Tax 11.54(1)(a) (a) “Admission" means the right or privilege to have access to or use of a place, facility or location in Wisconsin where amusement, entertainment, or recreation is provided.
Tax 11.54(1)(b) (b) Pursuant to s. 77.51 (10), Stats., “person" includes any natural person, firm, partnership, limited liability company, joint venture, joint stock company, association, public or private corporation, the United States, the state, including any unit or division of the state, any county, city, village, town, municipal utility, municipal power district, or other governmental unit, cooperative, unincorporated cooperative association, estate, trust, receiver, personal representative, any other fiduciary, any other legal entity, and any representative appointed by order of any court or otherwise acting on behalf of others.
Tax 11.54(1)(c) (c) “Places of amusement, entertainment or recreation" include auditoriums, race tracks, street fairs, rock festivals, or other places where there is any show or exhibition for which any charge is made including the sale of tickets, gate charges, seat charges, entrance fees, and motor vehicle parking fees.
Tax 11.54(2) (2)General. The receipts from the sale of admissions to amusement, entertainment, and recreational events or places are subject to sales tax.
Tax 11.54(3) (3)Entrepreneurs, promoters, sponsors, or managers.
Tax 11.54(3)(a)(a) Entrepreneurs, promoters, sponsors, or managers of an amusement, entertainment, or recreational event shall be regarded as retailers for the purposes of s. 77.51 (13) (c), Stats., if the entrepreneurs, promoters, sponsors, or managers have control and direction of the event including activities such as controlling the sale of admissions or admission tickets; controlling or regulating the admittance of all persons to the event or place; determining the nature of the amusement, entertainment, or recreation to be offered; deciding the scale of the prices to be charged for admission; receiving the proceeds from ticket sales, including amounts from ticket agents or brokers; and deciding, or having the right to decide, the disposition of the net profits, if any, realized from the event.
Tax 11.54(3)(b) (b) As retailers, the entrepreneurs, promoters, sponsors, or managers are persons liable for the sales tax and are required to hold a seller's permit for each place of operations pursuant to s. 77.52 (7), Stats., and may be required to post security as provided in s. 77.61 (2), Stats. The retailers are required to have a seller's permit on the first date on which tickets or admission to an event to be conducted in this state are offered for sale.
Tax 11.54(4) (4)Exceptions. This section does not apply to:
Tax 11.54(4)(a) (a) Traveling attractions which perform in stadiums, theaters, or other places where the permanent management of the stadium, theater, or other location holds a valid seller's permit, controls the sale of tickets or admissions, and assumes the liability for the payment of the sales tax.
Tax 11.54(4)(b) (b) Churches or other nonprofit groups which operate within the occasional sale limitations provided in s. 77.54 (7m), Stats.
Tax 11.54(4)(c) (c) Sales of admissions or tickets by any baseball team affiliated with Wisconsin department of American legion baseball.
Tax 11.54(4)(d) (d) Sales of admissions by a nonprofit organization to participate in any sports activity in which more than 50 percent of the participants are 19 years old or younger.
Tax 11.54 Note Note: Section Tax 11.54 interprets ss. 77.51 (10) and (13) (c), 77.52 (2) (a) 2., (7), and (19), 77.54 (35), and 77.61 (2), Stats.
Tax 11.54 Note Note: The interpretations in s. Tax 11.54 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The exemption for sales by a baseball team of the Wisconsin department of American legion baseball pursuant to 1985 Wis. Act 29, is effective September 1, 1985; and (b) The exemption for certain sales of admissions by a nonprofit organization to participants in sports activities became effective July 1, 2009, pursuant to 2009 Wis. Act 28.
Tax 11.54 History History: Cr. Register, March, 1976, No. 243, eff. 4-1-76; renum. from Tax 11.02; Register, January, 1978, No. 265, eff. 2-1-78; cr. (1) (intro.), (2) and (4) (c), renum. (1) to be (1) (a) and am., renum. (2) and (3) to be (1) (c) and (b) and am., renum. (4), (5) and (6) to be (3) (a), (b) and (4) and am., Register, March, 1991, No. 423, eff. 4-1-91; EmR0924: emerg. am. (title), (1) (a) to (c), (2), (3), (4) (a) and (b), cr. (4) (d, eff. 10-1-09; CR 09-090: am. (title), (1) (a) to (c), (2), (3), (4) (a) and (b), cr. (4) (d) Register May 2010 No. 653, eff. 6-1-10.
Tax 11.55 Tax 11.55 Agents, consignees, lienors, and brokers.
