77.54(41)
(41) The sales price from the sale of building materials, supplies and equipment to; and the storage, use or other consumption of those kinds of property by; owners, contractors, subcontractors or builders if that property is acquired solely for or used solely in, the construction, renovation or development of property that would be exempt under
s. 70.11 (36).
77.54(42)
(42) The sales price from the sale of and the storage, use or other consumption of animal identification tags provided under
s. 93.06 (1h) and standard samples provided under
s. 93.06 (1s).
77.54(43)
(43) The sales price from the sale of and the storage, use or other consumption of raw materials used for the processing, fabricating or manufacturing of, or the attaching to or incorporating into, printed materials that are transported and used solely outside this state.
77.54(45)
(45) The sales price from the sale of and the use or other consumption of a onetime license or similar right to purchase admission to professional football games at a football stadium, as defined in
s. 229.821 (6), that is granted by a municipality; a local professional football stadium district; or a professional football team or related party, as defined in
s. 229.821 (12); if the person who buys the license or right is entitled, at the time the license or right is transferred to the person, to purchase admission to at least 3 professional football games in this state during one football season.
77.54(46)
(46) The sales price from the sale of and the storage, use, or other consumption of the U.S. flag or the state flag. This subsection does not apply to a representation of the U.S. flag or the state flag.
77.54(46m)
(46m) The sales price from the sale of and the storage, use, or other consumption of telecommunications services, if the telecommunications services are obtained by using the rights to purchase telecommunications services, including purchasing reauthorization numbers, by paying in advance and by using an access number and authorization code; and if the tax imposed under
s. 77.52 or
77.53 was previously paid on the sale or purchase of such rights.
77.54(47)
(47) The sales price from the sale of and the storage, use, or other consumption of all of the following:
77.54(47)(a)
(a) Live game birds and clay pigeons that are sold to bird hunting preserves licensed under
s. 169.19.
77.54(47)(b)
(b) Clay pigeons that are sold to a shooting facility, if any of the following applies:
77.54(47)(b)1.
1. The shooting facility is required to pay the tax imposed under
s. 77.52 on the sales price from charges for shooting at the facility.
77.54(47)(b)2.
2. The shooting facility is a nonprofit organization that charges for shooting at the facility, but is not required to pay the tax imposed under
s. 77.52 on its sales price from such charges because the charges are for occasional sales, as provided under
sub. (7m), or because the charges satisfy the exemption under
s. 77.52 (2) (a) 2. b.
77.54(49)
(49) The sales price from the sale of and the storage, use, or other consumption of taxable services and tangible personal property or items or property under
s. 77.52 (1) (b) or
(c), that are physically transferred to the purchaser as a necessary part of services that are subject to the taxes imposed under
s. 77.52 (2) (a) 7.,
10.,
11., and
20., if the seller and the purchaser of such services and property or item are members of the same affiliated group under section
1504 of the Internal Revenue Code and are eligible to file a single consolidated return for federal income tax purposes. For purposes of this subsection, if a seller purchases a taxable service, or item or property under
s. 77.52 (1) (b) or
(c), or tangible personal property, as described in this subsection, that is subsequently sold to a member of the seller's affiliated group and the sale is exempt under this subsection from the taxes imposed under this subchapter, the original purchase of the taxable service, or item or property under
s. 77.52 (1) (b) or
(c), or tangible personal property by the seller is not considered a sale for resale or exempt under this subsection.
77.54(50)
(50) The sales price from the sale of and the storage, use, or other consumption of specified digital goods or additional digital goods, if the sale of and the storage, use, or other consumption of such goods sold in a tangible form is exempt from, or not subject to, taxation under this subchapter.
77.54(51)
(51) The sales price from the sales of and the storage, use, or other consumption of products sold in a transaction that would be a bundled transaction, except that it contains taxable and nontaxable products as described in
s. 77.51 (1f) (d), and except that the first person combining the products shall pay the tax imposed under this subchapter on the person's purchase price of the taxable items.
77.54(52)
(52) The sales price from the sales of and the storage, use, or other consumption of products sold in a transaction that would be a bundled transaction, except that the transaction meets the conditions described in
s. 77.51 (1f) (e).
77.54(54)
(54) The sales price from the sale of and the storage, use, or other consumption of tangible personal property, and items and property under
s. 77.52 (1) (b) and
(c), and taxable services that are sold by a home exchange service that receives moneys from the appropriation account under
s. 20.485 (1) (g) and is operated by the department of veterans affairs.
