Tax 11.32 (7) (b) If the exclusion under par. (a) applies to the sale of a manufactured home, no reduction in the sales price or purchase price is allowed for trade-ins.
(c) Sales of manufactured homes as defined in s.
101.91 (2), Stats., to a contractor-consumer for use in real property construction activities outside Wisconsin are exempt from Wisconsin sales and use tax.
(8) (d) Sales of modular homes as defined in s.
101.71 (6), Stats., to a contractor-consumer for use in real property construction activities outside Wisconsin are exempt from Wisconsin sales and use tax.
SECTION 23. Tax 11.32 (8) (Note) is amended to read:
Tax 11.32 (8) (Note) The interpretations in s.
Tax 11.32 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The 5% sales and use tax rate became effective May 1, 1982 (previously the rate was 4%); (b) The 35% reduction of gross receipts from the sale of a new mobile home that is a primary housing unit became effective January 1, 1987, pursuant to
1985 Wis. Act 29; (c) The 35% reduction of gross receipts from the sale of a new mobile home transported in 2 sections became effective October 1, 1991, pursuant to
1991 Wis. Act 39; (d) The reduction of gross receipts and sales price for sales of manufactured buildings, as defined in s.
101.71 (6), Stats., became effective for sales of property pursuant to contracts entered into on or after December 1, 1997, pursuant to
1997 Wis. Act 27; (e) The term “manufactured building" was changed to “modular home" and the term “mobile home" was changed to “manufactured home" effective January 1, 2008 pursuant to
2007 Wis. Act 11;
and (f) 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 (g) The exemption for modular homes and manufactured homes used in real property construction activities outside Wisconsin became effective September 1, 2011 pursuant to 2011 Wis. Act 32.
SECTION 24. Tax 11.33 (4) is repealed and recreated to read:
Tax 11.33 (4) Sales which are exempt occasional sales. Sales which are exempt occasional sales include:
(a) The sale of a motor vehicle, snowmobile, recreational vehicle as defined in s.
340.01 (48r), Stats., trailer, semitrailer, all-terrain vehicle or aircraft that is registered or titled in Wisconsin or required to be registered or titled in Wisconsin is an exempt occasional sale only if one of the following applies:
1. The sale is to a spouse, parent, stepparent, father-in-law, mother-in-law, child, stepchild, son-in-law, or daughter-in-law, of the transferor provided the property has been previously registered or titled in Wisconsin in the name of the transferor, if required to be registered or titled, and the transferor is not engaged in the business of selling this type of property.
2. The item is a motor vehicle and the transferor sells the motor vehicle to a corporation owned solely by the transferor or the transferor's spouse, provided the motor vehicle has been previously registered or titled in Wisconsin in the name of the transferor, if required to be registered or titled, and the transferor is not engaged in the business of selling motor vehicles. Transferor for purposes of this subdivision means a natural person.
3. The motor vehicle, snowmobile, recreational vehicle as defined in s.
340.01 (48r), Stats., trailer, semitrailer, all-terrain vehicle or aircraft is sold by a nonprofit organization meeting the requirements in s.
Tax 11.35 (4).
(b) Any sale of a boat that is registered or titled in Wisconsin or required to be registered or titled in Wisconsin or under the laws of the United States, is an exempt occasional sale only if one of the following applies:
1. The sale is to a spouse, parent, stepparent, father-in-law, mother-in-law, child, stepchild, son-in-law, or daughter-in-law, of the transferor provided the property has been previously registered or titled in Wisconsin in the name of the transferor, if required to be registered or titled, and the transferor is not engaged in the business of selling boats.
2. The boat is sold by a nonprofit organization meeting the requirements in s.
Tax 11.35 (4).
(c) Except as provided in pars. (a) and (b), five or fewer auctions that are the sale of personal farm property or household goods and that are held by the same auctioneer at the same location during the year. For indoor locations, “location" means a building, except that in the case of a shopping center or shopping mall, “location" means a store.
