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Tax 11.39(3)(b) (b) Bakeries.
Tax 11.39(3)(c) (c) Battery makers.
Tax 11.39(3)(d) (d) Breweries and soda water bottling plants.
Tax 11.39(3)(e) (e) Candy factories.
Tax 11.39(3)(f) (f) Cement and concrete plants.
Tax 11.39(3)(fr) (fr) Cheese cutting and repackaging plants.
Tax 11.39(3)(g) (g) Chemical processing plants.
Tax 11.39(3)(h) (h) Concrete block and tile producers.
Tax 11.39(3)(i) (i) Creameries and instant milk producers.
Tax 11.39(3)(j) (j) Dairies and cheese plants.
Tax 11.39(3)(jd) (jd) Dental labs.
Tax 11.39(3)(jr) (jr) Ductwork fabricators.
Tax 11.39(3)(k) (k) Electric generating companies.
Tax 11.39(3)(L) (L) Flour and feed mills, including mobile units.
Tax 11.39(3)(m) (m) Food processing plants, canning and freezing.
Tax 11.39(3)(n) (n) Foundries.
Tax 11.39(3)(o) (o) Glass making plants.
Tax 11.39(3)(oc) (oc) Grain dryers.
Tax 11.39(3)(om) (om) Heat treaters and metal platers performing these services on semi-finished products furnished by manufacturers.
Tax 11.39(3)(os) (os) Hide curers.
Tax 11.39(3)(p) (p) Limestone calcination plants.
Tax 11.39(3)(q) (q) Machine and equipment producers.
Tax 11.39(3)(r) (r) Malting plants.
Tax 11.39(3)(s) (s) Meat packing and processing plants.
Tax 11.39(3)(t) (t) Motor vehicle and aircraft factories.
Tax 11.39(3)(u) (u) Oil refineries.
Tax 11.39(3)(v) (v) Paint factories.
Tax 11.39(3)(w) (w) Paper making plants.
Tax 11.39(3)(wd) (wd) Persons engaged in snowmaking for a ski hill.
Tax 11.39(3)(wr) (wr) Photofinishers.
Tax 11.39(3)(x) (x) Printers.
Tax 11.39(3)(y) (y) Sawmills.
Tax 11.39(3)(z) (z) Scrap processors.
Tax 11.39(3)(za) (za) Shoe and clothing factories.
Tax 11.39(3)(zb) (zb) Smelting and steel mills.
Tax 11.39(3)(zc) (zc) Tanneries.
Tax 11.39(3)(zd) (zd) Tool and die making plants.
Tax 11.39(3)(ze) (ze) Persons engaged in crushing, washing, grading and blending sand, rock, gravel and other minerals.
Tax 11.39(3)(zf) (zf) Persons engaged in ore dressing, including the mechanical preparation, by crushing and other processes, and the concentration, by flotation and other processes, of ore, and beneficiation, including but not limited to the preparation of ore for smelting.
Tax 11.39(3)(zg) (zg) Tire retreaders.
Tax 11.39(4) (4) Nonmanufacturers. Nonmanufacturers ordinarily include the following:
Tax 11.39(4)(a) (a) Contractors, when engaged in real property construction activities and installing or repairing tangible personal property or items or property under s. 77.52 (1) (b) or (c), Stats.
Tax 11.39(4)(c) (c) Farmers.
Tax 11.39(4)(d) (d) Fish hatcheries.
Tax 11.39(4)(e) (e) Freezer and locker plants.
Tax 11.39(4)(f) (f) Highway truckers.
Tax 11.39(4)(g) (g) Hotels.
Tax 11.39(4)(h) (h) Laundries and dry cleaners.
Tax 11.39(4)(i) (i) Repairpersons.
Tax 11.39(4)(j) (j) Restaurants.
Tax 11.39(4)(k) (k) Television and radio stations.
Tax 11.39(4)(L) (L) Persons engaged in:
Tax 11.39(4)(L)1. 1. Corn shelling.
Tax 11.39(4)(L)2. 2. Experimental and development activities.
Tax 11.39(4)(L)3. 3. Logging and forestry operations.
Tax 11.39(4)(L)4. 4. Mining.
Tax 11.39(4)(L)5. 5. Paper recycling.
Tax 11.39(4)(L)6. 6. Photography.
