Tax 11.05 Note
Section 256.35 (3m), Stats. was repealed by 2017 Wis. Act 59
Animal identification tags and standard samples representing product or commodity grades only when sold by the Wisconsin department of agriculture, trade and consumer protection.
The sale or furnishing the use of recreational facilities on a periodic basis or other recreational rights, including but not limited to, membership rights, vacation services, and club memberships, in connection with the sale or use of time-share property, if the facilities or rights are not available to persons who have not purchased the time-share property, other than guests.
Admissions by a governmental unit to participate in any sports activity in which more than 50 percent of the participants are 19 years old or younger.
Section 77.54 (9a)
, Stats., exempts sales to and the storage, use or other consumption of tangible personal property and items and property under s. 77.52 (1) (b)
, Stats., and services by Wisconsin or by any agency of Wisconsin, the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic Development Corporation, and the Fox River Navigational System Authority; any county, city, village, town or school district in this state; a county-city hospital established under s. 66.0927
, Stats.; a sewerage commission organized under s. 281.43 (4)
, Stats., or a metropolitan sewerage district organized under ss. 200.01
, Stats.; any other unit of government in this state or any agency or instrumentality of one or more units of government in this state; any federally recognized American Indian tribe or band in this state; any joint local water authority created under s. 66.0823
, Stats.; any corporation, community chest fund, foundation or association organized and operated exclusively for religious, charitable, scientific or educational purposes, or for the prevention of cruelty to children or animals, except hospital service insurance corporations under s. 613.80 (2)
, Stats., no part of the net income of which inures to the benefit of any private stockholder, shareholder, member or corporation; a local exposition district under subch. II of ch. 229
, Stats.; a local cultural arts district under subch. V of ch. 229
, Stats.; and a cemetery company or corporation described under section 501
(c) (13) of the Internal Revenue Code, if the tangible personal property or taxable services are used exclusively by the cemetery company or corporation for the purposes of the company or corporation.
Tax 11.05 Note
Refer to s. Tax 11.04
regarding the purchase of building materials used in the construction of buildings for governmental units.
In addition to the invoice or other billing document being in the name of the governmental unit, a Wisconsin governmental unit shall provide one of the following to a retailer as proof that a sale to the governmental unit is exempt from tax:
A purchase order or similar written document identifying the governmental unit as the purchaser.
A Wisconsin sales and use tax exemption certificate, form S-211.
Tax 11.05 Note
Note: Form S-211 is available from any department of revenue office.
Its certificate of exempt status number that the retailer should record on the invoice or other document it keeps as part of its records.
A Wisconsin governmental unit's payments to retailers for welfare recipients' purchases are generally subject to the tax, except when the purchase is made directly by the governmental unit and all 3 of the following conditions apply:
The retailer issues the billing or invoice for the purchases in the name of the governmental unit.
The retailer keeps a copy of the governmental unit's purchase order and the retailer's billing or invoice to substantiate that the sale was exempt from sales and use tax.
Tax 11.05 Note
Example: A governmental unit intends to purchase clothing for a welfare recipient. The governmental unit gives a purchase order to the retailer and the retailer makes the invoice out to the governmental unit. The sale is not subject to sales tax if the welfare recipient pays the retailer with funds given to the recipient by the governmental unit or if the governmental unit pays the retailer directly.
Purchases by state chartered credit unions are subject to the tax. Purchases by federally chartered credit unions and federal reserve banks are not subject to the tax.
Purchases, including lodging, meals, or uniforms, by employees of a governmental unit are not exempt, whether or not the employee is subsequently reimbursed for the purchases by the governmental unit, unless the retailer issues the billing or invoice in the name of the governmental unit, receives from the governmental unit a document as described in par. (b)
, and keeps a copy of both documents.
Purchases by consular and diplomatic personnel of other countries which have entered into multilateral treaties with the United States government providing for sales and use tax exemptions are exempt provided the personnel present their tax exemption card issued by the United States department of state or the American Institute in Taiwan showing their tax exemption number.
