77.54(20n)(a)(a) The sales price from the sale of and the storage, use, or other consumption of food and food ingredients, except candy, soft drinks, dietary supplements, and prepared food.
77.54(20n)(b)
(b) The sales price from the sale of and the storage, use, or other consumption of food and food ingredients, except soft drinks, sold by hospitals, sanatoriums, nursing homes, retirement homes, and community-based residential facilities, as defined in
s. 50.01 (1g), and any facility certified or licensed under
ch. 48, including prepared food that is sold to the elderly or handicapped by persons providing mobile meals on wheels. In this paragraph, "retirement home" means a nonprofit residential facility where 3 or more unrelated adults or their spouses have their principal residence and where support services, including meals from a common kitchen, are available to residents.
77.54(20n)(c)
(c) The sales price from the sale of and the storage, use, or other consumption of food and food ingredients, furnished in accordance with any contract or agreement or paid for to such institution through the use of an account of such institution, by a public or private institution of higher education to any of the following:
77.54(20n)(c)1.
1. An undergraduate student, a graduate student, or a student enrolled in a professional school if the student is enrolled for credit at the public or private institution of higher education and if the food and food ingredients are consumed by the student.
77.54(20r)
(20r) The sales price from the sales of and the storage, use, or other consumption of candy, soft drinks, dietary supplements, and prepared foods, and disposable products that are transferred with such items, furnished for no consideration by a restaurant to the restaurant's employee during the employee's work hours.
77.54(21)
(21) The sales price from the sales of and the storage, use or other consumption of caskets and burial vaults for human remains.
77.54(22b)
(22b) The sales price from the sale of and the storage, use, or other consumption of durable medical equipment that is for use in a person's home, mobility-enhancing equipment, and prosthetic devices, and accessories for such equipment or devices, if the equipment or devices are used for a human being.
77.54(23m)
(23m) The sales price from the sale of or the storage, use or other consumption of motion picture film or tape, and motion pictures or radio or television programs for listening, viewing, or broadcast, and advertising materials related thereto, sold to a motion picture theater or radio or television station.
77.54(25)
(25) The sales price from the sale of and the storage of 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 the state by the purchaser for use thereafter solely outside the state. This subsection does not apply to catalogs and the envelopes in which the catalogs are mailed.
77.54(25m)
(25m) 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.
77.54(26)
(26) The sales price from the sales of and the storage, use, or other consumption of tangible personal property and items and property under
s. 77.52 (1) (b) and
(c) which becomes a component part of an industrial waste treatment facility that is exempt under
s. 70.11 (21) or that would be exempt under
s. 70.11 (21) if the property were taxable under
ch. 70, or tangible personal property and items and property under
s. 77.52 (1) (b) and
(c) which becomes a component part of a waste treatment facility of this state or any agency thereof, or any political subdivision of the state or agency thereof as provided in
s. 40.02 (28). The exemption includes replacement parts therefor, and also applies to chemicals and supplies used or consumed in operating a waste treatment facility and to purchases of tangible personal property and items and property under
s. 77.52 (1) (b) and
(c) made by construction contractors who transfer such property to their customers in fulfillment of a real property construction activity. This exemption does not apply to tangible personal property and items and property under
s. 77.52 (1) (b) and
(c) installed in fulfillment of a written construction contract entered into, or a formal written bid made, prior to July 31, 1975.
77.54(26m)
(26m) The sales price from the sale of and the storage, use or other consumption of waste reduction or recycling machinery and equipment, including parts therefor, exclusively and directly used for waste reduction or recycling activities which reduce the amount of solid waste generated, reuse solid waste, recycle solid waste, compost solid waste or recover energy from solid waste. The exemption applies even though an economically useful end product results from the use of the machinery and equipment. For the purposes of this subsection, "solid waste" means garbage, refuse, sludge or other materials or articles, whether these materials or articles are discarded or purchased, including solid, semisolid, liquid or contained gaseous materials or articles resulting from industrial, commercial, mining or agricultural operations or from domestic use or from public service activities.
77.54(27)
(27) The sales price from the sale of semen used for artificial insemination of livestock.
77.54(28)
(28) The sales price from the sale of and the storage, use or other consumption to or by the ultimate consumer of supplies used to determine blood sugar level.
77.54(29)
(29) The sales price from the sales of and the storage, use or other consumption of equipment used in the production of maple syrup.
77.54(30)(a)1.
1. Coal, fuel oil, propane, steam, peat, fuel cubes produced from solid waste and wood used for fuel sold for residential use.
77.54(30)(a)2.
2. Electricity and natural gas sold during the months of November, December, January, February, March and April for residential use.
77.54(30)(a)3.
3. Electricity sold for use in farming, including but not limited to agriculture, dairy farming, floriculture, silviculture, and horticulture.
77.54(30)(a)4.
