen College Racine: 6233 Bankers Rd., Suite 15 1600 East Lake Bluff Boulevard 3500 Federal Drive Shorewood: Shorewood High School, Eagan, MN 55122 Milwaukee School of Massage 1701 E. Capitol Dr. Additional Teaching Locations 1661 North Water Street, Suite 301 Somers: Shoreland Lutheran High School, None Milwaukee, WI 53202 9026 12th St. Additional Teaching Locations Waterford: Waterford High School, Real Estate School (The) None 110 S. Center St. 928 Grand Avenue Schofield, WI 54476 Minneapolis Business College New Horizons Computer Learning Center, Inc. Additional Teaching Locations 1711 West County Rd. B 5315 Wall Street, Suite 140 None Roseville, MN 55113 Madison, WI 53718 Additional Teaching Locations Additional Teaching Locations Robbins & Lloyd Career Training Institute None Green Bay: 840 S. Military Ave. Monterrey Park 5309 N. 118th Ct. Motorcycle and Marine Mechanics Institute New Horizons Computer Learning Milwaukee, WI 53225 Division of Clinton Technical Institute Center - Milwaukee Additional Teaching Locations 9751 Delegates Drive 2100 North Mayfair Road Kenosha: Bear Realty, 4011 80th St. Orlando, FL 32837 Wauwatosa, WI 53226 Milwaukee: 5309 N. 118th Ct. Additional Teaching Locations Additional Teaching Locations AZ, Phoenix: Motorcycle Mechanics Institute, None Saint Croix Center for the Healing Arts 2844 W. Deer Valley Rd. 3121 St. Croix Trail South Neway Directions, Inc. P.O. Box 354 Nashville Auto Diesel College 6400 Gisholt Drive, #102 Afton, MN 55001 1524 Gallatin Road Madison, WI 53713 Additional Teaching Locations Nashville, TN 37206 Additional Teaching Locations None Additional Teaching Locations None Saint Mary’s University of Minnesota None 2500 Park Avenue South Minneapolis, MN 55404 Wisconsin Tax Bulletin 112 – January 1999 35

Additional Teaching Locations Additional Teaching Locations Madison: 1010 Mound Ave.., Meriter Hospital, Minocqua: Minocqua Elementary School, Appleton: Paper Valley Hotel & Conference McConnell Hall 7450 Titus Dr. Center, 333 W. College Ave Milwaukee: 2900 W. Oklahoma Ave., Mukwonago: Mukwonago High School, Watertown: ISC.INC, 117 Oakridge Ct. St. Luke’s Hospital 605 W. School Rd. Milwaukee: 3237 S. 16th St., St. Francis Hospital Oconomowoc: 641 E. Forest St. TAI Travel Academy Pewaukee: Waukesha County Technical College, 4279 S. 76th St. Upper Iowa University 800 Main St. Greenfield, WI 53220 605 Washington Street Platteville: Gray Elementary School, Additional Teaching Locations P. O. Box 1857 110 W. Adams Street None Fayette, IA 52142 Stevens Point: UW - Stevens Point, Additional Teaching Locations 900 Reserve St. TAI Travel Academy-Kenosha Janesville: Blackhawk Technical College, Sun Prairie: St. Albert House, 2420 St. Albert Dr. 4653 75th Street 6004 Prairie Road Superior: Superior High School, 2600 Catlin Ave. Kenosha, WI 53142 Lancaster: Lancaster Middle School, Wisconsin Rapids: Wisconsin Rapids School Additional Teaching Locations 802 E. Elm Street District - District Office, 510 Peach St None Madison: 4601 Hammersley Road MN, Lindstrom: Chisago Lakes High School, Menomonee Falls: N88 W17658 Christmann 13750 Lakes Blvd. Travel Institute, Inc. Road 5801 Washington Avenue Oak Creek: 8580 S. Howell Avenue Securities Training Corporation Racine, WI 53406 Pewaukee: 800 W. Main Street 309 W. Washington Street, Suite 450 Additional Teaching Locations Prairie du Chien: 520 East Blackhawk Avenue Chicago, IL 60606 None Rhinelander: Nicolet Technical College, Additional Teaching Locations Tamarack Center, Trunk Hwy G None Travel Learn, LTD Richland Center: Brewer Public Library, 2701-C University Avenue 325 N. Central Avenue Security Travel School Madison, WI 53705 Tomahawk: Tenneco Packaging Training Center, 605 North 8th Street Additional Teaching Locations N9090 County Road East Sheboygan, WI 53081 None Wausau: Northcentral Technical College, Additional Teaching Locations 1000 W. Campus Drive, Room 114 None Trinity College of Vermont West Allis: 6610 West Greenfield Avenue 208 Colchester Avenue Shorewest Real Estate Institute Burlington, VT 05401 ValCom Education 11622 West North Avenue Additional Teaching Locations 3113 W Beltline Hwy., Floor 2 Wauwatosa, WI 53226 Milwaukee: Milw. Co. Mental Health C Building, Madison, WI 53713 Additional Teaching Locations 9501 Watertown Plank Rd. Additional Teaching Locations Brookfield: 17450 West North Avenue None Brookfield: Unitarian Universalist Church West, Trinity International University 13001 W. North Ave. 2065 Half Day Road WESLI, LLC Wisconsin English Second