Tax 11.05 Note
Section Tax 11.05
interprets ss. 77.52 (1)
, and (14)
and 77.54 (1)
, and (55)
Tax 11.05 Note
The interpretations in s. Tax 11.05 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) Sales by vocational, technical and adult education schools were exempt from July 1, 1972, through October 3, 1973; (b) Mobile meals on wheels became exempt October 4, 1973, pursuant to Chapter 90, Laws of 1973
; (c) Admission fees to state parks became exempt on July 1, 1978, pursuant to Chapter 418, Laws of 1977
; (d) Sales of coal, fuel oil, propane, steam and wood used for fuel became exempt July 1, 1979, and the electricity and natural gas six-month exemption became effective on November 1, 1979, both pursuant to Chapter 1, Laws of 1979
; (e) A governmental unit's charges for parking motor vehicles and aircraft and docking and providing storage space for boats became taxable June 1, 1980, pursuant to Chapter 221, Laws of 1979
; (f) Landscaping and lawn maintenance services became taxable on May 1, 1982, pursuant to Chapter 317, Laws of 1981
; (g) A governmental unit's charges for copying public records became exempt effective April 27, 1984, pursuant to 1983 Wis. Act 287
, later amended effective April 2, 1986, pursuant to 1985 Wis. Act 149
to clarify that the exemption also applies to confidential records, and again amended effective May 1, 1992, pursuant to 1991 Wis. Act 269
, to include records under s. 19.35 (1) (a), Stats.; (h) The exemption for peat and fuel cubes produced from solid waste became effective April 2, 1986, pursuant to 1985 Wis. Act 149
; (i) The exemption for an agency or instrumentality of a Wisconsin governmental unit became effective June 1, 1986, pursuant to 1985 Wis. Act 149
; (j) Wood residue used for fuel by businesses became exempt on September 1, 1987, pursuant to 1987 Wis. Act 27
; (k) The exemption for admissions to a museum operated by a nonprofit corporation under lease with the state historical society became exempt July 20, 1985, pursuant to 1985 Wis. Act 29
; (L) The exclusion of hospital service insurance corporation from the definition of exempt entity became effective September 1, 1985, pursuant to 1985 Wis. Act 29
; (m) Revenues from establishing a “911" emergency telephone system became exempt August 1, 1987, pursuant to 1987 Wis. Act 27
; (n) State park camping fees became exempt effective September 1, 1989, pursuant to 1989 Wis. Act 31
; (o) The exemption for animal identification tags and standard samples by the Wisconsin department of agriculture, trade and consumer protection became effective October 1, 1993, pursuant to 1993 Wis. Act 16
; (p) The exemption for fuel used in farming became effective October 1, 1991, pursuant to 1991 Wis. Act 39
; (q) The requirement that meals must be served on the premises of hospitals, nursing homes, etc., for exemption to apply became effective October 1, 1991, pursuant to 1991 Wis. Act 39
; (r) The exemption for sales to a local exposition district became effective April 26, 1994, pursuant to 1993 Wis. Act 263
; (s) The exemption for sales of meals by community-based residential facilities became effective June 1, 1994, pursuant to 1993 Wis. Act 332
; (t) The exemption for sales to the University of Wisconsin Hospitals and Clinics Authority became effective July 29, 1995, pursuant to 1995 Wis. Act 27
; (u) The exemption for certain meals, food, food products and beverages furnished by institutions of higher education was revised to apply only if the items are furnished to an undergraduate student, a graduate student or a student enrolled in a professional school if the student is enrolled for credit at that institution and if the items are consumed by that student, or the items are furnished to a national football league team, effective for contracts or agreements entered into on or after October 14, 1997, pursuant to 1997 Wis. Act 27
, and further revised to include certain meals, food, food products or beverages paid for to an institution of higher education through the use of an account of the institution, if the items are furnished by the institution, effective December 31, 1997, pursuant to 1997 Wis. Act 41
