Tax 11.63(3)(b)2.
2. Property that is not used directly in the manner described in par.
(b), such as desks and chairs where program material is drafted, surge protectors and external power supplies for equipment, backup servers, and general lighting.
Tax 11.63(3)(b)3.
3. Property that is not used exclusively in the manner described in par.
(b), such as servers used to store current and archived program material, computer software used to draft program material and to create station advertising materials, and an intercom system to communicate with the studio and others in the building.
Tax 11.63(3)(b)4.
4. Property that is used in the transmission of finished program material, such as transmitters and antennas used to transmit signals.
Tax 11.63(3)(b)5.
5. Fuel and electricity used in providing building heating, cooling, air conditioning, communications, general lighting, safety and fire prevention, storage, sales, advertising or administrative department activities, or used in transmitting the final program material.
Tax 11.63(4)
(4)
Taxable purchases. Radio and television stations are consumers of equipment, materials, and supplies used to conduct their businesses and shall pay sales or use tax on purchases of this tangible personal property and items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., except as provided in sub.
(3).
Tax 11.63(5)
(5)
Broadcasting towers. Commercial broadcasting towers constituting the transmission antenna system of a radio or television station are deemed, for sales and use tax purposes, either real estate improvements if installed on land owned by the station or tangible personal property if installed on land owned by others. Contractors engaged in construction of broadcasting towers that are real estate improvements are the consumers of building materials used by them in constructing, altering, or repairing those towers and shall pay tax on the cost of the materials. Contractors engaged in construction of broadcasting towers that are tangible personal property may purchase materials used by them in constructing, altering, or repairing those towers without tax for resale. The charge by the contractor to the purchaser is subject to tax.
Tax 11.63 Note
Note: The interpretations in s.
Tax 11.63 are effective under the general sales and use tax law on and after September 1, 1969, except (a) 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 and (b) the exemption for tangible personal property and property under s.
77.52 (1) (c), Stats., used in the origination and integration of certain program material became effective July 1, 2014, pursuant to
2013 Wis. Act 346.
Tax 11.63 History
History: Cr.
Register, December, 1977, No. 264, eff. 1-1-78; am. (2) (a) and (c) (intro.), (3), (4) and (5),
Register, June, 1991, No. 426, eff. 7-1-91;
EmR0924: emerg. am. (1) (intro.), (b), (2) (a), (b), (c) 2., (3), (4) and (5), eff. 10-1-09;
CR 09-090: am. (1) (intro.), (b), (2) (a), (b), (c) 2., (3), (4) and (5)
Register May 2010 No. 653, eff. 6-1-10;
CR 16-053: am. (1) (intro), cr. (1) (c), (d), (2) (d), (e), r. (3), cr. (3)
Register June 2018 No. 750, eff. 7-1-18; correction in (3) (a) 1. made under s.
35.17, Stats.,
Register June 2018 No. 750;
CR 22-044: renum. (2) (c) (intro.) to (2) (c) and am., r. (2) (c) 1., 2. Register June 2023 No. 810, eff. 7-1-23. Tax 11.64(1)(1)
General. Persons in the business of providing background music commonly utilize one or both of the methods set forth below. The sales and use tax consequences depend upon the method used.
Tax 11.64(2)
(2)
Music played at central studio. The receipts from the furnishing of background music to business, industry, and others from a central studio over telephone circuits or by FM radio are subject to the sales or use tax as a digital audio work. The persons who provide such service are the consumers of the tapes, tape players, transmitters, and other tangible personal property and items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., used to provide the service, and their purchases of these items, as well as telecommunication services from the telephone company, are taxable. In addition, the receipts from equipment leased or rented to the customer as part of providing this service are taxable. An exemption for resale may be claimed on the purchase of such leased or rented equipment, if the equipment is used exclusively for lease or rental and if the customer has the option of receiving the digital audio work from the retailer, without also being required to purchase, lease, or rent the equipment from that same retailer.
Tax 11.64(3)
(3)
Music played by customer. The lease, rental, hire or license to use all tangible personal property and items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., comprising a background music system are taxable when the system is operated by the customer. Any charge for installing the system is taxable. The sale of the tapes, equipment, and other tangible personal property and items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., to the person providing the system (e.g., the lessor or licensor) is exempt as a sale for resale, if the equipment is used exclusively for lease, license, or rental.
Tax 11.64 Note
Note: The interpretations in s.
Tax 11.64 are effective under the general sales and use tax law on and after September 1, 1969, except that 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 11.64 History
History: Cr.
Register, September, 1977, No. 261, eff. 10-1-77;
EmR0924: emerg. am. (2) and (3), eff. 10-1-09;
CR 09-090: am. (2) and (3)
Register May 2010 No. 653, eff. 6-1-10.
Tax 11.65(1)(a)(a) The sale of admissions to amusement, athletic, entertainment, or recreational events or places and the furnishing for dues, fees or other considerations, the privilege of access to clubs or the privilege of having access to or the use of amusement, entertainment, athletic, or recreational facilities are taxable. This includes admissions to movies, ballets, musical and dance performances, ball games, campgrounds, circuses, carnivals, plays, hockey games, ice shows, fairs, snowmobile and automobile races, and pleasure tours or cruises.
