Tax 11.33 HistoryHistory: 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 11.34Tax 11.34 Occasional sales exemption for sale of a business or business assets. 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)2.2. A single transaction or series of transactions prior to termination of a business. Tax 11.34(2)(b)3.3. Piecemeal sales, whether part of a continuing business or prior to termination. Tax 11.34(2)(c)(c) The tax does not apply to merchandise inventory sold to another retailer who purchases it for resale and sells it in the regular course of that retailer’s business. Tax 11.34(3)(a)(a) Pursuant to s. 77.51 (9) (a) and (am), Stats., a person holding or required to hold a seller’s permit at the time of disposition of business assets may not claim that a sale of a business asset is an occasional sale, except as provided in par. (b). Tax 11.34(3)(b)(b) A sale, other than a sale described in par. (bg) or (br), is exempt from sales and use tax as an occasional sale if all of the following conditions are met: Tax 11.34(3)(b)1.1. The sale is of personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., other than inventory held for sale, previously used by a person to conduct a trade or business at a location. Tax 11.34(3)(b)2.2. The sale occurs after the person 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 11.34(3)(bg)(bg) A sale of a motor vehicle, snowmobile, recreational vehicle as defined in s. 340.01 (48r), Stats., trailer, semitrailer, all-terrain vehicle, utility terrain vehicle, off-highway motorcycle, or aircraft that is registered or titled in Wisconsin or required to be registered or titled in Wisconsin, is subject to tax unless s. Tax 11.33 (4) (a) 1. or 2. apply. Tax 11.34 NoteExample: A business has four business locations in Wisconsin and has ceased all of its business activities at one location. All of the business assets at the location where the business has ceased operating, including one motor vehicle that it used in its business, are being sold. The business is required to continue to hold a seller’s permit for its other three locations. The motor vehicle is sold, but the purchaser is not a person described in s. Tax 11.33 (4) (a) 1. or 2. The sale of the motor vehicle is not an exempt occasional sale of a business asset and the seller is required to collect tax on its sale of the motor vehicle. Tax 11.34(3)(br)(br) A sale of a boat that is registered or titled or required to be registered or titled in Wisconsin or under the laws of the United States is subject to tax unless s. Tax 11.33 (4) (b) 1. applies. Tax 11.34(3)(c)(c) A sale meeting the conditions in par. (b) is exempt from sales or use tax even though the person holds a seller’s permit for one or more other locations. Tax 11.34(3)(d)(d) The holder of a seller’s permit shall wait until ceasing business before requesting the inactivation of the permit because a person may not continue regular business operations without a permit. Tax 11.34(4)(a)(a) A permit holder may request that the department inactivate its seller’s permit by providing the department with the permit holder’s name, address, seller’s permit number, and the date the permit holder ceased business. The request may be made in any one of the following ways: Tax 11.34(4)(a)1.1. A permit holder may make a written request for seller’s permit inactivation. The department shall presume that the request was made at 12:01 a.m. on the postmark date of a postpaid properly addressed envelope, if the envelope and its contents are actually received by the department. If the retailer desires assurance that the department has received the request, the permit holder may use certified mail, return receipt requested. Tax 11.34 NoteNote: A person making a written request for seller’s permit inactivation should send its request to Wisconsin Department of Revenue, P.O. Box 8902, Madison, WI 53708-8902.
Tax 11.34(4)(a)2.2. A permit holder may make a request for seller’s permit inactivation by telephone. The department shall presume that the request was made at 12:01 a.m. on the day the department received the telephone call. Tax 11.34 NoteNote: A person requesting seller’s permit inactivation by telephone should call (608) 266-2776.
Tax 11.34(4)(a)3.3. A permit holder may make a request for seller’s permit inactivation by electronic mail. The department shall presume that the request was made at 12:01 a.m. on the day the department received the electronic mail message. Tax 11.34(4)(a)4.4. A permit holder may make a request for seller’s permit inactivation in person at one of the department’s income, sales and excise tax division offices. The department shall presume that the request was made at 12:01 a.m. on the day the department received the request.