; (v) The exemption for electricity sold for use in farming was expanded to include sales of electricity during the entire year, effective for sales on or after May 1, 2000, pursuant to 1999 Wis. Act 9
; (w) The exemption for sales from the collection of public benefit fees became effective October 29, 1999, pursuant to 1999 Wis. Act 9
; (x) The exemption for use of recreational facilities in connection with the sale of time-share property became effective December 1, 1999, pursuant to 1999 Wis. Act 9
; (y) The exemption for certain items sold from a vending machine became effective July 1, 2001, pursuant to 1999 Wis. Act 9
; (z) The exemption for fuel consumed in manufacturing became effective January 1, 2006, pursuant to 2003 Wis. Act 99
; (zb) The exemption for regional transit authorities and the Wisconsin Quality Home Health Care Authority became effective July 1, 2009, pursuant to 2009 Wis. Act 28
; (ze) The exemption for federally recognized American Indian tribes or bands in Wisconsin became effective August 1, 2009, pursuant to 2009 Act 28
; (zh) The requirement that governmental units collect sales tax on their sales of used motor vehicles became effective October 1, 2009, pursuant to 2009 Wis. Act 2
; (zL) The exemption for low-income assistance fees became effective July 1, 2005, pursuant to 2005 Wis. Act 141
; (zp) The exemption for certain admissions to sports activities by governmental units became effective July 1, 2009, pursuant to 2009 Wis. Act 28
; (zr) The exemption for the police and fire protection fee became effective July 1, 2009, pursuant to 2009 Wis. Act 28
; (zu) 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
; (zy) The exemption for sales of food and food ingredients, except soft drinks, by any facility certified or licensed under ch. 48, Stats., became effective May 6, 2010, pursuant to 2009 Wis. Act 204
; and (zz) The exemption for regional transit authorities was repealed effective September 28, 2011, pursuant to 2011 Wis. Act 32
and the exemption for the Wisconsin Quality Home Care Authority was repealed effective June 29, 2011, pursuant to 2011 Wis. Act 10
Tax 11.05 History
Cr. Register, December, 1977, No. 264
, eff. 1-1-78; am. (3) (f) and (h), (4) (c) and cr. (4) (e), Register, August, 1979, No. 284
, eff. 9-1-79; am. (2) (e) and (i), cr. (2) (r), r. and recr. (3) (b), Register, January, 1983, No. 325
, eff. 2-1-83; am. (2) (b) and (m), (3) (a), (L), (m) and (p), cr. (2) (s) and (3) (q), Register, September, 1984, No. 345
, eff. 10-1-84; am. (3) (p), Register, July, 1987, No. 379
, eff. 8-1-87; reprinted to correct error in (2) (p), Register, October, 1987, No. 382
; am. (3) (b) and (4) (intro.), Register, June, 1990, No. 414
, eff. 7-1-90; am. (2) (a), (d), (i), (k) and (o), (3) (i), (L), (p) and (q), and (4) (intro.), (d) and (e), cr. (3) (r), (s) and (t), r. and recr. (4) (b), Register, June, 1991, No. 426
, eff. 7-1-91; am. (3) (p), renum. (4) (intro.) to (e) to be (4) (a) to (f), Register, April, 1993, No. 448
, eff. 5-1-93; am. (2) (f) and (g), (3) (L), (4) (c) (intro.), 1. and 2., cr. (3) (u), Register, April, 1994, No. 460
, eff. 5-1-94; reprinted to restore dropped copy in (2) (g) and correction made in (4) (a) under s. 13.93 (2m) (b) 7., Stats., Register, October, 1996, No. 490
; emerg. am. (2) (s), eff. 5-18-97; am. (2) (h), (k), (m), (s), (3) (b), (L) and (4) (a), (e), r. and recr. (4) (b), Register, October, 1997, No. 502
, eff. 11-1-97; am. (2) (a), (d), (f) and (i), (3) (d) and (L), (4) (a) and (b) 2., renum. (3) (m) to (u) to be (3) (n) to (v), cr. (3) (m), (w) and (x), (4) (b) 3., Register, October, 1999, No. 526
, eff. 11-1-99; corrections in (4) (a) made under s. 13.93 (2m) (b) 7., Stats., Register July 2002 No. 559
: emerg. am. (2) (title), (intro.), (a), (b), (d), (g), (i) to (m), (o), (p), (r), (s), (3) (intro.), (a), (b), (d), (j) to (m), (o), (q), (u), (4) (a) and (b) (intro.), cr. (2) (gm), (t), (3) (jm), (y), (z), (zg) and (zr), eff. 10-1-09; CR 09-090
