Tax 11.945 Note
Example: Company A leases laptop computers that are normally kept in State A and the lease payments are sourced to State A. However, when an employee is travelling and consulting with clients in other states, the employee brings the laptop computer to these other states. The intermittent use of the laptop computer in the other states does not affect the sourcing of these lease payments.
Tax 11.945(4)(e)
(e) Transportation equipment. Leases, licenses, and rentals of transportation equipment are sourced to the location determined in
par. (a).
Tax 11.945(5)(a)1.1. "Retail florist" is defined in s.
77.522 (5), Stats., to mean a person engaged in the business of selling cut flowers, floral arrangements, and potted plants and who prepares such flowers, floral arrangements, and potted plants. "Retail florist" does not include a person who sells cut flowers, floral arrangements, and potted plants primarily by mail or via the Internet.
Tax 11.945(5)(a)2.
2. A retailer who does not prepare and sell cut flowers, floral arrangements, and potted plants, such as a person who only takes orders for cut flowers, floral arrangements, and potted plants and then transmits those orders to a retail florist, is not a "retail florist."
Tax 11.945(5)(b)
(b) Except as provided in
par. (c), sales of tangible personal property, items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., and services by florists are sourced the same as provided in
sub. (2).
Tax 11.945(5)(c)
(c) Sales by a retail florist in which the retail florist receives an order from a customer and then transmits that order to a second retail florist who will prepare and deliver the order at the customer's direction are sourced to the location where the first retail florist received the order from the customer. The first retail florist that received the order from the customer must collect and remit the applicable Wisconsin sales or use taxes based on the location where that retail florist received the order from the customer. The sale from the second retail florist to the first retail florist is not subject to Wisconsin sales or use tax if the first retail florist provides the second retail florist an exemption certificate claiming resale.
Tax 11.945 Note
Example: Retail Florist A located in Wisconsin receives an order from a customer, who wants the flowers delivered to a location in Kentucky. Retail Florist A contacts Retail Florist B, located in Kentucky, and has Retail Florist B prepare the order and deliver it to the location in Kentucky. This sale is sourced to Retail Florist A's location in Wisconsin.
Tax 11.945(5)(d)
(d) Sales by persons who are not retail florists but who take orders for cut flowers, floral arrangements, and potted plants from customers and transmit those orders to a person who is a retail florist are sourced as provided in
sub. (2).
Tax 11.945 Note
Note: (a) The interpretations under s.
Tax 11.945 are effective beginning October 1, 2009, pursuant to
2009 Wis. Acts 2 and
28 and (b) The definitions of "advertising and promotional direct mail" and "other direct mail" and the provisions relating to the sourcing of transactions that include these types of items are effective May 27, 2010, pursuant to
2009 Wis. Act 330.
Tax 11.945 History
History: EmR0924: emerg. cr. eff. 10-1-09;
CR 09-090: cr.
Register May 2010 No. 653, eff. 6-1-10;
CR 10-094: renum. (1) (a) to (c) to be (1) (c) to (e), cr. (1) (a) and (b), am. (2) (b), r. and recr. (3)
Register November 2010 No. 659, eff. 12-1-10.
Tax 11.95(1)(a)(a) Effective for Wisconsin sales and use tax returns filed for periods ending on or after January 1, 1997, for timely reporting state, county and stadium sales or use tax collected on their retail sales, retailers may deduct 0.5% of the sales and use tax payable on retail sales, except as provided in
pars. (am),
(b), and
(c).
Tax 11.95(1)(am)
(am) Effective for taxes payable on October 1, 2009 and thereafter, the retailer's discount that may be deducted on a sales and use tax return is limited to $1,000 per reporting period.
Tax 11.95(1)(b)
(b) If, for each reporting period required under s.
77.58 (1), Stats., multiplying the sales and use tax payable on retail sales by 0.5% results in $10 or less, the retailer's discount is the lesser of $10 or the amount of the sales and use tax payable on retail sales.
Tax 11.95(1)(c)
(c) Certified service providers that receive compensation under s.
73.03 (61) (h), Stats., for the taxes reported on a return are not entitled to the retailer's discount on that return.
Tax 11.95(2)
(2) Retailer's discount allowed. The retailer's discount is allowed if the taxes are paid on or before the due date of the return, or on or before the expiration of any extension period if one has been granted.
