Tax 11.56(9)(b)3.3. Performing prepress and postpress services in support of printing activities. Tax 11.56 NoteExamples: (1) Newspaper publishes a daily edition of a newspaper. Newspaper operates its own printing plant. The printing plant prints Newspaper’s publications as well as printing under contract for third parties. More than 50 percent of Newspaper’s sales are from sales of its newspaper and advertising revenues associated with sales of its newspaper. Newspaper’s primary activity is described by NAICS code 511110: Newspaper Publishers. Newspaper does not qualify for the exemptions under s. 77.54 (61), Stats. Tax 11.56 Note(2) Insurance Company operates its own printing plant. Insurance Company’s primary source of revenues is insurance premiums. Insurance Company’s primary NAICS code is described within NAICS subsector code 524: Insurance Carriers and Related Activities. Insurance Company does not qualify for the exemptions under s. 77.54 (61), Stats. Tax 11.56 Note(3) Business is engaged in screen printing of T-shirts, caps, and jackets. This is Business’ only activity and source of revenue. Business’ primary activity is described by NAICS code 323113: Commercial Screen Printing. Business does not qualify for the exemptions under s. 77.54 (61), Stats. Tax 11.56 Note(4) Company is primarily engaged in the business of printing on fabric grey goods. Company’s primary activity is described by NAICS code 313310: Textile and Finishing Mills. Company does not qualify for the exemptions under s. 77.54 (61), Stats. Tax 11.56 Note(5) Printer is primarily engaged in commercial printing as described in NAICS code 323111. Company B contracts with Advertising Agency to produce finished artwork that represents Company B’s holiday catalog and to furnish the finished artwork to Printer in the formats specified by Printer. Company B contracts with Printer to print and mail the catalogs to addresses Company B furnishes to Printer. Printer uses the finished artwork in the printing of the catalog. Printer owns servers that it uses primarily to store the finished artwork it receives from its customers. The servers are exempt under s. 77.54 (61), Stats. Tax 11.56 Note(6) Printer is primarily engaged in commercial printing and binding of books, as described in NAICS code 323117. Publisher enters into a contract with Printer to print and bind one of Publisher’s books. Publisher provides Printer with the finished artwork files in the formats specified by Printer. Printer has computer programs that translate the finished artwork files into files that are sent to and used by a plate-making machine to make the plates for printing the book, and into files that are sent to and used by the printing press to print the pages in the book. The computers and server used by Printer to store Publisher’s finished artwork are primarily used by Printer to store copies of products printed or to be printed by Printer. The computers and servers used to store the finished art furnished to Printer by Publisher are exempt under s. 77.54 (61), Stats. Tax 11.56 Note(7) Printer has printing plants in Wisconsin and Minnesota. Printer places an order for office supplies from an out-of-state seller. The office supplies are delivered to Printer’s location in Wisconsin. The office supplies are to be used in Printer’s offices in Wisconsin and Minnesota. Printer sets aside the office supplies it will deliver to its Minnesota office, and delivers these supplies to that office one week later. During the week the office supplies being sent to Minnesota are in Wisconsin and prior to being delivered to Minnesota, the office supplies were only stored, remained idle, and were not used by Printer. Printer’s purchase of the office supplies delivered to it in Wisconsin and then delivered by Printer to its office in Minnesota are exempt under s. 77.54 (61), Stats. Tax 11.56 Note(8) Printer has printing plants in Wisconsin, Iowa, and Indiana. Printer is primarily engaged in activities described by NAICS code 323111. Printer is moving a printing press from its Indiana plant to its Iowa plant. The printing press was originally purchased by Printer in Indiana. The printing press is used exclusively and directly by Printer in manufacturing. Printer has the printing press shipped to its Wisconsin facility. The press is in Wisconsin for not more than 180 days before it is transported to Iowa. While in Wisconsin, Printer performs repairs to the press. Printer’s purchase of the printing press is not subject to