Tax 11.65(1)(b)
(b) The sales tax applies to the receipts of organizations which have as an objective the supplying of amusement, athletic, entertainment, or recreational facilities to their members such as country clubs, golf clubs, athletic clubs, swimming clubs, yachting clubs, tennis clubs, and flying clubs. Taxable sales include the sale, furnishing or use of recreational facilities on a periodic basis and other recreational rights, including but not limited to membership rights, vacation services, and club memberships. The proceeds received from initiation fees, special assessments, dues, and stock sales of clubs supplying amusement, athletic, entertainment, or recreational facilities to members are charges for the privilege of obtaining access to the clubs and are taxable receipts of the clubs.
Tax 11.65(1)(c)
(c) Admissions to customer participation events such as swimming, skiing, bowling, skating, bingo, golfing, curling, dancing, card playing, hayrides, hunting, fishing, and horseback or pony riding, including entry fees for leagues, tournaments, and contests, are taxable.
Tax 11.65(1)(d)
(d) The charge for the privilege of fishing in fish ponds is taxable, even if the charge is based in whole or in part on the pounds or size of fish caught. The charge for the privilege of hunting in shooting preserves, pheasant farms, and fenced area bird and animal farms is also taxable, even if the charge is based in whole or in part on the number of game birds or animals taken.
Tax 11.65(1)(e)
(e) A person who provides boat, tackle, bait, and guide service provides a combination of recreational items which are subject to the tax, but guide service alone is not taxable.
Tax 11.65(1)(f)
(f) The sales tax applies to the receipts from conducting bingo games.
Tax 11.65(1)(g)
(g) The receipts from the sale or furnishing of access to campgrounds, other than Wisconsin state park campgrounds, are taxable, whether the fees are collected on a daily, weekly, annual, or other basis.
Tax 11.65(1)(h)
(h) The sale of admissions to pleasure tours and cruises, including a cruise originating in Wisconsin by boat on a body of water on the border of Wisconsin, is taxable regardless of whether a portion of the cruise takes place on out-of-state waters.
Tax 11.65(2)
(2)
Nontaxable sales. The following are nontaxable admissions:
Tax 11.65(2)(a)
(a) The dues of civic, fraternal, religious, patriotic, and lodge type organizations which are not organized for the purpose of furnishing amusement, athletic, entertainment, or recreational facilities to their members.
Tax 11.65(2)(b)
(b) Admissions to museums of history, art, or science, and to auto or trade shows, if professional entertainment is not provided at the show. Also, all admission fees to any museum operated by a nonprofit corporation under a lease agreement with the state historical society, such as the circus world museum.
Tax 11.65(2)(c)
(c) Admissions to antique shows unless the admission charge can be used as a credit against the price of merchandise purchased.
Tax 11.65(2)(d)
(d) Entry fees in contests if the primary motive of the majority of the persons entering the contest is “business" and not “recreation." Generally, entry fees are not taxable for:
Tax 11.65(2)(d)4.
4. Large snowmobile races where the entrants are primarily manufacturers' representatives.
Tax 11.65(2)(e)
(e) The sales price from the sales of tangible personal property, items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., tickets or admissions by any baseball team affiliated with the Wisconsin department of American legion baseball.
Tax 11.65(2)(g)
(g) Admissions to events conducted by nonprofit organizations when the event does not involve entertainment as provided in s.
77.54 (7m), Stats., the organization is not engaged in a trade or business as defined in s.
77.54 (7m), Stats., and the organization is not otherwise required to hold a seller's permit.
Sales of admissions to events conducted by a nonprofit organization that otherwise meets the requirements of s.
77.54 (7m), Stats., are not subject to tax, even if the nonprofit organization holds a seller's permit solely for the purpose of conducting bingo games.
Tax 11.65(2)(h)
(h) Admissions to places or events located outside Wisconsin.
Tax 11.65(2)(i)
(i) Sales of and admissions to time-share property as follows:
Tax 11.65(2)(i)1.
1. The furnishing of rooms or lodging to a person for a continuous period of less than one month through the sale of any kind of time-share property.
Tax 11.65(2)(i)2.
2. The sale, furnishing, or use of recreational facilities on a periodic basis and of other recreational rights, including membership rights, vacation services, and club memberships, with respect to time-share property, if the facilities are not available to persons who have not purchased the time-share property, other than guests.
Tax 11.65(2)(j)
(j) 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 11.65(2)(k)
(k) Sales of admissions by a gun club, including the sale of a gun club membership, if the gun club is a nonprofit organization and if the gun club provides safety classes to at least 25 individuals in the calendar year.
Tax 11.65(3)
(3)
Prize money. The amounts of taxable tournament and league entrance fees advertised and set aside for prize money are exempt from tax.
