Tax 11.04(3)
(3)
Purchases presumed taxable. When a contractor and an exempt entity enter into a construction contract to improve real property, and the contract provides that the contractor is to furnish the building materials, it is presumed until the contrary is established, that deliveries of building materials to the contractor are made pursuant to purchases made by the contractor.
Tax 11.04(4)
(4)
Supplier is contractor. A supplier, who is also the contractor who uses the building materials in the construction of buildings or structures, or the alteration, repair or improvement of real property for an exempt entity, is the consumer of such building materials, not the seller of personal property to the exempt entity. Except as provided in s.
77.54 (9m),
(26),
(41),
(62m), and
(65), Stats., or if prohibited by federal law, the sale of building materials to the consumer is subject to the tax.
Tax 11.04(5)
(5)
Exempt sales. A supplier's sales of building materials made directly to an exempt entity are not taxable, even though such tangible personal property or item, property, or good under s.
77.52 (1) (b),
(c), or
(d), Stats., is used by the contractor in the erection of a building or structure, or in the alteration, repair or improvement of real property for the exempt entity. Suppliers of building materials may presume that a sale is made directly to an exempt entity if the supplier receives a purchase order from the exempt entity, and payment for such building materials is received directly from the exempt entity.
Tax 11.04 Note
Note: The interpretations in s.
Tax 11.04 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The building materials exemption for certain sports stadiums became effective October 1, 1991, pursuant to
1991 Act 37; (b) 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., certain leased property affixed to real property under s.
77.52 (1) (c), Stats., and digital goods under s.
77.52 (1) (d), Stats., became effective October 1, 2009, pursuant to
2009 Wis. Act 2; (c) The building materials exemption for a facility in an electronics and information technology manufacturing zone became effective September 20, 2017, pursuant to
2017 Act 58; (d) The building materials exemption for contracts with certain exempt entities became effective January 1, 2016, pursuant to
2015 Wis. Act 126; and (e) A missing reference was added to the list of exempt entities for a local exposition district and certain title holding companies were also added to the list of exempt entities, effective September 1, 2017, pursuant to
2017 Wis. Act 231.
Tax 11.04 History
History: Cr.
Register, January, 1979, No. 277, eff. 2-1-79; correction in (1) made under s. 13.93 (2m) (b) 7., Stats.,
Register, August, 1999, No. 524;
EmR0924: emerg. am. (1), (2) (title), (3) and (5), eff. 10-1-09;
CR 09-090: am. (1), (2) (title), (3) and (5)
Register May 2010 No. 653, eff. 6-1-10;
CR12-014: am. (1)
Register August 2012 No. 680, eff. 9-1-12;
CR 13-012: am. (1)
Register August 2013 No. 692, eff. 9-1-13;
CR 14-006: am. (1)
Register August 2014 No. 704, eff. 9-1-14;
CR 20-018: am. (1), cr. (1) (a) 9., am. (2), (4)
Register July 2021 No. 787, eff. 8-1-21; correction in (1) (intro.) made under s. 35.17, Stats., renumber (1) (a), (b) to (1m) (a), (b) under s. 13.92 (4) (b) 1., Stats., and create (1m) (title) under s. 13.92 (4) (b) 2., Stats.,
Register July 2021 No. 787.
Tax 11.05(1)(1)
General. Sales by the state of Wisconsin, any agency thereof and governmental units within this state are generally subject to the Wisconsin sales tax. However, sales by the United States government or any agency thereof are not taxable.
Tax 11.05(2)
(2)
Taxable sales. Taxable sales by governmental units include the following:
Tax 11.05(2)(a)
(a) Admissions to facilities if the activity being conducted at the facility is amusement, athletic, entertainment, or recreational in nature, except as provided in sub.
(3) (r),
(s), and
(y).
Tax 11.05 Note
Example: Green fees, campground fees, swimming fees, ice skating fees and park shelter house fees are taxable if the activity being conducted at the facility is amusement, athletic, entertainment or recreational in nature.
Tax 11.05(2)(b)
(b) Food and gift stand sales, including sales of candy, soft drinks, prepared foods, cigarettes, tobacco products, postcards, books, magazines and other periodicals described in s.
Tax 11.19, and novelties. Newspaper sales are exempt.
Tax 11.05 Note
Note: See s.
Tax 11.51 for a list of food products subject to tax.
