Tax 11.71(3)
(3)
Nontaxable computer and data processing services. The sales price from the following computer or data processing services are not taxable:
Tax 11.71 Note
Note: A contract to process a client's data by the use of computer software or through an electrical accounting machine programmed by a wired plugboard will usually include receiving the client's source documents, recording data in machine readable form such as in punch cards or on magnetic media, making corrections, rearranging or creating new information as the result of the processing, and then providing tabulated listings or recording output on other media. This service is not taxable, even though the total charge is broken down into specific charges for each step.
Tax 11.71 Note
Note: If a client furnishes data and computer software for processing the data and the processing is under the direction and control of the person providing the service, the processing service is not taxable, even though charges for the service may be based on computer time. The true object of this arrangement is considered to be a service, even though some tangible personal property may be incidentally transferred to the client.
Tax 11.71(3)(b)
(b) Providing computer software that is not prewritten computer software.
Tax 11.71(3)(c)
(c) Providing program technical support, error correction services, and maintenance and enhancement to computer software that is not prewritten computer software.
Tax 11.71(3)(d)
(d) Providing time-sharing services which permit persons at different locations to access the same computer through remote access by telephone lines, microwave, or other means. Nontaxable time-sharing exists when a person or that person's employees, who have access to the equipment, are not located on the premises where the equipment is located and do not operate the equipment or control its operation.
Tax 11.71(3)(e)
(e) Miscellaneous services which are not part of the sale of prewritten computer software or other tangible personal property, or items, property, or goods under s.
77.52 (1) (b),
(c), or
(d), Stats., including:
Tax 11.71(3)(e)1.
1. Designing and implementing computer systems including determining equipment and personnel required and how they will be utilized.
Tax 11.71(3)(e)2.
2. Designing storage and data retrieval systems including determining what data communications and high-speed input-output terminals are required.
Tax 11.71(3)(e)3.
3. Consulting services including study of all or part of a data processing system.
Tax 11.71(3)(e)4.
4. Feasibility studies including studies to determine what benefits would be derived if procedures were automated.
Tax 11.71(3)(e)5.
5. Evaluation of bids including studies to determine which proposal for computer equipment would be most beneficial.
Tax 11.71(3)(f)
(f) Keypunching and keystroke verifying services, including:
Tax 11.71(3)(f)1.
1. Keypunching only, keypunching and keystroke verification, or keypunching and providing a proof list or verification data, or both. Charges for these services are not taxable, whether the cards or tapes are furnished by the customer or by a service bureau.
Tax 11.71(3)(f)2.
2. Recording data from source documents directly on magnetic tape, off-line. This operation may include keystroke verifying or proof listing of data, or both, and is comparable to the punch card operation.
Tax 11.71(3)(f)3.
3. Imprinting characters on a document to be used as the input medium in an optical character recognition system, whether paper tape or other media are used in the operation.
Tax 11.71 Note
Note: The interpretations in s.
Tax 11.71 are effective under the general sales and use tax law on and after September 1, 1969, except that (a) Computer and data processing services were taxable under
s. 77.52 (2) (a) 13., Stats., Laws of 1977, from August 1, 1977, through June 30, 1978; (b) The definition of prewritten computer software became effective March 6, 2009, pursuant to
2009 Wis. Act 2; (c) The definitions of computer, computer software, computer software maintenance contract and load and leave became effective October 1, 2009, pursuant to
2009 Wis. Act 2; 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., 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 11.71 Note
Note: In
Janesville Data Center, Inc. v. Department of Revenue (1978),
84 Wis. 2d 341, the Wisconsin Supreme Court held that the transfer of customer data onto tangible personal property and the verification of customer data is not subject to the sales and use tax as a transfer of tangible personal property or a taxable service.
Tax 11.71 History
History: Cr.
