Wisconsin Legislature: Tax 11.09(2)(f)

(d) The following are examples of items which if worn in or on the body are also exempt as prosthetic devices:

Bone growth stimulators.

CPAP machines.

Defibrillator and leads.

Electronic nerve and muscle stimulators.

Incontinence control devices, such as bed wetting alarms, but not including items such as diapers.

Infusion pumps.

Programmable drug infusion devices.

Speech generating devices.

TENS devices (nerve stimulators).

Note: If these items are not worn in or on the body, they are not exempt as prosthetic devices, but may be exempt as durable medical equipment if for use by a person in a person’s home.

Note: A listing that contains numerous items and descriptions of items that have been categorized as drugs, durable medical equipment, mobility-enhancing equipment, and prosthetic devices can be found in the Rules and Procedures of the Streamlined Sales Tax Governing Board, Inc., available at http://www.streamlinedsalestax.org.

(5) Parts, accessories and service. The sales price from the sale of repair and replacement parts, accessories, and services to the exempt property identified in s. 77.54 (22b), Stats., is also exempt.

(6) Diabetes supplies. Section 77.54 (28), Stats., exempts from Wisconsin sales and use tax 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.

Example: The sales price from the sale of blood glucose test strips is exempt from sales and use tax.

Note: Section Tax 11.08 interprets ss. 77.51 (3pm), (7m), and (11m) and 77.54 (22b) and (28), Stats.

Note: The interpretations in s. Tax 11.08 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) Charges for oxygen equipment became exempt September 1, 1983, pursuant to 1983 Wis. Act 27; (b) Charges for motorized wheelchairs and scooters became exempt September 1, 1985, pursuant to 1985 Wis. Act 29; (c) Charges for apparatus or equipment for the injection of insulin or the treatment of diabetes and supplies used to determine blood sugar levels became exempt March 1, 1989, pursuant to 1987 Wis. Act 399; (d) Charges for antiembolism elastic hose and stockings prescribed by a physician became exempt October 1, 1989, pursuant to 1989 Wis. Act 31; (e) The exemption for adaptive equipment for a disabled person’s vehicle became exempt effective June 1, 1990, pursuant to 1989 Wis. Act 238, renumbered by 1989 Wis. Act 359; (f) The exemption for parts and accessories became effective August 15, 1991, pursuant to 1991 Wis. Act 39; (g) The exemptions provided in s. 77.54 (14s) and (22), Stats., were repealed effective October 1, 2009, and replaced with the exemptions provided under s. 77.54 (22b), Stats., pursuant to 2009 Wis. Act 2; (h) The exemption in s. 77.54 (28), Stats., was amended to remove the exemption for apparatus and equipment for the injection of insulin or the treatment of diabetes. These items will still qualify for exemption under s. 77.54 (22b), Stats., if they are for home use, pursuant to 2009 Wis. Act 2; and (i) The clarification that a “prosthetic device” must be a replacement, corrective, or supportive device became effective July 2, 2013, pursuant to 2013 Wis. Act 20.

History: Cr. Register, September, 1977, No. 261, eff. 10-1-77; am. (1) and (4), Register, July, 1978, No. 271, eff. 8-1-78; am. (1), (2) and (3), Register, January, 1983, No. 325, eff. 2-1-83; r. (2) (c), renum. (5) to be (6), cr. (5), Register, September, 1984, No. 345, eff. 10-1-84; am. (4), Register, July, 1987, No. 379, eff. 8-1-87; am. (1), cr. (5), (7) and (8), renum. (5) and (6) to be (6) and (9), Register, March, 1991, No. 423, eff. 4-1-91; am. (1) (intro.), (2) (intro.), (3) to (6), (8) and (9), r. (1) (d), renum. (1) (e) to (i) to be (1) (d) to (h), Register, May, 1993, No. 449, eff. 6-1-93; EmR0924: emerg. r. and recr. eff. 10-1-09; CR 09-090: r. and recr. Register May 2010 No. 653, eff. 6-1-10; CR 10-094: am. (2) (b) 2., (4) (b), (5) Register November 2010 No. 659, eff. 12-1-10; CR 14-006: am. (4) (a) Register August 2014 No. 704, eff. 9-1-14.

Tax 11.09 Drugs.

(1) Definition. For the exemption in s. 77.54 (14), Stats., “drug” means a compound, substance, or preparation, or any component of them, other than food and food ingredients, dietary supplements, or alcoholic beverages, to which any of the following applies:

(a) It is listed in the United States Pharmacopoeia, Homeopathic Pharmacopoeia of the United States, or National Formulary, or any supplement to any of them.

(b) It is intended for use in diagnosing, curing, mitigating, treating, or preventing a disease.

(2) Items which are drugs. Drugs include the following items described in sub. (1):

(a) Acne medications.

(b) Alcohol (rubbing).

(d) Antacids.

(e) Antibiotic creams and ointments.

(f) Antifungal creams and sprays.

(g) Antihistamines.

(h) Antiseptics (betadyne, iodine).

(i) Birth control (pills and patches and implants).

(j) Burn remedies.

(k) Contraceptives (creams, gels, foams, and medicated condoms).

