Tax 11.925(5)(d)3.3. No delinquencies of sales or use tax, interest, or other charges existed. Tax 11.925(5)(d)4.4. No penalties due to negligence or fraud were assessed for filing periods within the 24-month compliance period. Tax 11.925(5)(d)5.5. No assessment of additional tax, interest, or other charges for filing periods within the 24-month compliance period is unpaid at the end of the 24-month compliance period. Tax 11.925(5)(e)(e) If a taxpayer does not meet the compliance requirements set forth in par. (d), the deposit shall be retained by the department until the taxpayer is in compliance for 24 consecutive months from the date of the latest non-compliance. Tax 11.925 NoteNote: The interpretations in s. Tax 11.925 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The return of deposit provisions in sub. (5) became effective March 13, 1980, pursuant to Chapter 125, Laws of 1979; (b) The $15,000 limit for security deposits became effective October 1, 1985, pursuant to 1985 Wis. Act 29; and (c) The provision to require certified service providers to submit surety bonds and the provision to allow the secretary of revenue to waive the requirement became effective October 1, 2009, pursuant to 2009 Wis. Act 2. Tax 11.925 HistoryHistory: Cr. Register, July, 1981, No. 307, eff. 8-1-81; am. (1), (2) (a) 1., 3., and 4., (3) (b) 2., and (5) (c), Register, March, 1991, No. 423, eff. 4-1-91; am. (1), (2) (b), (3) (b) 1., (5) (c), (d) 4. and 5., r. (3) (a) 3., Register, December, 1992, No. 444, eff. 1-1-93; EmR0924: emerg. renum. (1) to be (1) (a) and am., cr. (1) (b), am. (2) (a) 1., (3) (a) 1., (5) (a), (d) 3. and 5., eff. 10-1-09; CR 09-090: renum. (1) to be (1) (a) and am., cr. (1) (b), am. (2) (a) 1., (3) (a) 1., (5) (a), (d) 3. and 5. Register May 2010 No. 653, eff. 6-1-10. Tax 11.93Tax 11.93 Annual filing of sales tax returns. Tax 11.93(1)(1) A retailer holding a regular seller’s permit who during the previous calendar or fiscal year had a sales and use tax liability not exceeding $600 will be notified by the department that it must only file one sales and use tax return for the following year. If the retailer wants to continue to file returns on a quarterly basis, it must contact the department. Tax 11.93(2)(2) Returns and payments of retailers reporting on an annual basis shall be due and payable on the last day of the month following the close of their calendar or fiscal year. Tax 11.93 NoteNote: The interpretations in s. Tax 11.93 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) A $300 standard applied to taxable years beginning on and after January 1, 1979. Prior to that date, a $100 standard applied; (b) The “annual information return” was eliminated for 1981 and subsequent years, pursuant to Chapter 221, Laws of 1979; and (c) The $600 standard applies on and after January 1, 2014. Tax 11.93 HistoryHistory: Cr. Register, December, 1978, No. 276, eff. 1-1-79; cr. (4), Register, January, 1983, No. 325, eff. 2-1-83; r. (3) and (4), Register, June, 1991, No. 426, eff. 7-1-91; EmR0924: emerg. am. (1), eff. 10-1-09; CR 09-090: am. (1) Register May 2010 No. 653, eff. 6-1-10; EmR1323: emerg. am. (1), eff. 1-1-14; CR 13-095: am. (1) Register May 2014 No. 701, eff. 6-1-14. Tax 11.94(1)(1) Definition. “Delivery charges” is defined in s. 77.51 (2m), Stats., to mean charges by a seller to prepare and deliver tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., or services to a location designated by the purchaser of the tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., or services, including charges for transportation, shipping, postage, handling, crating, and packing. Tax 11.94(2)(a)(a) When a seller charges a purchaser for the delivery of taxable tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., the seller’s total charge, including any delivery charge, shall be subject to the sales or use tax. It is immaterial whether delivery is made by the seller’s vehicle, a common or contract carrier, or the United States postal service. Tax 11.94 NoteExample: Retailer A sells clothing to Customer B for $100. Retailer A also charges Customer B $10 for delivery of the clothing. Retailer A delivers the clothing to Customer B at a Wisconsin address for which the total applicable sales and use tax rate is 5%. The correct computation of the tax due is as follows:
Tax 11.94(2)(b)(b) When a seller charges a purchaser for the delivery of nontaxable or exempt tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., the seller’s total charge, including any delivery charge, is not subject to the sales or use tax. Tax 11.94(2)(c)1.1. If a shipment includes both taxable and nontaxable property and items the seller shall determine and set forth on the invoice the portion of the delivery charge reasonably allocable to the taxable property and items. The portion allocated to nontaxable property and items is not taxable. If no allocation is made, the total delivery charge shall be taxable. Tax 11.94(2)(c)2.a.a. The total sales price of all of the property and items subject to tax as compared to the total sales price of all of the property and items included in the shipment. Tax 11.94(2)(c)2.b.b. The total weight of all of the property and items subject to tax as compared to the total weight of all of the property and items included in the shipment. Tax 11.94(2)(d)(d) A Wisconsin purchaser who purchases taxable property and items without tax for use in Wisconsin is subject to the use tax or sales tax pursuant to s. Tax 11.14 (2) (c) based on the “purchase price” of the property and items to the purchaser. The “purchase price” shall include delivery charges paid by the Wisconsin purchaser to the seller for shipment of the property and items to the purchaser. The “purchase price” does not include delivery charges paid by the Wisconsin purchaser to a carrier independent of the seller when the purchaser arranges for the transportation. Tax 11.94 NoteExample: If the “delivered price” of a carload of lumber is $6,000, including delivery charges, and the purchaser pays the delivery charges directly to the common carrier and deducts the payment from the amount due the seller, the delivery charges are borne by the seller and are included in the seller’s measure of the tax.