Tax 11.55(1)(1)Undisclosed principal. A person who has possession of tangible personal property or items, property, or goods under s. 77.52 (1), (b), (c), or (d), Stats., owned by an unknown or undisclosed principal and has the power to transfer title to that property, item, or good to a third person, and who exercises that power, is a retailer whose receipts are subject to the tax.
Tax 11.55(2) (2)Disclosed principal.
Tax 11.55(2)(a) (a) The sales price received from the sale of tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., made by a person with possession of the property, item, or good who is acting for a known or disclosed principal, is taxable to the principal if the principal is engaged in the full or part-time business of selling tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats. If the principal fails to pay the tax, the agent may be liable for it.
Tax 11.55(2)(b) (b) A principal shall be deemed disclosed to a purchaser only when the evidence shows that the identity of the principal is made known to the purchaser at the time of the sale, and when the name and address of the principal appear on the books and records of the agent.
Tax 11.55(3) (3)Enforcement of liens. Pawnbrokers, storage persons, and others selling tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., to enforce a lien are retailers with respect to such sales, and tax applies to the receipts from such sales.
Tax 11.55(4) (4)Repossessions. Repossessions of tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., by a seller from a purchaser when the only consideration is cancellation of the purchaser's obligation to pay for the property, item, or good is not a taxable transaction. However, sales at retail of repossessed property (e.g., by finance companies, insurance companies, banks and other financial institutions) are taxable sales.
Tax 11.55 Note Note: Section Tax 11.55 interprets s. 77.51 (1fd), (13) and (14g) (f), Stats.
Tax 11.55 Note Note: The interpretations in s. Tax 11.55 are effective under the general sales and use tax law on and after September 1, 1969, except that 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 11.55 History History: Cr. Register, May, 1978, No. 269, eff. 6-1-78; EmR0924: emerg. am. (title), (1), (2) (a), (3) and (4), eff. 10-1-09; CR 09-090: am. (title), (1), (2) (a), (3) and (4) Register May 2010 No. 653, eff. 6-1-10.
Tax 11.56 Tax 11.56 Printing industry.
Tax 11.56(1)(1)Definitions. In this section:
Tax 11.56(1)(a) (a) “Manufacturer" includes a printer or other person who performs any one or more of the processes in manufacturing printed matter, provided that the printer or other person qualifies as being engaged in manufacturing under s. 77.51 (7h), Stats., whether or not the printed matter is sold.
Tax 11.56(1)(b) (b) “Manufacturing printed matter" includes either of the following processes by a manufacturer:
Tax 11.56(1)(b)1. 1. Initial typesetting and composition, producing a paste-up, combining photographs with words, making page makeups and taking pictures of them, making proofs and paper for editing, producing negatives which go to the stripping department for assembly of the flat and taking a picture, either positive or negative, of a flat which after it is finally proofed is known as plate-ready film, and producing an image carrier which is installed on a printing press, or using equivalent prepress technology to produce an image carrier, and the bindery/finishing stage.
Tax 11.56(1)(b)2. 2. Using computers, scanners, proofers, typesetters, photographic equipment, film processors, and direct-to-plate equipment exclusively in performing any of the processes listed in subd. 1. “Manufacturing printed matter" does not include using the equipment described in this subdivision to design, write, or compose an original document to be printed.
Tax 11.56(1)(c) (c) “Typesetting" includes converting images into standardized letter forms of a certain style which usually are hyphenated, justified and indented automatically by means of machinery and equipment. Typesetting machinery and equipment includes fonts, video display terminals, tape and disc making equipment, computers, and typesetters which are interconnected to operate essentially as one machine. A system shall be considered to operate essentially as one machine whether or not the tape or disc is automatically fed to the typesetter.
Tax 11.56(2) (2)Printers' taxable sales. Taxable receipts of printers include receipts from the following, unless otherwise exempt:
Tax 11.56(2)(a) (a) Charges for printing, lithography, photolithography, rotogravure, gravure, letter press, silk screen printing, imprinting, multilithing, mimeographing, photostating, steel die engraving, and similar operations for customers, whether or not the paper and other materials are furnished by the customers. A printer's charge for printing on paper furnished by a customer to produce printed matter not to be sold is subject to the tax.
Tax 11.56(2)(b) (b) Charges for services in connection with the sale of printed matter, such as overtime and set-up charges, die cutting, embossing, folding, and binding operations, and charges for painting signs, show cards, and posters, whether the materials are furnished by the printer or by the customer.
Tax 11.56(2)(c) (c) Charges for envelopes, but not for separately stated charges for postage in the sale of prestamped envelopes.
Tax 11.56(3) (3)Taxable sales by others.
