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Tax 11.41(3)(b)7. 7. Hand tools, including files, wrenches, hammers, saws, screwdrivers, planes, punches, chisels, and spray guns.
Tax 11.41(3)(b)8. 8. Wearing apparel for the comfort or welfare of the employee or for the protection of the employee's clothing, such as helmets, hard hats, work gloves, aprons, coveralls, pants, coats, and fur-lined boots and jackets.
Tax 11.41 Note Example: Employees of Manufacturer C wear hard hats, as required by federal regulations, while working within the scope of manufacturing as defined in s. Tax 11.39 (2). The hard hats are worn to protect the employees. The hard hats are not used directly in manufacturing and do not qualify for exemption from Wisconsin sales and use tax under s. 77.54 (2), Stats.
Tax 11.41(3)(b)9. 9. Chemicals and cleaning agents used to clean the room where manufacturing takes place, including walls, ceilings, floors, drains, windows, and doors, even if the cleaning is required in order to meet sanitation standards required by state and federal regulatory agencies.
Tax 11.41(4) (4)Fuel and electricity.
Tax 11.41(4)(a) (a) Fuel and electricity are specifically excluded from the exemption provided by s. 77.54 (2), Stats. However, an exemption is provided in s. 77.54 (30) (a) 6., Stats., 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. Consistent with s. 77.51 (7h), Stats., “fuel and electricity consumed in manufacturing" means only fuel and electricity used to operate machines and equipment used directly in the step-by-step manufacturing process and does not include fuel and electricity consumed in providing plant heating, cooling, air conditioning, communications, lighting, safety and fire prevention, storing raw materials or finished units of tangible personal property or items or property under s. 77.52 (1) (b) or (c), Stats., research and product development, delivery to or from the plant, repairing or maintaining plant facilities, or shipping, advertising, distribution, sales, or administrative department activities.
Tax 11.41(4)(b) (b) Fuel includes:
Tax 11.41(4)(b)1. 1. Oxygen used to enrich the fuel mixture in an industrial furnace, or oxygen and acetylene used in a welding process.
Tax 11.41(4)(b)2. 2. Coal or coke used by a foundry, except the portion of the coke which actually becomes an ingredient or component part of any grey-iron produced.
Tax 11.41(4)(b)3. 3. Gasoline, fuel oil, kerosene, natural gas, liquid propane gas, also called LPG, or other natural or synthetic liquids used as fuel.
Tax 11.41 Note Note: Since “fuel" is not defined in the sales and use tax statutes, it shall be given its ordinary meaning as provided in a dictionary. Dictionaries generally define fuel as a material used to produce heat or power by burning, or something that feeds a fire.
Tax 11.41 Note Note: Section Tax 11.41 interprets ss. 77.51 (7h) and 77.54 (2), (6) (am) 1. and (cn), and (30) (a) 6., Stats.
Tax 11.41 Note Note: The interpretations in s. Tax 11.41 are effective under the general sales and use tax law on and after September 1, 1969, except that (a) The exemption for wood residue was effective on September 1, 1987, pursuant to 1987 Wis. Act 27; (b) The exemption for fuel and electricity consumed in manufacturing was effective January 1, 2006 pursuant to 2003 Wis. Act 99; (c) The requirement that property and items which qualify for exemption under s. 77.54 (2), 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 (d) 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., and certain leased property affixed to real property under s. 77.52 (1) (c), Stats., became effective October 1, 2009, pursuant to 2009 Wis. Act 2.
Tax 11.41 History History: Cr. Register, November, 1977, No. 263, eff. 12-1-77; cr. (3) (a) 15. and am. (4) (h), Register, October, 1979, No. 286, eff. 11-1-79; am. (3) (a) 4., Register, July, 1987, No. 379, eff. 8-1-87; am. (5) (intro.), Register, April, 1990, No. 412, eff. 5-1-90; am. (2) (intro.), (3) (b) and (4) (intro.), cr. (5) (c), Register, March, 1991, No. 423, eff. 4-1-91; r. and recr. (1), r. (2), (3) (b), cr. (2) (a) 4. b., (b), (4) (b) (intro.), renum. (3) (a) (intro.), 1. to 15., (4), (5) (intro.), (a), (b) and (c) to be (2) (a) (intro.), 1. to 4. a., 5 to 15., (3), (4) (a), (b) 1. to 3. and am. (2) (a) 4. a., (3) (intro.), (4) (a), Register, October, 1997, No. 502, eff. 11-1-97; am. (1) (b) 2. b., (3) (b) and (h), Register, August, 1999, No. 524, eff. 9-1-99; EmR0924: emerg. am. (title), (1) (a), (2) (title), (a) (intro.), (b) and (4) (a), r. and recr. (1) (b) and (3), eff. 10-1-09; CR 09-090: am. (title), (1) (a), (2) (title), (a) (intro.), (b) and (4) (a), r. and recr. (1) (b) and (3) Register May 2010 No. 653, eff. 6-1-10; CR 10-094: am. (2) (a) (intro.), 15., (3) (a) (intro.), r. and recr. (2) (a) 4., cr. (3) (a) 3., (b) 9. Register November 2010 No. 659, eff. 12-1-10; correction in (3) (b) (intro.) made under s. 13.92 (4) (b) 7., Stats., Register August 2014 No. 704; CR 19-112: am. (4) (a) Register June 2020 No. 774, eff. 7-1-20.