Tax 11.94(3)(a)(a) Delivery charges for “other direct mail” are not subject to sales or use tax if the delivery charges are separately stated on the invoice, bill of sale, or similar document that the seller gives to the purchaser. Delivery charges for “advertising and promotional direct mail” are exempt from sales and use tax regardless of whether they are separately stated on the invoice, bill of sale, or similar document. Tax 11.94(3)(b)(b) “Direct mail” is defined in s. 77.51 (3pd), Stats., to mean printed material that is delivered or distributed by the U.S. postal service or other delivery service to a mass audience or to addressees on a mailing list provided by or at the direction of the purchaser of the printed material, if the cost of the printed material or any tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., included with the printed material is not billed directly to the recipients of the printed material. “Direct mail” includes any tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., provided directly or indirectly by the purchaser of the printed material to the seller of the printed material for inclusion in any package containing the printed material, including billing invoices, return envelopes, and additional marketing materials. “Direct mail” does not include multiple items of printed material delivered to a single address. Tax 11.94 NoteNote: The interpretations in s. Tax 11.94 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The definitions of “delivery charges” and “direct mail,” and 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; (b) The definitions of “advertising and promotional direct mail” and “other direct mail” became effective May 27, 2010, pursuant to 2009 Wis. Act 330; and (c) The sales and use tax exemption for advertising and promotional direct mail, which includes the delivery charges for advertising and promotional direct mail, became effective July 1, 2013, pursuant to 2011 Wis. Act 32. Tax 11.94 HistoryHistory: Cr. Register, January, 1978, No. 265, eff. 2-1-78; am. (1) (e), r. (2) (b), renum. (2) (c), (d) and (e) to be (2) (b), (c) and (d), Register, September, 1984, No. 345, eff. 10-1-84; am. (2) (c), Register, July, 1987, No. 379, eff. 8-1-87; am. (1) (e) and (2) (b) and (d), Register, June, 1991, No. 426, eff. 7-1-91; reprinted to restore dropped copy in (1) (b), Register, December, 1995, No. 480; am. (1) (d), (2) (a) and (c), r. (2) (d), Register, October, 1999, No. 526, eff. 11-1-99; 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. (3) (a) Register November 2010 No. 659, eff. 12-1-10; CR 13-011: am. (3) (a) Register August 2013 No. 692, eff. 9-1-13. Tax 11.945(1)(a)(a) “Advertising and promotional direct mail,” as provided in s. 77.51 (1ag), Stats., means direct mail that has the primary purpose of attracting public attention to a product, person, business, or organization or to attempt to sell, popularize, or secure financial support for a product, person, business, or organization. Tax 11.945(1)(b)1.1. “Other direct mail,” as provided in s. 77.51 (9r), Stats., means any direct mail that is not advertising and promotional direct mail, regardless of whether advertising and promotional direct mail is included in the same mailing. “Other direct mail” includes: Tax 11.945(1)(b)1.a.a. Transactional direct mail that contains personal information specific to the addressee, including invoices, bills, account statements, and payroll advices. Tax 11.945(1)(b)1.b.b. Any legally required mailings, including privacy notices, tax reports, and stockholder reports. Tax 11.945(1)(b)1.c.c. Other nonpromotional direct mail, including newsletters and informational pieces, that is delivered to existing or former shareholders, customers, employees, or agents. Tax 11.945(1)(b)2.2. “Other direct mail” does not include printed materials that result from developing billing information or providing any data processing service that is more than incidental, as defined in s. 77.51 (5), Stats., to producing other direct mail. Tax 11.945(1)(c)(c) “Product,” as provided in s. 77.51 (11d), Stats., includes tangible personal property, and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., and services. Tax 11.945(1)(d)(d) “Receive,” as defined in s. 77.522 (1) (a) 1., Stats., means taking possession of tangible personal property or items or property under s. 77.52 (1) (b) or (c), Stats.; making first use of services; or taking possession or making first use of digital goods under s. 77.52 (1) (d), Stats., whichever comes first. “Receive” does not include a shipping company taking possession of tangible personal property or items or property under s. 77.52 (1) (b) or (c), Stats., on a purchaser’s behalf. Tax 11.945(1)(e)1.1. Locomotives and railcars that are used to carry persons or property in interstate commerce. Tax 11.945(1)(e)2.2. Trucks and truck tractors that have a gross vehicle weight rating of 10,001 pounds or greater, trailers, semitrailers, and passenger buses, if such vehicles are registered under the international registration plan under s. 341.405, Stats., and operated under the authority of a carrier that is authorized by the federal government to carry persons or property in interstate commerce. Tax 11.945(1)(e)3.3. Aircraft that are operated by air carriers that are authorized by the federal government or a foreign authority to carry persons or property in interstate or foreign commerce. Tax 11.945(1)(e)4.4. Containers that are designed for use on the vehicles described in subds. 