Tax 11.95(3)
(3) Retailer's discount not allowed. The retailer's discount is not allowed if any one of the following applies:
Tax 11.95(3)(b)
(b) The sales and use tax payable is as a result of a deficiency determination or filing an amended return after the due date of the return, or after the expiration of any extension period if one has been granted.
Tax 11.95(3)(d)
(d) The certified service provider that is filing the sales and use tax return is receiving compensation under s.
73.03 (61) (h), Stats., with respect to the taxes reported on that return.
Tax 11.95 Note
Note: (a) The amount of retailer's discount on or after January 1, 1983 until December 31, 1992 was 2% of the first $10,000 of sales and use tax payable during the retailer's tax year, 1% of the second $10,000 of sales and use tax payable and 0.5% of the sales and use tax payable in excess of $20,000 each year; (b) The requirement that county tax be remitted by dealers to the registering state agency was repealed effective May 1, 1988, pursuant to
1987 Wis. Act 141; (c) The amount of retailer's discount for returns filed for periods ending on or after January 1, 1993 and before January 1, 1997, was 0.5% of sales and use tax payable on retail sales, pursuant to
1991 Wis. Act 269; (d) The amount of retailer's discount in sub. (1) became effective for returns filed for periods ending on or after January 1, 1997, pursuant to
1995 Wis. Act 280; (e) The limitation of the retailer's discount to $1,000 per reporting period became effective for taxes payable on and after October 1, 2009, pursuant to
2009 Wis. Act 28; and (f) The provision prohibiting the retailer's discount on those returns filed by a certified service provider who receives other compensation became effective October 1, 2009, pursuant to
2009 Wis. Act 2.
Tax 11.95 History
History: Cr.
Register, February, 1978, No. 266, eff. 3-1-78; r. and recr.
Register, September, 1984, No. 345, eff. 10-1-84; emerg. am. (1), eff. 3-24-86; am. (1)
Register, October, 1986, No. 370, eff. 11-1-86; am. (1),
Register, March, 1991, No. 423, eff. 4-1-91; am. (1),
Register, April, 1993, No. 448, eff. 5-1-93; r. and recr.
Register, December, 1996, No. 492, eff. 1-1-97;
EmR0924: emerg. am. (1) (a), cr. (1) (am), (c) and (3) (d), eff. 10-1-09;
CR 09-090: am. (1) (a), cr. (1) (am), (c) and (3) (d)
Register May 2010 No. 653, eff. 6-1-10;
CR 12-014: am. (1) (a)
Register August 2012 No. 680, eff. 9-1-12.
Tax 11.96
Tax 11.96
Delivery of ordinance or resolution; county, stadium, and premier resort area tax. Tax 11.96(1)
(1)
Purpose. This section clarifies requirements for the timely delivery of county and stadium sales and use tax and premier resort area tax ordinances or resolutions to the secretary of revenue.
Tax 11.96(2)(a)(a)
Adoption of county tax ordinance. Any Wisconsin county may impose county sales and use taxes by adopting an ordinance. Under s.
77.70, Stats., a certified copy of that ordinance shall be delivered to the secretary of revenue at least 120 days prior to its effective date. The effective date of the ordinance may only be on the first day of January, the first day of April, the first day of July, or the first day of October.
Tax 11.96(2)(b)
(b)
Repeal of county tax ordinance. Under s.
77.70, Stats., a county described in
par. (a) may repeal a county sales and use tax by delivering a certified copy of the repeal ordinance to the secretary of revenue at least 120 days before the effective date of the repeal. The effective date of the repeal may only be December 31.
Tax 11.96 Note
Note: An ordinance to adopt or repeal a county sales and use tax or a premier resort area tax should be mailed to Wisconsin Department of Revenue, Office of the Secretary, Mail Stop 624A, PO Box 8933, Madison WI 53708-8933 or delivered to 2135 Rimrock Road, Madison, Wisconsin.
Tax 11.96(2)(c)
(c) Adoption of premier resort area tax ordinance. Any Wisconsin municipality or county wholly within a premier resort area under s.
66.1113, Stats., may impose a premier resort area tax, by adopting an ordinance. Under s.
77.9941 (1), Stats., a certified copy of that ordinance shall be delivered to the secretary of revenue at least 120 days prior to its effective date. The effective date of the ordinance may only be on the first day of January, the first day of April, the first day of July, or the first day of October.
Tax 11.96(2)(d)
(d) Repeal of premier resort area tax ordinance. Under s.