77.54(55)
(55) The sales price from the police and fire protection fee imposed under
s. 196.025 (6).
77.54(56)(a)(a) Beginning July 1, 2011, the sales price from the sale of and the storage, use, or other consumption of a product whose power source is wind energy, direct radiant energy received from the sun, or gas generated from anaerobic digestion of animal manure and other agricultural waste, if the product produces at least 200 watts of alternating current or 600 British thermal units per day, except that the exemption under this subsection does not apply to an uninterruptible power source that is designed primarily for computers.
77.54(56)(b)
(b) Except for the sale of electricity or energy that is exempt from taxation under
sub. (30), beginning on July 1, 2011, the sales price from the sale of and the storage, use, or other consumption of electricity or energy produced by a product described under
par. (a).
77.54(57)(a)1d.
1d. "Animals" include bacteria, viruses, and other microorganisms.
77.54(57)(a)1f.
1f. "Biotechnology" means the application of biotechnologies, including recombinant deoxyribonucleic acid techniques, biochemistry, molecular and cellular biology, genetics, genetic engineering, biological cell fusion, and other bioprocesses, that use living organisms or parts of an organism to produce or modify products to improve plants or animals or improve animal health, develop microorganisms for specific uses, identify targets for small molecule pharmaceutical development, or transform biological systems into useful processes and products.
77.54(57)(a)1m.
1m. "Biotechnology business" means a business, as certified by the department in the manner prescribed by the department, that is primarily engaged in the application of biotechnologies that use a living organism or parts of an organism to produce or modify products to improve plants or animals, develop microorganisms for specific uses, identify targets for small molecule pharmaceutical development, or transform biological systems into useful processes and products.
77.54(57)(a)5.
5. "Qualified research" means qualified research as defined under section
41 (d) (1) of the Internal Revenue Code.
77.54(57)(b)
(b) The sales price from the sale of and the storage, use, or other consumption of all of the following:
77.54(57)(b)1.
1. Machinery and equipment, including attachments, parts, and accessories, that are sold to persons who are engaged primarily in manufacturing or biotechnology in this state and are used exclusively and directly in qualified research.
77.54(57)(b)2.
2. Tangible personal property or item or property under
s. 77.52 (1) (b) or
(c) that is sold to persons who are engaged primarily in manufacturing or biotechnology in this state, if the tangible personal property or item or property under
s. 77.52 (1) (b) or
(c) is consumed or destroyed or loses its identity while being used exclusively and directly in qualified research.
77.54(57)(b)3.
3. Machines and specific processing equipment, including accessories, attachments, and parts for the machines or equipment, that are used exclusively and directly in raising animals that are sold primarily to a biotechnology business, a public or private institution of higher education, or a governmental unit for exclusive and direct use by any such entity in qualified research or manufacturing.
77.54(57)(b)4.
4. The items listed in
sub. (3m) (a) to
(m), medicines, semen for artificial insemination, fuel, and electricity that are used exclusively and directly in raising animals that are sold primarily to a biotechnology business, a public or private institution of higher education, or a governmental unit for exclusive and direct use by any such entity in qualified research or manufacturing.
77.54 History
History: 1971 c. 64,
154,
215,
311;
1973 c. 90,
156,
240;
1975 c. 39,
96,
102,
146,
200;
1977 c. 29;
1977 c. 83 ss.
13,
26;
1977 c. 250,
368,
418;
1979 c. 1,
34,
87,
174;
1981 c. 20;
1981 c. 79 s.
18;
1981 c. 96 s.
67;
1981 c. 264;
1981 c. 282 s.
47;
1981 c. 317;
1983 a. 27 ss.
1284d to
1284np,
2202 (38);
1983 a. 189 ss.
101,
106,
329 (5), (12), (13);
1983 a. 192,
287,
405,
426,
498,
510,
538,
544;
1985 a. 29,
149,
332;
1987 a. 27;
1987 a. 312 s.
17;
1987 a. 399;
1989 a. 31,
238,
270,
335,
359;
1991 a. 37,
39,
269,
316;
1993 a. 16,
263,
332;
1995 a. 27,
125,
225,
227;
1997 a. 27,
35,
41,
184,
237,
291;
1999 a. 9,
65,
83;
1999 a. 150 s.
672;
1999 a. 167;
2001 a. 16,
103,
109;
2003 a. 99,
128;
2005 a. 25,
74,
141,
149,
335,
366,
479;
2007 a. 11,
19,
20,
97,
130;
2009 a. 2,
28,
185,
204,
330; s. 13.92 (2) (i).
