Tax 11.33(4)(b)2. 2. The boat is sold by a nonprofit organization meeting the requirements in s. Tax 11.35 (4).

Tax 11.33(4)(c) (c) Except as provided in pars. (a) and (b), five or fewer auctions that are the sale of personal farm property or household goods and that are held by the same auctioneer at the same location during the year. For indoor locations, “location” means a building, except that in the case of a shopping center or shopping mall, “location” means a store.

Tax 11.33 Note Note: Refer to s. Tax 11.50 (4) and (5) regarding exempt occasional sales at auction of personal farm property and household goods.

Tax 11.33(4)(d) (d) Except as provided in pars. (a) and (b), sales of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., by an individual who operates a sole proprietorship and who holds or is required to hold a seller’s permit, which have not been used in the course of the person’s business and the sales are not the type of property, items, or goods sold in the course of the person’s business. However, all tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., sold by a corporation or partnership which holds or is required to hold a seller’s permit shall be considered to be used or sold in the course of the organization’s business activities and are taxable.

Tax 11.33 Note Example: A taxpayer operates a service station as a sole proprietor and holds a seller’s permit for the purpose of selling cigarettes and repairing motor vehicles. The sales price from selling a refrigerator and stove used in the taxpayer’s residence are not subject to the sales tax. However, the sales price from the sale of a desk and refrigerator which were used in the service station’s business activities are subject to the sales tax.

Tax 11.33(4)(e) (e) Except as provided in pars. (a) and (b), the sale of a business or business assets, not including inventory held for sale, previously used by a seller to conduct its trade or business at a location after that person has ceased actively operating in the regular course of business as a seller of tangible personal property, items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., or taxable services at that location.

Tax 11.33 Note Note: Refer to s. Tax 11.34 regarding the occasional sales exemption for the sale of a business or business assets.

Tax 11.33(4)(f) (f) Except as provided in pars. (a) and (b), sale of tangible personal property, items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., or taxable services by a person who does not hold and is not required to hold a seller’s permit, if the total taxable sales price from sales of tangible personal property, items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., and taxable services are less than $2,000 during the calendar year. However, purchases of tangible personal property, items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., or taxable services which when resold are exempt under this paragraph, are taxable purchases by that person. This paragraph does not apply to nonprofit organizations.

Tax 11.33 Note Examples: 1) If the sales price from a person’s garage and rummage sales, lawn maintenance services, bait sales to fishermen, sales of books, charges for parking and other normally taxable receipts are less than $2,000 during the calendar year, that person’s receipts are deemed exempt occasional sales under par. (f). However, purchases by the seller of the tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., which are sold are taxable.

Tax 11.33 Note 2) Sales of soft drinks by employee groups are not taxable if the sales price from soft drink sales are less than $2,000 per year. These groups are deemed consumers and the supplier’s sales to them are taxable retail sales.

Tax 11.33(4)(g) (g) Sales by nonprofit organizations meeting the requirements in s. 77.54 (7m), Stats.

Tax 11.33 Note Note: Refer to s. Tax 11.35 regarding the occasional sales exemption for nonprofit organizations.

Tax 11.33(5) (5) Sales which are not exempt occasional sales. Sales which are not exempt occasional sales, except as provided in sub. (4), include:

Tax 11.33(5)(a) (a) Sales by a person who holds or is required to hold a seller’s permit.

Tax 11.33 Note Example: Sales of used equipment by a retail store or vending machine retailer are not occasional sales and would be subject to sales or use tax.

Tax 11.33(5)(b) (b) Sales of a business or the assets of a business when the seller holds or is required to hold a seller’s permit. The tax applies to the portion of the sales price reasonably attributable to the taxable personal property such as equipment, furniture and fixtures.

Tax 11.33 Note Example: The sale by a sole proprietor holding a seller’s permit of a motor vehicle used in the sole proprietor’s business is taxable unless it qualifies as an exempt occasional sale under s. Tax 11.33 (4) (a) 1. or 2.