Register, February, 1986, No. 362, eff. 3-1-86; am. (1) (e) 6., (2) (a) (intro.), 1. and (b) (intro.),
Register, April, 1993, No. 448, eff. 5-1-93;
EmR0924: emerg. am. (1) (b), (2) (intro.), (a) (intro.), 1., (b) to (d), (3) (intro.), (b) to (e) (intro.), (f) 1. and 2., r. (1) (c), (g) and (n), renum. (1) (d), (h) to (j) and (o) to (q) to be (1) (c), (g) to (i) and (n) to (p) and am. (1) (g), (h) and (p), cr. (1) (d), (em), (j) and (2) (bm), r. and recr. (1) (e) and (k), eff. 10-1-09;
CR 09-090: am. (1) (b), (2) (intro.), (a) (intro.), 1., (b) to (d), (3) (intro.), (b) to (e) (intro.), (f) 1. and 2., r. (1) (c), (g) and (n), renum. (1) (d), (h) to (j) and (o) to (q) to be (1) (c), (g) to (i) and (n) to (p) and am. (1) (g), (h) and (p), cr. (1) (d), (em), (j) and (2) (bm), r. and recr. (1) (e) and (k)
Register May 2010 No. 653, eff. 6-1-10,
CR 12-014: am. (2) (c) (Example 2)
Register August 2012 No. 680, eff. 9-1-12.
Tax 11.72
Tax 11.72
Laundries, dry cleaners, and linen and clothing suppliers. Tax 11.72(1)(a)
(a) The sales price received from selling, performing, or furnishing laundry, dry cleaning, pressing, and dyeing services is taxable, except as provided in par.
(b).
Tax 11.72(1)(b)
(b) The sales price from selling, performing, or furnishing laundry, dry cleaning, pressing, and dyeing services is exempt from tax when:
Tax 11.72(1)(b)1.
1. The services are performed on raw materials or goods in process destined for sale.
Tax 11.72(1)(b)2.
2. The services are performed by the customer through the use of self-service machines.
Tax 11.72(1)(b)3.
3. The services are performed on cloth diapers by a diaper service. “Cloth diaper" means a cloth diaper used for sanitary purposes. “Diaper service" means a business primarily engaged in the lease or rental, delivery or laundering of cloth diapers.
Tax 11.72(2)
(2)
Linen and clothing suppliers. The sales price received by lessors from leasing, licensing, or renting clothing, including uniforms, towels, linens, or similar items, including cloth diapers, to commercial establishments or household users under agreements which provide for furnishing items and cleaning the items when they become soiled is subject to the tax. However, the items furnished to customers under these agreements may be purchased by the lessor without paying sales or use tax and the charge for cleaning cloth diapers by a diaper service is not subject to tax.
Tax 11.72(3)(a)(a) Laundries, dry cleaners, and linen or clothing suppliers are the consumers of and shall pay tax on their purchases of all items transferred to customers incidentally in providing laundry and dry cleaning services, including solvents, soaps, detergents, spotting compounds, water repellents, disinfectants, fabric softeners, starch, dyes, mat compounds, fire repellent compounds, and marking tags they use for identification purposes. They also shall pay tax on their purchases of items transferred to customers with clean linen or clothes, such as hangers, handkerchiefs, bags, boxes, shirt boards, shoulder guards, twisters, and pins. The tax applies to the sales price on the sale of these items to laundries, dry cleaners, and linen and clothing suppliers.
Tax 11.72(3)(b)
(b) The tax applies to the sales price from sales, licenses, leases, or rentals of machinery and equipment to persons engaged in performing or furnishing laundry, dry cleaning, pressing, and dyeing services, and to persons leasing, licensing, or renting linens, towels, and clothing to industrial, commercial, or household users.
Tax 11.72 Note
Note: The interpretations in s. Tax 11.72 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) Laundries and dry cleaners became the consumers of, and pay tax on the purchases of, items transferred to customers effective September 1, 1983, pursuant to 1983 Wis. Act 27; (b) The exemption for diaper services and cloth diapers became effective July 1, 1990, pursuant to 1989 Wis. Act 335; (c) The repeal of the exemption for cloth diapers became effective October 1, 2009, pursuant to 2009 Wis. Act 2; (d) The change of the term “gross receipts" to “sales price" became effective October 1, 2009, pursuant to 2009 Wis. Act 2; and (e) The exemption for coin-operated, self-service laundry machines was expanded to include all self-service machines effective October 1, 2013, pursuant to 2013 Wis. Act 20. Tax 11.72 History
History: Cr.