4. Any residue that is used as fuel in a business activity and that results from the harvesting of timber or the production of wood products, including slash, sawdust, shavings, edgings, slabs, leaves, wood chips, bark and wood pellets manufactured primarily from wood or primarily from wood residue.
77.54(30)(a)5.
5. Fuel sold for use in farming, including but not limited to agriculture, dairy farming, floriculture, silviculture, and horticulture.
77.54(30)(a)6.
6. Fuel and electricity consumed in manufacturing tangible personal property, or items or property under
s. 77.52 (1) (b) or
(c), in this state.
77.54(30)(a)7.
7. Fuel sold for use in motorboats that are regularly employed in carrying persons for hire for sport fishing in and upon the outlying waters, as defined in
s. 29.001 (63), and the rivers and tributaries specified in
s. 29.2285 (2) (a) 1. and
2., if the owner and all operators are licensed under
s. 29.514 to operate the boat for that purpose.
77.54(30)(b)
(b) For purposes of this subsection, electricity or natural gas is considered sold at the time of billing. If the billing is by mail, the time of billing is the day on which the billing is mailed.
77.54(30)(c)
(c) If fuel or electricity is sold partly for a use exempt under this subsection and partly for a use which is not exempt under this subsection, no tax shall be collected on that percentage of the sales price equal to the percentage of the fuel or electricity which is used for an exempt use, as specified in an exemption certificate provided by the purchaser to the seller.
77.54(30)(d)
(d) In this subsection "residential use" means use in a structure or portion of a structure which is a person's permanent residence, but does not include use in transient accommodations, as specified in
s. 77.52 (2) (a) 1., motor homes, travel trailers or other recreational vehicles.
77.54(30)(e)
(e) For purposes of this subsection, a seller of electricity or natural gas is not required to comply with the requirement of obtaining exemption certificates under
s. 77.52 (13) for sales of electricity or natural gas to accounts not covered by
par. (c) which are properly classified as residential or farms pursuant to schedules which are filed for rate tariff purposes with the public service commission under
s. 196.19 and which are in force at the time of the sales or are properly so classified for classification purposes as directed by the federal rural electrification administration. Nothing in this paragraph shall be construed to broaden the exemption specified in
par. (a).
77.54(30)(f)
(f) Sellers of coal, fuel oil, propane, steam, peat, fuel cubes produced from solid waste and wood used for fuel shall not be required to obtain an exemption certificate under
s. 77.52 (13) from a purchaser if all the fuel sold is for residential use and the seller maintains adequate records to identify which sales are exempt.
77.54(31)
(31) The sales price from the sale of and the storage, use or other consumption in this state, but not the lease or rental, of used mobile homes, as defined in
s. 101.91 (10), and used manufactured homes, as defined in
s. 101.91 (12).
77.54(32)
(32) The sales price from charges, including charges for a search, imposed by an authority, as defined in
s. 19.32 (1), for copies of a public record that a person may examine and use under
s. 16.61 (12) or for copies of a record under
s. 19.35 (1).
77.54(33)
(33) The sales price from sales of and the storage, use or other consumption of drugs used on farm livestock, not including workstock.
77.54(35)
(35) The sales price from the sales of tangible personal property, or items or property under
s. 77.52 (1) (b) or
(c), tickets, or admissions by any baseball team affiliated with the Wisconsin Department of American Legion baseball.
77.54(36)
(36) The sales price from the rental for a continuous period of one month or more of a mobile home, as defined in
s. 101.91 (10), or a manufactured home, as defined in
s. 101.91 (2), that is used as a residence. In this subsection, "one month" means a calendar month or 30 days, whichever is less, counting the first day of the rental and not counting the last day of the rental.
77.54(38)
(38) The sales price from the sale of and the storage, use or other consumption of snowmobile trail groomers and attachments for them that are purchased, stored, used or consumed by a snowmobile club that meets at least 3 times a year, that has at least 10 members, that promotes snowmobiling and that participates in the department of natural resources' snowmobile program under
s. 350.12 (4) (b).
77.54(39)
(39) The sales price from the sale of and the storage, use or other consumption of off-highway, heavy mechanical equipment such as feller bunchers, slashers, delimbers, chippers, hydraulic loaders, loaders, skidder-forwarders, skidders, timber wagons and tractors used exclusively and directly in the harvesting or processing of raw timber products in the field by a person in the logging business. In this subsection, "heavy mechanical equipment" does not include hand tools such as axes, chains, chain saws and wedges.
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(58)
(58) The sales price from the sale of and the storage, use, or other consumption of snowmaking and snow-grooming machines and equipment, including accessories, attachments, and parts for the machines and equipment and the fuel and electricity used to operate such machines and equipment, that are used exclusively and directly for snowmaking and snow grooming at ski hills, ski slopes, and ski trails.
77.54(59)
(59) The sales price from the sales of and the storage, use, or other consumption of advertising and promotional direct mail.
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;
2011 a. 7,
10,
32,
208,
260.
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).
