Wis. Admin. Code § Tax 7.31 — Restrictions on dealings between brewers, brewpubs, wholesalers, and retailers

Tax 7.31(1) (1) Definitions. In this section and in s. 125.33 , Stats.:

Tax 7.31(1)(a) (a) “Event” means any activity, game, contest, tournament, or entertainment that is conducted on that part of a campus premises where the sale of fermented malt beverages takes place or premises operated under a Class “B” fermented malt beverage license or permit or promoted by a campus operation for the sale of fermented malt beverages or Class “B” fermented malt beverage licensee or permittee.

Tax 7.31(1)(b) (b) “Sign” means a graphic display, containing letters, words, symbols, numerals, shapes, forms or pictures, including all component parts and labor necessary to assemble the unit, which has no value or use except to advertise or identify a product or a place of business or an event or any combination of these. The value of the sign is determined by the original cost of acquisition if it is purchased by a brewer, brewpub, or wholesaler.

Tax 7.31(1)(c) (c) “Sponsor” means to underwrite in whole or in part the cost of an event by providing signs, advertising in score cards or on scoreboards and fences or by providing equipment, prizes, trophies, entertainment, or other things of value.

Tax 7.31(2) (2) Brewer’s permit restriction and exceptions.

Tax 7.31(2)(a) (a) Restriction. No brewer, brewpub, or wholesaler of fermented malt beverages may sponsor any event:

Tax 7.31(2)(a)1. 1. Held on the premises of a Class “B” license or permit or promoted by a Class “B” licensee or permittee.

Tax 7.31(2)(a)2. 2. Held on a portion of a campus where the sale of fermented malt beverages takes place or, promoted by a campus operation where fermented malt beverages will be sold.

Tax 7.31(2)(b) (b) Exceptions. However, a brewer, brewpub, or wholesaler may do any of the following:

Tax 7.31(2)(b)1. 1. Purchase advertising or other services or rights for a fair consideration from any corporate Class “B” licensee or permittee which is a member of a regularly established athletic league if the licensee derives more than 50 percent of its gross income from the ownership, maintenance and operation of a professional athletic team which plays a regular schedule of games and which derives more than 50 percent of its income from the sale of admissions to the team’s games.

Tax 7.31(2)(b)2. 2. Enter into a contract or other arrangement directly with an unlicensed 3rd party to sponsor an event or sponsor radio or television broadcasts, to make payment for advertising, or to provide other services or things of value if all of the following conditions are met:

Tax 7.31(2)(b)2.a. a. The payment, services, or other things of value are made directly or indirectly by the brewer, brewpub, or wholesaler to a Class “B” licensee or permittee.

Tax 7.31(2)(b)2.b. b. The payment, services, or other things of value are not contingent upon the event being held at a premises designated by the brewer, brewpub, or wholesaler.

Tax 7.31(2)(b)2.c. c. The sponsor’s products are not required to be sold or served at the premises selected by the non-licensed 3rd party.

Tax 7.31(2)(b)3. 3. Allow a refrigerated truck or trailer to remain on the premises covered by a Class “B” license or permit for the storage of fermented malt beverages during an event. At the conclusion of the event, the brewer, brewpub, or wholesaler may issue one invoice to the Class “B” licensee or permittee for the fermented malt beverages actually used at the event.

Tax 7.31(3) (3) Examples of prohibited activities. Subject to the limitations in sub. (2) , a brewer, brewpub, or wholesaler my not do any of the following:

Tax 7.31(3)(a) (a) Sponsor an association, team or other organization for a campus or Class “B” licensee or permittee or have a Class “B” licensee or permittee, corporate officer or partner who is part of an association, team or other organization it sponsors.

Tax 7.31(3)(b) (b) Hire a person to provide a concert or music at a premises covered by a Class “B” license or permit.