Tax 11.56(3)(a) (a) Sales of tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., by persons who are not printers, including so-called “trade shops" such as typesetters, image reproduction manufacturers, color separators and binders, or finishers are taxable unless the sales qualify for a statutory exemption, including the following:
Tax 11.56(3)(a)1. 1. Section 77.54 (2), Stats., which exempts from tax the sales price of tangible personal property or items under s. 77.52 (1) (b), Stats., that are used exclusively and directly by a manufacturer in manufacturing an article of tangible personal property or item or property under s. 77.52 (1) (b) or (c), Stats., that is destined for sale and that becomes an ingredient or component part of the article of tangible personal property or item or property under s. 77.52 (1) (b) or (c), Stats., destined for sale or is consumed or destroyed or loses its identity in manufacturing the article of tangible personal property or item or property under s. 77.52 (1) (b) or (c), Stats., destined for sale, except as provided in s. 77.54 (30) (a) 6., Stats.
Tax 11.56(3)(a)2. 2. Section 77.54 (2m), Stats., which exempts from tax the sales price of tangible personal property or services that are used exclusively and directly by a manufacturer in manufacturing shoppers guides, newspapers, or periodicals and that become an ingredient or component of shoppers guides, newspapers, or periodicals or that are consumed or lose their identity in the manufacture of shoppers guides, newspapers, or periodicals, whether or not the shoppers guides, newspapers, or periodicals are transferred without charge to the recipient. The exemption does not apply to advertising supplements that are not newspapers.
Tax 11.56(3)(b) (b) Tangible personal property and items under s. 77.52 (1) (b), Stats., include typed matter, whether or not combined with artwork, such as typeset output, a paste-up, mechanical, assembly, camera-ready copy, flat, or a photoreproduction, including film plates.
Tax 11.56(4) (4)Nontaxable sales.
Tax 11.56(4)(a) (a) Tax does not apply to charges, if stated separately on invoices and in the accounting records, for mailing services such as:
Tax 11.56(4)(a)1. 1. Addressing printed matter by hand or mechanically for the purpose of mailing.
Tax 11.56(4)(a)2. 2. Enclosing, sealing, and preparing for mailing.
Tax 11.56(4)(a)3. 3. Mailing letters or other printed matter.
Tax 11.56(4)(b) (b) Tax also does not apply to a printer's sales of:
Tax 11.56(4)(b)1. 1. Catalogs, as defined in s. Tax 11.19 (5m) (b), and the envelopes in which the catalogs are mailed.
Tax 11.56(4)(b)2. 2. Printed advertising materials for out-of-state use, as provided in s. Tax 11.19 (4) (a).
Tax 11.56(4)(b)3. 3. Advertising and promotional direct mail, as defined in s. Tax 11.19 (5s) (b).
Tax 11.56(5) (5)Exempt printing machinery and equipment. Section 77.54 (6) (am) 1., Stats., provides that machines and specific processing equipment and repair parts or replacements thereof, exclusively and directly used by a manufacturer in manufacturing tangible personal property or items or property under s. 77.52 (1) (b) or (c), Stats., and safety attachments for those machines and equipment are exempt from the sales or use tax. This includes machinery and equipment and repair parts or replacements of the machinery and equipment used exclusively and directly by a manufacturer in the printing process to manufacture tangible personal property or items or property under s. 77.52 (1) (b) or (c), Stats.
Tax 11.56 Note Note: Interpretations of s. 77.54 (6) (am) 1., Stats., are contained in s. Tax 11.40.
Tax 11.56(6) (6)Purchases for use in manufacturing printed matter for sale.
Tax 11.56(6)(a)(a) Persons engaged in manufacturing printed matter for sale may purchase the following property and items without tax under the statutes indicated:
Tax 11.56(6)(a)1. 1. Section 77.54 (2), Stats. Property and items, such as paper stock or printing ink, used exclusively and directly in manufacturing an article of tangible personal property or item or property under s. 77.52 (1) (b) or (c), Stats., that is destined for sale and that becomes an ingredient or component part of an article of tangible personal property or item or property under s. 77.52 (1) (b) or (c), Stats., destined for sale.
Tax 11.56(6)(a)2. 2. Section 77.54 (2), Stats. Property and items such as chemicals, emulsions, acids, raw film, lubricating oils, greases, nonoffset spray, finished art, color separations, plate-ready film, other positives and negatives, flats, and similar items, used exclusively and directly in manufacturing an article of tangible personal property or item or property under s. 77.52 (1) (b) or (c), Stats., destined for sale and which are consumed, destroyed, or lose their identity in the manufacture of tangible personal property and items and property under s. 77.52 (1) (b) and (c), Stats., destined for sale.