Tax 11.05(2)(c)
(c) Sales or rental of recreational equipment and supplies.
Tax 11.05(2)(d)
(d) Charges for access to or use of athletic facilities such as baseball and softball diamonds, stadiums, and gymnasiums, including entry fees and any charges for lights, heat, janitor fees and equipment, when used for activities which are amusement, athletic, entertainment or recreational in nature, except as provided in sub.
(3) (r),
(s),
(y), and
(zg).
Tax 11.05(2)(e)
(e) Sales of electricity, gas, and steam by municipal utilities, except as provided in sub.
(3) (b).
Tax 11.05(2)(f)
(f) Sales of maps, plat books, photocopies, or other printed material, except as provided in sub.
(3) (q).
Tax 11.05(2)(g)
(g) Sales or rental of equipment and office furniture, including the rental of motor vehicles to employees.
Tax 11.05(2)(gm)
(gm) Sales of motor vehicles, boats, snowmobiles, recreational vehicles as defined in s.
340.01 (48r), Stats., trailers, semitrailers, all-terrain vehicles, utility terrain vehicles, off-highway motorcycles, and aircraft. Governmental units must collect the sales tax on its sales of these items. If the governmental unit does not collect the tax from the purchaser, the purchaser shall file a sales tax return and pay the tax prior to titling or registering the property in this state.
Tax 11.05(2)(h)
(h) Sales of buildings or timber when the purchaser acquires the property for removal.
Tax 11.05(2)(i)
(i) Furnishing of rooms or lodging facilities, available to the public, to any person residing for a continuous period of less than one month, except that the tax does not apply to the receipts from accommodations furnished by any hospitals, sanatoriums, nursing homes, colleges, or universities operated by governmental units and the tax does not apply to furnishing rooms or lodging to a person through the sale of any kind of time-share property.
Tax 11.05(2)(j)
(j) Sales of taxable items, property, or goods dispensed through vending machines, and sales of access to or the use of amusement devices, if the governmental unit owns the machine or device or has control of the contents of the machine or the device.
Tax 11.05(2)(k)
(k) Sales of soft drinks and alcoholic beverages, including sales of these items by hospitals, sanatoriums, nursing homes, retirement homes, community-based residential facilities as defined in s.
50.01 (1g), Stats., and any facility certified or licensed under ch.
48, Stats.
Tax 11.05(2)(L)
(L) Charges for candy, soft drinks, dietary supplements and prepared foods to “Huber" law prisoners.
Tax 11.05(2)(m)
(m) Sales of books and supplies, including sales by technical college districts. Sales of tangible personal property and items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., by elementary and secondary schools are exempt under s.
77.54 (4), Stats.
Tax 11.05(2)(p)
(p) Sales and delivery of trees, shrubs, or gravel to private purchasers. A sale of gravel is not taxable if the seller of the gravel puts the gravel in its final resting place.
Tax 11.05 Note
Examples: 1) Governmental Unit A sells a load of gravel to Individual B. Governmental Unit A dumps the gravel in a pile at Individual B's home. Individual B will then spread the gravel and put it in its final resting place. The sale of the gravel by Governmental Unit A to Individual B is a sale of tangible personal property that is subject to Wisconsin sales or use tax.
Tax 11.05 Note
2) Governmental Unit X dump spreads or gate spreads gravel on Customer Z's driveway. Customer Z, or someone other than Governmental Unit X, will then grade, rake, and compact the materials into their final resting place. Since Governmental Unit X is not placing the gravel in its final resting place, Governmental Unit X's sale of the gravel to Customer Z is subject to sales tax as a sale of tangible personal property.
Tax 11.05 Note
3) Governmental Unit G spreads gravel on Individual H's driveway. Governmental Unit G grades and compacts the gravel so that it is in its final resting place. Governmental Unit G's charges to Individual H are not subject to Wisconsin sales or use tax since Governmental Unit G is performing a real property construction activity by putting the gravel in its final resting place.
Tax 11.05(2)(q)
(q) Sales of impounded animals, even though the amount received may be designated as a placement fee.
Tax 11.05(2)(r)
(r) The sales price received for parking and providing parking space for motor vehicles and aircraft, and docking or providing storage space for boats.
Tax 11.05(2)(s)
(s) The sales price received for landscaping and lawn maintenance services, including weed cutting in lawn and garden areas and along highways, streets, and walkways, but not charges for damages described in sub.