Menasha: Wauwatosa United Realty, Deerfield, IL 60015-1284 Language Institute 1486 Kenwood Center-Midway Rd. Additional Teaching Locations 19 North Pinckney Street Mequon: Wauwatosa Realty Co., Brookfield: 777 S. Barker Road, Madison, WI 53703 1407 W. Mequon Road Elmbrook Church Additional Teaching Locations Mequon: Homestead High School, Madison: 7702 Old Sauk Road, None 5000 W. Mequon Road High Point Church Sheboygan: Wauwatosa United Realty, Wisconsin Institute of Natural Wellness 2500 Kohler Memorial Dr. Underwater Career Center 6921 Mariner Drive, Suite G Waukesha: 121 W. Sunset Dr. S5780, Highway 123 Racine, WI 53406 Wauwatosa: Wauwatosa Realty Co., Baraboo, WI 53913 Additional Teaching Locations 11622 W. North Ave. Additional Teaching Locations None West Bend: UW-Washington County, None 400 University Ave. Wisconsin Madison English Language Institute West Bend: 2419 West Washington Avenue Universal Technical Institute LLC (Inactive) West Bend: West Bend High School, 3002 North 27th Avenue 1885 Essex Drive 1305 E. Decorah Road Phoenix, AZ 85017-4599 Sun Prairie, WI 53590 Additional Teaching Locations Additional Teaching Locations Southeastern Academy TX, Houston: 721 Lockhaven Dr. None 233 Academy Drive P. O. Box 421768 University of Maryland University College Wisconsin Real Estate Academy Kissimmee, FL 32742-1768 University Boulevard at Adelphi Road 7601 Pershing Blvd., Suite 4 Additional Teaching Locations College Park, MD 20742 Kenosha, WI 53142 None Additional Teaching Locations Additional Teaching Locations Green Bay: Wisconsin Public Service Kenosha: Harbor View Office Center, Suite 120 Stark Company School of Real Estate Corporation, 600 N. Adams St. 717 John Nolen Drive Two Rivers: Wisconsin Electric Power Company, Wisconsin School of Professional Madison, WI 53713 6610 Nuclear Rd Pet Grooming, Inc. Additional Teaching Locations N51 W34917 Wisconsin Ave. Madison: 702 North High Point Road University of St. Francis P. O. Box 175 500 North Wilcox Street Okauchee, WI 53069 Summit Schools, Inc. Joliet, IL 60435 Additional Teaching Locations 117 Oakridge Court Additional Teaching Locations None P. O. Box 497 Brookfield: 16900 W. Gebhardt Rd., Watertown, WI 53094-0497 Brookfield Central High School Wisconsin Technology Training Institute, Ltd. Elkhorn: W3985 County Rd., 2201 S. Oneida Street, Suite 7 Lakeland Medical Center Green Bay, WI 53404 36 Wisconsin Tax Bulletin 112 – January 1999

Additional Teaching Locations Wis. Adm. Code: Section Tax include meat packing and processing None 11.39(3)(s) and (4)(b) and (n)10.,Wis. plants. Wyoming Technical Institute Adm. Code (October 1997 Register) 4373 North 3rd Street Section Tax 11.39(4)(b) and (n)10., Laramie, WY 82070 Additional Teaching Locations Background: Wis. Adm. Code (October 1997 Reg- WY, Laramie: 1557 North Third St. ister), provides that nonmanufacturers Law: include butcher shops and persons Question 3: An individual pays tui- engaged in custom slaughtering of tion to attend a post-secondary school Section 77.54(2), Wis. Stats. (1995- animals. Note: Since the processes (post-high school) in Wisconsin, but 96), provides a sales and use tax ex- performed by some butcher shops this school does not appear in the emption for: may qualify as manufacturing, sec. listing in the answer for Question 2 Tax 11.39(4), Wis. Adm. Code (Oc- above. May the tuition paid by this “The gross receipts from sales of tober 1997 Register), is being revised individual be claimed as a subtraction and the storage, use or other con- to remove butcher shops from the list from federal adjusted gross income in sumption of tangible personal of nonmanufacturers. computing his or her Wisconsin tax- property becoming an ingredient or able income? component part of an article of tan- Court Decisions: gible personal property or which is Answer 3: Yes, the tuition may be consumed or destroyed or loses its A. In H. Samuels Company Inc. vs. claimed as a subtraction, but only if identity in the manufacture of tangi- Department of Revenue, Supreme the school which the individual at- ble personal property in any form Court of Wisconsin, December tends qualifies as a university, destined for sale, but this exemption 19, 1975 (CCH 201-195), the Su- college, or technical college. To qual- shall not include fuel or electricity.” preme Court affirmed the ify as a university, college, or judgement of the trial court, technical college, the school must Section 77.54(6)(a), Wis. Stats. finding that the taxpayer, who have a curriculum