77.9941 (3), Stats., a county or municipality described in
par. (c) may repeal a premier resort area tax by delivering a certified copy of the repeal ordinance to the secretary of revenue at least 60 days before the effective date of the repeal. The effective date of the repeal may only be December 31.
Tax 11.96(2)(e)
(e) Adoption of stadium tax resolution. A baseball park district created under subch.
III of ch. 229, Stats., or a football stadium district created under subch.
IV of ch. 229, Stats., may impose a stadium district sales and use tax, by adopting a resolution. Under ss.
229.68 (15) and
229.824 (15), Stats., a certified copy of that resolution shall be delivered to the secretary of revenue at least 120 days prior to its effective date. The effective date of the ordinance may only be on the first day of January, the first day of April, the first day of July, or the first day of October.
Tax 11.96(2)(f)
(f) Repeal of stadium tax resolution. A baseball park district and a football stadium district described in
par. (e) may repeal a baseball or football stadium district tax by delivering a certified copy of the repeal resolution to the secretary of revenue at least 120 days before the effective date of the repeal. The effective date of the repeal may only be on the first day of January, the first day of April, the first day of July, or the first day of October.
Tax 11.96(3)
(3) Delivery of ordinance or resolution. An ordinance or resolution referred to in s.
77.70,
77.9941 (1) or
(3),
229.68 (15), or
229.824 (15), Stats., is timely delivered to the secretary of revenue if, by the prescribed number of days before the effective date, any of the following occur:
Tax 11.96(3)(a)
(a) The ordinance or resolution is hand delivered to and received by the secretary of revenue.
Tax 11.96(3)(b)
(b) The ordinance or resolution is mailed in a properly addressed envelope with the postage duly prepaid, if the envelope is postmarked before midnight and the ordinance or resolution is received by the secretary of revenue within 5 days after the prescribed date.
Tax 11.96(3)(c)
(c) The ordinance or resolution is delivered by a carrier other than the U.S. postal service and the ordinance is received by the secretary of revenue.
Tax 11.96 History
History: Cr.
Register, April, 2000, No. 532, eff. 5-1-00; correction in (2) (a) made under s. 13.93 (2m) (b) 7., Stats.,
Register July 2002 No. 559;
EmR0924: emerg. am. (title) and (1) to (3), cr. (2) (c) to (h), eff. 10-1-09;
CR 09-090: am. (title) and (1) to (3), cr. (2) (c) to (h)
Register May 2010 No. 653, eff. 6-1-10;
CR 12-014: am. (title), (1), r. (2) (g), (h), am. (3) (intro.)
Register August 2012 No. 680, eff. 9-1-12.
Tax 11.97
Tax 11.97
"Engaged in business" in Wisconsin. Tax 11.97(1)(a)(a) Out-of-state retailers shall register and collect a state's use tax if the retailer is subject to the state's jurisdiction. The United States supreme court has resolved certain jurisdictional questions by interpreting the due process clause of the
14th Amendment to the U.S. Constitution. The court has said due process requires that there be some definite link, some minimum connection between the state and the person, property, or transaction it seeks to tax. If this minimum connection, often called "nexus," is established, the out-of-state seller shall register and collect the state's use tax.
Tax 11.97 Note
Note: Retailers having nexus in Wisconsin for use tax purposes do not necessarily have nexus in Wisconsin for franchise or income tax purposes. Refer to s.
Tax 2.82 for nexus standards with respect to franchise and income taxes.
Tax 11.97(1)(b)
(b) Some United States supreme court decisions concerning nexus include:
Tax 11.97(2)(a)(a) Section
77.51 (13) (k), Stats., defines "retailer" to include any person deriving rentals from a lease of tangible personal property or items, property, or goods under s.
77.52 (1) (b),
(c), or
(d), Stats., sourced to this state as provided under s.
77.522, Stats., and s.
77.51 (14) (j), Stats., defines a lease as a continuing sale.
Tax 11.97(2)(c)
(c) Under s.
77.53 (5), Stats., the tax required to be collected by a use tax registrant is a debt owed by the registrant to this state, and s.
77.53 (7), Stats., provides the tax is to be stated separately from the list price of the goods sold.
Tax 11.97(3)
(3) Activities which in themselves create Wisconsin "nexus". Unless otherwise limited by federal statute, a retailer engaged in business in Wisconsin who shall register includes the following:
Tax 11.97(3)(b)
(b) Any retailer leasing or renting out any tangible personal property or items or property under s.