Wisconsin use tax. Repair of the printing press while in Wisconsin is a use of the printing press in Wisconsin by the printer. However, Printer is not liable for Wisconsin use tax on its purchase of the printing press as the printing press is an exempt manufacturing machine under s. 77.54 (6) (am) 1., Stats. Tax 11.56 NoteNote: Section Tax 11.56 interprets ss. 77.51 (7h), (8), (11), and (14) (h), 77.52 (1) and (2) (a) 11., and 77.54 (2), (2m), (6) (am) 1. and 2., (25), (25m), (30) (a) 6., (43), (59), and (61), Stats. Tax 11.56 NoteNote: The interpretations in s. Tax 11.56 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) Sales of typeset material shall first be considered sales of tangible personal property on April 1, 1983; (b) The exemption in sub. (3) (b) 2. for ingredients of publications became effective July 2, 1983, pursuant to 1983 Wis. Act 27; (c) The definition of storage and use for purposes of imposing use tax does not include storing or using raw materials becoming printed materials to be shipped outside Wisconsin effective October 1, 1993, pursuant to 1993 Wis. Act 16; (d) The sales and use tax exemption for raw materials transported and used solely outside Wisconsin became effective December 1, 1997, pursuant to 1997 Wis. Act 27; (e) The exemption for fuel and electricity consumed in manufacturing became effective January 1, 2006, pursuant to 2003 Wis. Act 99; (f) The exemption for catalogs and the envelopes in which they are mailed became effective April 1, 2009 pursuant to 2007 Wis. Act 20; (g) The requirement that property and items which qualify for exemption under s. 77.54 (2) and (2m), Stats., be consumed exclusively and directly by a manufacturer in manufacturing property and items destined for sale became effective August 1, 2009 pursuant to 2009 Wis. Act 28; (h) 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; (i) The sales and use tax exemption for advertising and promotional direct mail became effective July 1, 2013, pursuant to 2011 Wis. Act 32; (j) Services resulting in advertising and promotional direct mail were excluded from taxable services effective July 1, 2013, pursuant to 2013 Wis. Act 20; (k) The additional printing exemptions under s. 77.54 (61), Stats., became effective October 1, 2013, pursuant to 2013 Wis. Act 20; and (L) Amendments to the additional printing exemptions under s. 77.54 (61), Stats., became effective retroactively to October 1, 2013, pursuant to 2013 Wis. Act 145. Tax 11.56 HistoryHistory: Cr. Register, March, 1983, No. 327, eff. 4-1-83; am. (3) (a), renum. (3) (b) to be (3) (b) 1., cr. (3) (b) 2., r. and recr. (7), Register, September, 1984, No. 345, eff. 10-1-84; am. (3) (a) and (c), (5) and (6) (a) 1., (b) (intro.) 1. and 2. and (7) (b), r. (6) (b) 3., cr. (6) (c), Register, April, 1994, No. 460, eff. 5-1-94; r. (1) (a) and (6) (b) 1. and 2., renum. (1) (b) and (c) to be (1) (c) and (a) and am. (c), (3) (a), (b) 1. and 2. and (c) to be (3) (a) (intro.), 1. and 2. and (b) and am. (a) (intro.) 1. and 2., (6) (b) (intro.) to be (6) (b) and am., (6) (c) and (7) (b) to be (7) (b) and (c) and am., cr. (1) (b), am. (2) (a), (5), (6) (a) 2., Register, January, 1999, No. 517, eff. 2-1-99; EmR0924: emerg. am. (1) (a), (b) 2., (c), (2) (intro.), (b), (3), (5), (6), (7) (a), (b) (intro.), 1., and (c), r. and recr. (4), cr. (7) (bm) and (8), eff. 10-1-09; CR 09-090: am. (1) (a), (b) 2., (c), (2) (intro.), (b), (3), (5), (6), (7) (a), (b) (intro.), 1., and (c), r. and recr. (4), cr. (7) (bm) and (8) Register May 2010 No. 653, eff. 6-1-10; CR 13-011: cr. (4) (b) 3. Register August 2013 No. 692, eff. 9-1-13; CR 14-006: am. (7) (bm), cr. (9) Register August 2014 No. 704, eff. 9-1-14; corrections in (5), (6) (a) 3. made under s. 13.92 (4) (b) 7., Stats., Register August 2014 No. 704; CR 16-053: cr. (9) (a) 1g., renum. (9) (a) 1. to 1r., r. (9) (a) 4., 6., 7., cr. (9) (a) 8m., r. and recr. (9) (b) (intro.) Register June 2018 No. 750, eff. 7-1-18; correction in (9) (b) (intro.) made under s. 35.17, Stats., Register June 2018 No. 750. Tax 11.57(1)(1) Taxable sales. Sales of the following tangible personal property, items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., and services provided by utilities are taxable: Tax 11.57(1)(a)(a) Utility services billed to household, industrial, or commercial customers, with any adjustments for discounts taken by customers in the utility’s next reporting period. Tax 11.57 NoteExample: An early payment discount is adjusted for in the next reporting period.
