Tax 11.16 Note
Note: Refer to s.
Tax 11.002 for description of permit requirements, how to apply for a permit, and the 15-day time period within which the department is required to act on permit applications.
Tax 11.16 Note
Examples: 1) A truck purchased to transport pads and packing materials to and from moving jobs qualifies for the exemption in par. (a).
Tax 11.16 Note
2) Cutting down trees, cutting them into logs, and hauling them to a mill as a private business operation voids the exemption in par. (a), even though the trucker also hauls logs as a common or contract carrier for other persons at the same time.
Tax 11.16 Note
3) Vehicles of a milk or cheese factory that engage in hauling milk from farms to its plant for processing do not qualify for the exemption under par. (a).
Tax 11.16 Note
4) Towing of vehicles to the repair facility of a garage-wrecker operator is part of a private repair business that is not exempt under par. (a).
Tax 11.16(2)(a)(a) Section
77.54 (12), Stats., provides a sales and use tax exemption for the sales price from the sales of and the storage, use, or other consumption in this state of rail freight or passenger cars, locomotives, or other rolling stock used in railroad operations, or accessories, attachments, parts, lubricants, or fuel therefor.
Tax 11.16(2)(b)1.
1. The sale or furnishing of repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, and maintenance to exempt rolling stock.
Tax 11.16(2)(b)2.
2. Purchases of any equipment that is operated on railroad rails, including an industrial firm's switching locomotives used to switch freight cars on its own property, except vehicles that may also be used on a highway.
Tax 11.16(2)(b)3.
3. Fuel used to heat a caboose or run a compressor that cools a railway car.
Tax 11.16(2)(b)4.
4. A utility's coal cars used to haul coal from mines to the utility.
Tax 11.16(2)(c)1.
1. Rails, crossties, and other road building and maintenance materials. However, sales of crossties to a common or contract carrier are exempt if they are shipped wholly or in part by way of the purchasing carrier under a bill of lading, whether the freight is paid in advance or the shipment is made freight charges collect, to a point outside Wisconsin if the property is transported outside Wisconsin for use by the carrier in the conduct of its business as a carrier. The exemption will not be invalidated because of interruption of the shipment for storage, drying, processing, or creosoting of the crossties in Wisconsin.
Tax 11.16(3)(a)(a) Section
77.54 (13), Stats., provides a sales and use tax exemption for the sales price from the sales of and the storage, use, or other consumption in this state of commercial vessels and barges of 50-ton burden or over primarily engaged in interstate or foreign commerce or commercial fishing, and the accessories, attachments, parts, and fuel therefor.
Tax 11.16(3)(b)1.
1. Vessels and barges primarily engaged in interstate or foreign commerce or commercial fishing that are documented under the laws of the United States showing a net volumetric tonnage of 50 tons or more.
Tax 11.16(3)(b)2.
2. Items that become a component part of the exempt commercial vessel.
Tax 11.16(3)(b)3.
3. The sale or furnishing of repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, and maintenance of exempt commercial vessels.
Tax 11.16(3)(c)
(c) The exemption does not apply to consumable supplies or furnishings that are not attached to the vessel, such as bedding, linen, table and kitchenware, tables, chairs, lubricants, work clothes, acetylene gas, nets, fishing tackle, lumber for dry docking, bracing, blocking and dunnage materials and other materials not incorporated into the vessel.
Tax 11.16 Note
Note: The interpretations in s. Tax 11.16 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The sale of packing materials to a service provider became taxable effective September 1, 1983, pursuant to
1983 Wis. Act 27; (b) The exemption for certain railroad crossties became effective July 20, 1985, pursuant to
1985 Wis. Act 29; (c) Section 340.01 (61), Stats., which defined “station wagon" was repealed pursuant to
1999 Wis. Act 80; (d) In
Freight Lime and Sand Hauling, Inc. v. Wisconsin Department of Revenue, Wisconsin Tax Appeals Commission, November 20, 2002 (CCH 400-646), trucks hauling property of others for hire were found to qualify for exemption, even though the property being hauled had no value; (e) Section 77.57, Stats., was amended to remove the portion of the statute that allowed a purchaser to use the lesser of the cost or fair market value of an item that was purchased exempt and whose first taxable use occurred more than 6 months after it was purchased, pursuant to
2009 Wis. Act 2; (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; (g) The definition of “common motor carrier" was amended, pursuant to
2013 Wis. Act 364, which first applies to motor carrier operations occurring on April 25, 2014; and (h) The threshold for exempt occasional sales was changed to less than $2,000 in annual sales, effective for sales beginning January 1, 2018, pursuant to
2017 Wis. Act 59.
Tax 11.16 History
History: Cr.