1. to 3. and component parts attached to or secured on such vehicles. Tax 11.945(2)(2) Sourcing — General. Except as provided in subs. (3), (4), and (5), and except as provided in s. Tax 11.66 (3) relating to the sourcing of telecommunications services, ancillary services, and Internet access services, a sale is sourced to a location based on the following: Tax 11.945(2)(a)(a) If a purchaser receives the product at a seller’s business location, the sale is sourced to that business location. Tax 11.945(2)(b)(b) If a purchaser does not receive the product at a seller’s business location, the sale is sourced to the location where the purchaser, or the purchaser’s designated donee, receives the product. This would include the location indicated by instructions known to the seller for delivery to the purchaser or the purchaser’s designated donee. The delivery may be made by the seller or by a shipping company hired by the seller or purchaser. Tax 11.945(2)(c)(c) If the location of a sale cannot be determined under pars. (a) and (b), the sale is sourced to the purchaser’s address as indicated by the seller’s business records, if the records are maintained in the ordinary course of the seller’s business and if using that address to establish the location of the sale is not in bad faith. Tax 11.945(2)(d)(d) If the location of a sale cannot be determined under pars. (a), (b), and (c), the sale is sourced to the purchaser’s address as obtained during the consummation of the sale, including the address indicated on the purchaser’s payment instrument, if no other address is available and if using that address to determine the location of the sale is not in bad faith. Tax 11.945(2)(e)(e) If the location of a sale cannot be determined under pars. (a), (b), (c), and (d), including the circumstance in which the seller has insufficient information to determine the locations under pars. (a), (b), (c), and (d), the location of the sale is sourced as follows: Tax 11.945(2)(e)1.1. If the item sold is tangible personal property or an item or property under s. 77.52 (1) (b) or (c), Stats., the sale is sourced to the location from which the tangible personal property or item or property under s. 77.52 (1) (b) or (c), Stats., is shipped. Tax 11.945(2)(e)2.2. If the item sold is a digital good or computer software delivered electronically, the sale is sourced to the location from which the digital good or computer software was first available for transmission by the seller, not including any location that merely provided the digital transfer of the product sold. Tax 11.945(2)(e)3.3. If a service is sold, the sale is sourced to the location from which the service was provided. Tax 11.945(3)(a)1.1. Sales of advertising and promotional direct mail sourced to Wisconsin are exempt from Wisconsin sales and use taxes. However, sales of advertising and promotional direct mail sourced to another state may be subject to that other state’s sales or use tax. Tax 11.945(3)(a)2.2. A sale of advertising and promotional direct mail, including a sale of a service that is an integral part of the production and distribution of advertising and promotional direct mail, is sourced to the location from which the advertising and promotional direct mail was shipped if the purchaser does not provide to the seller any of the following: Tax 11.945(3)(a)2.c.c. Other information that indicates the appropriate taxing jurisdiction to which the advertising and promotional direct mail is delivered to the ultimate recipients. Tax 11.945(3)(a)3.3. If the purchaser provides one of the items indicated in subd. 2. a. or b., to the seller, the purchaser shall source the sales to the jurisdictions to which the advertising and promotional direct mail is delivered to the recipients. Tax 11.945(3)(a)4.4. If the purchaser provides delivery information as provided in subd. 2. c., the seller shall source the sales according to that information. Tax 11.945(3)(a)5.5. An exemption certificate provided by the purchaser under subd. 2. b. remains in effect for all sales by the seller who received the exemption certificate to the purchaser who provided the exemption certificate. Tax 11.945(3)(a)6.a.a. Except as provided in subd. 6. b., if a transaction is a bundled transaction that includes “advertising and promotional direct mail,” subds. 