Tax 11.57(1)(c)(c) The gross amounts received for contacts on poles and excess pole height contributions. Tax 11.57(1)(e)(e) Rentals of transformers located on a customer’s property. Tax 11.57(1)(f)(f) Labor and materials to install or repair conversion burners. Tax 11.57(1)(i)(i) Sales of tools, used equipment, and other tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., to employees or other purchasers. Tax 11.57(1)(j)(j) Pilot relights for furnaces, such as “no heat” calls, or replacing appliance fuses. Tax 11.57(1)(k)(k) Sale of a utility overhead transmission or distribution line in place, if installed under easement or license on land owned by others. Tax 11.57 NoteNote: See s. Tax 11.86 for more information. Tax 11.57(2)(2) Nontaxable sales. The following sales to customers are not subject to the tax: Tax 11.57(2)(a)(a) Connection or reconnection charges for natural gas, electricity, and water. Tax 11.57(2)(b)(b) Utility services delivered to Indians living on an Indian reservation, or services delivered on the reservation to an Indian tribal governing board. Tax 11.57(2)(c)(c) Billings for repairs to persons who damaged utility property. Tax 11.57(2)(f)(f) Contributions in aid of construction, such as payments by a customer to have a line extended to the customer’s property. Tax 11.57(2)(g)(g) The installation charge for a pole sold to a customer, which is installed on land owned by the customer. Tax 11.57(2)(i)(i) Sales of fuel and electricity for use in farming, including agriculture, dairy farming, horticulture, floriculture, silviculture, beekeeping, and custom farming services. Tax 11.57(2)(im)(im) Sales of fuel and electricity consumed in manufacturing tangible personal property, or items or property under s. 77.52 (1) (b) or (c), Stats., in Wisconsin. Tax 11.57(2)(j)(j) Labor charged a customer for the installation of a complete furnace or built-in appliance. Tax 11.57(2)(L)(L) Coal, fuel oil, propane, steam, peat, fuel cubes produced from solid waste and wood used for fuel, sold for residential use. Tax 11.57(2)(n)(n) Electricity and natural gas sold during the months of November, December, January, February, March, and April for residential use. For purposes of this exemption, s. 77.54 (30) (b), Stats., provides that electricity or natural gas is considered sold at the time of billing. If the billing is by mail, the time of billing is the day on which the billing is mailed. In any event, a qualifying customer shall receive only 6 months of service exempt from taxation during the November through April period. Tax 11.57(2)(p)(p) If fuel or electricity is sold to a person partly for an exempt use and partly for a use that is not exempt, no tax shall be collected by the seller on the portion of the sales price of the fuel or electricity that is used for an exempt purpose, as specified on an exemption certificate provided by the purchaser to the seller, as described in par. (q). Tax 11.57(2)(q)1.1. Where a building, that contains residential quarters and commercial operations, is heated by one central heating plant, it is necessary to determine the portion of the fuel purchased which qualifies for the “residential use” exemption. The percentage of residential use may be computed by dividing the number of square feet used for residential purposes, excluding common areas, by the total area heated, excluding common areas. If this does not produce a reasonable result, any other reasonable method of estimating may be used. The resulting percentage should be rounded to the nearest 10%. Tax 11.57(2)(q)2.2. In this subsection, “residential use” means use in a structure or portion of a structure that is a person’s permanent principal residence. Use in a residence includes heating or cooling the premises, heating water, operating fans or other motors, providing lighting, and other ordinary uses by the purchaser in a residence. Residential use includes use in single-family homes, duplexes, townhouses, condominiums, mobile homes, rooming houses, apartment houses, nursing homes, and farm houses, if the structure is used as a person’s permanent principal residence. Residential use includes use in apartment houses, nursing homes, and farm houses even though they are on a commercial or rural meter. Tax 11.57(2)(q)3.3. “Non-residential use” is use other than “residential use” as defined in subd. 2., and includes any use in the conduct of a trade, business or profession, whether the trade, business or profession is carried on by the owner of the premises or some other person. It includes use in secondary residences, motor homes not used as a permanent principal residence, travel trailers, other recreational vehicles, and transient accommodations. “Transient accommodations” include hotels, motels, inns, travel homes, tourist houses, summer cottages, apartment hotels, or resort lodges or cabins, and any accommodation which is rented for a continuous period of less than one month. Tax 11.57 NoteExamples: 1) A person owns a home in Wisconsin where he resides for 7 months each year and a cottage, also in Wisconsin, where he resides for 5 months each year. The home is his principal residence and the cottage is his secondary residence.