77.54 Annotation
A taxpayer in the business of processing scrap metal is engaged in manufacturing under s. 77.51 (27) [now s. 77.54 (6m)]. H. Samuels Co. v. DOR,
70 Wis. 2d 1076,
236 N.W.2d 250 (1975).
77.54 Annotation
A carrier's contract status is established under the "primary business test" if the carrier's primary occupation is the supplying of transportation for compensation, even though the operator owns the goods at the time of transport and carries them for the purpose of sale. If, however, the operator's primary business is manufacturing or another noncarrier commercial enterprise, a determination must be made as to whether the motor operations are in furtherance of the primary business or are conducted as a related enterprise with the purpose of profiting from the transportation. Gensler v. DOR,
70 Wis. 2d 1108,
236 N.W.2d 648 (1975).
77.54 Annotation
The sale of a supper club's furnishings and equipment was an "occasional sale" under s. 77.54 (7). Three Lions Supper Club v. DOR,
72 Wis. 2d 546,
241 N.W.2d 190 (1976).
77.54 Annotation
Consumption of gas at interstate pipeline compressor stations in Wisconsin is protected from state use tax by the commerce clause. Midwestern Gas Transmission Co. v. DOR,
84 Wis. 2d 261,
267 N.W.2d 253 (1978).
77.54 Annotation
To satisfy s. 77.51 (27) [now s. 77.54 (7h)], a change in name must be attributable to a change in the nature, purpose, and function of the article. DOR v. Bailey-Bohrman Steel Corp.
93 Wis. 2d 602,
287 N.W.2d 715 (1980).
77.54 Annotation
A vending machine company, which placed machines in schools and hospitals, was the "seller" of the products dispensed by its machines. Servomation Corp. v. DOR,
106 Wis. 2d 616,
317 N.W.2d 464 (1982).
77.54 Annotation
Under the "use or function" test, a greenhouse was a "machine" used in floriculture under sub. (3). DOR v. Greiling,
112 Wis. 2d 602,
334 N.W.2d 118 (1983).
77.54 Annotation
The exemption under sub. (9a) (f) is limited to services used by tax-exempt organizations and does not extend to services by those foundations. DOR v. EAA Aviation Foundation,
143 Wis. 2d 681,
422 N.W.2d 458 (Ct. App. 1988).
77.54 Annotation
Calf hutches are not "machines" exempt from sales tax under sub. (3). L.T. Hampel Corp. v. DOR,
157 Wis. 2d 422,
459 N.W.2d 598 (Ct. App. 1990).
77.54 Annotation
Motor vehicles and machinery used with motor vehicles are not used "directly" in recycling activities and are not exempt under sub. (26m). DOR v. Parks-Pioneer,
170 Wis. 2d 44,
487 N.W.2d 63 (Ct. App. 1992).
77.54 Annotation
The exemption for occasional sales under sub. (7) cannot apply to a seller who continues to make sales in a business after the business was sold and surrender of the sales tax permit was attempted. Carrion Corp. v. DOR,
179 Wis. 2d 254,
507 N.W.2d 356 (Ct. App. 1993).
77.54 Annotation
"Merchandise" as used in sub. (6) (b) denotes commodities that are bought and sold. Luetzow Industries v. DOR,
197 Wis. 2d 917,
541 N.W.2d 810 (Ct. App. 1995).
77.54 Annotation
A Mississippi River excursion boat that embarked from a Wisconsin port, crossed into out-of-state water without landing in that state, then disembarked in Wisconsin was not engaged in "interstate commerce" under sub. (13). LaCrosse Queen, Inc. v. DOR,
208 Wis. 2d 439,
561 N.W.2d 686 (1997),
95-2754.
77.54 Annotation
Newspaper carriers were found not to be customers of a publisher. The sub. (6) (b) exemption for packing material was not applicable to materials used to package newspapers for delivery to the carriers. Madison Newspapers, Inc. v. DOR,
228 Wis. 2d 745,
599 N.W.2d 51 (Ct. App. 1999),
98-2980.
77.54 Annotation
A corporation is a "resident of this state" under sub. (5) (a) if it is domiciled in Wisconsin and incorporated under the laws of this state. DOR v. Johnson Welding & Manufacturing Co., Inc. 2000 WI App 179,
238 Wis. 2d 243,
617 N.W.2d 193,
99-2429.