Register, November, 1978, No. 275, eff. 12-1-78; am. (1) (a) and (d), (3) (b) 1.,
Register, November, 1981, No. 311, eff. 12-1-81; am. (3) (b) 1.,
Register, January, 1983, No. 325, eff. 2-1-83; am. (1) (b), (d) and (2) (b) 2., r. and recr. (1) (e), cr. (1) (h) and (i),
Register, December, 1983, No. 336, eff. 1-1-84; am. (1) (f) and (3) (b) 1.,
Register, July, 1987, No. 379, eff. 8-1-87; am. (1) (e) and (3) (b) 1.,
Register, April, 1990, No. 412, eff. 5-1-90; correction in (1) (a) made under s. 13.93 (2m) (b) 7., Stats.,
Register, April, 1990, No. 412; am. (1) (a) and (d) and (2) (c) 1., r. (1) (g), renum. (1) (h) to be (g) and (1) (i) to be (h),
Register, June, 1991, No. 426, eff. 7-1-91;
EmR0924: emerg. am. (1) (a), (b), (c), (f), (h), (2) (a), (b) 1. to 3., (3) (a) and (b) 3., renum. (1) (d) to be (1) (d) (intro.) and am., cr. (1) (d) 1. and 2., eff. 10-1-09;
CR 09-090: am. (1) (a), (b), (c), (f), (h), (2) (a), (b) 1. to 3., (3) (a) and (b) 3., renum. (1) (d) to be (1) (d) (intro.) and am., cr. (1) (d) 1. and 2.
Register May 2010 No. 653, eff. 6-1-10;
CR 10-094: am. (1) (a), (am), (b), (e), (g), (2) (a), (c) 1., 2., (3) (a)
Register November 2010 No. 659, eff. 12-1-10;
CR 16-053: am. (1) (am) (title), renum. (1) (am) to (1) (am) 3., cr. (1) (am) (intro.), 1., 2., am. (1) (b)
Register June 2018 No. 750, eff. 7-1-18;
CR 20-018: am. (1) (h)
Register July 2021 No. 787, eff. 8-1-21.
Tax 11.17
Tax 11.17
Hospitals, clinics and medical professions. Tax 11.17(1)(a)(a) Although professional personnel in hospitals and clinics and other members of medical professions including physicians, surgeons, oculists, optometrists, and podiatrists regularly transfer antibiotics, bandages, splints, and other tangible personal property and items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., to their patients in the performance of professional services, the transfer of that property, item, or good is an incident of a service rather than a retail sale of the property, item, or good. The persons are, therefore, deemed the consumers of the property, items, or goods in the same way they are the consumers of other materials and supplies used by them in the performance of their services. Accordingly, the suppliers of hospitals, clinics, and members of medical professions are retailers obligated to register and report tax on sales of tangible personal property, items, property, and goods under s.
77.52 (1) (b),
(c), or
(d), Stats., and taxable services, unless the transaction is specifically exempt from the tax.
Tax 11.17(1)(b)
(b) Section
77.54 (14) (b), Stats., specifically provides an exemption for drugs furnished by a licensed physician, surgeon, or podiatrist to that person's patient for medical treatment. Section
77.54 (22b), Stats., provides an exemption for durable medical equipment for home use, mobility-enhancing equipment, and prosthetic devices, and repair and replacement parts and accessories for such equipment or devices, if such equipment or devices are used by a human being. The scope of these exemptions is set forth in ss.
Tax 11.08,
11.09, and
11.45.
Tax 11.17(2)
(2)
Purchases by hospitals. Purchases by hospitals, except hospital service insurance corporations under s.
613.80 (2), Stats., are exempt from the sales and use tax if the hospitals are nonprofit and, as such, qualify as charitable organizations under s.
77.54 (9a), Stats. Each is issued a Certificate of Exempt Status, “CES," by the department. When purchasing property, items, goods, and services, a hospital shall furnish its CES number to its supplier, and the supplier may then make sales of every type of tangible personal property and items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., and services to the hospital without tax. Hospitals organized for profit do not qualify for this exemption.