Tax 11.56 Note Example: A printer's purchases of positives and negatives which are used exclusively and directly to produce catalogs and shoppers guides it sells to other persons are exempt from the tax.
Tax 11.56(6)(a)3. 3. Section 77.54 (6) (am) 2., Stats. Containers and packaging and shipping materials for use in packing, packaging, or shipping printed matter to their customers.
Tax 11.56(6)(b) (b) The exemption under s. 77.54 (2), Stats., described in par. (a) 1. and 2., applies to property and items purchased by a person who does not use the property other than to provide it to a manufacturer described in par. (a) for use by the manufacturer exclusively and directly in manufacturing tangible personal property and items and property under s. 77.52 (1) (b) and (c), Stats., to be sold. The exemption under s. 77.54 (2), Stats., does not apply if the manufactured tangible personal property or item or property under s. 77.52 (1) (b) or (c), Stats., is not to be sold by the manufacturer to its customer or by the customer.
Tax 11.56 Note Examples: 1) A paper manufacturer's purchases of negatives which it transfers to a printer, who uses the negatives exclusively and directly to produce printing which the printer sells to the paper manufacturer are exempt from the tax.
Tax 11.56 Note 2) An advertising agency's purchases of color separations which are furnished to a commercial printer who uses the color separations exclusively and directly to produce advertising material the printer sells to the advertising agency are exempt from the tax.
Tax 11.56(7) (7)Purchases for use in manufacturing printed matter not for sale.
Tax 11.56(7)(a)(a) The exemption under s. 77.54 (2m), Stats., applies to tangible personal property or services that are used exclusively and directly by a manufacturer in manufacturing shoppers guides, newspapers, or periodicals and that become an ingredient or component of the shoppers guides, newspapers, or periodicals or that are consumed or lose their identity in the manufacture of the shoppers guides, newspapers, or periodicals, whether or not they are transferred without charge to a recipient.
Tax 11.56 Note Examples: Examples of nontaxable purchases for use in manufacturing printed matter include:
Tax 11.56 Note 1) A shoppers guide publisher, who distributes the publication without charge, purchases paper and furnishes it to a printer who charges for the printing of the shoppers guide.
Tax 11.56 Note 2) A shoppers guide publisher purchases paper it uses to print a shoppers guide which it distributes without charge to recipients.
Tax 11.56(7)(b) (b) Section 77.54 (43), Stats., provides that Wisconsin sales or use tax is not imposed on raw materials if both of the following conditions are met:
Tax 11.56(7)(b)1. 1. The raw materials are processed, fabricated, or manufactured into, attached to, or incorporated into printed materials.
Tax 11.56(7)(b)2. 2. The resulting printed materials will be transported and used solely outside Wisconsin.
Tax 11.56 Note Examples: 1) Company A, a Wisconsin company, publishes catalogs to promote the sale of its products. Company A purchases paper from a company that does not have nexus in Wisconsin. The paper is delivered to a Wisconsin printer that prints the catalogs for Company A. The catalogs are shipped outside Wisconsin for use solely outside Wisconsin.
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), (25m), or (59), 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(9) (9)Additional exemptions for printing industry.
Tax 11.56(9)(a)(a) Definitions. In s. 77.54 (61), Stats., and this subsection:
Tax 11.56(9)(a)1g. 1g. “Book printing" means activities described under 323117 of the North American Industry Classification System.
Tax 11.56(9)(a)1r. 1r. “Commercial printing, except screen printing and book printing, without publishing, except grey goods printing" means activities described in 2012 North American Industry Classification 323111.
Tax 11.56(9)(a)2. 2. “Copies of the product" means finished artwork in a digital form that is generated, furnished, and used for the purpose of printing; represents the object, such as a book, catalog, pamphlet, or magazine, as it is to appear in a printed form; and includes files containing instructions or other information required by the printer for printing the product, such as instructions for plate-making or setting ink-levels at the printing press, whether these instructions or other information are furnished to the printer or derived by the printer from the finished art files.
Tax 11.56(9)(a)3. 3. “Finished artwork" has the meaning given in s. 77.51 (3rm), Stats.
Tax 11.56(9)(a)5. 5. “Primarily" means more than 50 percent.
Tax 11.56(9)(a)8. 8. “Stored" has the meaning of the term “storage" as defined in s. 77.51 (18), Stats.
Tax 11.56(9)(a)8m. 8m. “Support activities for printing" means activities described under 323120 of the North American Industry Classification System.
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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.