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)(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)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), drugs, 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(57d)(a)4.
4. "Qualified research" means qualified research as defined under section
41 (d) (1) of the Internal Revenue Code, except that it includes qualified research that is funded by a member of a combined group for another member of a combined group.
77.54(57d)(b)
(b) The sales price from the sale of and the storage, use, or other consumption of machinery and equipment, including attachments, parts, and accessories, and other tangible personal property or items or property under
s. 77.52 (1) (b) or
(c) that are sold to any of the following and that are consumed or destroyed or lose their identities while being used exclusively and directly in qualified research:
77.54(57d)(b)1.
1. A person engaged in manufacturing in this state at a building assessed under
s. 70.995.
77.54(57d)(b)2.
2. A person engaged primarily in biotechnology in this state.
77.54(57d)(b)3.
3. A combined group member who is conducting qualified research for another combined group member and that other combined group member is a person described under
subd. 1. or
2.
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(60)(a)(a) In this subsection, "lump sum contract" means a contract to perform real property construction activities and to provide tangible personal property, items or property under
s. 77.52 (1) (b) or
(c), or taxable services and for which the contractor quotes the charge for labor, services of subcontractors, tangible personal property, items and property under
s. 77.52 (1) (b) and
(c), and taxable services as one price, including a contract for which the contractor itemizes the charges for labor, services of subcontractors, tangible personal property, items and property under
s. 77.52 (1) (b) and
(c), and taxable services as part of a schedule of values or similar document.
77.54(60)(b)
(b) The sales price from the sale of and the storage, use, or other consumption of tangible personal property, items and property under
s. 77.52 (1) (b) and
(c), and taxable services that are sold by a contractor as part of a lump sum contract, if the total sales price of all such taxable products is less than 10 percent of the total amount of the lump sum contract. Except as provided in
par. (c), the contractor is the consumer of such taxable products and shall pay the tax imposed under this subchapter on the taxable products.
77.54(60)(c)
(c) If the lump sum contract is entered into with an entity that is exempt from taxation under
sub. (9a), the contractor is the consumer of all taxable products used by the contractor in real property construction activities, but the contractor may purchase without tax, for resale, tangible personal property, items and property under
s. 77.52 (1) (b) and
(c), and taxable services that are sold by the contractor as part of the lump sum contract with the entity and that are not consumed by the contractor in real property construction activities.
77.54(61)
(61) The sales price from the sale of and the storage, use, or other consumption of the following by a person primarily engaged, as determined by the department, in commercial printing, book printing, or support activities for printing described under 323111, 323117, and 323120 of the North American Industry Classification System:
77.54(61)(a)
(a) Computers and servers used primarily to store copies of the product that are sent to a digital printer, a platemaking machine, or a printing press or used primarily in prepress or postpress activities.
77.54(61)(b)
(b) Tangible personal property purchased from out-of-state sellers that are temporarily stored, remain idle, and not used in this state and that are then delivered and used solely outside of this state.
77.54(61)(c)1.
1. "Postpress activities" include paper bronzing, die-cutting, edging, embossing, folding, gilding, gluing, and indexing.
77.54(61)(c)2.
2. "Prepress activities" include making print-ready plates, typesetting, trade binding, and sample mounting.
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;
2013 a. 20,
145,
185,
324,
346.
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 $1,200, 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.