Tax 11.39(4)(L)7. 7. Popping corn.
Tax 11.39(4)(L)8. 8. The business of raising and breeding animals.
Tax 11.39(4)(L)9. 9. Real property construction activities.
Tax 11.39(4)(L)10. 10. Custom slaughtering of animals.
Tax 11.39(4)(L)11. 11. Vending machine operations.
Tax 11.39 Note Note: Section Tax 11.39 interprets ss. 77.51 (7h), (10b), and (10c) and 77.54 (2) and (6) (am) 1., Stats.
Tax 11.39 Note Note: The interpretations in s. Tax 11.39 are effective under the general sales and use tax law on and after September 1, 1969 except that (a) 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., and certain leased property affixed to real property under s. 77.52 (1) (c), Stats., became effective October 1, 2009, pursuant to 2009 Wis. Act 2.
Tax 11.39 History History: Cr. Register, November, 1977, No. 263, eff. 12-1-77; am. (3) (j), (4) (c) and (r) 13., cr. (3) (om), Register, June, 1983, No. 330, eff. 7-1-83; am. (1), (3) (f), cr. (3) (ze), (zf) and (zg), r. (4) (p), (q) and (r) 10., Register, September, 1984, No. 345, eff. 10-1-84; am. (3) (f), Register, July, 1987, No. 379, eff. 8-1-87; correction in (4) (m) made under s. 13.93 (2m) (b) 5., Register, April, 1994, No. 460; correction in (2) (a) made under s. 13.93 (2m) (b) 5., Stats., Register, October, 1995, No. 478; am. (2) (a), (3) (m), (ze), (zf), (4) (intro.), cr. (3) (fr), (jd), (jr), (oc), (os), (wd), (wr), r. (4) (a), (d), (r), 2. and 4., renum. (4) (b), (c), (e), (f), (g), (h), (i), (j), (k), (L), (m), (n), (o) and (r) to be (4) (a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (L), (m) and (n) and am. (4) (a) and (k), Register, October, 1997, No. 502, eff. 11-1-97; EmR0924: emerg. r. and recr. (1) and (2), am. (4) (intro.) and (a), r. (4) (h) and (i), renum. (4) (j) to (n) to be (4) (h) to (L), eff. 10-1-09; CR 09-090: r. and recr. (1) and (2), am. (4) (intro.) and (a), r. (4) (h) and (i), renum. (4) (j) to (n) to be (4) (h) to (L) Register May 2010 No. 653, eff. 6-1-10; CR 14-006: am. (1) (b) Register August 2014 No. 704, eff. 9-1-14.; CR 20-018: r. (4) (b) Register July 2021 No. 787, eff. 8-1-21.
Tax 11.40 Tax 11.40 Exemption of machines and processing equipment.
Tax 11.40(1)(1)General.
Tax 11.40(1)(a)(a) Section 77.54 (6) (am) 1., Stats., exempts the sales price from the sale of and the storage, use or other consumption of machines and specific processing equipment and repair parts or replacements thereof, exclusively and directly used by a manufacturer in manufacturing tangible personal property or items or property under s. 77.52 (1) (b) or (c), Stats., and safety attachments for those machines and equipment. “Exclusively," as used in s. 77.54 (6) (am) 1., Stats., and in this section, means that the machines and specific processing equipment and repair parts or replacements thereof are used solely by a manufacturer in manufacturing tangible personal property or items or property under s. 77.52 (1) (b) or (c), Stats., to the exclusion of all other uses, except that the sales and use tax exemption will not be invalidated by an infrequent and sporadic use other than in manufacturing tangible personal property or items or property under s. 77.52 (1) (b) or (c), Stats. This exemption is to be strictly construed.
Tax 11.40(1)(b) (b) Section 77.51 (7h) (a), Stats., provides that manufacturing means the production by machinery of a new article of tangible personal property or item or property under s. 77.52 (1) (b) or (c), Stats., with a different form, use, and name from existing materials by a process popularly regarded as manufacturing, and that begins with conveying raw materials and supplies from plant inventory to the place where work is performed in the same plant and ends with conveying finished units of tangible personal property or item or property under s. 77.52 (1) (b) or (c), Stats., to the point of first storage in the same plant.
