Tax 11.56 Note
The paper purchased by Company A for the catalogs is not subject to Wisconsin use tax.
Tax 11.56 Note
2) Assume the same facts as 1) above, except that the company selling the paper is located in Wisconsin.
Tax 11.56 Note
The paper purchased by Company A for the catalogs is not subject to Wisconsin sales tax.
Tax 11.56 Note
3) Company B purchases finished artwork from an advertising agency. The artwork and paper are provided to a printer who will print catalogs for Company B. The catalogs are provided without charge to customers outside Wisconsin. The charge by the advertising agency to Company B is exempt from Wisconsin sales and use tax even though the printer is not selling tangible personal property because the finished artwork is used for processing, fabricating or manufacturing printed material that is transported and used solely outside Wisconsin.
Tax 11.56(7)(bm)
(bm) Section
77.52 (2) (a) 11., Stats., provides that the tax does not apply to the service of printing or imprinting tangible personal property or items, property, or goods under s.
77.52 (1) (b),
(c), or
(d), Stats., that results in printed material, catalogs, or envelopes that are exempt under s.
77.54 (25) or
(25m), Stats.
Tax 11.56 Note
Example: Company Z purchases paper that is used to print catalogs that are designed to advertise and promote the sale of Company Z's merchandise. The paper is delivered to Company X, a Wisconsin printer, that prints the catalogs for Company Z. The catalogs are shipped both in and outside Wisconsin. The charge by Company X to Company Z for the printing of the catalogs is not taxable. However, Company Z owes tax on its purchase of the paper that it provides to Company X for those catalogs that are not shipped outside Wisconsin for use solely outside Wisconsin. Company Z's purchase of the paper for those catalogs that are shipped outside Wisconsin is exempt as provided in par. (b).
Tax 11.56(7)(c)
(c) The tax applies to purchases of artwork, single color or multicolor separations, negatives, flats, and similar items if those purchases are used in the manufacture of tangible personal property or items or property under s.
77.52 (1) (b) or
(c), Stats., not to be sold, other than items exempt under
par. (a) or
(b). A printer who does not supply paper used in printing tangible personal property is not selling tangible personal property but rather, is selling a service.
Tax 11.56 Note
Example: 1) A retailer purchases color separations which are used in its own printing plant to produce advertising material it distributes to its customers in Wisconsin. The sale of the color separations is subject to Wisconsin sales or use tax because the advertising materials manufactured are not destined for sale.
Tax 11.56 Note
2) Company B purchases finished artwork from an advertising agency. The artwork and paper are provided to a printer who will print flyers that are not catalogs for Company B. The flyers are provided without charge to customers in Wisconsin. The charge by the advertising agency to Company B is subject to Wisconsin sales and use tax. The exemption under s.
77.54 (2), Stats., does not apply because the printer is not selling tangible personal property or an item, or property under s.
77.52 (1) (b) or
(c), Stats., and the exemption under s.
77.54 (43), Stats., does not apply because the flyers are used in Wisconsin.
Tax 11.56(8)
(8) Purchases of fuel and electricity for use in manufacturing printed matter. Section
77.54 (30) (a) 6., Stats., provides an exemption for fuel and electricity consumed in manufacturing tangible personal property, or items or property under s.
77.52 (1) (b) or
(c), Stats., in this state. "Manufacturing" is defined in s.
77.51 (7h), Stats.
Tax 11.56 Note
Note: Section
Tax 11.56 interprets ss.
77.51 (7h),
(8),
(11), and
(14) (h),
77.52 (1) and
(2) (a) 11., and
77.54 (2),
(2m),
(6) (a) and
(b),
(25),
(25m),
(30) (a) 6., and
(43), Stats.
Tax 11.56 Note
Note: The interpretations in s.
Tax 11.56 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) Sales of typeset material shall first be considered sales of tangible personal property on April 1, 1983; (b) The exemption in sub. (3) (b) 2. for ingredients of publications became effective July 2, 1983, pursuant to
1983 Wis. Act 27; (c) The definition of storage and use for purposes of imposing use tax does not include storing or using raw materials becoming printed materials to be shipped outside Wisconsin effective October 1, 1993, pursuant to
1993 Wis. Act 16; (d) The sales and use tax exemption for raw materials transported and used solely outside Wisconsin became effective December 1, 1997, pursuant to
1997 Wis. Act 27; (e) The exemption for fuel and electricity consumed in manufacturing became effective January 1, 2006, pursuant to
2003 Wis. Act 99; (f) The exemption for catalogs and the envelopes in which they are mailed became effective April 1, 2009 pursuant to
2007 Wis. Act 20; (g) The requirement that property and items which qualify for exemption under s.
77.54 (2) and
(2m), Stats., be consumed exclusively and directly by a manufacturer in manufacturing property and items destined for sale became effective August 1, 2009 pursuant to
2009 Wis. Act 28; and (h) The change of the term "gross receipts" to "sales price" and the separate impositions of tax on coins and stamps sold above face value under s.
77.52 (1) (b), Stats., certain leased property affixed to real property under s.
77.52 (1) (c), Stats., and digital goods under s.
77.52 (1) (d), Stats., became effective October 1, 2009, pursuant to
2009 Wis. Act 2.
Tax 11.56 History
History: Cr.
Register, March, 1983, No. 327, eff. 4-1-83; am. (3) (a), renum. (3) (b) to be (3) (b) 1., cr. (3) (b) 2., r. and recr. (7),
Register, September, 1984, No. 345, eff. 10-1-84; am. (3) (a) and (c), (5) and (6) (a) 1., (b) (intro.) 1. and 2. and (7) (b), r. (6) (b) 3., cr. (6) (c),
Register, April, 1994, No. 460, eff. 5-1-94; r. (1) (a) and (6) (b) 1. and 2., renum. (1) (b) and (c) to be (1) (c) and (a) and am. (c), (3) (a), (b) 1. and 2. and (c) to be (3) (a) (intro.), 1. and 2. and (b) and am. (a) (intro.) 1. and 2., (6) (b) (intro.) to be (6) (b) and am., (6) (c) and (7) (b) to be (7) (b) and (c) and am., cr. (1) (b), am. (2) (a), (5), (6) (a) 2.,
Register, January, 1999, No. 517, eff. 2-1-99;
EmR0924: emerg. am. (1) (a), (b) 2., (c), (2) (intro.), (b), (3), (5), (6), (7) (a), (b) (intro.), 1., and (c), r. and recr. (4), cr. (7) (bm) and (8), eff. 10-1-09;
CR 09-090: am. (1) (a), (b) 2., (c), (2) (intro.), (b), (3), (5), (6), (7) (a), (b) (intro.), 1., and (c), r. and recr. (4), cr. (7) (bm) and (8)
Register May 2010 No. 653, eff. 6-1-10.
Tax 11.57(1)(1)
Taxable sales. Sales of the following tangible personal property, items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., and services provided by utilities are taxable:
Tax 11.57(1)(a)
(a) Utility services billed to household, industrial, or commercial customers, with any adjustments for discounts taken by customers in the utility's next reporting period.
Tax 11.57 Note
Example: An early payment discount is adjusted for in the next reporting period.
Tax 11.57(1)(b)
(b) Excess use charges and minimum or idle service charges.
Tax 11.57(1)(c)
(c) The gross amounts received for contacts on poles and excess pole height contributions.
Tax 11.57(1)(e)
(e) Rentals of transformers located on a customer's property.
Tax 11.57(1)(f)
(f) Labor and materials to install or repair conversion burners.
Tax 11.57(1)(i)
(i) Sales of tools, used equipment, and other tangible personal property and items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., to employees or other purchasers.
Tax 11.57(1)(j)
(j) Pilot relights for furnaces, such as "no heat" calls, or replacing appliance fuses.
Tax 11.57(1)(k)
(k) Sale of a utility overhead transmission or distribution line in place, if installed under easement or license on land owned by others.
Tax 11.57 Note
Note: See s.
Tax 11.86 for more information.
Tax 11.57(2)
(2) Nontaxable sales. The following sales to customers are not subject to the tax:
Tax 11.57(2)(a)
(a) Connection or reconnection charges for natural gas, electricity, and water.
Tax 11.57(2)(b)
(b) Utility services delivered to Indians living on an Indian reservation, or services delivered on the reservation to an Indian tribal governing board.
Tax 11.57(2)(c)
(c) Billings for repairs to persons who damaged utility property.
Tax 11.57(2)(f)
(f) Contributions in aid of construction, such as payments by a customer to have a line extended to the customer's property.
Tax 11.57(2)(g)
(g) The installation charge for a pole sold to a customer, which is installed on land owned by the customer.
Tax 11.57(2)(i)
(i) Sales of fuel and electricity for use in farming, including agriculture, dairy farming, floriculture, silviculture, and horticulture.
Tax 11.57(2)(im)
(im) Sales of fuel and electricity consumed in manufacturing tangible personal property, or items or property under s.
77.52 (1) (b) or
(c), Stats., in Wisconsin.
Tax 11.57(2)(j)
(j) Labor charged a customer for the installation of a complete furnace or built-in appliance.
Tax 11.57(2)(L)
(L) Coal, fuel oil, propane, steam, peat, fuel cubes produced from solid waste and wood used for fuel, sold for residential use.
Tax 11.57(2)(n)
(n) Electricity and natural gas sold during the months of November, December, January, February, March, and April for residential use. For purposes of this exemption, s.
77.54 (30) (b), Stats., provides that electricity or natural gas is considered sold at the time of billing. If the billing is by mail, the time of billing is the day on which the billing is mailed. In any event, a qualifying customer shall receive only 6 months of service exempt from taxation during the November through April period.
Tax 11.57(2)(p)
(p) If fuel or electricity is sold to a person partly for an exempt use and partly for a use that is not exempt, no tax shall be collected by the seller on the portion of the sales price of the fuel or electricity that is used for an exempt purpose, as specified on an exemption certificate provided by the purchaser to the seller, as described in
par. (q).
Tax 11.57(2)(q)1.1. Where a building, that contains residential quarters and commercial operations, is heated by one central heating plant, it is necessary to determine the portion of the fuel purchased which qualifies for the "residential use" exemption. The percentage of residential use may be computed by dividing the number of square feet used for residential purposes, excluding common areas, by the total area heated, excluding common areas. If this does not produce a reasonable result, any other reasonable method of estimating may be used. The resulting percentage should be rounded to the nearest 10%.
Tax 11.57(2)(q)2.
2. In this subsection, "residential use" means use in a structure or portion of a structure that is a person's permanent principal residence. Use in a residence includes heating or cooling the premises, heating water, operating fans or other motors, providing lighting, and other ordinary uses by the purchaser in a residence. Residential use includes use in single-family homes, duplexes, townhouses, condominiums, mobile homes, rooming houses, apartment houses, nursing homes, and farm houses, if the structure is used as a person's permanent principal residence. Residential use includes use in apartment houses, nursing homes, and farm houses even though they are on a commercial or rural meter.
Tax 11.57(2)(q)3.
3. "Non-residential use" is use other than "residential use" as defined in
subd. 2., and includes any use in the conduct of a trade, business or profession, whether the trade, business or profession is carried on by the owner of the premises or some other person. It includes use in secondary residences, motor homes not used as a permanent principal residence, travel trailers, other recreational vehicles, and transient accommodations. "Transient accommodations" include hotels, motels, inns, travel homes, tourist houses, summer cottages, apartment hotels, or resort lodges or cabins, and any accommodation which is rented for a continuous period of less than one month.
Tax 11.57 Note
Examples: 1) A person owns a home in Wisconsin where he resides for 7 months each year and a cottage, also in Wisconsin, where he resides for 5 months each year. The home is his principal residence and the cottage is his secondary residence.
Tax 11.57 Note
2) A person is a resident of Florida and has a home in Florida. The person also retains a home in Wisconsin. The person's Florida home is her principal residence and her Wisconsin home is her secondary residence.
Tax 11.57(2)(q)4.
4. A "continuous" certification designation is provided on the exemption certificate, form S-211, and, if claimed, the form remains in effect until replaced or revoked. A new certificate shall be filed if there is a change in the percentage of exempt use.
Tax 11.57(3)(a)(a) Persons engaged in the business of providing electrical or gas utility service are consumers of the tangible personal property, items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., and taxable services used in providing the utility services. The tax applies to the sales of the property, items, goods, or services to them, except where a specific exemption applies, such as the exemptions shown in
sub. (4).
Tax 11.57(3)(b)
(b) The purchase, license, lease, or rental of the following property, items, goods, and services by a utility are subject to the tax:
Tax 11.57(3)(b)1.
1. Transformers, substation equipment, and other tangible personal property and items and property under s.
77.52 (1) (b) and
(c), Stats., used to construct, improve, or repair a transmission or distribution line.
Tax 11.57(3)(b)2.
2. A contractor's charges for the construction, improvement, or repair of an overhead utility transmission or distribution line installed under easement or license on land owned by others.
Tax 11.57 Note
Note: See s.
Tax 11.86 for more information.
Tax 11.57(3)(b)4.
4. Charges for X-ray testing of welding joints in the construction of overhead utility facilities.
Tax 11.57(3)(b)5.
5. Gas or electricity purchased for resale but used by a utility, but not gas used as a fuel in producing electricity or steam.
Tax 11.57(4)
(4) Nontaxable purchases. The following purchases, licenses, leases, or rentals by utilities are not subject to the tax:
Tax 11.57(4)(b)
(b) A steam generator or other machines and equipment exclusively and directly used in manufacturing electricity or steam. The manufacturing process begins when the coal starts moving by conveyor directly to the boiler bunker, and it ends at the generator bus duct. An overhead crane used for the installation and repair of a turbine, and a fuel storage tank are not directly used in manufacturing.
Tax 11.57(4)(c)
(c) Any residue used as a fuel in a business activity that results from the harvesting of timber or the production of wood products, including slash, sawdust, shavings, edgings, slabs, leaves, wood chips, bark and wood pellets manufactured primarily from wood or wood residue.
Tax 11.57(4)(d)
(d) Charges for X-ray testing of welding joints in the pipe as part of the construction of underground utility pipelines.
Tax 11.57(5)
(5) Waste treatment facilities. The sales price from the sales of and the storage, use or other consumption of tangible personal property and items and property under s.
77.52 (1) (b) and
(c), Stats., which becomes a component part of an industrial waste treatment facility that is exempt or that would be exempt under s.
70.11 (21), Stats., if the property or items were taxable under
ch. 70, Stats., is exempt from sales and use tax.
Tax 11.57(6)
(6) Transfer of transmission facilities. Excluded from the definition of "sale," for sales and use tax purposes, is the transfer of transmission facilities, as defined in s.
196.485 (1) (h), Stats., to a transmission company, as defined in s.
196.485 (1) (ge), Stats., after the organizational start-up date, as defined in s.
196.485 (1) (dv), Stats., of such company in exchange for securities, as defined in s.
196.485 (1) (fe), Stats.
Tax 11.57 Note
Note: The interpretations in s.
Tax 11.57 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The exemption for sales of coal, fuel oil, propane, steam and wood became effective July 1, 1979, pursuant to
Chapter 1, Laws of 1979; (b) The six-month exemption for electricity and gas became effective November 1, 1979, pursuant to
Chapter 1, Laws of 1979; (c) The exemption for fuel converted to electrical energy, gas or steam by utilities became effective October 1, 1981, pursuant to
Chapter 20, Laws of 1981; (d) The exemption for peat and fuel cubes produced from solid waste became effective April 2, 1986, pursuant to
1985 Wis. Act 149; (e) The exemption for wood residue became effective September 1, 1987, pursuant to
1987 Wis. Act 27; (f) The exemption for component parts of an industrial waste treatment facility became effective July 1, 1989, pursuant to
1983 Wis. Act 426, later clarified effective May 17, 1988, pursuant to
1987 Wis. Act 399; (g) The sale of gas or other fuel used to heat farm buildings, including greenhouses, that are not exempt machinery under s.
Tax 11.12 became taxable July 1, 1991; (h) All fuel used in farming became exempt October 1, 1991, pursuant to
1991 Wis. Act 39; (i) The exemption for electricity sold for use in farming became effective May 1, 2000, pursuant to
1999 Wis. Act 9; (j) The exclusion from the definition of sale for certain sales of transmission facilities became effective October 29, 1999, pursuant to
1999 Wis. Act 9; (k) The exemption for fuel and electricity consumed in manufacturing became exempt January 1, 2006, pursuant to
2003 Wis. Act 99; (L) The exemption for certain low-income assistance fees became effective July 1, 2007, pursuant to
2005 Wis. Act 141; (m) The exemption for biomass sold for residential use became effective December 1, 2007, pursuant to
2007 Wis. Act 20; and (n) The change of the term "gross receipts" to "sales price" and the separate impositions of tax on coins and stamps sold above face value under s.
77.52 (1) (b), Stats., certain leased property affixed to real property under s.
77.52 (1) (c), Stats., and digital goods under s.
77.52 (1) (d), Stats., became effective October 1, 2009, pursuant to
2009 Wis. Act 2.
Tax 11.57 History
History: Cr.
Register, January, 1979, No. 277, eff. 2-1-79; cr. (2) (L),
Register, January, 1983, No. 325, eff. 2-1-83; am. (2) (a) and (4) (a),
Register, June, 1983, No. 330, eff. 7-1-83; cr. (4) (c),
Register, April, 1990, No. 412, eff. 5-1-90; am. (2) (e) 1.,
Register, June, 1990, No. 414, eff. 7-1-90; am. (1) (a), (i), (j) and (k), (2) (f), (g), (i) and (L) 7. and 8., (3) (a) and (b) 1., 2. and 4. and (4) (a), cr. (4) (d) and (5),
Register, June, 1991, No. 426, eff. 7-1-91; am. (2) (i),
Register, April, 1993, No. 448, eff. 5-1-93;
EmR0924: emerg. am. (title), (1) (intro.), (a), (h), (i), (2) (intro.), (a), (i), (3) (a), (b) (intro.), 1., 2., (4) (intro.), (d) and (5), cr. (2) (im), (m) to (q) and (6), r. and recr. (2) (L) and (4) (c), eff. 10-1-09;
CR 09-090: am. (title), (1) (intro.), (a), (h), (i), (2) (intro.), (a), (i), (3) (a), (b) (intro.), 1., 2., (4) (intro.), (d) and (5), cr. (2) (im), (m) to (q) and (6), r. and recr. (2) (L) and (4) (c)
Register May 2010 No. 653, eff. 6-1-10.
Tax 11.61
Tax 11.61
Veterinarians and their suppliers. Tax 11.61(1)(a)(a) Charges made by veterinarians which are exempt from the sales tax include charges for the following:
Tax 11.61(1)(b)
(b) Charges made by veterinarians which are subject to the sales tax include charges for the following activities for animals:
Tax 11.61(1)(c)
(c) Sales of tangible personal property and items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., by veterinarians which shall be taxable include the following:
