Chapter Tax 11

Tax 11.57 Note Examples: 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 Note 2) 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) (r)

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)2. 2. In this paragraph:

Tax 11.57(2)(r)2.a. a. “Disaster period” has the meaning given in s. 77.54 (68) (b) 2., Stats.

Tax 11.57(2)(r)2.b. b. “Disaster relief work” has the meaning given in s. 77.54 (68) (b) 3., Stats.

Tax 11.57(2)(r)2.c. c. “Electric cooperative” has the meaning given in s. 76.48 (1g) (c), Stats.

Tax 11.57(2)(r)2.d. d. “State of emergency” has the meaning given in s. 77.54 (68) (b) 4m., Stats.

Tax 11.57(2)(r)2.e. e. “Telecommunications utility” has the meaning given in s. 196.01 (10), Stats.

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) (3) Taxable purchases.

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 Note Note: See s. Tax 11.86 for more information.

Tax 11.57(3)(b)3. 3. Charges for coating pipe or creosoting poles.

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(3)(b)6. 6. Charges for aerial photographs and maps.

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)(a) (a) Fuel converted to electrical energy, gas or steam by utilities, as provided under s. 77.54 (6) (am) 3., Stats.

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 Note Note: Section Tax 11.57 interprets ss. 77.51 (14g) (fm), 77.52 (1) and (2) (a) 10., and 77.54 (3), (6) (am) 1. and 3., (17), (26m), (30), (44), and (68), Stats.

Tax 11.57 Note Note: 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 History History: 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.

subch. VIII of ch. Tax 11 Subchapter VIII — Service Enterprises

Tax 11.61 Tax 11.61 Veterinarians and their suppliers.

Tax 11.61(1) (1) Sales by veterinarians.

Tax 11.61(1)(a) (a) Charges made by veterinarians which are exempt from the sales tax include charges for the following:

Tax 11.61(1)(a)1. 1. Medical services.

Tax 11.61(1)(a)2. 2. Hospitalization services.

Tax 11.61(1)(a)3. 3. Drugs.

Tax 11.61(1)(a)4. 4. Services performed to animals which are livestock or poultry as defined in s. Tax 11.12 (2) (j), bees, or farm work stock as defined in s. Tax 11.12 (2) (e), regardless of whether the service is a veterinary service.

Tax 11.61(1)(b) (b) Charges made by veterinarians which are subject to the sales tax include charges for the following activities for animals:

Tax 11.61(1)(b)1. 1. Boarding.

Tax 11.61(1)(b)2. 2. Grooming.

Tax 11.61(1)(b)3. 3. Clipping.

Tax 11.61(1)(c) (c) Sales of tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., by veterinarians which shall be taxable include the following:

Tax 11.61(1)(c)1. 1. Leashes, collars, and other pet equipment.

Tax 11.61(1)(c)2. 2. Pets.

Tax 11.61(1)(c)3. 3. Pet food, other than medicated pet food.

Tax 11.61(2) (2) Purchases by veterinarians.

Tax 11.61(2)(a) (a) Sales to veterinarians of drugs for animals and sales to veterinarians of other tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., to be used or furnished by them in the performance of their professional services to animals shall be subject to the sales or use tax, except as provided in par. (b).

Tax 11.61(2)(b) (b)

Tax 11.61(2)(b)1. 1. Veterinarians’ purchases of drugs used on farm livestock, bees, and farm work stock are exempt from tax.

Tax 11.61(2)(b)2. 2. Veterinarians’ purchases of animal identification tags from the Wisconsin department of agriculture, trade and consumer protection are exempt from tax. Purchases of animal identificationtags from other suppliers which veterinarians provide to customers in performing professional services to animals are subject to tax.

Tax 11.61(2)(b)3. 3. Veterinarians’ purchases of property used by the veterinarian in performing custom farming services as defined in s. Tax 11.12 (2) (b), and that qualify for exemption under s. 77.54 (3) (a) or (c), or (3m), Stats., are exempt from tax.

Tax 11.61 Note Note: See Publication 224, Veterinarians: How Do Wisconsin Sales and Use Taxes Affect Your Business?, for additional information on performing custom farming services by veterinarians. Publication 224 is available on the department’s web site at http://www.revenue.wi.gov/html/taxpubs.html#sales.

Tax 11.61(2)(c) (c) If the tax on sales to veterinarians is not collected by a supplier, the veterinarians shall be responsible for and shall report and pay a use tax on those purchases directly to the department.

Tax 11.61 Note Example: A veterinarian purchases drugs for pets from an out-of-state supplier not registered to collect Wisconsin sales or use tax. The veterinarian is subject to Wisconsin use tax on the purchase price of the drugs.

Tax 11.61 Note Note: Section Tax 11.61 interprets ss. 77.51 (1bm), (2d), (3pj), and (13) (m) and (o), 77.52 (2) (a) 10., and 77.54 (3), (3m), (33), and (42), Stats.

Tax 11.61 Note Note: The interpretations in s. Tax 11.61 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) Chapter 333, Laws of 1973, effective June 24, 1974, provided that a veterinarian is the consumer of all the animal medicines purchased. Prior to June 24, 1974, those purchases were exempt purchases for resale if sold independent of the performance of veterinarian services; (b) The exemption for medicines used on farm livestock, but not workstock, became effective July 1, 1986, pursuant to 1985 Wis. Act 29; (c) The exemption for animal identification tags purchased from the Wisconsin department of agriculture, trade and consumer protection became effective October 1, 1993, pursuant to 1993 Wis. Act 16; (d) The definition of “drug” is effective October 1, 2009, pursuant to 2009 Wis. Act 2; and (e) 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 11.61 History History: Cr. Register, August, 1976, No. 248, eff. 9-1-76; am. (2) (a), Register, January, 1978, No. 265, eff. 2-1-78; am. (2) (a), Register, June, 1990, No. 414, eff. 7-1-90; am. (2) (a), renum. (2) (b) to be (2) (c), cr. (2) (b) 1. and 2., Register, April, 1994, No. 460, eff. 5-1-94; EmR0924: emerg. am. (1) (a) (intro.), (c) (intro.), 3., (2) (a) and (b) 1., cr. (1) (a) 3., eff. 10-1-09; CR 09-090: am. (1) (a) (intro.), (c) (intro.), 3., (2) (a) and (b) 1., cr. (1) (a) 3. Register May 2010 No. 653, eff. 6-1-10; CR 10-094: am. (1) (a) (intro.), (b) (intro.), (c) 1., (2) (a), (b) 1., cr. (1) (a) 4., (2) (b) 3. Register November 2010 No. 659, eff. 12-1-10; CR 20-027: am. (1) (a) 4., (2) (b) 1. Register July 2021 No. 787, eff. 8-1-21; correction in (2) (b) 1. made under s. 35.17, Stats., Register July 2021 No. 787.

Tax 11.62 Tax 11.62 Barber or beauty shop operator.

Tax 11.62(1) (1) Nontaxable sales and services. Charges by a barber or beauty shop operator for services on human beings are not subject to sales tax.

Tax 11.62(2) (2) Taxable sales and services.

Tax 11.62(2)(a) (a) Sales of tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), or (d), Stats., including packaged cosmetics, hair tonics, lotions, shampoo, wigs, falls, and toupees, and their charges for servicing wigs, hair pieces, or other tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., are subject to sales tax. Except as provided in par. (b), a barber or beauty shop operator who engages in sales subject to sales tax under this subsection shall register as a retailer and is responsible for collecting and remitting to the department the tax on taxable sales or charges.

Tax 11.62(2)(b) (b) A barber or beauty shop operator’s sales are not subject to Wisconsin sales tax if the barber or beauty shop operator does not hold and is not required to hold a Wisconsin seller’s permit. A barber or beauty shop operator is not required to hold a seller’s permit and register as a retailer to collect Wisconsin sales tax if the barber or beauty shop operator’s total taxable receipts from sales of tangible personal property, items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., and taxable services are less than $2,000 during the calendar year.

Tax 11.62 Note Note: Refer to s. Tax 11.002 for a description of permit requirements, how to apply for a permit and the 15-day time period within which the department is required to act on permit applications.

Tax 11.62 Note Note: Refer to s. Tax 11.33 for additional information relating to occasional sales.

Tax 11.62(3) (3) Taxable and nontaxable purchases.

Tax 11.62(3)(a) (a) A barber or beauty shop operator’s purchases of tangible personal property, items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., and taxable services, which when resold are exempt occasional sales under sub. (2) (b) are taxable purchases of property, items, goods, and services.

Tax 11.62(3)(b) (b) Persons who register and collect sales tax under sub. (2) (a) may purchase tangible personal property, such as hair pieces, for resale without paying tax by issuing their supplier a properly completed exemption certificate, claiming resale.

