X. Other Issues Affecting Combined Filers
X1.1. How is the recycling surcharge computed for a combined group?All corporations engaged in business in Wisconsin are subject to the recycling surcharge. If at least one member of a combined group is conducting unitary business in Wisconsin, all corporations in the group are considered to be doing business in Wisconsin (sec. 71.255(5)(a), Wis. Stats., as enacted by 2009 Act 2).
Each corporation in a combined group is considered a separate corporation for purposes of computing the recycling surcharge. Therefore, the $4,000,000 gross receipts threshold, the $25 minimum recycling surcharge, and the $9,800 maximum recycling surcharge must be determined separately for each entity in the combined group.
Example:
A combined reporting group is made up of corporations A, B, C and D. The following gross receipts and gross tax liabilities are reported:
Corporation Gross Receipts Gross Tax Corporation A’s gross receipts are greater than $4,000,000; therefore, the recycling surcharge must be calculated. The minimum recycling surcharge is 3% of the tax or $25, whichever is greater. Since 3% of the tax is $0, the recycling surcharge is $25.
Corporation B’s gross receipts are greater than $4,000,000; therefore, the recycling surcharge must be calculated. The maximum recycling surcharge is 3% of the tax but not more than $9,800. Since 3% of the tax is $9,900, the recycling surcharge is $9,800.
Corporations C and D are not subject to a recycling surcharge because their gross receipts are less than $4,000,000.
The recycling surcharge for the combined reporting group is $9,825, which is the sum of the individual corporations’ recycling surcharges of $25, $9,800, $0 and $0.
FOR MORE INFORMATION PLEASE CONTACT:
WISCONSIN DEPARTMENT OF REVENUE
Phone: (608) 266-1143
E-Mail Additional Questions
Last updated October 27, 2009