Tax 11.42 Tax 11.42 Fertilizer blending, feed milling, and grain drying operations. For purposes of s. 77.54 (6) (bn), Stats., primarily engaged in fertilizer blending, feed milling, or grain handling operations does not include the planting, harvesting, and tilling of grain, but may include the custom farming services of grain drying.
Tax 11.42 Note Examples: 1) Individual operates a dairy farm and also grows corn and soybeans. Individual conducts corn and soybean drying operations on the farm with respect to corn and soybeans grown and harvested by Individual. Individual also mills corn, soybeans, and other grains into feed for Individual's dairy cattle. Individual's primary activity is operating a dairy farm and the grain drying and feed milling operations are conducted as an incident to Individual's grain growing and dairy farming activities. Individual is not a person described in s. 77.54 (6) (bn), Stats.
Tax 11.42 Note 2) Business' primary business activity is the operation of a grain dryer. For a fee, Business will dry grain owned by farmers. Business is primarily engaged in “grain handling operations which include grain drying operations" for purposes of this section. Drying grain owned by a farmer for a fee is a “custom farming service" as defined in s. Tax 11.12 (2) (b). Business' drying of a farmer's grain for a fee, while a “custom farming service," constitutes being engaged in “grain handling operations which include grain drying operations" for purposes of this section.
Tax 11.42 Note Note: Section Tax 11.42 interprets s. 77.54 (6) (am) 4. and 5., (bn), and (cn), Stats.
Tax 11.42 Note Note: The interpretations in s. Tax 11.42 are effective under the general sales and use tax law on and after September 1, 1969, except that the exemption for fertilizer blending, feed milling, and grain drying operations became effective on April 19, 2014, pursuant to 2013 Wis. Act 324.
Tax 11.42 History History: CR 16-054: cr. Register June 2018 No. 750, eff. 7-1-18.
subch. VII of ch. Tax 11 Subchapter VII — Types of Retailers
Tax 11.45 Tax 11.45 Sales by pharmacies and drug stores.
Tax 11.45(1)(1)Taxable sales. All sales of tangible personal property and items, property and goods under s. 77.52 (1) (b), (c) and (d), Stats., by a pharmacy or drug store are taxable under the general sales tax law unless exempted by a specific statute. The most common exemptions are described and enumerated in this section.
Tax 11.45(2) (2)Drugs and prescription drugs.
Tax 11.45(2)(a) (a) “Drug" is defined in s. 77.51 (3pj), Stats., to mean a compound, substance, or preparation, or any component of them, other than food and food ingredients, dietary supplements, or alcoholic beverages, to which any of the following applies:
Tax 11.45(2)(a)1. 1. It is listed in the United States Pharmacopoeia, Homeopathic Pharmacopoeia of the United States, or National Formulary, or any supplement to any of them.
Tax 11.45(2)(a)2. 2. It is intended for use in diagnosing, curing, mitigating, treating, or preventing a disease.
Tax 11.45(2)(a)3. 3. It is intended to affect a function or structure of the body.
Tax 11.45(2)(b) (b) Drugs are exempt from the tax if prescribed by a licensed physician, surgeon, podiatrist or dentist to a patient, who is a human being, for treatment and dispensed on prescription filled by a registered pharmacist in accordance with law.
Tax 11.45(2)(c) (c) Drugs described in par. (b) which are exempt from the tax include:
Tax 11.45(2)(c)1. 1. Pills and capsules.
Tax 11.45(2)(c)2. 2. Powders.
Tax 11.45(2)(c)3. 3. Liquids, including sterile water and irrigation solutions.
Tax 11.45(2)(c)4. 4. Salves and ointments.
Tax 11.45(2)(c)5. 5. Insulin.
Tax 11.45(2)(c)6. 6. Other preparations consumed orally, injected or applied, including dermal fillers.
Tax 11.45(2)(c)7. 7. Parenteral nutrition formulas.
Tax 11.45(2)(c)8. 8. Enteral nutrition formulas that contain a drug facts box.