77.52 (1) (b) or
(c), Stats., sourced to this state under s.
77.522, Stats.
Tax 11.97(3)(c)
(c) Any retailer maintaining, occupying, or using, permanently or temporarily, directly or indirectly, or through a subsidiary, agent, or other person, an office, place of distribution, sales or sample room, or place, warehouse, or storage place, or other place of business in this state.
Tax 11.97(3)(d)
(d) Any retailer having any representative, including a manufacturer's representative, agent, salesperson, canvasser, or solicitor operating in Wisconsin under the authority of the retailer or its subsidiary for the purpose of selling, delivering, or taking orders for any tangible personal property, items, property, or goods under s.
77.52 (1) (b),
(c), or
(d), Stats., or taxable services.
Tax 11.97(3)(e)
(e) Any person servicing, repairing, or installing equipment or other tangible personal property or items, property, or goods under s.
77.52 (1) (b),
(c), or
(d), Stats., in Wisconsin.
Tax 11.97(3)(f)
(f) Any person delivering property, items, or goods into this state in company operated vehicles.
Tax 11.97(3)(g)
(g) Any person performing construction activities in this state.
Tax 11.97(3)(h)
(h) Any retailer selling tangible personal property, items, property, or goods under s.
77.52 (1) (b),
(c), or
(d), Stats., or taxable services for storage, use, or other consumption in Wisconsin, unless otherwise limited by federal law.
Tax 11.97(3)(i)
(i) Any person who has an affiliate in Wisconsin, if the person is related to the affiliate and if the affiliate uses facilities or employees in Wisconsin to advertise, promote, or facilitate the establishment of or market for sales of items by the related person to purchasers in Wisconsin or for providing services to the related person's purchasers in Wisconsin, including accepting returns of purchases or resolving customer complaints. For purposes of this paragraph, two persons are "related" if any of the following apply:
Tax 11.97(3)(i)1.
1. One person, or each person, is a corporation and one person and any person related to that person in a manner that would require a stock attribution from the corporation to the person or from the person to the corporation under section
318 of the Internal Revenue Code owns directly, indirectly, beneficially, or constructively at least 50% of the corporation's outstanding stock value.
Tax 11.97(3)(i)2.
2. One person, or each person, is a partnership, estate, or trust and any partner or beneficiary; and the partnership, estate, or trust and its partners or beneficiaries; own directly, indirectly, beneficially, or constructively, in the aggregate, at least 50% of the profits, capital, stock, or value of the other person or both persons.
Tax 11.97(3)(i)3.
3. An individual stockholder and the members of the stockholder's family, as defined in section
318 of the Internal Revenue Code, owns directly, indirectly, beneficially, or constructively, in the aggregate, at least 50% of both persons' outstanding stock value.
Tax 11.97(4)
(4) Activities which in themselves do not create "nexus". Activities which, in themselves, do not create nexus in this state, include:
Tax 11.97(4)(a)
(a) Advertising in newspapers published in or outside this state.
Tax 11.97(4)(b)
(b) Sending catalogues into this state from an out-of-state location if subsequent orders are shipped either by mail or common carrier to Wisconsin consumers.
Tax 11.97(4)(c)
(c) Receiving mail or telephone orders outside this state from consumers located in Wisconsin if such orders are shipped either by mail or common carrier into Wisconsin.
Tax 11.97(4)(d)
(d) Making cash or credit sales over-the-counter at an out-of-state location to Wisconsin consumers, when the goods are shipped by mail or common carrier by the retailer into this state, or when possession of the goods is taken at the out-of-state location by the consumer.
Tax 11.97(4)(e)
(e) A foreign corporation obtaining a certificate of authority from the Wisconsin secretary of state to transact business in Wisconsin.
Tax 11.97(5)(a)(a) Under s.
77.51 (13g) and
(13h), Stats., a foreign corporation that is a publisher of printed materials does not have nexus in Wisconsin if its only activities in Wisconsin are:
Tax 11.97(5)(a)1.
1. Storage of its raw materials for any length of time in Wisconsin in or on property owned by a person, other than the foreign corporation, if the materials are for printing by that person.
Tax 11.97(5)(a)2.
2. Delivery of its raw materials to another person in Wisconsin, if the delivery is for printing by that other person.
