Tax 11.38(2)(g)
(g) Cutting lumber to specifications and producing cabinets, counter tops or other items from lumber for customers, often called “millending."
Tax 11.38(2)(h)
(h) Cutting or crushing stones, gravel or other construction materials.
Tax 11.38(2)(k)
(k) Fabricating steel which may involve cutting the steel to length and size, bending and drilling holes in the steel to specifications of a particular construction job.
Tax 11.38(2)(o)
(o) Making a fur coat from pelts, gloves or a jacket from a hide.
Tax 11.38(2)(p)
(p) Making curtains, drapes, slip covers or other household furnishings.
Tax 11.38(3)
(3)
Purchases by fabricators or processors. Persons providing fabricating, processing and printing services, including those services listed in sub.
(2), may qualify as manufacturers. If the service provider qualifies as a manufacturer as provided in s.
77.51 (7h) (a), Stats., the following items may be purchased by the service provider without Wisconsin sales or use tax:
Tax 11.38(3)(a)
(a) Machinery and equipment used exclusively and directly in manufacturing.
Tax 11.38 Note
Example: Company PQR is in the business of heat treating metal for steel manufacturers. Company PQR uses its machinery and equipment only in providing this heat treating to steel manufacturers. Company PQR is performing a manufacturing process in acting as a submanufacturer. Since the machinery and equipment is used exclusively and directly in manufacturing, it may be purchased without Wisconsin sales or use tax provided Company PQR gives its supplier a properly completed exemption certificate.
Tax 11.38(3)(b)
(b) Tangible personal property or items under s.
77.52 (1) (b), Stats., that are used exclusively and directly by a manufacturer in manufacturing an article of tangible personal property or item or property under s.
77.52 (1) (b) or
(c), Stats., destined for sale and which becomes an ingredient or component part of the property or item destined for sale or is consumed or destroyed or loses its identity in the manufacture of tangible personal property or item or property under s.
77.52 (1) (b) or
(c), Stats., in any form destined for sale, except for fuel and electricity as provided in s.
77.54 (30) (a) 6., Stats.
Tax 11.38 Note
Example: Company VWX is an electroplater. Company STU is a manufacturer of car bumpers. Company STU hires Company VWX to electroplate the bumpers. Company VWX may purchase the caustic soda, boric acid, etc., that is consumed or destroyed in the electroplating without Wisconsin sales or use tax when acting as a submanufacturer. These items are consumed or destroyed in the manufacture of tangible personal property, bumpers, destined for sale.
Tax 11.38 Note
Note: For information regarding what is manufacturing and exemptions for machinery and equipment and other items used in manufacturing, refer to ss.
Tax 11.39,
11.40 and
11.41.
Tax 11.38 Note
Note: The interpretations in s.
Tax 11.38 are effective under the general sales and use tax law on and after September 1, 1969 except that (a) The exemption for catalogs and the envelopes in which they are mailed became effective April 1, 2009 pursuant to
2007 Wis. Act 20; and (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.
Tax 11.38 History
History: Cr.
Register, October, 1976, No. 250, eff. 11-1-76; r. and recr.
Register, June, 1993, No. 450, eff. 7-1-93;
EmR0924: emerg. am. (title), (1) (title), (intro.), (a), (2) (e) and (3) (b), eff. 10-1-09;
CR 09-090: am. (title), (1) (title), (intro.), (a), (2) (e) and (3) (b)
Register May 2010 No. 653, eff. 6-1-10; correction in (3) (intro.) made under s.
13.92 (4) (b) 7., Stats.,
Register May 2010 No. 653; correction in (2) made under s.
35.17, Stats.,
Register April 2019 No. 760.
Tax 11.39(1)(a)1.1. 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.
Tax 11.39(1)(a)2.
2. Manufacturing does not include storing raw materials or finished units of tangible personal property or items or property under s.
77.52 (1) (b) or
(c), Stats., research or development, delivery to or from the plant, or repairing or maintaining plant facilities.
Tax 11.39(1)(b)
(b) “Plant" as defined in s.
77.51 (10b), Stats., means a parcel of property or adjoining parcels of property, including parcels that are separated only by a public road, and the buildings, machinery, and equipment that are located on the parcel, that are owned by or leased to the manufacturer. Plant inventory does not include unsevered mineral deposits as provided in s.
77.51 (10c), Stats.
Tax 11.39(2)(a)1.
1. Begins with conveying of raw materials and supplies from plant inventory to the place where the work is performed in the same plant and ends with conveying finished units of tangible personal property or items or property under s.
77.52 (1) (b) or
(c), Stats., to the point of first storage in the same plant.
Tax 11.39(2)(a)2.
2. Includes conveying work in progress directly from one manufacturing operation to another in the same plant.
Tax 11.39(2)(a)3.
3. Includes testing or inspecting, throughout the manufacturing process, the new article of tangible personal property or item or property under s.
77.52 (1) (b) or
(c), Stats., that is being manufactured.
Tax 11.39(2)(a)4.
4. Includes storing work in progress in the same plant where the manufacturing occurs.
Tax 11.39(2)(a)6.
6. Includes packaging a new article of tangible personal property or item or property under s.
77.52 (1) (b) or
(c), Stats., if the manufacturer or another person on the manufacturer's behalf performs the packaging and if the packaging becomes part of the new article as it is customarily offered for sale by the manufacturer.
Tax 11.39(2)(b)
(b) Manufacturing does not include storing raw materials or finished units of tangible personal property or items or property under s.
77.52 (1) (b) or
(c), Stats., delivery to or from the plant, repairing or maintaining facilities, or research and development.
Tax 11.39(3)
(3)
Manufacturers. Manufacturers ordinarily include the following:
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)(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(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.