77.55
77.55
Exemptions from sales tax. 77.55(1)
(1) There is exempted from the computation of the amount of the sales tax the sales price from the sale of any tangible personal property, or items or property under
s. 77.52 (1) (b) or
(c), or services to:
77.55(1)(a)
(a) The United States, its unincorporated agencies and instrumentalities.
77.55(1)(b)
(b) 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.
77.55(2)
(2) There is exempted from the computation of the amount of the sales tax the sales price from sales of tangible personal property, and items and property under
s. 77.52 (1) (b) and
(c), to a common or contract carrier, shipped by the seller via 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 this state and the property or item is actually transported to the out-of-state destination for use by the carrier in the conduct of its business as a carrier.
77.55(2m)
(2m) There is exempted from the computation of the amount of sales tax the sales price from sales of railroad crossties to a common or contract carrier, 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 this state if the property is transported to the out-of-state destination for use by the carrier in the conduct of its business as a carrier. Interruption of the shipment for storage, drying, processing or creosoting of the railroad crossties in this state does not invalidate the exemption under this subsection.
77.55(3)
(3) There is exempted from the computation of the amount of the sales tax the sales price from sales of tangible personal property, and items and property under
s. 77.52 (1) (b) and
(c), purchased for use solely outside this state and delivered to a forwarding agent, export packer, or other person engaged in the business of preparing goods for export or arranging for their exportation, and actually delivered to a port outside the continental limits of the United States prior to making any use thereof.
77.56
77.56
Exemptions from use tax. 77.56(1)
(1) The storage, use or other consumption in this state of tangible personal property, and items, property, and goods under
s. 77.52 (1) (b),
(c), and
(d), the sales price from the sale of which is reported to the department in the measure of the sales tax, is exempted from the use tax.
77.56(2)
(2) The loan by an automobile dealer of a motor vehicle to any school or school district for a driver training educational program conducted by the school or school district is exempt from the use tax.
77.56(3)
(3) The donation to an entity specified under
s. 77.54 (9a) of property that has been purchased tax-free for resale or upon the presentation of a valid exemption certificate is exempt from the use tax.
77.57
77.57
Liability of purchaser. If a purchaser certifies in writing to a seller that the tangible personal property or items, property, or goods under
s. 77.52 (1) (b),
(c), or
(d) purchased will be used in a manner or for a purpose entitling the seller to regard the sales price from the sale as exempted by this subchapter from the computation of the amount of the sales tax and uses the property or items, property, or goods under
s. 77.52 (1) (b),
(c), or
(d) in some other manner or for some other purpose, the purchaser is liable for payment of the sales tax. The tax shall be measured by the sales price of the property or items, property, or goods under
s. 77.52 (1) (b),
(c), or
(d) to the purchaser.
77.57 History
History: 1983 a. 405;
2009 a. 2.
77.57 Annotation
A seller is not relieved of liability if the purchaser's certificate on its face fails to state a legal basis for exempting the sale. DOR v. Moebius Printing Co.
89 Wis. 2d 610,
279 N.W.2d 213 (1979).
77.58
77.58
Returns and payments. 77.58(1)
(1) The taxes imposed by this subchapter for each calendar quarter are due and payable on the last day of the month next succeeding the calendar quarter for which imposed except that:
77.58(1)(a)
(a) If the amount of tax for any calendar quarter exceeds $600, the department may require by written notice to the taxpayer that the taxes imposed on and after the date specified in the notice are due and payable on the last day of the month next succeeding the calendar month for which imposed.
77.58(1)(b)
(b) If the amount of tax for any calendar quarter exceeds $3,600, the department may require by written notice to the taxpayer that the taxes imposed on and after the date specified in the notice are due and payable on the 20th day of the month next succeeding the calendar month for which imposed. The payment is timely if it fulfills the requirements under
s. 77.61 (14).
77.58(1m)
(1m) Persons who owe amounts under this subchapter shall pay them by mailing or delivering them to the department or, if the department prescribes another method of submitting or another destination, those persons shall pay those amounts in that other method or to that other destination.
77.58(2)
(2) A return shall be filed by the last day of the month next succeeding each calendar quarter for taxes imposed for the preceding calendar quarter except that:
77.58(2)(a)
(a) If payments are required to be made monthly and are due and payable on the last day of the month next succeeding the calendar month for which imposed under
sub. (1) (a), a return shall be filed by the last day of the month next succeeding each calendar month for taxes imposed for the preceding calendar month.