Tax 11.62(3)(c) (c) Tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., purchased by a barber or beauty shop operator and used in providing services are subject to sales or use tax.

Tax 11.62(3)(d) (d) If a barber or beauty shop operator gives an exemption certificate claiming resale for tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., to a supplier and then uses or consumes the property, item, or good in providing services, the barber or beauty shop operator is liable for use tax at the time the property, item or good is first used in a taxable manner.

Tax 11.62 Note Note: Section Tax 11.62 interprets ss. 77.51 (9) and (13) (i), 77.52 (2) (a) 10., 77.54 (7), and 77.57, Stats.

Tax 11.62 Note Note: The interpretations in s. Tax 11.62 are effective under the general sales and use tax law on and after September 1, 1969; except (a) 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 and (b) The threshold for exempt occasional sales was changed to less than $2,000 in annual sales, effective for sales beginning January 1, 2018, pursuant to 2017 Wis. Act 59.

Tax 11.62 History History: Cr. Register, August, 1976, No. 248, eff. 9-1-76; am. (1) (b), Register, August, 1985, No. 356, eff. 9-1-85; r. and recr., Register, March, 1991, No. 423, eff. 4-1-91; EmR0924: emerg. am. (2) and (3), eff. 10-1-09; CR 09-090: am. (2) and (3) Register May 2010 No. 653, eff. 6-1-10; CR 20-018: am. (2) (b) Register July 2021 No. 787, eff. 8-1-21.

Tax 11.63 Tax 11.63 Radio and television stations.

Tax 11.63(1) (1) Nontaxable products and services. Sales of the following products and services are not subject to the sales and use tax:

Tax 11.63(1)(a) (a) Air time.

Tax 11.63(1)(b) (b) Advertising space.

Tax 11.63(1)(c) (c) Motion picture film or tape, and motion pictures or radio or television programs for listening, viewing, or broadcast, and advertising material related to such film or tape or programs, which are sold, leased, or rented to a motion picture theater or to a radio or television station.

Tax 11.63(1)(d) (d) The lease of space on a broadcast tower if the radio or television station owns both the broadcast tower and the land on which the tower is located.

Tax 11.63(2) (2) Taxable sales.

Tax 11.63(2)(a) (a) Charges by a radio or television station for art work, slides, films, tapes, or other tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), and (d), Stats., which the station prepares or produces for its advertisers or sponsors are subject to the sales and use tax. The charges are taxable even though a station may retain possession of the tangible personal property or item, property, or good under s. 77.52 (1) (b), (c), or (d), Stats., because “sale” is defined to include the transfer of not only title to and possession of tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., but also the transfer of enjoyment of tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats. If an advertiser maintains any control over the tangible personal property or item, property, or good under s. 77.52 (1) (b), (c), or (d), Stats., prepared or produced, such as the right to determine when the property, item, or good will be used for advertising purposes, the advertiser is deemed to have received the enjoyment of the property, item, or good.

Tax 11.63(2)(b) (b) Sales from a radio or television auction are subject to the sales and use tax.

Tax 11.63 Note Example: A radio station has a program where the announcer places items of merchandise of local retailers or sponsors up for bid to the station’s listeners. The successful bidder, chosen by the radio station, delivers the purchase price of the merchandise to the radio station and receives a purchase certificate that allows him to redeem the merchandise from the retailer or sponsor. The purchase money is retained by the radio station, although the retailer is compensated by the station for its participation in the form of radio advertising. The radio station is subject to sales tax on the receipts from the program.

Tax 11.63(2)(c) (c) When a radio or television station advertises on behalf of persons to sell merchandise or taxable services, the station is a marketplace provider and shall collect and remit tax on the sales if the station directly or indirectly, through agreements or arrangements with third parties, processes the payment from the purchaser for the retail sale, regardless of whether the station receives compensation or other consideration in exchange for the services provided by the station.

Tax 11.63(2)(d) (d) Charges by a radio or television station for access to a website that provides news or other information products. This is the sale of an additional digital good, regardless of whether sold for a one-time use or sold on a subscription.

Tax 11.63(2)(e) (e) Sales of program material, except as provided in sub. (1) (c).

Tax 11.63(2)(f) (f) The lease of space on a broadcast tower if the radio or television station owns the broadcast tower, but does not own the land on which the broadcast tower is located.