Tax 11.17(3)
(3)
Purchases by clinics and members of the medical profession. Purchases made by physicians and medical clinics that do not hold a Certificate of Exempt Status, “CES," are subject to the sales or use tax unless specifically exempt by law. To be exempt, the items on the exempt list shall be furnished to patients at the direction of a physician, surgeon, or podiatrist in conjunction with providing medical service, except for items noted with an asterisk. These items are exempt even though not purchased under the direction of the health professional. The following is a partial list of taxable and exempt purchases of clinics and members of the medical professions.
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See PDF for table 
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See PDF for table Tax 11.17(4)
(4)
Sales by hospitals, hospital auxiliaries, clinics, and members of the medical professions. Tax 11.17(4)(a)
(a) The sales price from sales of the following are exempt from the tax:
Tax 11.17(4)(a)1.
1. Charges made by hospitals to patients for rooms, medical services, and other items including charges for anesthesia and anesthesia supplies, bandages applied in the hospital, blood and blood plasma, dressings applied in the hospital, intravenous solutions, laboratory tests, oxygen, radiation, and x-ray treatment.
Tax 11.17(4)(a)2.
2. Hospitals' sales of food and food ingredients, except soft drinks.
Tax 11.17(4)(a)3.
3. Prepared food sold to the elderly or disabled by persons providing “mobile meals on wheels."
Tax 11.17(4)(a)4.
4. Patient health records sold to a patient or to a person authorized by the patient to receive such medical records.
Tax 11.17(4)(b)
(b) The sales price from the sales of the following are taxable:
Tax 11.17(4)(b)1.
1. A hospital's specific charge to a patient for the rental of a television set.
Tax 11.17(4)(b)3.
3. Sales of tangible personal property, items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., and taxable services by a clinic, which sales are not directly related to the rendition of medical services.
Tax 11.17(4)(b)4.
4. Sales of prepared food and other tangible personal property, items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., and taxable services by an organization affiliated with a hospital, except as provided in par.
(a) 3. Tax 11.17 Note
Examples: 1) If a ladies' auxiliary of a hospital operates a coffee shop on the hospital premises, and holds or is required to hold a seller's permit, the sales by this business are taxable.
Tax 11.17 Note
2) Sales by a hospital auxiliary, which holds or is required to hold a seller's permit, of an emergency response system that links an individual to medical attention by pushing a button which transmits to a communicator connected to a telephone and sends an automatic call for help are taxable telecommunications message services.
Tax 11.17(4)(b)6.
6. An optometrist's sales of tangible personal property and items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., including nonprescription sun glasses, contact lens solution, and other types of tangible personal property and items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., ordinarily taxable when sold at retail, unless the sales price from those sales are less than $2,000 during the calendar year. Optometrists whose receipts from taxable property, items, and goods equal or exceed $2,000 in a calendar year shall register with the department and obtain a seller's permit. Those whose receipts from taxable property, items, and goods are less than $2,000 shall be exempt as occasional sellers and shall pay tax to their suppliers or a use tax, as appropriate, on purchases of taxable property, items, or goods.
Tax 11.17(5)
(5)
Hospital definition. Section
50.33 (2), Stats., provides the definition of hospital which is to be used for sales tax purposes.
Tax 11.17 Note
Note: Section
Tax 11.17 interprets ss.
77.51 (3pj),
(3pm),
(7m),
(9), and
(11m),
77.52 (1) and
(2) (a) 1. and
9., and
77.54 (9a),
(14),
(14m),
(14r),
(20n),
(22b),
(28), and
(64), Stats.
Tax 11.17 Note
Note: Refer to s.
Tax 11.002 for a description of permit requirements, how to apply for a permit, and the 15-day time period within which the department is required to act on permit applications.
Tax 11.17 Note
Note: Refer to s.
Tax 11.33 for additional information relating to occasional sales.
Tax 11.17 Note
Note: The interpretations in s.
Tax 11.17 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The exemption for needles and syringes used by diabetics became effective November 19, 1975, pursuant to Ch.
102, Laws of 1975; (b) The exemption for oxygen equipment became effective September 1, 1983, pursuant to
1983 Wis. Act 27; (c) The exemption for motorized scooters became effective September 1, 1985, pursuant to
1985 Wis. Act 29; (d) The exemption for diabetic apparatus and equipment and supplies for determining blood sugar levels became effective March 1, 1989, pursuant to
1987 Wis. Act 399; (e) The exemption for antiembolism elastic hose and stockings prescribed by a physician became effective October 1, 1989, pursuant to
1989 Wis. Act 31; (f) The purchases by a hospital service insurance corporation under s.
613.80 (2), Stats., became taxable effective September 1, 1985, pursuant to
1985 Wis. Act 29; (g) The exemption for parts and accessories for certain medical equipment became effective October 1, 1991, pursuant to
1991 Wis. Act 39; (h) The sales of meals by hospitals off the hospital's premises became taxable October 1, 1991, pursuant to
1991 Wis. Act 39; (i) The exemptions for durable medical equipment for home use, mobility-enhancing equipment, and prosthetic devices became exempt October 1, 2009 pursuant to
2009 Wis. Act 2; (j) 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; (k) The exemption for patient health records under s.