Tax 11.65(4)(a)(a) Persons conducting recreational events occasionally assert that the receipts are not taxable because they are donations and not charges for admission. To qualify as a donation, a payment shall be totally voluntary and no restriction whatsoever may be placed on the entrance of persons not making a donation. The facts surrounding the requests for the donation shall be obvious that admittance is not restricted to those making a donation. A set amount for the donation, such as through newspaper publicity or signs at the entrance, a turnstile, or restrictive device that shall be passed through, or an attendant requesting a donation at the door shall be presumptive evidence that the charge is not a donation but that the payment is required.
Tax 11.65(4)(b)
(b) When a charge to a patron bears little or no relationship to the actual value received, the tax may be based on the reasonable value of the tangible personal property, items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., and taxable services received. The retailer is responsible for determining the reasonable value and showing that the charge to the patron bears little or no relationship to the actual value received.
Tax 11.65 Note
Examples: 1) Company A puts on a fundraising dinner. Individuals wishing to attend the dinner must pay $300 per person to attend. The actual value of the dinner received is $50. Company A may compute the tax that must be remitted on the $50 since that is the actual value of the dinner received. The actual value in this example is based on the amount that an individual would be required to pay for this dinner if it was not a fundraising dinner.
Tax 11.65 Note
2) Company B puts on a fundraising dinner and dance. Individuals wishing to attend the dinner and dance must pay $300 per person to attend. The actual value of the dinner received is $50 and the actual value of admission to the dance is $25. Company B may compute the tax that must be remitted on the $75 since that is the actual value of the dinner and admission to the dance that is received. The actual values in this example are based on the amount that an individual would be required to pay for the dinner and to attend the dance if this was not a fundraising dinner and dance.
Tax 11.65(5)
(5)
Location of event. The receipts from sales of admissions to places of amusement or athletic events that are located or take place in Wisconsin are taxable, even though some of the sales may be made out-of-state. The receipts from sales of admissions to places of amusement or athletic events that are located or take place out-of-state are not subject to Wisconsin sales tax, even though some of the sales may be made in Wisconsin.
Tax 11.65 Note
Example: Sales by the University of Wisconsin of football tickets for games played in Wisconsin are taxable. However, if the University of Wisconsin, as agent, sells tickets for the University of Michigan for a game played in Michigan, the receipts are not subject to the Wisconsin sales tax.
Tax 11.65 Note
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; (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; and (i) The exemption for tournament or league entrance fees advertised and set aside as prize money in s.
77.54 (65m) (a) 3., Stats., became effective December 1, 2017, pursuant to
2017 Wis. Act 59.
Tax 11.65 History
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;
CR 20-018: am. (1) (c), (3)
Register July 2021 No. 787, eff. 8-1-21.
Tax 11.66
Tax 11.66
Telecommunications and telecommunications message services. Tax 11.66(1)(a)
(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.
Tax 11.66(1)(b)
(b) “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.
Tax 11.66(1)(c)
(c) “Call-by-call basis" means any method of charging for telecommunications services by which the price of such services is measured by individual calls.
Tax 11.66(1)(d)
(d) “Communications channel" means a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points.
Tax 11.66(1)(e)
(e) “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.
Tax 11.66(1)(f)
(f) “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.
Tax 11.66(1)(g)
(g) “Customer channel termination point" means the location where a customer inputs or receives communications.
Tax 11.66(1)(h)
(h) “Detailed telecommunications billing service" means an ancillary service that separately indicates information pertaining to individual calls on a customer's billing statement.
Tax 11.66(1)(i)
(i) “Directory assistance" means an ancillary service that provides telephone numbers or addresses.
Tax 11.66(1)(j)
(j) “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.
Tax 11.66(1)(k)
(k) “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.
Tax 11.66(1)(L)
(L) “Fixed wireless service" means a telecommunications service that provides radio communications between fixed points.
Tax 11.66(1)(m)
(m) “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.
Tax 11.66(1)(n)
(n) “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.
Tax 11.66(1)(o)
(o) “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., Stats.
Tax 11.66(1)(p)
(p) “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.
Tax 11.66(1)(q)
(q) “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.
Tax 11.66(1)(r)
(r) “Mobile telecommunications service" means a mobile telecommunications service under
4 USC 116 to
126, as amended by P.L.
106-252, the Mobile Telecommunications Sourcing Act. “Mobile telecommunications service" is defined in
4 USC 116 to
126, 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:
Tax 11.66(1)(r)1.a.
a. Provided for profit, that is, with the intent of receiving compensation or monetary gain.
Tax 11.66(1)(r)1.c.
c. Available to the public, or to such classes of eligible users as to be effectively available to a substantial portion of the public.
Tax 11.66(1)(s)
(s) “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.
Tax 11.66(1)(t)
(t) “Paging service" means a telecommunications service that transmits coded radio signals to activate specific pagers and may include messages or sounds.
Tax 11.66(1)(u)
(u) “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.
Tax 11.66(1)(v)
(v) “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.
Tax 11.66(1)(w)
(w) “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.
Tax 11.66(1)(x)
(x) “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.
Tax 11.66(1)(y)
(y) “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.
Tax 11.66(1)(z)
(z) “Radio service" means a communication service provided by the use of radio, including radiotelephone, radiotelegraph, paging, and facsimile service.