Note: Refer to s.
Tax 11.50 (4) and
(5) regarding exempt occasional sales at auction of personal farm property and household goods.
(d) Except as provided in pars. (a) and (b), sales of tangible personal property or items, property, or goods under s.
77.52 (1) (b),
(c), or
(d), Stats., by an individual who operates a sole proprietorship and who holds or is required to hold a seller's permit, which have not been used in the course of the person's business and the sales are not the type of property, items, or goods sold in the course of the person's business. However, all tangible personal property or items, property, or goods under s.
77.52 (1) (b),
(c), or
(d), Stats., sold by a corporation or partnership which holds or is required to hold a seller's permit shall be considered to be used or sold in the course of the organization's business activities and are taxable.
Example: A taxpayer operates a service station as a sole proprietor and holds a seller's permit for the purpose of selling cigarettes and repairing motor vehicles. The sales price from selling a refrigerator and stove used in the taxpayer's residence are not subject to the sales tax. However, the sales price from the sale of a desk and refrigerator which were used in the service station's business activities are subject to the sales tax.
(e) Except as provided in pars. (a) and (b), the sale of a business or business assets, not including inventory held for sale, previously used by a seller to conduct its trade or business at a location after that person has ceased actively operating in the regular course of business as a seller of tangible personal property, items, property, or goods under s.
77.52 (1) (b),
(c), or
(d), Stats., or taxable services at that location.
Note: Refer to s.
Tax 11.34 regarding the occasional sales exemption for the sale of a business or business assets.
(f) Except as provided in pars. (a) and (b), sale of tangible personal property, items, property, or goods under s.
77.52 (1) (b),
(c), or
(d), Stats., or taxable services by a person who does not hold and is not required to hold a seller's permit, if the total taxable sales price from sales of tangible personal property, items, property, or goods under s.
77.52 (1) (b),
(c), or
(d), Stats., and taxable services are less than $1,000 during the calendar year. However, purchases of tangible personal property, items, property, or goods under s.
77.52 (1) (b),
(c), or
(d), Stats., or taxable services which when resold are exempt under this paragraph, are taxable purchases by that person. This paragraph does not apply to nonprofit organizations.
Examples: 1) If the sales price from a person's garage and rummage sales, lawn maintenance services, bait sales to fishermen, sales of books, charges for parking and other normally taxable receipts are less than $1,000 during the calendar year, that person's receipts are deemed exempt occasional sales under par. (g). However, purchases by the seller of the tangible personal property or items, property, or goods under s.
77.52 (1) (b),
(c), or
(d), Stats., which are sold are taxable.
2) Sales of soft drinks by employee groups are not taxable if the sales price from soft drink sales does not exceed $1,000 per year. These groups are deemed consumers and the supplier's sales to them are taxable retail sales.
(g) Sales by nonprofit organizations meeting the requirements in s.
77.54 (7m), Stats.
Note: Refer to s.
Tax 11.35 regarding the occasional sales exemption for nonprofit organizations.
SECTION 25. Tax 11.33 (5) (title) is amended to read:
Tax 11.33 (5) (title) Sales which are not exempt occasional sales.
SECTION 26. Tax 11.33 (5) (b) (Example) is created to read:
Tax 11.33 (5) (b) (Example) The sale by a sole proprietor holding a seller's permit of a motor vehicle used in the sole proprietor's business is taxable unless it qualifies as an exempt occasional sale under s.
Tax 11.33 (4) (a) 1. or
2.
SECTION 27. Tax 11.34 (1) and (3) (a) and (b) (intro.) are amended to read:
Tax 11.34 (1) This section describes the
occasional sales exemption
under s. 77.54 (7) (a), Stats., for the
occasional sale of a business or business assets as
provided
described in s.
77.51 (9) (a) and
(am), Stats.
(3) (a) Pursuant to s.