(3) (c).
Tax 11.05(3)
(3)
Nontaxable receipts. Receipts by governmental units from the following are not taxable:
Tax 11.05(3)(a)
(a) Fees for licenses and permits, including tavern, cigarette, hunting and fishing, marriage, building and septic tank permits and I.D. cards, including original or duplicate library cards but not camping permits or I.D. cards issued exclusively for obtaining admission to facilities or events taxed under s.
77.52 (2) (a) 2., Stats.
Tax 11.05(3)(b)1.1. Water delivered through mains. Wood residue used for fuel and sold for use in a business activity. Coal, fuel oil, propane, steam, peat, fuel cubes produced from solid waste, wood, and biomass as defined in s.
196.378 (1) (ar), Stats., used for fuel sold for residential use. Electricity and natural gas sold for residential use during the months of November through April. Fuel and electricity sold for use in farming. Fuel and electricity consumed in manufacturing tangible personal property or items or property under s.
77.52 (1) (b) or
(c), Stats. In this paragraph, “residential use" has the meaning in s.
Tax 11.57 (2) (q) 2. Tax 11.05(3)(b)2.
2. Electricity and natural gas are considered sold at the time of the billing. If the billings are mailed, the time of billing is the day on which the billing is mailed.
Tax 11.05(3)(b)3.
3. Fuels other than electricity and natural gas are considered sold at the time possession is transferred from the seller or seller's agent to the purchaser or purchaser's agent, except that a common carrier is the agent of the seller regardless of any f.o.b. point and regardless of the method in which the freight is paid.
Tax 11.05(3)(c)
(c) Claims assessed against persons for damaging government property.
Tax 11.05(3)(d)
(d) Rental of buildings or space, such as offices, warehouses, and meeting rooms, used for activities which are not amusement, athletic, entertainment, or recreational in nature.
Tax 11.05(3)(f)
(f) Library fines, including charges for books that are not returned or charges for a duplicate library card.
Tax 11.05(3)(i)
(i) Special assessments and fees for garbage or trash removal. However, sales of bags or receptacles for garbage or trash are taxable unless a combined charge is made for removal and bags or receptacles and the amount allocated to the bag or receptacle is incidental to the charge for removal.
Tax 11.05 Note
Example: A city government provides that in order to have trash removed by the city, the trash must be put in special bags which are sold for $1 each. The $1 charge is allocated as follows: 18¢ for the bag, 42¢ for removal and 40¢ for cost of the disposal site. The $1 charge for the bag is not subject to tax because the transfer of the bag is incidental to the sale of the waste removal service.
Tax 11.05(3)(j)
(j) Commissions on vending machines or amusement devices when the governmental unit does not own the machine or device, or does not have the right of access to the machine or device for stocking or restocking or for removing the receipts from the machine or device.
Tax 11.05(3)(jm)
(jm) Sales through vending machines of food and food ingredients, except for candy, soft drinks, dietary supplements, and prepared foods.
Tax 11.05(3)(k)
(k) Sales or rental of tangible personal property or items, property, or goods under s.
77.52 (1) (b),
(c), or
(d), Stats., or services to other governmental units, schools or organizations which hold a certificate of exempt status.
Tax 11.05(3)(L)
(L) Food and food ingredients, except soft drinks, sold by hospitals, sanatoriums, nursing homes, retirement homes, community-based residential facilities as defined in s.
50.01 (1g), Stats., and any facility certified or licensed under ch.
48, Stats., such as day care centers, child placement agencies, residential care centers, foster homes, treatment foster homes, group homes and shelter care facilities, including prepared food sold to the elderly or
disabled by “mobile meals on wheels." Sales of alcoholic beverages by these organizations are taxable.
Tax 11.05(3)(m)
(m) Food and food ingredients furnished in accordance with any contract or agreement by a public or private institution of higher education, or paid for to a public or private institution of higher education through the use of an account of the institution and furnished by the institution, if either of the following conditions is met:
Tax 11.05(3)(m)1.
1. The food and food ingredients are furnished to an undergraduate student, a graduate student or a student enrolled in a professional school if the student is enrolled for credit at that institution, provided the items are consumed by that student.
Tax 11.05(3)(m)2.