(L) Cold and cough medicines, drops, and lozenges.

(m) Contact lens solutions.

(n) Decongestants.

(o) Dermal fillers (injectable).

(p) Dialysis dialysate solution.

(q) Diaper rash creams.

(r) Enema preparations.

(s) Eye drops.

(t) Gases — medical grade (air, carbon dioxide, helium, nitrogen, oxygen).

(u) Hand sanitizers.

(v) Hydrogen peroxide.

(w) Insulin.

(x) Laxatives.

(y) Lip balm.

(z) Nutrition formulas (enteral and parenteral with a drug facts label).

(za) Oxygen.

(zb) Prescription medicines.

(zc) Radioactive isotopes.

(zd) Rubs, mentholated.

(ze) Sleeping pills.

(zf) Smoking cessation products such as gums, lozenges, and patches that contain nicotine.

(zg) Sterile water (for injections).

(zh) Sterile normal saline .9% (IV or irrigation).

(zi) Vaccines.

(zj) Yeast infection medications.

(3) Items which are not drugs. Items which are not described in sub. (1) and which are not drugs include:

(a) Alcoholic beverages, soft drinks and distilled water.

(b) Durable medical equipment.

(d) Mobility-enhancing equipment.

(e) Dietary supplements.

(4) Exempt sales or use of drugs. Drugs shall be exempt if:

(a) Prescribed for the treatment of a human being by a person authorized to prescribe the drugs, and dispensed on prescription filled by a registered pharmacist in accordance with law. Insulin furnished by a pharmacist to a person for treatment of diabetes as directed by a physician shall be deemed dispensed on prescription.

(b) Sold to a licensed physician, surgeon, podiatrist, dentist, or hospital for the treatment of a human being.

(c) Furnished by a licensed physician, surgeon, podiatrist, or dentist to a patient who is a human being for treatment of the patient.

(d) Furnished by a hospital for treatment of any person pursuant to the order of a licensed physician, surgeon, dentist, or podiatrist. For this exemption, “hospital” has the meaning described in s. 50.33 (2), Stats., and does not include nursing homes.

(e) Sold to this state or any political subdivision or municipal corporation of the state, for use in the treatment of a human being; or furnished for the treatment of a human being by a medical facility or clinic maintained by this state or any political subdivision or municipal corporation of the state.

(f) Furnished without charge to a physician, surgeon, nurse anesthetist, advanced practice nurse, osteopath, dentist licensed under ch. 447, Stats., podiatrist licensed under ch. 448, Stats., or optometrist licensed under ch. 449, Stats., if the drug may not be dispensed without a prescription.

(5) Taxable sales of drugs. Taxable sales of drugs include:

(a) Retail sales for use in laboratories.

(b) Retail sales of drugs for pets.

Note: For exemption of drugs used on farm livestock or other animals, refer to ss. Tax 11.12 and 11.61.

Note: Section Tax 11.09 interprets ss. 77.51 (3pj) and 77.54 (14), (14r), and (33), Stats.

Note: The interpretations in s. Tax 11.09 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The exemption for certain medicines furnished without charge became effective October 14, 1997, pursuant to 1997 Wis. Act 27; and (b). The definition of “drug” is effective October 1, 2009, pursuant to 2009 Wis. Act 2.

History: Cr. Register, September, 1977, No. 261, eff. 10-1-77; r. (3) (g), Register, September, 1984, No. 345, eff. 10-1-84; am. (4) (d) and (6), Register, July, 1987, No. 379, eff. 8-1-87; am. (5) (b), Register, June, 1990, No. 414, eff. 7-1-90; am. (2) (c), (3) (c) and (4) (a), Register, March, 1991, No. 423, eff. 4-1-91; am. (1), (4) (e), cr. (4) (f), r. (6), Register, May, 1999, No. 521, eff. 6-1-99; EmR0924: emerg. r. and recr. (title), (1), (2) and (3), am. (4) (title), (intro), (a) to (d), (f), (5) (title), (intro.) and (b), eff. 10-1-09; CR 09-090: r. and recr. (title), (1), (2) and (3), am. (4) (title), (intro), (a) to (d), (f), (5) (title), (intro.) and (b) Register May 2010 No. 653, eff. 6-1-10; CR 10-094: am. (1) (b), renum. (2) to be (2) (intro.) and am., cr. (2) (a) to (zj) Register November 2010 No. 659, eff. 12-1-10; CR 20-027: am. (4) (a) Register July 2021 No. 787, eff. 8-1-21.

Tax 11.10 Wind, solar, and certain gas powered products.

(1) General. Section 77.54 (56), Stats., provides a sales and use tax exemption for the following:

(a) 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 does not apply to an uninterruptible power source that is designed primarily for computers.

(b) Except for the sale of electricity or energy that is exempt from taxation under s. 77.54 (30), Stats., the sales price from the sale of and the storage, use, or other consumption of electricity or energy produced by a product described in par. (a).

(2) Definitions. In this section and in s. 77.54 (56), Stats.:

(a) “Agricultural waste” means a byproduct of farming.

(b) “Farming” has the meaning given in s. Tax 11.12 (2) (f), except “farming” includes holding livestock in a feed lot for less than 30 days.