Tax 11.40(1)(c) (c) In determining whether a particular machine or piece of processing equipment is included in the exemption under s. 77.54 (6) (am) 1., Stats., ss. 77.51 (7h) and 77.54 (6) (am) 1., Stats., must be considered together.
Tax 11.40(1)(d) (d) Section 77.54 (5) (d), Stats., provides an exemption for mobile mixing and processing units and the motor vehicle or trailer on which they are mounted, including accessories, attachments, parts, supplies and materials for those vehicles, trailers and units.
Tax 11.40(1)(e) (e) Section 77.54 (5) (c) and (26m), Stats., provide exemptions for certain motor vehicles, machinery and equipment used in waste reduction and recycling processes.
Tax 11.40 Note Note: See s. Tax 11.11 for more information on waste reduction and recycling exemptions.
Tax 11.40(2) (2) Conditions for exemption and examples. The exemption under sub. (1) (a) shall apply if all the following conditions are met:
Tax 11.40(2)(a) (a) Machines and processing equipment shall be used by a manufacturer in manufacturing tangible personal property or items or property under s. 77.52 (1) (b) or (c), Stats. The exemption shall not apply to machines and processing equipment used in providing services or in other nonmanufacturing activities.
Tax 11.40 Note Example: Machines and equipment of a dry cleaner are not used by a manufacturer in manufacturing, because a dry cleaner provides a service and is neither a manufacturer nor producer of tangible personal property or items or property under s. 77.52 (1) (b) or (c), Stats.
Tax 11.40(2)(b) (b) Machines and processing equipment shall be used exclusively in manufacturing.
Tax 11.40 Note Example: A forklift truck used on a production line to move products from machine to machine and used regularly or frequently in a warehouse to move and stock finished products is not used exclusively in manufacturing.
Tax 11.40(2)(c) (c) Machines and processing equipment shall be used directly in manufacturing. The exemption shall not apply if machines and processing equipment are not used directly in the step-by-step processes by which an end product results, even though the machine and equipment are indirectly related to the step-by-step processes. Machine foundations are real property improvements rather than personal property and do not qualify for exemption.
Tax 11.40 Note Example: Machines and equipment are not used directly in manufacturing if used for sweeping a plant; disposing of scrap or waste; plant heating or air conditioning; communications; lighting, safety, fire protection or prevention; research; storage; or delivery to or from a plant or repair or maintenance of machines, processing equipment or facilities. In addition, electric substations, tool storage facilities, water softening equipment, refrigerated storage facilities and catwalks that provide access to various parts of a building are not used directly in manufacturing.
Tax 11.40(3) (3) Other examples of the exemption. Other examples of application of the exemption are as follows:
Tax 11.40(3)(a) (a) Small tools used exclusively and directly in the manufacturing process qualify as “processing equipment." Small tools include hand tools such as drills, saws, micrometers and hammers. However, if the items are also used for machine repair or general maintenance, they are not exempt.
Tax 11.40(3)(b) (b) The exemption applies if machines and processing equipment are used exclusively and directly by a manufacturer to produce other machines or processing equipment which, in turn, are used by the manufacturer to produce tangible personal property or items or property under s. 77.52 (1) (b) or (c), Stats.
Tax 11.40 Note Example: A lathe purchased by a manufacturer and used directly and exclusively to produce machines which are used on the manufacturer's production line is exempt. However, if the lathe is used partly for production of the machines and partly for repair purposes, it is not exempt.
Tax 11.40(3)(c) (c) The exemption applies if machines and processing equipment are used exclusively and directly by a manufacturer to produce component parts of tangible personal property or items or property under s. 77.52 (1) (b) or (c), Stats.
Tax 11.40(3)(d) (d) The exemption does not apply to machines or processing equipment used in whole or in part by a manufacturer before the manufacturing process has begun or after it has been completed.
Tax 11.40 Note Example: Machines or equipment used for storage, delivery to or from a plant, repair or maintenance of facilities or equipment, research, or crating or packaging of tangible personal property or items or property under s. 77.52 (1) (b) or (c), Stats., for shipment are not exempt.
Tax 11.40(3)(e) (e) The exemption does not apply to tangible personal property or an item, property, or good under s. 77.52 (1) (b), (c), or (d), Stats., which is not machinery or equipment, but is used in a manufacturing plant.
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Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.