: am. (2) (title), (intro.), (a), (b), (d), (g), (i) to (m), (o), (p), (r), (s), (3) (intro.), (a), (b), (d), (j) to (m), (o), (q), (u), (4) (a) and (b) (intro.), cr. (2) (gm), (t), (3) (jm), (y), (z), (zg) and (zr) Register May 2010 No. 653
, eff. 6-1-10; correction in (3) (b) made under s. 13.92 (4) (b) 7., Stats., Register May 2010 No. 653
; CR 10-094
: am. (2) (a), (d), (e), (f), (k), (s), (3) (d), (L), (n), (y), (4) (e) Register November 2010 No. 659
, eff. 12-1-10; CR 12-014
: renum. (3) (b) to be (3) (b) 1. and am., cr. (3) (b) 2., 3., am. (4) (a) Register August 2012 No. 680
, eff. 9-1-12; CR 13-012
: am. (4) (a) Register August 2013 No. 692
, eff. 9-1-13; CR 14-006
: am. (4) (a) Register August 2014 No. 704
, eff. 9-1-14; CR 16-053
: am. (2) (gm) Register June 2018 No. 750
, eff. 7-1-18; CR 19-112
: am. (2) (gm), (4) (f) Register June 2020 No. 774
, eff. 7-1-20; CR 19-122: am. (3) (L) Register July 2020 No. 775, eff. 8-1-20.
Durable medical equipment, mobility-enhancing equipment, and prosthetic devices. Tax 11.08(1)(1)
Certain items may qualify as either “durable medical equipment" or a “prosthetic device," depending on whether or not the item is worn in or on the body. The distinction between when an item is “durable medical equipment" or a “prosthetic device" is important because an item that is “durable medical equipment" is exempt only when purchased for use by a human being in a person's home, whereas the purchase of a “prosthetic device" for a human being is exempt regardless of whether or not it is purchased for use in a person's home.
(2) Durable medical equipment.
Section 77.54 (22b)
, Stats., exempts the sales price from the sale of and the storage, use, or other consumption of durable medical equipment that is for use in a person's home, along with repair parts, replacement parts, and accessories for that equipment, if the equipment is used for a human being.
“Durable medical equipment" is defined in s. 77.51 (3pm)
, Stats., to mean equipment, including the repair parts and replacement parts for the equipment that is primarily and customarily used for a medical purpose related to a person; that can withstand repeated use; that is not generally useful to a person who is not ill or injured; and that is not placed in or worn on the body. “Durable medical equipment" does not include mobility-enhancing equipment.
“Use in a person's home" means that the equipment is sold to an individual for use where they are living, regardless of whether the individual resides in a single family home, apartment building, nursing home, assisted living center, convalescent home, or school dormitory.
Durable medical equipment is not for use in a person's home if it is purchased by a hospital, clinic, nursing home, assisted living center, convalescent home, dental office, chiropractor, or optician's office. In addition, purchases of durable medical equipment by a nursing home, assisted living center, and convalescent home are not for use in a person's home even if the equipment is purchased for use by the residents of the nursing home, assisted living center, or convalescent home.
Examples of durable medical equipment that qualify for exemption from Wisconsin sales and use tax if they are purchased for use in a person's home include the following:
Alternating pressure pads and decubitus pads (eliminate bed sores).
Aqua K pumps and pads.
Aspirators (suction pumps).
Bed pans, commodes, urinals.
Billie lights (used for yellow jaundice).
Blood glucose monitoring machines.
Blood pressure machines and cuffs.
Defibrillators (not implanted).
Drug infusion pumps.
Hospital beds and mattresses.
Incubators and isolettes.
Injection guns for drug delivery.
Infra-red lamps and bulbs for heat therapy.
Intra-aortic balloon pump.
IV therapy arm boards.
Kinetic therapy tables.
Lambs wool pads.
Medical monitoring equipment.
Mini dopplers (measures blood flow & rate).
Nerve stimulator programmers.
Ostomy irrigation sets.
Over the bed tray tables.
Oxygen concentrators and regulators.
Pacemaker programmers and transmitters.
Pillows (abduction, cervical, orthotic).