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. Tax 11.19(3)(a)
(a) Section
77.51 (8), Stats., defines a “newspaper" under ch.
77, Stats., as:
“
... those publications which are commonly understood to be newspapers and which are printed and distributed periodically at daily, weekly or other short intervals for the dissemination of current news and information of a general character and of a general interest to the public. In addition, any publication which qualifies as a newspaper under s. 985.03 (1) is a newspaper. `Newspaper' also includes advertising supplements if they are printed by a newspaper and distributed as a component part of one of that newspaper's publications or if they are printed by a newspaper or a commercial printer and sold to a newspaper for inclusion in publications of that newspaper. A `newspaper' does not include handbills, circulars, flyers, or the like, advertising supplements not described in this subsection which are distributed with a newspaper, nor any publication which is issued to supply information on certain subjects of interest to particular groups, unless such publication otherwise qualifies as a newspaper within this subsection. In this subsection, advertising is not considered news of a general character and of a general interest."
Tax 11.19(3)(b)
(b) Section
77.54 (15), Stats., defines a shoppers guide as: “
a community publication delivered, or attempted to be delivered, to most of the households in its coverage area without a required subscription fee, which advertises a broad range of products and services offered by several types of businesses and individuals" and it defines a controlled circulation publication as
“a publication that has at least 24 pages, is issued at regular intervals not exceeding 3 months, that devotes not more than 75% of its pages to advertising and that is not conducted as an auxiliary to, and essentially for the advancement of, the main business or calling of the person that owns and controls it."
Tax 11.19 Note
Example: A taxpayer publishes a quarterly publication which it mails to current and prospective customers. The publication contains articles of interest to customers which contain endorsement of the taxpayer's business and products. The publication also contains advertising of the taxpayer's products as well as products of other vendors. This publication is conducted essentially for the advancement of the taxpayer's business and does not qualify as a controlled circulation publication.
Tax 11.19(3)(c)
(c) The exemption for periodicals is limited to publications which are sold by subscription and which are 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., each issue of which contains news or information written by different authors which is of general interest to the public, or to some particular organization or group of persons. Each issue must bear a relationship to prior or subsequent issues in respect to continuity of literary character or similarity of subject matter, and there must be some connection between the different issues of the series in the nature of the articles appearing in them. To qualify for the exemption, the publication must qualify for the periodicals rate under U.S. postal laws and regulations or as a controlled circulation publication.
Tax 11.19(3)(d)
(d) The newspaper and periodical exemption does not apply to books complete in themselves, even those issued at stated intervals; paperback books, a new one of which may be issued once a month or some other interval; or so-called “one-shot" magazines that have no literary or subject matter connection or continuity between prior or subsequent issues. The exemption also does not apply to catalogs, programs, scorecards, handbills, maps, real estate brokers' listings, price or order books, corporate reports to stockholders, house organs, or to advertising materials which become a component part of a periodical.
Tax 11.19 Note
Example: Books sold by the Book of the Month Club or similar organizations do not qualify for the newspaper and periodical exemption.
Tax 11.19(4)
(4)
Printed advertising materials for out-of-state use. Tax 11.19(4)(a)(a) Printed advertising materials may be purchased from Wisconsin or out-of-state suppliers without tax pursuant to s.
77.54 (25), Stats., when those materials are purchased and stored for the purpose of subsequently transporting the same outside Wisconsin by the purchaser for use thereafter solely outside Wisconsin. This exemption does not apply to catalogs designed to be used by a seller's potential customers. See sub.
(5m) for information relating to an exemption for catalogs and the envelopes in which the catalogs are mailed.
Tax 11.19(4)(b)
(b) The exemption does not apply to printed advertising materials shipped to Wisconsin addresses, except for catalogs and the envelopes in which they are mailed, as provided in s.
77.54 (25m), Stats., parts stock order books, order forms, stocking and purchasing guides, stockholders' annual reports or proxy statements, display racks, 3-dimensional plastic items designed to be used by wholesalers and retailers, matchbooks, desk pads, golf balls, binders, and playing cards. It also does not apply to the following items if they are not designed to advertise or promote the sale of merchandise:
Tax 11.19(5)
(5)
Raw materials incorporated into printed materials. Pursuant to s.
77.54 (43), Stats., Wisconsin sales and use tax is not imposed on raw materials if both of the following conditions are met:
Tax 11.19(5)(a)
(a) The raw materials are processed, fabricated, or manufactured into, attached to, or incorporated into printed materials.
Tax 11.19(5)(b)
(b) The resulting printed materials will be transported and used solely outside Wisconsin.
Tax 11.19 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 11.19 Note
The paper purchased by Company A for the catalogs is not subject to Wisconsin use tax.
Tax 11.19 Note
2) Assume the same facts as 1) above, except that the company selling the paper is located in Wisconsin.
Tax 11.19 Note
The paper purchased by Company A for the catalogs is not subject to Wisconsin sales tax.
Tax 11.19(5m)(a)
(a) Section
77.54 (25m), Stats., provides an exemption from Wisconsin sales and use tax for the sales price from the sale of and the storage, use, or other consumption of catalogs, 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(5m)(b)
(b) “Catalog" is defined in s.
77.51 (1fr), Stats., to mean
a printed and bound, stitched, sewed, or stapled book containing a list and description of property or services for sale, regardless of whether a price is specified.
Tax 11.19(5s)(a)
(a) Section
77.54 (59), Stats., provides an exemption from Wisconsin sales and use tax for the sales price from the sales of and the storage, use, or other consumption of advertising and promotional direct mail.
Tax 11.19(5s)(b)
(b) “Advertising and promotional direct mail" is defined in s.
77.51 (1ag), Stats., to mean direct mail that has the primary purpose of attracting public attention to a product, person, business, or organization or to attempt to sell, popularize, or secure financial support for a product, person, business, or organization.
