Tax 11.01 History History: Cr. Register, February, 1978, No. 266, eff. 3-1-78; am. (1) (a), r. (1) (d), cr. (1) (m), Register, January, 1983, No. 325, eff. 2-1-83; r. and recr., Register, March, 1991, No. 423, eff. 4-1-91; r. (1) (e), renum. (1) (f) to (i) to be (1) (e) to (h), Register, January, 1992, No. 433, eff. 2-1-92; am. (1) (b), cr. (1) (i), (j) and (k), Register, October, 1997, No. 502, eff. 11-1-97; CR 01-143: am. (1) (b), r. (1) (c), (d), (e) and (h), renum. (1) (f), (g), (i), (j) and (k) to be (1) (c) to (g) and am. (1) (d), r. and recr. (2) Register July 2002 No. 559, eff. 8-1-02; CR 10-093: am. (title), (1) (intro.), (a), (b), (c), (2) (a) 3., (b), (c) (intro.), (d) (intro.), 1., cr. (1) (h), (i), (2) (bg), (br) Register November 2010 No. 659, eff. 12-1-10; correction in (1) (a) made under s. 13.92 (4) (b) 7., Stats., Register November 2010 No. 659; CR 16-053: am. (1) (g) Register June 2018 No. 750, eff. 7-1-18; CR 19-112: cr. (1) (gm) Register June 2020 No. 774, eff. 7-1-20.

subch. II of ch. Tax 11 Subchapter II — Exempt Entities

Tax 11.03 Tax 11.03 Schools and related organizations.

Tax 11.03(1) (1) Definitions.

Tax 11.03(1)(a) (a) In this section:

Tax 11.03(1)(a)1. 1. “Elementary school” means a school providing any of the first 8 grades of a 12 grade system and kindergarten where applicable.

Tax 11.03(1)(a)2. 2. “School district” has the same meaning as provided for in s. 115.01 (3), Stats.

Tax 11.03(1)(a)3. 3. “Secondary school” means a school providing grades 9 through 12 of a 12 grade system and includes the junior and senior trade schools described in s. 119.30, Stats.

Tax 11.03(1)(b) (b) Elementary and secondary schools include parochial and private schools not operated for profit which offer any academic levels comparable to those described in par. (a) 1. and 3. and which are educational institutions having a regular curriculum offering courses for at least 6 months in the year. Elementary and secondary schools also include school districts for purposes of exemption under s. 77.54 (4), Stats.

Tax 11.03(1)(c) (c) Elementary or secondary schools do not include flying schools, driving schools, art schools, music schools, dance schools, modeling schools, charm schools, or similar schools which do not offer systematic instruction of the scope and intensity common and comparable to elementary and secondary schools.

Tax 11.03(2) (2) Sales by elementary and secondary schools.

Tax 11.03(2)(a) (a) Exempt sales by elementary or secondary schools include:

Tax 11.03(2)(a)1. 1. The sale or rental of books, yearbooks, annuals, magazines, directories, bulletins, papers, or similar publications.

Tax 11.03(2)(a)2. 2. School lunches and library and book fines.

Tax 11.03 Note Example: A school auditorium is rented to a religious group which conducts a religious revival. The sales price from the rental is exempt.

Tax 11.03(2)(a)3. 3. Rental of auditoriums or gymnasiums, including any charges for lights, heat, janitor fees, and equipment, when used for other than recreational, athletic, amusement, or entertainment purposes.

Tax 11.03(2)(a)4. 4. Rental of auditoriums or gymnasiums, including any charges for lights, heat, janitor fees, and equipment, when used by a promoter or professional group which will sell admissions to the public for recreational, athletic, amusement, or entertainment purposes.

Tax 11.03 Note Examples: 1) A school gymnasium is rented to a professional basketball team which will sell tickets to the event. The sales price from the rental is exempt.

Tax 11.03 Note 2) A school auditorium is rented to a popular band for one night. The band will sell tickets to its performance. The sales price from the rental is exempt.

Tax 11.03(2)(a)5. 5. Admissions to school activities such as athletic events, art and science fairs, concerts, dances, films or other exhibits, lectures, and school plays, if the event is sponsored by the school, the school has control over purchases and expenditures and the net proceeds are used for educational, religious, or charitable purposes.

Tax 11.03(2)(a)6. 6. The transfer of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., to a contractor for performance of a real property construction activity in exchange for a reduction in the contract price, even though the contract provides that the contractor is to supply all materials.

Tax 11.03(2)(b) (b) Taxable sales by elementary or secondary schools include:

Tax 11.03(2)(b)1. 1. Admissions to recreational facilities, such as golf courses, swimming pools, ball fields, and gymnasiums which are open to the general public for recreational purposes.

Tax 11.03(2)(b)2. 2. Rental of auditoriums or gymnasiums, including any charges for lights, heat, janitor fees, and equipment, when used by persons for their own recreation, entertainment, or amusement where there is no charge for admission.

Tax 11.03 Note Example: A local neighborhood group rents the school gymnasium for its residents to play volleyball. The neighborhood group does not charge its residents to play volleyball. The sales price from the rental is taxable. If the group charged an entry fee to play volleyball, the sales price from the rental of the gymnasium is not taxable because the rental is for resale.

Tax 11.03(2)(b)3. 3. Taxable services under s. 77.52 (2) (a), Stats., such as parking and repair services.

Tax 11.03 Note Example: A school sponsors an athletic tournament and charges $1 for parking. The sales price from parking is taxable.

Tax 11.03(3) (3) Sales by school-related organizations and others. Taxable sales by school-related organizations and others, not including school districts, include:

Tax 11.03(3)(a) (a) The sale of class rings, photographs, or caps and gowns rented or sold to students by retailers or photographers where the school acts as a collection agent for the seller, whether or not the school receives a commission for the collection. The retailer, such as a photographer, is subject to the tax on these sales.