Tax 11.57 Note2) A person is a resident of Florida and has a home in Florida. The person also retains a home in Wisconsin. The person’s Florida home is her principal residence and her Wisconsin home is her secondary residence.
Tax 11.57(2)(q)4.4. A “continuous” certification designation is provided on the exemption certificate, form S-211, and, if claimed, the form remains in effect until replaced or revoked. A new certificate shall be filed if there is a change in the percentage of exempt use. Tax 11.57(2)(r)1.1. Service provided by an electric cooperative to another electric cooperative, or by a telecommunications utility to another telecommunications utility, for disaster relief work performed during a disaster period. Tax 11.57(2)(r)3.3. The exemption in this paragraph does not apply to materials and supplies used in performing exempt disaster relief services. Tax 11.57(3)(a)(a) Persons engaged in the business of providing electrical or gas utility service are consumers of the tangible personal property, items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., and taxable services used in providing the utility services. The tax applies to the sales of the property, items, goods, or services to them, except where a specific exemption applies, such as the exemptions shown in sub. (4). Tax 11.57(3)(b)(b) The purchase, license, lease, or rental of the following property, items, goods, and services by a utility are subject to the tax: Tax 11.57(3)(b)1.1. Transformers, substation equipment, and other tangible personal property and items and property under s. 77.52 (1) (b) and (c), Stats., used to construct, improve, or repair a transmission or distribution line. Tax 11.57(3)(b)2.2. A contractor’s charges for the construction, improvement, or repair of an overhead utility transmission or distribution line installed under easement or license on land owned by others. Tax 11.57 NoteNote: See s. Tax 11.86 for more information. Tax 11.57(3)(b)4.4. Charges for X-ray testing of welding joints in the construction of overhead utility facilities. Tax 11.57(3)(b)5.5. Gas or electricity purchased for resale but used by a utility, but not gas used as a fuel in producing electricity or steam. Tax 11.57(4)(4) Nontaxable purchases. The following purchases, licenses, leases, or rentals by utilities are not subject to the tax: Tax 11.57(4)(b)(b) A steam generator or other machines and equipment exclusively and directly used in manufacturing electricity or steam. The manufacturing process begins when the coal starts moving by conveyor directly to the boiler bunker, and it ends at the generator bus duct. An overhead crane used for the installation and repair of a turbine, and a fuel storage tank are not directly used in manufacturing. Tax 11.57(4)(c)(c) Any residue used as a fuel in a business activity that results from the harvesting of timber or the production of wood products, including slash, sawdust, shavings, edgings, slabs, leaves, wood chips, bark and wood pellets manufactured primarily from wood or wood residue. Tax 11.57(4)(d)(d) Charges for X-ray testing of welding joints in the pipe as part of the construction of underground utility pipelines. Tax 11.57(5)(5) Waste treatment facilities. The sales price from the sales of and the storage, use or other consumption of tangible personal property and items and property under s. 77.52 (1) (b) and (c), Stats., which becomes a component part of an industrial waste treatment facility that is exempt or that would be exempt under s. 70.11 (21), Stats., if the property or items were taxable under ch. 70, Stats., is exempt from sales and use tax. Tax 11.57(6)(6) Transfer of transmission facilities. Excluded from the definition of “sale,” for sales and use tax purposes, is the transfer of transmission facilities, as defined in s. 196.485 (1) (h), Stats., to