77.54 (64), Stats., became effective June 23, 2017, pursuant to
2017 Wis. Act 17; and (L) The threshold for exempt occasional sales was changed to less than $2,000 in annual sales, effective for sales beginning January 1, 2018, pursuant to
2017 Wis. Act 59.
Tax 11.17 History
History: Cr.
Register, May, 1978, No. 269, eff. 6-1-78; am. (4) (a) 1. and cr. (4) (b) 5.,
Register, January, 1983, No. 325, eff. 2-1-83; am. (3),
Register, September, 1984, No. 345, eff. 10-1-84; am. (1) (a),
Register, August, 1985, No. 356, eff. 9-1-85; am. (1) (b), (2), (3), (4) (b) 4. and (5),
Register, March, 1991, No. 423, eff. 4-1-91; am. (1) (a), (3), (4) (a) 2. and (b) 4., renum. (4) (b) 5. to be (4) (b) 6. and am., cr. (4) (b) 5.,
Register, May, 1993, No. 449, eff. 6-1-93;
EmR0924: emerg. am. (1) to (4) (a), (b) (intro.) and 3. to 6., cr. (4) (a) 3., eff. 10-1-09;
CR 09-090: am. (1) to (4) (a), (b) (intro.) and 3. to 6., cr. (4) (a) 3.
Register May 2010 No. 653, eff. 6-1-10;
CR 10-094: am. (1) to (3), (4) (title), (a) 2., 3.
Register November 2010 No. 659, eff. 12-1-10;
CR 12-014: am. (4) (b) 6.
Register August 2012 No. 680, eff. 9-1-12;
CR 13-011: am. (3)
Register August 2013 No. 692, eff. 9-1-13;
CR 19-122: am. (4) (a) 3.
Register July 2020 No. 775, eff. 8-1-20;
CR 20-018: cr. (4) (a) 4., am. (4) (b) 6.
Register July 2021 No. 787, eff. 8-1-21; CR 020-027: am. (3) (table)
Register July 2021 No. 787, eff. 8-1-21.
Tax 11.18
Tax 11.18
Dentists and their suppliers. Tax 11.18(1)(1)
Dentists' charges. Charges by dentists for dental services are not subject to the sales tax. In addition, charges for items specifically designed for a patient which are installed in the patient's mouth, including artificial teeth, fillings, bridges, crowns, or inlays, and parts and accessories for those items, are not subject to the tax.
Tax 11.18(2)(a)1.
1. Drugs, including nitrous oxide, oxygen, novocaine, toothpaste, and bone regeneration materials.
Tax 11.18(2)(a)2.
2. Gold, silver, amalgam, and other alloys used to fill teeth and cement and bonding agents used in conjunction with fillings.
Tax 11.18(2)(a)3.
3. Crowns, bridges, bridgework, dentures, inlays, fillings, and other items, including parts and accessories for those items, which the dentist installs in the human patient's mouth.
Tax 11.18(2)(a)4.
4. Bands, brackets, wire, space maintainers, positioners, and other items installed in a patient's mouth to prevent or correct a physical deformity or to support a weak or deformed portion of the body.
Tax 11.18(2)(b)
(b) The items described in par.
(a) include braces and other corrective and supporting devices, such as teeth, mouth, and jaw braces and supports.
Tax 11.18(3)(a)
(a) The sales price from the following sales to dentists are taxable:
Tax 11.18(3)(a)2.
2. Office equipment, office supplies, and consumable supplies used by dentists to conduct their business.
Tax 11.18(3)(b)
(b) Items included in par.
(a) include tongue depressors, bandages, tooth brushes, dental floss, and cotton.
Tax 11.18 Note
Note: The interpretations in s.
Tax 11.18 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The exemption for parts and accessories for certain items became effective October 1, 1991, pursuant to
1991 Wis. Act 39; and (b) The term “gross receipts" was changed to “sales price" effective October 1, 2009, pursuant to
2009 Wis. Act 2.
Tax 11.18 History
History: Cr.
