Wisconsin Sales and Use Tax Information

1 Important Change Outagamie County tax begins January 1, 2020. Wisconsin Sales and Use Tax Information Includes Information regarding . 5% state Sales and use tax county Sales and use tax baseball stadium Sales and use tax Publication 201 (1/19). TABLE OF CONTENTS. Page 1. INTRODUCTION .. 7. 2. DIFFERENCE BETWEEN Wisconsin Sales TAX AND USE TAX .. 7. A. Sales Tax .. 7. B. Use Tax .. 8. 3. OBTAINING A SELLER'S PERMIT .. 9. A. Who Must Obtain a Seller's Permit? .. 9. B. Disregarded Entities .. 9. C. Multi-Level Marketing Companies and Their Distributors .. 10. D. Caution: Buying a Business Successor's Liability .. 10. E. When Should You Apply For a Seller's Permit? .. 11. F. How Do You Apply for a Seller's Permit? .. 11. G. Security May Be Required .. 12. H. Issuance of the Seller's Permit .. 12. I. Notifying Department of Changes to Your Account .. 12. J. Your Seller's Permit Can Be Revoked .. 13. K. Temporary Events .. 14. L. Reporting Requirement for Operators of Swap Meets, Flea Markets, Craft Fairs, or Similar Events.

2 14. M. Registering Through the Streamlined Website .. 14. N. Registering as a Short-Term Lodging Marketplace .. 15. 4. REGISTERING FOR USE TAX ..15. A. Out-of-State Retailers (Remote Sellers) Use Tax Registration .. 15. B. Voluntary Registration .. 17. C. Consumer Use Tax Registration .. 17. D. Application .. 18. 5. BUSINESS TAX REGISTRATION ..18. A. Permits/Certificates Covered by BTR .. 18. B. Renewals .. 18. C. Expedited Fee .. 19. D. Faxing the Application .. 19. 6. COMPUTING THE AMOUNT OF Sales AND USE TAX ..19. A. Sales Tax Imposed on Total Sales .. 19. B. Use Tax Imposed on Purchase Price .. 20. C. Collecting Tax From Customers .. 21. D. Including Tax in the Price .. 22. E. Credit for Taxes Paid to Another State .. 22. F. Credit for Taxes Paid to a Tribe .. 22. G. Products Given Away for Free .. 23. H. Manufacturer's Coupons and Rebates, Retailer's Discounts, Gift Certificates and Product Vouchers, and Third- Party Discount Certificates and Product Vouchers.

3 23. 7. ACCOUNTING METHODS, WHEN A SALE OCCURS, AND WHERE A SALE TAKES PLACE ("SOURCING" RULES) .25. A. Accounting Methods .. 25. B. When a Sale Occurs .. 26. C. Where a Sale Takes Place - "General Sourcing Rules".. 26. D. Where a Sale Takes Place - Direct Mail .. 27. E. Where a Sale Takes Place - Retail Florists .. 29. 8. FILING RETURNS AND PAYING THE TAX ..30. A. How Often Must a Return Be Filed? .. 30. B. Electronic Filing and Payment Options Available For Sales and Use Tax Return Filing .. 30. C. Business at More Than One Location .. 31. D. Single-Owner Entity Disregarded as Separate Entity .. 31. E. Seasonal Retailers .. 32. F. Due Date for Filing .. 32. G. Obtaining an Extension of Time to File .. 33. Table of Contents (Continued). Page H. Payment of Tax .. 33. I. Retailer's 33. J. Correcting an Error Underpayments .. 34. K. Overpayments Filing Claims for Refund .. 34. L. Refund of Tax From Seller to 35. M. Failing to File or Pay or Filing Incorrect Returns Is Costly.

4 36. 9. RECORD KEEPING ..38. A. General Records to Keep .. 38. B. Records to Keep Exempt Sales , Exemption Certificates .. 39. 10. WHAT IS TAXABLE? ..41. A. Tangible Personal Property, Items, Property, and Goods (Taxable Products) .. 41. B. Services .. 42. C. Bundled Transactions .. 51. D. Property May Only Be Taxed Once .. 53. 11. WHAT IS EXEMPT?..54. A. General .. 54. B. Exemptions That Do Not Require Exemption Certificates .. 54. C. Exemptions That Require Exemption Certificates .. 62. D. Exempt Organizations .. 76. E. Disaster Relief Bankcards and Vouchers Issued by Exempt Organizations .. 78. F. Other 79. 12. CONTRACTORS ..83. A. How Contractors Are Taxed on Labor, Materials, and Supplies .. 83. B. Contractor's Tools and Equipment .. 83. C. Contractors Constructing Buildings for Governmental Units, Schools, Churches, Hospitals, or Other Exempt Institutions .. 84. D. Construction, Renovation, or Development of Professional Sports and Entertainment Home 84.

5 E. Construction and Development of Sports and Entertainment Arena Facilities .. 84. F. Construction and Development of an Electronics and Information Technology Manufacturing Zone .. 85. G. Lump Sum and Construction Contract Exemption .. 85. 13. LEASES, LICENSES, AND RENTALS ..86. A. Sales Price From Leases, Licenses, and 86. B. Purchases for Lease, License, or Rental .. 86. C. Equipment Provided With an Operator .. 87. D. Where a Lease, License, or Rental Takes Place .. 87. 14. MANUFACTURING AND BIOTECHNOLOGY ..88. A. Manufacturers .. 89. B. Nonmanufacturers .. 89. C. Exemption for Manufacturing Machines and Specific Processing 90. D. Exemption for Ingredients, Component Parts, and Consumable Items .. 90. E. Exemption for Property Used in Qualified Research .. 90. 15. SELLING A BUSINESS OR BUSINESS ASSETS ..92. 16. OCCASIONAL Sales ..92. A. Exempt Occasional Sales By Nonprofit 92. B. Sales by Auction .. 93. C. Sales Which Are Not Occasional Sales .