a transmission company, as defined in s. 196.485 (1) (ge), Stats., after the organizational start-up date, as defined in s. 196.485 (1) (dv), Stats., of such company in exchange for securities, as defined in s. 196.485 (1) (fe), Stats. Tax 11.57 NoteNote: The interpretations in s. Tax 11.57 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The exemption for sales of coal, fuel oil, propane, steam and wood became effective July 1, 1979, pursuant to Chapter 1, Laws of 1979; (b) The six-month exemption for electricity and gas became effective November 1, 1979, pursuant to Chapter 1, Laws of 1979; (c) The exemption for fuel converted to electrical energy, gas or steam by utilities became effective October 1, 1981, pursuant to Chapter 20, Laws of 1981; (d) The exemption for peat and fuel cubes produced from solid waste became effective April 2, 1986, pursuant to 1985 Wis. Act 149; (e) The exemption for wood residue became effective September 1, 1987, pursuant to 1987 Wis. Act 27; (f) The exemption for component parts of an industrial waste treatment facility became effective July 1, 1989, pursuant to 1983 Wis. Act 426, later clarified effective May 17, 1988, pursuant to 1987 Wis. Act 399; (g) The sale of gas or other fuel used to heat farm buildings, including greenhouses, that are not exempt machinery under s. Tax 11.12became taxable July 1, 1991; (h) All fuel used in farming became exempt October 1, 1991, pursuant to 1991 Wis. Act 39; (i) The exemption for electricity sold for use in farming became effective May 1, 2000, pursuant to 1999 Wis. Act 9; (j) The exclusion from the definition of sale for certain sales of transmission facilities became effective October 29, 1999, pursuant to 1999 Wis. Act 9; (k) The exemption for fuel and electricity consumed in manufacturing became exempt January 1, 2006, pursuant to 2003 Wis. Act 99; (L) The exemption for certain low-income assistance fees became effective July 1, 2007, pursuant to 2005 Wis. Act 141; (m) The exemption for biomass sold for residential use became effective December 1, 2007, pursuant to 2007 Wis. Act 20; (n) 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; (o) The exemption for services performed during a disaster period became effective January 1, 2017, pursuant to 2017 Wis. Act 290; and (p) The exemption for fuel and electricity used in ”beekeeping” became effective December 1, 2017, pursuant to 2017 Wis. Act 59. Tax 11.57 HistoryHistory: Cr. Register, January, 1979, No. 277, eff. 2-1-79; cr. (2) (L), Register, January, 1983, No. 325, eff. 2-1-83; am. (2) (a) and (4) (a), Register, June, 1983, No. 330, eff. 7-1-83; cr. (4) (c), Register, April, 1990, No. 412, eff. 5-1-90; am. (2) (e) 1., Register, June, 1990, No. 414, eff. 7-1-90; am. (1) (a), (i), (j) and (k), (2) (f), (g), (i) and (L) 7. and 8., (3) (a) and (b) 1., 2. and 4. and (4) (a), cr. (4) (d) and (5), Register, June, 1991, No. 426, eff. 7-1-91; am. (2) (i), Register, April, 1993, No. 448, eff. 5-1-93; EmR0924: emerg. am. (title), (1) (intro.), (a), (h), (i), (2) (intro.), (a), (i), (3) (a), (b) (intro.), 1., 2., (4) (intro.), (d) and (5), cr. (2) (im), (m) to (q) and (6), r. and recr. (2) (L) and (4) (c), eff. 10-1-09; CR 09-090: am. (title), (1) (intro.), (a), (h), (i), (2) (intro.), (a), (i), (3) (a), (b) (intro.), 1., 2., (4) (intro.), (d) and (5), cr. (2) (im), (m) to (q) and (6), r. and recr. (2) (L) and (4) (c) Register May 2010 No. 653, eff. 6-1-10; correction in (4) (a) made under s. 13.92 (4) (b) 7., Stats., Register August 2014 No. 704; CR 20-018: am. (2) (i), cr. (2) (r) Register July 2021 No. 787, eff. 8-1-21. Tax 11.61Tax 11.61 Veterinarians and their suppliers. Tax 11.61(1)(a)(a) Charges made by veterinarians which are exempt from the sales tax include charges for the following:
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