Register, December, 1979, No. 288, eff. 1-1-80; am. (3) (a) and r. (3) (c),
Register, September, 1984, No. 345, eff. 10-1-84; am. (2) and (3) (a), cr. (1) (b), renum. (1) to be (1) (a) and am.,
Register, June, 1991, No. 426, eff. 7-1-91;
EmR0924: emerg. am. (1) (a), (b) (intro.), (2) and (3), eff. 10-1-09;
CR 09-090: am. (1) (a), (b) (intro.), (2) and (3)
Register May 2010 No. 653, eff. 6-1-10;
CR 19-112: am. (1) (b) 2.
Register June 2020 No. 774, eff. 7-1-20.
subch. IX of ch. Tax 11
Subchapter IX — Types of Tangible Personal Property and Items, Property, and Goods Under s. 77.52 (1) (b), (c), and (d), Stats.
Tax 11.78
Tax 11.78
Stamps, coins, and bullion. Tax 11.78(1)(1)
Taxable sales. Retail sales of the following tangible personal property and items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., are subject to the sales and use tax:
Tax 11.78(1)(b)
(b) Uncancelled United States postage stamps when sold or traded as collectors' items above their face value.
Tax 11.78(1)(d)
(d) Postage charges which are billed by the seller of the tangible personal property or items, property, or goods under s.
77.52 (1) (b),
(c), or
(d), Stats., to the purchaser in connection with the sale and delivery of tangible personal property or items, property, or goods under s.
77.52 (1) (b),
(c), or
(d), Stats., if the sale of the property, item, or good is subject to the tax.
Tax 11.78(1)(e)
(e) Foreign coins and paper currency when sold or traded as collectors' items.
Tax 11.78(1)(f)
(f) United States coins and paper currency when sold or traded as collectors' items above their face value.
Tax 11.78(1)(g)
(g) Silver bullion and gold bullion if the sale is sourced to a location in Wisconsin under s.
77.522, Stats., whether the sales contract is entered into in or outside of Wisconsin. Sales of silver and gold bullion sourced to a location outside Wisconsin are subject to the use tax when the bullion is brought into Wisconsin.
Tax 11.78(2)
(2)
Nontaxable sales. Retail sales of the following tangible personal property and items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., are not subject to the sales and use tax:
Tax 11.78(2)(a)
(a) United States coins and paper currency sold at face value.
Tax 11.78(2)(b)
(b) The portion of the selling price attributable to postage in the sale of prestamped envelopes if the nontaxable postage is separately itemized to the customer.
Tax 11.78(2)(c)
(c) Sales of bullion to persons in Wisconsin if the sale is sourced to a location outside Wisconsin under s.
77.522, Stats.
Tax 11.78(2)(d)
(d) Foreign coins and paper currency in current circulation, when sold at face value and when acquired as a medium of exchange.
Tax 11.78(2)(e)
(e) Uncancelled United States postage stamps intended for use as postage even if sold for an amount above face value.
Tax 11.78 Note
Note: The interpretations in s.
Tax 11.78 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 11.78 History
History: Cr.
Register, January, 1977, No. 253, eff. 2-1-77; am. (2) (a), cr. (2) (e),
Register, March, 1991, No. 423, eff. 4-1-91;
EmR0924: emerg. am. (1) (intro.), (d), (g), (2) (intro.) and (c), eff. 10-1-09;
CR 09-090: am. (1) (intro.), (d), (g), (2) (intro.) and (c)
Register May 2010 No. 653, eff. 6-1-10;
CR 10-094: am. (title), (1) (g)
Register November 2010 No. 659, eff. 12-1-10.
Tax 11.79
Tax 11.79
Leases of highway vehicles and equipment. Tax 11.79(1)(1)
General rule. The sales price received from the license, lease, or rental of motor vehicles and mobile equipment used on a highway is subject to the sales and use tax.
Tax 11.79 Note
Note: See s.
Tax 11.32 for additional information explaining what is included in the “sales price."
Tax 11.79(2)
(2)
Deductions from sales price. In determining a lessor's taxable receipts under sub.
(1), the cost of the following items may be deducted if they meet the conditions in sub.
(3):
Tax 11.79(2)(d)
(d) Public liability insurance furnished by the lessor solely for the protection of the lessee but not including collision and comprehensive coverage.