77.58(2)(b)
(b) If payments are required to be made monthly and are due and payable on the 20th day of the month next succeeding the calendar month for which imposed under
sub. (1) (b), a return shall be filed by the 20th day of the month next succeeding each calendar month for taxes imposed for the preceding calendar month.
77.58(2)(c)
(c) Returns and payments under this section are timely if they meet the requirements under
s. 77.61 (14).
77.58(2)(d)
(d) Except for a seller who uses a certified service provider, a seller who registers through the streamlined sales tax governing board's central registration system and indicates at the time of registration that it anticipates making no sales into this state is not required to file a return in this state until such time as it makes a taxable sale that is sourced to this state under
s. 77.522. Once a seller to which this provision applies makes a taxable sale that is sourced to this state under
s. 77.522, that seller is required to file a return that is due by the last day of the month following the last day of the calendar quarter in which the sale occurred and shall continue to file returns by the last day of the month following the last day of each calendar quarter thereafter, unless the seller is notified in writing by the department of a different filing frequency.
77.58(3)(a)(a) Except as provided in
sub. (2) (d), for purposes of the sales tax a return shall be filed by every seller. Except as provided in
sub. (2) (d), for purposes of the use tax a return shall be filed by every retailer engaged in business in this state and by every person purchasing tangible personal property, or items, property, or goods under
s. 77.52 (1) (b),
(c), or
(d), or services, the storage, use or other consumption of which is subject to the use tax, who has not paid the use tax due to a retailer required to collect the tax. If a qualified subchapter S subsidiary is not regarded as a separate entity under
ch. 71, the owner of that subsidiary shall elect to either include the information for that subsidiary on the owner's return or file a separate electronic return for that entity. If a single-owner entity is disregarded as a separate entity under
ch. 71, the owner shall elect to either include the information from the entity on the owner's return or file a separate electronic return for that entity. If an owner that owns more than one entity that is disregarded as a separate entity under
ch. 71 elects to file a separate return for one of its disregarded entities, the owner shall file separate returns for all of its disregarded entities. Returns filed under this paragraph shall be signed by the person required to file the return or by a duly authorized agent but need not be verified by oath.
77.58(3)(b)
(b) The return shall show the amount of the taxes for the period covered by the return and such other information as the department deems necessary for the proper administration of this subchapter.
77.58(4)
(4) The person required to file the return shall deliver the return together with a remittance of the amount of the tax due to the office of the department or such other place as the department designates in the manner and form prescribed by the department.
77.58(5)
(5) The department, if it deems it necessary to ensure payment to or facilitate the collection by the state of the amount of taxes, may require returns and payments of the amount of taxes for other than quarterly periods. The department may, if satisfied that the revenues will be adequately safeguarded, permit returns and payments of the amount of taxes for other than quarterly periods. Such returns or payments shall be due or payable by the last day of the month next succeeding the end of the reporting or paying period, except that the department may require by written notice to the taxpayer that the returns or payments shall be due or payable by the 20th day of the month next succeeding the end of the reporting or paying period. Any person who discontinues business or who does not hold a valid permit under
s. 77.52 (9) prior to the end of a reporting period shall, within 30 days after such discontinuance or after the date on which the person ceases to hold a valid permit, file a return and pay the taxes due from the beginning of such reporting period. If a business is discontinued and a final report thereon has been made covering all payments due or refunds claimed as provided in this section, the account shall be closed, the seller's permit terminated and, notwithstanding any other provisions of this section, no further reports may be required.
77.58(6)
(6) For the purposes of the sales tax, the sales price from rentals, licenses, or leases of tangible personal property or items, property, or goods under
s. 77.52 (1) (b),
(c), or
(d) shall be reported and the tax paid in accordance with such rules as the department prescribes.
77.58(6m)(a)(a) The department may, in cases where it is satisfied that an undue hardship would otherwise result, permit the reporting of a sales price or purchase price on some basis other than the accrual basis.
77.58(6m)(b)
(b) The entire sales price of credit transactions shall be reported in the period in which the sale is made without reduction in the amount of tax payable by the retailer by reason of the retailer's transfer at a discount of any open account, note, conditional sales contract, lease contract, or other evidence of indebtedness.
77.58(7)
(7) The department for good cause may extend for not to exceed one month the time for making any return or paying any amount required to be paid by this subchapter. The extension may be granted at any time provided a request therefor is filed with the department within or prior to the period for which the extension is requested.