Tax 11.45(2)(c)9. 9. Suppositories.
Tax 11.45(2)(c)10. 10. Radioactive isotopes such as implanted seeds.
Tax 11.45(2)(c)11. 11. Dyes and other contrast media.
Tax 11.45(2)(c)12. 12. Other items which remain or dissolve in the body, such as birth control implants including intra-uterine devices (IUD).
Tax 11.45(2)(c)13. 13. Gases - medical grade, such as oxygen and nitrous oxide.
Tax 11.45(2)(c)14. 14. Vitamins.
Tax 11.45(2)(c)15. 15. Vaccines.
Tax 11.45(2)(c)16. 16. Oral contraceptives.
Tax 11.45(2)(c)17. 17. Medicated dressings.
Tax 11.45(2)(d) (d) This exemption does not include:
Tax 11.45(2)(d)1. 1. Prosthetic devices, mobility-enhancing equipment, or durable medical equipment.
Tax 11.45(2)(d)2. 2. Non-medicated bandages, pads, compresses, supports, or dressings.
Tax 11.45(2)(d)3. 3. Alcoholic beverages.
Tax 11.45(2)(d)4. 4. Casts and casting materials.
Tax 11.45(2)(d)5. 5. Food and food ingredients, including dietary supplements and soft drinks.
Tax 11.45(3) (3)Prosthetic devices. The exemption for prosthetic devices under s. 77.54 (22b), Stats., applies to sales of all prosthetic devices, including repair and replacement parts, that are used for a human being. The exemption also includes accessories for exempt prosthetic devices.
Tax 11.45(3)(a) (a) “Prosthetic device" is defined in s. 77.51 (11m), Stats., to mean a replacement, corrective, or supportive device, including the repair parts and replacement parts for the device, that is placed in or worn on the body to artificially replace a missing portion of the body; to prevent or correct a physical deformity or malfunction; or to support a weak or deformed portion of the body.
Tax 11.45 Note Note: A listing that contains numerous items and descriptions of items that have been categorized as drugs, durable medical equipment, mobility-enhancing equipment and prosthetic devices can be found in the Streamlined Sales Tax Governing Board, Inc.'s Rules and Procedures, available at
Tax 11.45(3)(b) (b) “Prosthetic devices" include the following items, as well as repair and replacement parts and accessories for those items, if they are implanted or worn on the body:
Tax 11.45(3)(b)1. 1. Trusses; post-operative shoes; orthopedic shoes, shoe lifts, inserts, arch supports, and heel protectors; braces including ankle, knee, neck, and back braces; knee immobilizers; traction devices; cervical collars; head halters; abdominal belts, binders, and supports; slings; suspensories; and bone pins, plates, nails, screws, wax, and cement.
Tax 11.45(3)(b)2. 2. Antiembolism elastic hose and stockings, and compression stockings and sleeves.
Tax 11.45(3)(b)3. 3. Pressure garments, including edema gloves, mast pants, and burn garments.
Tax 11.45(3)(b)4. 4. Artificial limbs; skin, shoulder, elbow, tendon, testicular, penile, hip, and knee implants and acetabular cups for hip implants; neuro, spinal, and joint membranes implants; adhesion barriers; artificial eyes; ocular, orbital, ear, nose, and throat implants; cochlear implants; maxillofacial devices; hands and feet implants; orthobiologics implants; surgical mesh implants; vena cava filters; artificial heart valves; artificial larynx; trachea tubes; grafts; sphincters; stump shrinkers; gastric bands and intragastric balloons; nasogastric tubes; stents; pacemakers and leads that are implanted or worn; defibrillator and leads that are implanted; and hearing aids and batteries.
Tax 11.45(3)(b)5. 5. Contact lenses and corrective eyeglasses (prescription and non-prescription).
Tax 11.45(3)(b)6. 6. Ostomy adhesives, barriers, catheters, collection bags and pouches, drain tubes, stoma caps, tubing, belts, hernia belts, and valves, but not barrier prep wipes, barrier powder, or lubricants.
Tax 11.45(3)(b)7. 7. Feeding, drainage, urinary and dialysis catheters, access ports, drains, and shunts.
Tax 11.45(3)(b)8. 8. Collagen implants, implanted tissue expanders, breast implants and prosthesis, and mastectomy surgical bras.
Tax 11.45(3)(b)9. 9. Casts and casting materials, splint and splint materials, staples, sutures, and suture alternatives.
Tax 11.45(3)(b)10. 10. Bone growth stimulators, CPAP machines, infuser pumps, programmable drug infusion devices, insulin pumps, penile pumps, electronic speech aids and tracheostomy speaking valves, tens units, and nerve stimulators implanted with leads.