2. The food and food ingredients are furnished to a national football league team.
Tax 11.05(3)(n)
(n) Service charges for snow removal, police officers at social gatherings, service of legal papers including summons, complaints, and civil process, and ushers and door guards.
Tax 11.05(3)(o)
(o) Sales for resale, if supported by a valid exemption certificate obtained from the purchaser.
Tax 11.05(3)(p)
(p) Fees charged for admission to a university student union building.
Tax 11.05(3)(q)
(q) Charges for filing, entering, docketing, recording, or furnishing certified or uncertified copies of records by a state registrar, register of deeds, health officer and clerk of court under ss.
59.40 (3),
59.43 (2), and
69.22, Stats., or by a filing officer under s.
409.525, Stats., and fees charged by a register in probate pursuant to s.
814.66, Stats. Also, charges by an “authority," as defined in s.
19.32 (1), Stats., for copies of a record under s.
19.35 (1) (a), Stats., including charges for a search of records.
Tax 11.05(3)(r)
(r) The sale of all admission fees or admission stickers to state parks and recreational areas in state forests imposed under s.
27.01 (7),
(8) and
(9), Stats.
Tax 11.05(3)(t)
(t) Admissions to any museum operated by a nonprofit corporation under a lease agreement with the state historical society.
Tax 11.05 Note
Note: Section 256.35 (3m), Stats., regarding the surcharge for customers of wireless providers was repealed by
2017 Wis. Act 59.
Tax 11.05(3)(v)
(v) Animal identification tags and standard samples representing product or commodity grades only when sold by the Wisconsin department of agriculture, trade and consumer protection.
Tax 11.05(3)(y)
(y) The sale or furnishing the use of recreational facilities on a periodic basis or other recreational rights, including but not limited to, membership rights, vacation services, and club memberships, in connection with the sale or use of time-share property, if the facilities or rights are not available to persons who have not purchased the time-share property, other than guests.
Tax 11.05(3)(zg)
(zg) Admissions by a governmental unit to participate in any sports activity in which more than 50 percent of the participants are 19 years old or younger.
Tax 11.05(4)(a)(a) Section
77.54 (9a), Stats., exempts sales to and the storage, use or other consumption of tangible personal property and items and property under s.
77.52 (1) (b) and
(c), Stats., and services by any of the following:
Tax 11.05(4)(a)1.
1. Wisconsin or by any agency of Wisconsin, the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic Development Corporation, and the Fox River Navigational System Authority.
Tax 11.05(4)(a)2.
2. Any county, city, village, town or school district in Wisconsin.
Tax 11.05(4)(a)5.
5. Any other unit of government in this state or any agency or instrumentality of one or more units of government in Wisconsin.
Tax 11.05(4)(a)6.
6. Any federally recognized American Indian tribe or band in Wisconsin.
Tax 11.05(4)(a)7.
7. Any joint local water authority created under s.
66.0823, Stats.; any corporation, community chest fund, foundation or association organized and operated exclusively for religious, charitable, scientific or educational purposes, or for the prevention of cruelty to children or animals, except hospital service insurance corporations under s.
613.80 (2), Stats., no part of the net income of which inures to the benefit of any private stockholder, shareholder, member or corporation.
Tax 11.05(4)(a)8.
8. An entity described under section
501 (c) (2) of the Internal Revenue Code that is exempt from federal income tax under section
501 (a) of the Internal Revenue Code and is organized for the exclusive purpose of holding title to property, collecting income from that property, and turning over the entire amount of that income, less expenses, to an entity described under s.
77.54 (9a) (f), Stats.
Tax 11.05(4)(a)11.
11. A cemetery company or corporation described under section
501 (c) (13) of the Internal Revenue Code, if the tangible personal property or taxable services are used exclusively by the cemetery company or corporation for the purposes of the company or corporation.
Tax 11.05 Note
Note: Refer to s.
Tax 11.04 regarding the purchase of building materials used in the construction of buildings for governmental units.
Tax 11.05(4)(b)
(b) In addition to the invoice or other billing document being in the name of the governmental unit, a Wisconsin governmental unit shall provide one of the following to a retailer as proof that a sale to the governmental unit is exempt from tax:
Tax 11.05(4)(b)1.
1. A purchase order or similar written document identifying the governmental unit as the purchaser.
Tax 11.05(4)(b)2.
2. A Wisconsin sales and use tax exemption certificate, form S-211.