Register, November, 1978, No. 275, eff. 12-1-78; am. (1), r. and recr. (2) and (3),
Register, April, 1990, No. 412, eff. 5-1-90; am. (1) and (2) (a) 3.,
Register, May, 1993, No. 449, eff. 6-1-93;
EmR0924: emerg. am. (2), (3) (a) (intro.), 2. and (b), cr. (2) (a) 4., r. and recr. (3) (a) 1., eff. 10-1-09;
CR 09-090: am. (2), (3) (a) (intro.), 2. and (b), cr. (2) (a) 4., r. and recr. (3) (a) 1.
Register May 2010 No. 653, eff. 6-1-10;
CR 10-094: am. (2) (b)
Register November 2010 No. 659, eff. 12-1-10.
Tax 11.19
Tax 11.19
Printed material exemptions. Tax 11.19(1)(1)
General. All retail sales of tangible personal property and items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., including printed material, are subject to the tax, except when a specific exemption applies to the transaction. This section describes exemptions which commonly apply to sales of printed material.
Tax 11.19(2)(a)(a) Section
77.52 (2) (a) 11., Stats., imposes the sales and use tax on certain services. However, an exemption is provided for the printing or imprinting of tangible personal property and items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., furnished by customers, that results in any of the following:
Tax 11.19(2)(b)
(b) Section
77.54 (15), Stats., provides an exemption for the sale of newspapers, of periodicals sold by subscription and regularly issued at average intervals not exceeding 3 months, or issued at average intervals not exceeding 6 months by an educational association or corporation sales to which are exempt under s.
77.54 (9a) (f), Stats., of controlled circulation publications sold to commercial publishers for distribution without charge or mainly without charge or regularly distributed by or on behalf of publishers without charge or mainly without charge to the recipient and of shoppers guides which distribute no less than 48 issues in a 12-month period.
Tax 11.19(2)(c)
(c) Section
77.54 (25), Stats., provides an exemption for printed material which is designed to advertise and promote the sale of merchandise, or to advertise the services of individual business firms, which printed material is purchased and stored for the purpose of subsequently transporting it outside Wisconsin by the purchaser for use thereafter solely outside Wisconsin. This exemption does not include catalogs or the envelopes in which the catalogs are mailed.
Tax 11.19(2)(cm)
(cm) Section
77.54 (25m), Stats., provides an exemption for catalogs, as defined in s.
77.51 (1fr), Stats., and the envelopes in which the catalogs are mailed, that are designed to advertise and promote the sale of merchandise or to advertise the services of individual business firms.
Tax 11.19(2)(d)
(d) Section
77.54 (2m), Stats., provides an exemption for the sales price from the sales of and the storage, use, or other consumption 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 with charge to the recipient. This exemption applies to newspapers, shoppers guides, and periodicals which are issued at average intervals not exceeding 3 months or issued at average intervals not exceeding 6 months by an educational association or corporation sales to which are exempt under s.
77.54 (9a) (f), Stats. It does not apply to advertising supplements that are not newspapers as defined in s.
77.51 (8), Stats.
Tax 11.19(2)(e)
(e) Section
77.51 (13h), Stats., provides that a foreign corporation that is a publisher of printed materials is not engaged in business in Wisconsin and is not required to register and collect Wisconsin sales or use tax if its only activities in Wisconsin are:
Tax 11.19(2)(e)1.
1. The storage of its raw materials in Wisconsin in or on property not owned by the foreign corporation and delivery of its raw materials to another person in Wisconsin if the storage and delivery are for printing by that other person. “Raw material" means tangible personal property which becomes an ingredient or component part of the printed materials or which is consumed or destroyed or loses its identity in the printing of the printed materials.
Tax 11.19(2)(e)2.
2. The purchase from a printer of printing services or of printed materials in Wisconsin for the publisher.
Tax 11.19(2)(e)3.
3. The storage of the printed material or raw material for any length of time in Wisconsin in or on property owned by a person other than the publisher.
Tax 11.19(2)(e)4.
4. Maintaining, occupying, and using, directly or by means of another person, a place that is in Wisconsin, that is not owned by the publisher and that is used for the distribution of printed material.
Tax 11.19(2)(f)
(f) Section
77.54 (43), Stats., provides a sales and use tax exemption for raw materials used for the processing, fabricating, or manufacturing of, attaching to or incorporating into, printed materials that are transported and used solely outside Wisconsin.
Tax 11.19(3)
(3)
Newspapers, shoppers guides, controlled circulation publications and periodicals defined.