Tax 11.33(5)(c) (c) Sales of motor vehicles, aircraft, boats, recreational vehicles as defined in s. 340.01 (48r), Stats., snowmobiles, trailers, semitrailers, all-terrain vehicles, utility terrain vehicles, and off-highway motorcycles. Unless exempt, a use tax or sales tax pursuant to s. Tax 11.14 (2) (c) shall be paid by the purchaser at the time the motor vehicle, aircraft, boat, recreational vehicle as defined in s. 340.01 (48r), Stats., snowmobile, trailer, semitrailer, all-terrain vehicle, utility terrain vehicle, or off-highway motorcycle is registered or titled within Wisconsin.

Tax 11.33(5)(d) (d) Sales made by persons who hold themselves out to the public as engaged in business, even though their sales may be few and infrequent. This includes the sales of works of art, handmade articles, antiques or used property by artists or others who are pursuing a vocation or part-time business as a seller of this property.

Tax 11.33(5)(e) (e) Sales of bingo supplies to players or the sale, rental or use of regular bingo cards, extra regular cards and special bingo cards.

Tax 11.33(5)(f) (f) Sales by persons engaged primarily in the business of making nontaxable sales of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., such as manufacturers and wholesalers. Since these persons are in the business of selling tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., the mere fact that only a small fraction of their total sales are taxable retail sales does not make these sales exempt occasional sales.

Tax 11.33 Note Note: Section Tax 11.33 interprets ss. 77.51 (9), 77.52 (1) and (2) (a) 2. and 77.54 (7) and (7m), Stats.

Tax 11.33 Note Note: The interpretations in s. Tax 11.33 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The exemption in sub. (3) (b) became effective March 1, 1979; (b) Non-retailer sales of all-terrain vehicles as described in sub. (4) (c) became taxable and the sale of an all-terrain vehicle as described in sub. (3) (c) and (d) became exempt effective September 1, 1987, pursuant to 1987 Wis. Act 27; (c) The exemption for the sale of a business or business assets in sub. (3) (e) became effective May 17, 1988, pursuant to 1987 Wis. Act 399; (d) The exemption for transfers of motor vehicles, boats, etc., to in-laws became effective August 15, 1991, pursuant to 1991 Wis. Act 39; (e) The occasional sales exemption for 5 or fewer auctions became effective January 1, 2000, pursuant to 1999 Wis. Act 9; (f) The term “mobile home” was changed to “recreational vehicle, as defined in s. 340.01 (48r), Stats.” effective January 1, 2008, pursuant to 2007 Wis. Act 11; (g) 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; and (h) 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 11.33 History History: Cr. Register, June, 1991, No. 426, eff. 7-1-91; am. (2), (4) (c) and (g), Register, April, 1993, No. 448, eff. 5-1-93; am. (4) (a) and (g), Register, August, 1999, No. 524, eff. 9-1-99; EmR0924: emerg. am. (2), (4) (a) to (d), (f), (g), (5) (b) to (d) and (f), eff. 10-1-09; CR 09-090: am. (2), (4) (a) to (d), (f), (g), (5) (b) to (d) and (f) Register May 2010 No. 653, eff. 6-1-10; CR 10-094: am. (4) (c) Register November 2010 No. 659, eff. 12-1-10; CR 12-014: r. and recr. (4), am. (5) (title), cr. (5) (b) (Example) Register August 2012 No. 680, eff. 9-1-12; CR 14-006: am. (4) (f) (Example 1) Register August 2014 No. 704, eff. 9-1-14; CR 16-053: am. (4) (a) (intro.), 3., (5) (c) Register June 2018 No. 750, eff. 7-1-18; CR 19-112: am. (4) (a) (intro.), 3., (5) (c) Register June 2020 No. 774, eff. 7-1-20; CR 20-018: am. (4) (f), (Example 1), (Example 2) Register July 2021 No. 787, eff. 8-1-21.

Tax 11.34 Tax 11.34 Occasional sales exemption for sale of a business or business assets.

Tax 11.34(1) (1) Scope. This section describes the exemption under s. 77.54 (7) (a), Stats., for the occasional sale of a business or business assets as described in s. 77.51 (9) (a) and (am), Stats.

Tax 11.34(2) (2) General.

Tax 11.34(2)(a) (a) The sale of business assets, consisting of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., by a person who holds or is required to hold a seller’s permit at the time of the sale is subject to sales tax, except as provided in sub. (3) (c).

Tax 11.34(2)(b) (b) Except as provided in sub. (3) (c), the tax applies if the business assets are sold as: