Tax 11.65 Note
The interpretations in s. Tax 11.65
are effective under the general sales and use tax law on and after September 1, 1969, except: (a) Bingo receipts became taxable December 30, 1973, pursuant to Chapter 156, Laws of 1973
; (b) The exemption for admissions to museums operated under a lease with the State Historical Society became effective July 20, 1985, pursuant to 1985 Wis. Act 29
; (c) The exemption for admissions to American Legion baseball became effective September 1, 1985, pursuant to 1985 Wis. Act 29
; (d) Recreational facilities and rights sold in connection with the sale of time-share property became taxable May 17, 1988, pursuant to 1987 Wis. Act 399
; (e) The exemption for state park campground fees became effective September 1, 1989, pursuant to 1989 Wis. Act 31
; (f) The exemption for admissions to certain gun clubs became effective July 1, 2007, pursuant to 2005 Wis. Act 327
; (g) The exemption for sales of admissions by nonprofit organizations to certain youth sports activities became effective July 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 11.65 History
Cr. Register, January, 1978, No. 265
, eff. 2-1-78; am. (1) (d), cr. (1) (g) and (h), Register, September, 1984, No. 345
, eff. 10-1-84; am. (2) (b), cr. (2) (e), Register, July, 1987, No. 379
, eff. 8-1-87; am. (1) (b), (e), (f) and (g) and (4) (a) and (b), cr. (2) (f) and (g), Register, June, 1991, No. 426
, eff. 7-1-91; EmR0924
: emerg. am. (1) (a), (b), (d) to (g), (2) (a), (b), (e), (g), (3), (4) and (5), cr. (2) (h) to (k), eff. 10-1-09; CR 09-090
: am. (1) (a), (b), (d) to (g), (2) (a), (b), (e), (g), (3), (4) and (5), cr. (2) (h) to (k) Register May 2010 No. 653
, eff. 6-1-10; CR 10-094
: am. (5) Register November 2010 No. 659
, eff. 12-1-10; CR 12-014
: cr. (2) (L), am. (4) (b), cr. (4) (b) (Examples) Register August 2012 No. 680
, eff. 9-1-12.
Telecommunications and telecommunications message services. Tax 11.66(1)(a)
“Air-to-ground radio telephone service" means a radio service in which common carriers are authorized to offer and provide radio telecommunications service for hire to subscribers in aircraft.
“Ancillary services" are those services that are associated with or incidental to providing telecommunications services, including detailed telecommunications billing, directory assistance, vertical service, and voice mail services.
“Call-by-call basis" means any method of charging for telecommunications services by which the price of such services is measured by individual calls.
“Communications channel" means a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points.
“Conference bridging service" means an ancillary service that links 2 or more participants of an audio or video conference call and may include providing a telephone number, but does not include the telecommunications services used to reach the conference bridge.
“Customer," for purposes of this section, means a person who enters into a contract with the seller of telecommunications services or, in any transaction for which the end user is not the person who entered into a contract with a seller of telecommunications services, the end user of the telecommunication services. “Customer" does not include a person who resells telecommunications services or, for mobile telecommunications services, a serving carrier under an agreement to serve a customer outside the home service provider's licensed service area.
“Customer channel termination point" means the location where a customer inputs or receives communications.
“Detailed telecommunications billing service" means an ancillary service that separately indicates information pertaining to individual calls on a customer's billing statement.
“Directory assistance" means an ancillary service that provides telephone numbers or addresses.
“Eight hundred service" means a telecommunications service that allows a caller to dial a toll-free number without incurring a charge for the call and is marketed under “800," “855," “866," “877," or “888" toll-free calling, or any other number designated as toll-free by the federal communications commission.
“End user" means the person who uses a telecommunications service. In the case of an entity, “end user" means the individual who uses the telecommunications service on the entity's behalf.
“Fixed wireless service" means a telecommunications service that provides radio communications between fixed points.
“Home service provider" means a home service provider under section 124 (5) of P.L. 106-252
, the Mobile Telecommunications Sourcing Act. Section 124 (5) of P.L. 106-252
provides that “home service provider" means the facilities-based carrier or reseller with which the customer contracts for the provision of mobile telecommunications services.
“International telecommunications services" means telecommunications services that originate or terminate in the United States, including the District of Columbia and any U.S. territory or possession and originate or terminate outside of the United States, including the District of Columbia and any U.S. territory or possession.
“Internet access services" means sending messages and information transmitted through the use of local, toll, and wide-area telephone service; channel services; telegraph services; teletypewriter; computer exchange services; cellular mobile telecommunications services; specialized mobile radio; stationary two-way radio; paging service; or any other form of mobile and portable one-way or two-way communications; or any other transmission of messages or information by electronic or similar means between or among points by wire, cable, fiber optics, laser, microwave, radio, satellite, or similar facilities. “Internet access services" does not include telecommunications services to the extent that such services are taxable under s. 77.52 (2) (a) 5. am.
“Interstate telecommunications services" means telecommunications services that originate in one state or U.S. territory or possession and terminate in a different U.S. state or territory or possession.
“Intrastate telecommunications services" means telecommunications services that originate in one state or U.S. territory or possession and terminate in the same state or U.S. territory or possession.
“Mobile telecommunications service" means a mobile telecommunications service under 4 USC 116
, as amended by P.L. 106-252
, the Mobile Telecommunications Sourcing Act. “Mobile telecommunications service" is defined in 4 USC 116
, as amended by P.L. 106-252
, to mean commercial mobile radio service, as defined in 47 CFR 20.3
as in effect on June 1, 1999. “Commercial mobile radio service" is defined in 47 CFR 20.3
to mean a mobile service that is either of the following:
Provided for profit, that is, with the intent of receiving compensation or monetary gain.
Available to the public, or to such classes of eligible users as to be effectively available to a substantial portion of the public.
“Nine hundred service" means an inbound toll telecommunications service purchased by a subscriber that allows the subscriber's customers to call the subscriber's prerecorded announcement or live service. “Nine hundred service" does not include any charge for collection services provided by the seller of the telecommunications services to the subscriber or for any product or service the subscriber sells to the subscriber's customers. A “nine hundred service" is designated with the “900" number or any other number designated by the federal communications commission.
“Paging service" means a telecommunications service that transmits coded radio signals to activate specific pagers and may include messages or sounds.
“Place of primary use" means the residential street address or the primary business street address of the customer. In the case of mobile telecommunications services, “place of primary use" means a street address within the licensed service area of the home service provider.
“Postpaid calling service" means a telecommunications service that is obtained by paying for it on a call-by-call basis using a bankcard, travel card, credit card, debit card, or similar method, or by charging it to a telephone number that is not associated with the location where the telecommunications service originates or terminates. “Postpaid calling service" includes a telecommunications service, not including a prepaid wireless calling service, that would otherwise be a prepaid calling service except that the service provided to the customer is not exclusively a telecommunications service.
“Prepaid calling service" means the right to exclusively access telecommunications services, if that right is paid for in advance of providing such services, requires using an access number or authorization code to originate calls, and is sold in predetermined units or dollars that decrease with use in a known amount.
“Prepaid wireless calling service" means a telecommunications service that provides the right to utilize mobile wireless service as well as other nontelecommunications services, including the download of digital products delivered electronically, content, and ancillary services, and that is paid for prior to use and sold in predetermined units or dollars that decrease with use in a known amount.
“Private communication service" means a telecommunications service that entitles the customer to exclusive or priority use of a communications channel or group of communications channels, regardless of the manner in which the communications channel or group of communications channels is connected, and includes switching capacity, extension lines, stations, and other associated services that are provided in connection with the use of such channel or channels.
“Radio service" means a communication service provided by the use of radio, including radiotelephone, radiotelegraph, paging, and facsimile service.
“Radiotelegraph service" means transmitting messages from one place to another by means of radio.
“Radiotelephone service" means transmitting sound from one place to another by means of radio.
The location of the telecommunications equipment to which a customer's telecommunications service is charged and from which the telecommunications service originates or terminates, regardless of where the telecommunications service is billed or paid.
If the location under subd. 1.
is not known by the seller who sells the telecommunications service, the location where the signal of the telecommunications service originates, as identified by the seller's telecommunications system or, if the signal is not transmitted by the seller's telecommunications system, by information that the seller received from the seller's service provider.
If the locations described under subds. 1.
are not known by the seller who sells the telecommunications service, the customer's place of primary use.
“Telecommunications services" as defined in s. 77.51 (21n)
, Stats., means electronically transmitting, conveying, or routing voice, data, audio, video, or other information or signals to a point or between or among points. “Telecommunications services" includes the transmission, conveyance, or routing of such information or signals in which computer processing applications are used to act on the content's form, code, or protocol for transmission, conveyance, or routing purposes, regardless of whether the service is referred to as a voice over Internet protocol service or classified by the federal communications commission as an enhanced or value-added nonvoice data service. “Telecommunications services" does not include any of the following:
Data processing and information services that allow data to be generated, acquired, stored, processed, or retrieved and delivered to a purchaser by an electronic transmission, if the purchaser's primary purpose for the underlying transaction is the processed data.
Installing or maintaining wiring or equipment on a customer's premises.
Radio and television audio and video programming services, regardless of the medium in which the services are provided, including cable service, as defined in 47 USC 522
(6), audio and video programming services delivered by commercial mobile radio service providers, as defined in 47 CFR 20.3
, and the transmitting, conveying, or routing of such services by the programming service provider.
Digital products delivered electronically, including software, music, video, reading materials, or ringtones.
“Value-added nonvoice data service" means a service that otherwise meets the definition of telecommunications services, in which computer processing applications are used to act on the form, content, code, or protocol of the information or data provided by the service and are used primarily for a purpose other than for transmitting, conveying, or routing data.
“Vertical service" means an ancillary service that is provided with one or more telecommunications services and allows customers to identify callers and to manage multiple calls and call connections, including conference bridging services.
“Voice mail service" means an ancillary service that allows a customer to store, send, or receive recorded messages, not including any vertical service that the customer must have to use the voice mail service.
Receipts that are subject to Wisconsin sales and use tax include receipts from the following services, if the services are sourced to Wisconsin as provided in sub. (3)
Telecommunications message services that consist of recording telecommunications messages and transmitting them to the purchaser of the service or at that purchaser's direction, but not including services that are taxable under par. (a)
, or (c)
, or services that are incidental, as defined in s. 77.51 (5)
, Stats., to another service that is not taxable under subch. III of ch. 77
, Stats., and sold to the purchaser of the incidental service. Telecommunications message services include the following:
Tax 11.66 Note
Examples: 1) A real estate business, whose employees spend considerable periods of time away from its office, contracts with Company A to answer incoming telephone calls during periods when employees are not available to answer the telephone. Employees of Company A receive the calls to the real estate office by telephone, take messages from incoming callers, and transmit the messages to the real estate company or particular employees in that company. The service provided by Company A is not incidental to another service sold by the company that is not a taxable service. Company A's charge for this service is subject to Wisconsin sales or use tax.
Tax 11.66 Note
2) Company B employs an office management service that provides receptionist, typing, filing, scheduling, bookkeeping, and similar services. Employees of the office management service also answer and route incoming telephone calls. When calls cannot be routed, the office management service takes and transmits messages to the appropriate person. This answering service is only a small part of the total services provided.
Tax 11.66 Note
The telephone answering service provided as a part of the office management service is not subject to Wisconsin sales or use tax because it is incidental to the office management service provided and that office management service is not taxable.
Security monitoring services that consist of recording a telecommunications message and notifying the customer or local authorities of the message.
Mechanical or electronic voice messaging and telephone answering services, except ancillary services.
Tax 11.66 Note
Example: Company A provides its customers access to an office message system computer through which a customer can deposit or retrieve telephone messages using a touch-tone telephone. The service may be used as a message center, a call forwarding service, or an answering service. Messages are stored in the computer, and the customer may send or retrieve messages, reply to a message directly, reroute messages to others, broadcast messages to a wider group, save selected messages, and cancel messages no longer needed. The service is available 24 hours a day, and the customer accesses the computer through either a toll-free telephone number or a local telephone number. The service provided by Company A is not incidental to another service sold by the company that is not a taxable service and is not associated with or incidental to providing telecommunications services. Company A's charges for this service are subject to Wisconsin sales or use tax.