2. to 5. only apply if the primary purpose of the transaction is the sale of products or services that meet the definition of advertising and promotional direct mail. Tax 11.945(3)(a)6.b.b. If advertising and promotional direct mail and other direct mail are included in a single mailing, the sale of that mailing is sourced the same as “other direct mail” as explained in par. (b). Tax 11.945(3)(b)1.1. The sale of “other direct mail,” including a sale characterized under Wisconsin law as the sale of a service when the service is an integral part of the production and distribution of printed material that meets the definition of “other direct mail,” is sourced to the purchaser’s address as indicated by the seller’s business records, if the records are maintained in the ordinary course of the seller’s business and if using that address to establish the location of the sale is not in bad faith, unless the purchaser provides the seller with either of the following: Tax 11.945(3)(b)2.2. If the purchaser provides one of the items indicated in subd. 1. a. or b., to the seller, the purchaser shall source the sale to the jurisdictions to which the other direct mail is to be delivered to the recipients and the purchaser shall pay or remit to the department the tax imposed under s. 77.53, Stats., on its purchases of other direct mail for which the tax is due, and in the absence of bad faith, the seller is relieved from liability for collecting the tax. Tax 11.945(3)(b)3.3. If “advertising and promotional direct mail” and “other direct mail” are included in a single mailing, the sale of that mailing is sourced as a sale of “other direct mail.” Tax 11.945(3)(c)(c) Development of billing information and providing data processing services. Tax 11.945(3)(c)1.1. A transaction that includes the development of billing information or the provision of a data processing service that is more than incidental, as defined in s. 77.51 (5), Stats., to producing direct mail is not sourced as a sale of direct mail, but instead is sourced using the general sourcing rules provided in sub. (2). Tax 11.945(3)(c)2.2. A transaction that includes data processing services that are incidental, as defined in s. 77.51 (5), Stats., to producing direct mail are sourced using the direct mail sourcing rules provided in this subsection. Tax 11.945(4)(a)(a) First or only payment. Except as provided in pars. (c) and (e), for lease, license, and rental agreements that only require one payment and for the first payment on lease, license, and rental agreements that require more than one payment, the lease, license, or rental is sourced to the location where the purchaser receives the product, as follows: Tax 11.945(4)(a)1.1. If the tangible personal property or item, property, or good under s. 77.52 (1) (b), (c), or (d), Stats., is received by the lessee or licensee at the lessor’s or licensor’s business location, the first or only payment is sourced to the lessor’s or licensor’s business location. Tax 11.945(4)(a)2.2. If the tangible personal property or item, property, or good under s. 77.52 (1) (b), (c), or (d), Stats., is not received by the lessee or licensee at the lessor’s or licensor’s business location, the first or only payment is sourced to the location where the lessee or licensee or the lessee’s or licensee’s designated donee receives the product. This would include the location indicated by instructions known to the lessor or licensor for delivery to the lessee or licensee or the lessee’s or licensee’s designated donee. The delivery may be made by the lessor or licensor or by a shipping company hired by the lessee or licensee. Tax 11.945(4)(a)3.3. If the location cannot be determined under subds. 1. and 2., the first or only payment is sourced to the lessee’s or licensee’s address as indicated by the lessor’s or licensor’s business records, if the records are maintained in the ordinary course of the lessor’s or licensor’s business and if using that address to establish the location of the lease, license, or rental is not in bad faith. Tax 11.945(4)(a)4.4. If the location cannot be determined under subds. 1., 2., and 3., the first or only payment is sourced to the lessee’s or licensee’s address as obtained during the consummation of the lease, license, or rental, including the address indicated on the lessee’s or licensee’s payment instrument, if no other address is available and if using that address to determine the location of the lease, license, or rental is not in bad faith. Tax 11.945(4)(a)5.5. If the location cannot be determined under subds. 1., 2., 3., and 4., the first or only payment is sourced as follows:
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