which leads to a (1995-96), provides a sales and use used heavy machinery to process diploma, degree, or occupational or tax exemption for the gross receipts scrap metal into prepared grades, vocational objective. If you have any from the sale of and the storage, use met the statutory definition of questions about whether a school or other consumption of: manufacturing. The requirement qualifies, you may write to: Wiscon- that the article of tangible per- sin Department of Revenue, “Machines and specific processing sonal property produced must be Technical Services, P.O. Box 8933, equipment and repair parts or re- the result of a “process popularly Madison, WI 53708-8933. placements thereof, exclusively and regarded as manufacturing” ap- directly used by a manufacturer in plied with reference to those SALES AND USE TAXES manufacturing tangible personal conversant with the subject mat- property and safety attachments for ter involved, not the “man on the Note: The following tax release in- those machines and equipment.” street.” terprets the Wisconsin sales and use tax law as it applies to the 5% state Section 77.54(6m), Wis. Stats. (1995- B. In Clarence W. Knebel d.b.a. sales and use tax. The 0.5% county 96), provides, in part: Knebel’s Processing Plant, Inc. and 0.1% stadium sales and use taxes and Knebel Processing Plant, may also apply. For information on “For purposes of sub. (6)(a) ‘manu- Inc. vs. Wisconsin Department of sales or purchases that are subject to facturing’ is the production by Revenue, Wisconsin Tax Appeals the county or stadium sales and use machinery of a new article with a Commission, October 20, 1978 tax, refer to Wisconsin Publication different form, use and name from (CCH 201-528), the Commission 201, Wisconsin Sales and Use Tax existing materials by a process concluded that the taxpayer was Information. popularly regarded as manufactur- not entitled to the manufacturing ing…” exemption provided in sec. Meat Processors May Qual- 77.54(6)(a), Wis. Stats., on ma- 3 ify as Manufacturers Wisconsin Administrative Code: chinery and equipment used in its slaughtering operations. Statutes: Section 77.54(2), (6)(a), and Section Tax 11.39(3)(s), Wis. Adm. (6m), Wis. Stats. (1995-96) Code (October 1997 Register), pro- The taxpayer was in the business vides that manufacturers ordinarily of slaughtering and processing Wisconsin Tax Bulletin 112 – January 1999 37

beef, lamb, and hogs for whole- Fresh Bratwurst Step 7 - After the product is smoked, sale and retail trade. it is placed in a cooler until the tem- Step 1 – Large chunks of raw meat perature of the product reaches the The taxpayer also slaughtered are delivered in boxes. The meat is desired level. animals for others (custom frozen when it arrives and it is put slaughtering). The taxpayer cut, into a cooler to maintain the proper Step 8 - Once the temperature of the wrapped, and froze the animals temperature, to prevent spoiling. product reaches the desired level, it and made cube steaks, hamburger is taken out of the cooler and pack- steaks, and sausages for its cus- Step 2 - The meat is transported aged into the package in which it tomers. The ownership of the from the holding cooler, where it will be offered for sale to the cus- animals remained with the cus- was placed upon arrival, to the tomer. The product is vacuum tomer. grinder. The grinder is used to grind packed, which assures the product is the meat into the desired texture. in an air tight container. The taxpayer used the same fa- cilities for both custom Step 3 - After the meat is ground, it Step 9 - The finished product is slaughtering and slaughtering of is weighed. Weighing is necessary to placed in a cooler until such time as animals purchased. The tax- determine the proper amount of it is needed for retail or wholesale payer’s custom slaughtering spices to be added, to obtain the de- sale to customers. operations were not popularly re- sired flavor. garded as manufacturing by those Steaks and Roasts conversant with the industry. Step 4 - After being weighed, the meat is placed in a mixer. Spices are Step 1 – Large chunks of raw meat C. In Peck Meat Packing Corpora- added and the mixer mixes the meat are delivered in boxes. The meat is tion vs. Wisconsin Department of and spices together. frozen when it arrives, and it is put Revenue, Wisconsin Tax Appeals into a cooler to maintain the proper Commission, August 13, 1980 Step 5 - After the product is mixed, temperature, to prevent spoiling. (CCH 201-735), the Commission