6 93. D. Occasional Sales of Motor Vehicles, Boats, Etc., Are Taxable .. 94. 17. DIRECT PAY ..94. A. Products That May Not Be Purchased Using a Direct Pay Permit .. 94. B. Who Is Eligible for Direct Pay? .. 95. C. How to Apply for a Direct Pay 95. D. Additional Information .. 95. Table of Contents (Continued). Page 18. COUNTY AND STADIUM Sales AND USE TAXES ..95. A. 96. B. What Types of Products and Services Are Taxable? .. 98. C. What Sales Are Subject to the County and Stadium Sales Tax? .. 99. D. When Do the County and Stadium Use Taxes Apply? .. 99. E. Transitional Provisions .. 101. F. Collecting County and Stadium Tax From Customers .. 101. G. Sales and Use Tax Return Requires County and Stadium Tax 102. H. Seller's Permits .. 102. I. Audits, Appeals, Collections, Etc.. 102. 19. YOU MAY BE 20. OTHER TAXES AND FEES TO BE AWARE OF ..102. A. Individual Income 102. B. Corporation Income or Franchise Tax .. 103. C. Withholding .. 103.

7 D. Estimated Tax for Individuals .. 103. E. Estimated Tax for 103. F. Unemployment and Worker's 103. G. Motor Vehicle Alternate Fuel Tax .. 103. H. Local Exposition Taxes .. 104. I. Dry Cleaner Fees .. 104. J. Police and Fire Protection Fees .. 104. K. Premier Resort Area Taxes .. 104. L. Rental Vehicle Fee .. 105. 21. KEEPING AWARE OF NEW Sales AND USE TAX DEVELOPMENTS ..105. A. Sales and Use Tax Report .. 105. B. Publications and Fact Sheets .. 105. C. Forms .. 107. D. Wisconsin Tax 107. E. Rules Wisconsin Administrative Code .. 107. F. Topical and Court Case Index .. 108. G. Electronic Mail Lists .. 108. 22. DO you have QUESTIONS OR NEED ASSISTANCE? ..108. 23. BUSINESS DEVELOPMENT ASSISTANCE Wisconsin ECONOMIC DEVELOPMENT CORPORATION ..108. APPENDIX A: Sales and Use Tax Forms ..109. APPENDIX B: Sales and Use Tax Rules ..111. APPENDIX C: Section Tax Records and Record Keeping ..113. APPENDIX D: Section Tax Exemption Certificates ..116.

8 APPENDIX E: Wisconsin Sales and Use Exemption Certificate ..122. APPENDIX F: Streamlined Sales and Use Tax Agreement Exemption Certificate ..124. APPENDIX G: Bracket System ..128. APPENDIX H: Bundled Transaction Flowchart ..131. APPENDIX I: County Chart ..133. Wisconsin Sales and Use Tax Information Publication 201. CHANGES SINCE LAST REVISION. Football Stadium Tax in Brown County Ended September 30, 2015. Pages 7, 99, 101, 103, and APPENDIX I. Notices to Disregarded Entities. Information was added pursuant to 2017 Wis. Act 58 that clarifies that a notice to the owner of a disregarded entity is a notice to both. Page 10. Lodging Marketplace Licenses. Information about who must register with the department for a Lodging Marketplace License, as well as the responsibilities of a marketplace, has been added. Page 15. Remote Sellers. New Information has been included to reflect the Supreme Court's decision in Wayfair. Page 15. Out-of-State Disaster Relief Workers.

9 Workers may be allowed an exemption from certain registration and reporting requirements, as well as use tax relief. Page 17. Sales Price and Purchase Price. The definitions of " Sales price" and "purchase price" were amended in the law to provide that the amount subject to tax does not include (a) certain taxes imposed on the seller that are passed on to its customer, and (b) the federal excise tax on heavy trucks and trailers. Pages 20 and 21. Discount Certificates. Information has been added to explain the tax treatment of manufacturer's coupons and rebates;. retailer's discounts; gift certificates and product vouchers; and third-party discount certificates and product vouchers. Page 23. Deduction on Current Return. A seller may take a deduction on a current return for certain taxes paid prior to receiving an exemption certificate from the buyer, effective July 2, 2013. Page 35. Overcollection of Tax After Notification By the Department.

10 Information was included for sellers who continues to collect tax erroneously on a product after receiving two or more written notices from the department, which first applies to department notices received on April 18, 2018. Page 36. Refund Setoffs. Clarification in the law relating to setoffs made against overpayments, first applies to taxable years beginning on January 1, 2016. Page 37. Rental of Multipurpose Facilities. The rental of multipurpose facilities may be taxable. Page 43. Self-Service Laundry Machines. Receipts from token and magnetic card operated laundry machines became exempt October 1, 2013. Page 44. Parking for Carriers of Property or Passengers. Charges for parking for motor vehicles and aircraft are taxable, even if the parking is for carriers of property or passengers. Pages 45 and 65. Services Resulting in Advertising and Promotional Direct Mail. Services that result in advertising and promotional direct mail are not taxable, effective July 1, 2013.