Tax 11.79(3)(a)2.
2. The charge is separately stated in the lease agreement, billing, or invoice.
Tax 11.79(3)(a)3.
3. The lessor is willing and able to lease the motor vehicle or mobile equipment without providing the items listed in sub.
(2).
Tax 11.79(3)(b)
(b) The deduction is limited to the lessor's cost of the items furnished with the leased equipment.
Tax 11.79(4)
(4)
Nondeductible items. In determining a lessor's taxable sales price under sub.
(1), the cost of the following may not be deducted:
Tax 11.79(4)(a)
(a) Amounts spent for the lessor's own protection or for the protection of leased property, including collision or other insurance protection.
Tax 11.79(4)(c)
(c) Interest and other financing costs incurred by the lessor.
Tax 11.79(5)(a)(a) The sales price received from the license, lease, or rental of motor vehicles and mobile equipment used on a highway is taxable in Wisconsin if the license, lease, or rental payments are sourced to Wisconsin under s.
77.522, Stats., as described in pars.
(b) and
(c).
Tax 11.79(5)(b)
(b) A license, lease, or rental of a motor vehicle, trailer, semitrailer, or aircraft that only requires one payment, is sourced as follows:
Tax 11.79(5)(b)1.
1. If the motor vehicle, trailer, semitrailer, or aircraft is received by the lessee or licensee at the lessor's or licensor's business location, the payment is sourced to the lessor's or licensor's business location.
Tax 11.79(5)(b)2.
2. If the motor vehicle, trailer, semitrailer, or aircraft is not received by the lessee or licensee at the lessor's or licensor's business location, the payment is sourced to the location where the lessee or licensee or the lessee's or licensee's designated donee receives the product. This would include the location indicated by instructions known to the lessor or licensor for delivery to the lessee or licensee or the lessee's or licensee's designated donee. The delivery may be made by the lessor or licensor or by a shipping company hired by the lessee or licensee.
Tax 11.79(5)(b)3.
3. If the location cannot be determined under subds.
1. and
2., the payment is sourced to the lessee's or licensee's address as indicated by the lessor's or licensor's business records, if the records are maintained in the ordinary course of the lessor's or licensor's business and if using that address to establish the location of the lease, license, or rental is not in bad faith.
Tax 11.79(5)(b)4.
4. If the location cannot be determined under subd.
1.,
2., or
3., the payment is sourced to the lessee's or licensee's address as obtained during the consummation of the license, lease, or rental, including the address indicated on the lessee's or licensee's payment instrument, if no other address is available and if using that address to determine the location of the lease, license, or rental is not in bad faith.
Tax 11.79(5)(b)5.
5. If the location cannot be determined under subd.
1.,
2.,
3., or
4., the payment is sourced to the location from which the motor vehicle, trailer, semitrailer, or aircraft was shipped.
Tax 11.79(5)(c)
(c) Except as provided in par.
(b), licenses, leases, and rentals of motor vehicles, trailers, semitrailers, and aircraft that are not transportation equipment, as defined in s.
77.522 (1) (a) 2., Stats., are sourced to the primary location of such property as indicated by an address for the property that is provided by the lessee or licensee and that is available in the business records of the lessor or licensor that are maintained in the ordinary course of the lessor's or licensor's business, provided the use of such address does not constitute bad faith.
Tax 11.79(6)
(6)
Exempt leases. The sales price from the license, lease, or rental of the following property shall be exempt from sales and use tax provided the lessor receives a properly completed exemption certificate as described in s.
Tax 11.14:
Tax 11.79(6)(a)
(a) Highway vehicles, except automobiles, leased to common or contract carriers who use the vehicles exclusively in common or contract carriage, including urban mass transportation of passengers as defined in s.
71.38, Stats.
Tax 11.79(6)(b)
(b) Motor vehicles not licensed for highway use which are used exclusively and directly in conjunction with waste reduction or recycling activities described in s.
77.54 (5) (c), Stats.
Tax 11.79(6)(c)
(c) Mobile units used for mixing and processing, including the motor vehicle or trailer on which the unit is mounted. Accessories, attachments, parts, supplies, and materials for the mobile unit, vehicle, and trailer are also exempt.