it is moved to the stuffer. The stuffer concluded that there was ample is used to “force” the meat into the For example, a box may contain a testimony that the taxpayer was desired casings. “short loin” cut. The “short loin” cut popularly regarded as a manu- is then cut into various products facturer by persons familiar with Step 6 - Once the stuffing process is such as top sirloin, T-bone, porter- the industry. completed, the product is placed into house, and tenderloin steaks. If the the package for which it will be of- box contains a “chuck” cut, the The taxpayer started with live fered for sale to the customer. The “chuck” cut is then cut into various cattle and cow and beef car- product is vacuum packed, which products such as chuck eye roasts, casses. The taxpayer “deboned” assures the product is in an air tight top blade steaks, pot roasts, etc. carcasses by separating the car- container. casses into several boneless cuts Step 2 - The needed box of meat of beef. The beef was removed Step 7 - The finished product is (depending on the end product de- from carcasses and had bones, placed in a cooler until such time as sired), is transported from the muscles, and fat removed to it is needed for retail or wholesale holding cooler, where it was placed make it suitable for processing sale to customers. upon arrival, to the saw. The saw is by other manufacturers, such as used to cut the large chunks of meat sausage makers, hamburger Smoked Wieners that arrived at the store into the makers, chili makers, and others. smaller individual products. Steps 1 through 5 are the same as for Facts: the fresh bratwurst, explained above. Step 3 - After being cut, the smaller cuts of meat are placed on trim ta- Meat Processor A uses the following Step 6 - After the product is stuffed bles. At the trim tables, excess fat step-by-step processes to produce into the desired casings, it is placed and unwanted portions of the meat fresh bratwurst, smoked wieners, and on a rack. When the rack is full, the are removed, to get the product into steaks and roasts. rack is placed in the smoker. The the condition for sale to the cus- smoker adds the desired “smoked” tomer. flavor to the product. 38 Wisconsin Tax Bulletin 112 – January 1999

Step 4 - Once the product has been Question 2: Does it make a differ- Notes: trimmed, it is placed onto a packag- ence if the process is done in a ing tray. grocery store or butcher shop? (a) For machines and specific proc- essing equipment and repair parts Step 5 - After the product is on the Answer 2: No. If the process qualifies or replacements to qualify for ex- packaging tray, it is sent through the as manufacturing, it does not matter emption under sec. 77.54(6)(a), “auto wrapper,” which is a machine where the process is performed. Wis. Stats. (1995-96), the ma- that wraps plastic around the prod- chines, etc., must be used uct, to seal it. Question 3: Does it make a differ- exclusively and directly by a ence if the process involves the manufacturer in a manufacturing Step 6 - Once the product is custom slaughtering of animals (i.e., process. wrapped, it is placed on a metal tray. slaughtering of animals owned by Once the metal tray is full, the prod- persons other than the person or entity (b) There are other processes which uct is transported to a cooler, where performing the process)? may be different but somewhat it will be held until needed for retail similar to the process described in or wholesale sale to customers. Answer 3: Yes. Custom slaughtering the Facts that may also qualify as of animals is not manufacturing. In manufacturing. If you have a Question 1: Does the process used by Clarence W. Knebel, d.b.a. Knebel’s question as to whether a similar Meat Processor A, as described in the Processing Plant, Inc. and Knebel process qualifies as manufactur- Facts above, meet the definition of Processing Plant, Inc. vs. Wisconsin ing, you may request a written “manufacturing” for purposes of the Department of Revenue, Wisconsin determination by writing to: Wis- exemptions provided in sec. 77.54(2) Tax Appeals Commission, October consin Department of Revenue, and (6)(a), Wis. Stats. (1995-96)? 20, 1978, the Commission determined Administration Technical Serv- that the taxpayer’s custom slaughter- ices, P.O. Box 8933, Madison, Answer 1: Yes. The process used by ing operations were not popularly WI 53708-8933. Meat Processor A meets the definition regarded as manufacturing. of “manufacturing” in sec. 77.54(6m), Wis. Stats. (1995-96).