Tax 11.45(4) (4)Mobility-enhancing equipment. The exemption for mobility-enhancing equipment under s. 77.54 (22b), Stats., applies to all mobility-enhancing equipment, including repair and replacement parts, that is for human use. The exemption also includes accessories for exempt mobility-enhancing equipment.
Tax 11.45(4)(a) (a) “Mobility-enhancing equipment" is defined in s. 77.51 (7m), Stats., to mean equipment, including the repair parts and replacement parts for the equipment, that is primarily and customarily used to provide or increase the ability of a person to move from one place to another; that may be used in a home or motor vehicle; and that is generally not used by a person who has normal mobility. “Mobility-enhancing equipment" does not include a motor vehicle or any equipment on a motor vehicle that is generally provided by a motor vehicle manufacturer. “Mobility-enhancing equipment" does not include durable medical equipment.
Tax 11.45(4)(b) (b) “Mobility-enhancing equipment" includes the following items, as well as repair and replacement parts and accessories for those items:
Tax 11.45(4)(b)1. 1. Raised toilet seats and tub and shower stools.
Tax 11.45(4)(b)2. 2. Canes, crutches, walkers, wheelchairs including motorized wheelchairs and scooters, specialty chairs such as all terrain wheelchairs and pool wheelchairs, and wheelchair ramps.
Tax 11.45(4)(b)3. 3. Swivel seats which enable a disabled person to rotate his or her body, while seated, in order to get into position to rise from a chair.
Tax 11.45(4)(b)4. 4. Handrails and grab bars to assist in rising from the commode, tub, or shower.
Tax 11.45(4)(b)5. 5. Lift chairs, patient lifts, bed pull-ups including trapeze bars, and transfer belts and benches.
Tax 11.45(4)(b)6. 6. Mobility enhancing car seats which are car seats that provide restraint and support (five point harness) for disabled children who have outgrown standard size child car seats but still need the restraint and support provided by car seats.
Tax 11.45(5) (5)Durable Medical equipment. The exemption for durable medical equipment under s. 77.54 (22b), Stats., applies to all durable medical equipment, including repair and replacement parts, that is for use in a person's home, if the equipment is used for a human being. The exemption also includes accessories for exempt durable medical equipment.
Tax 11.45(5)(a) (a) “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.
Tax 11.45(5)(b)1.1. “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.
Tax 11.45(5)(b)2. 2. 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.
Tax 11.45(5)(c) (c) “Durable medical equipment" includes the following equipment, as well as repair and replacement parts for the equipment if it is primarily and customarily used for a medical purpose related to a person, can withstand repeated use, is not generally useful to a person who is not ill or injured, and that is not placed in or worn on the body:
Tax 11.45(5)(c)1. 1. Anesthesia machines and ventilators; anti-thrombolytic pumps; artificial inhalation equipment; audiology equipment including audiometers and acoustic impedance meters or bridges; automatic external defibrillators; autotransfusion equipment; billie lights; bone growth stimulators that are not worn; cardiology machines; cauterization equipment; chair and sling scales; continuous passive motion devices; crash carts; exam and surgical tables and stirrups; electroencephalogram equipment; heat lamps and bulbs; intraaortic balloon pump; kidney dialysis machines and dialyzers; lithotripters; mammography equipment; monitors; MRI/CT machines; needleless drug delivery system injection guns; nerve stimulator programmer; external pacemakers; pacemaker programmers and transmitters; percussors; platelet separators; drug infusion pumps; radiology and ultrasound equipment; pulse oximetery equipment and blood parameter monitors; respiratory equipment; resuscitators; staplers; stretchers; suction regulators; tens units; tourniquets; traction equipment; vaporizers; and medical atomizers and instruments.
Tax 11.45(5)(c)2. 2. Apnea monitors and CPAP machines that are not worn.
Tax 11.45(5)(c)3. 3. Alternating pressure beds, incubators, hospital beds, kinetic therapy beds, kodel bed pads, pressure reduction therapy beds; blanket cradles, patient positioners, and overbed tables and trays.
Tax 11.45(5)(c)4. 4. Abduction, cervical, and orthotic pillows.
Tax 11.45(5)(c)5. 5. Enteral and parenteral feeding bags that are generally used for up to 24 hours which will encompass numerous feedings and are then disposed, and enteral and parenteral connectors, pumps, stands, and tubing and feeding plugs.
Tax 11.45(5)(c)6. 6. IV poles, stands and reusable therapy arm boards, but not disposable arm boards.
Tax 11.45(5)(c)7. 7. Oxygen delivery equipment, oxygen tents or beds, nebulizers, and respiratory bags.
Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.