77.51 (9) (a) and
(am), Stats., a person holding or required to hold a seller's permit at the time of disposition of business assets may not claim
the occasional sales exemption that a sale of a business asset is an occasional sale, except as provided in par. (b).
(b) (intro.) A sale, other than a sale described in par. (bg) or (br), is exempt from sales and use tax as an occasional sale if all of the following conditions are met:
SECTION 28. Tax 11.34 (3) (bg) and (br) are created to read:
Tax 11.34 (3) (bg) A sale of a motor vehicle, snowmobile, recreational vehicle as defined in s.
340.01 (48r), Stats., trailer, semitrailer, all-terrain vehicle or aircraft that is registered or titled in Wisconsin or required to be registered or titled in Wisconsin, is subject to tax unless s.
Tax 11.33 (4) (a) 1. or
2. apply.
Example:
A business has four business locations in Wisconsin and has ceased all of its business activities at one location. All of the business assets at the location where the business has ceased operating, including one motor vehicle that it used in its business, are being sold. The business is required to continue to hold a seller's permit for its other three locations. The motor vehicle is sold, but the purchaser is not a person described in s.
Tax 11.33 (4) (a) 1. or
2. The sale of the motor vehicle is not an exempt occasional sale of a business asset and the seller is required to collect tax on its sale of the motor vehicle.
(br) A sale of a boat that is registered or titled or required to be registered or titled in Wisconsin or under the laws of the United States is subject to tax unless s.
Tax 11.33 (4) (b) 1. applies.
SECTION 29. Tax 11.35 (1) is amended to read:
Tax 11.35 (1) This section describes the occasional sales exemption for nonprofit organizations as provided in s.
77.54 (7) and (7m), Stats.
SECTION 30. Tax 11.49 (2) (b) and (d) are amended to read:
Tax 11.49 (2) (b) Sales made directly to this state or any agency thereof, the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority,
the Wisconsin Quality Home Care Authority, 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 to
200.15 or
200.21 to
200.65, 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 transit authority created under s. 59.58 (7) or 66.1039, 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. Sales to a cemetery company or corporation described under section
501 (c) (13) of the Internal Revenue Code, are exempt from sales and use tax if the cemetery company or corporation uses the items exclusively for the purposes of the company or corporation. Section
77.55 (1), Stats., provides an exemption for sales to the United States, its unincorporated agencies and instrumentalities, and any incorporated agency or instrumentality of the United States wholly owned by the United States or by a corporation wholly owned by the United States. Sales to employees of these entities are not exempt, even though the entity may reimburse the employee for the expenditure.
(d) Sales to farmers of parts and repairs for tractors or farm machines used exclusively and directly in farming, but this exemption does not apply if these items are used in motor vehicles for highway use.
SECTION 31. Tax 11.51 (2) (a) and (b) are amended to read:
Tax 11.51 (2) (a) Adhesive tape.
Air fresheners.
Albums.
Alcoholic beverages.
Almond bark.
Ammonia.
Anti-acid products.
Anti-freeze.
Appliances.
Ash trays.
Aspirin.
Auto supplies.
Baby needs, except food.
Bags of all kinds.
Bakeware.
Baking chips, sweetened.
Baking chocolate that contains a sweetener in the form of bars, drops, or pieces.
Barbecue supplies.
Baskets.
Batteries, except hearing aid batteries.
Beauty aids.
Beer.
Binders.
Bird food and supplies.
Bleach.
Blueing.
Bobby pins and rollers.
Books.
Bottled water, sweetened.
Bottles.
Bowl cleaner.
Breath mints, unless they contain flour.
Breath sprays and strips.
Brooms.
Brushes.
Bubble bath.
Butterscotch chips.
Cake decorations, non-edible.
Cake decorations that are candy.
Calcium tablets.
Cameras and supplies.
Can openers.
Candy.
Candy apples.
Canning and freezer supplies.
Caramel apples.
