Tax 11.41(4) (4) Fuel and electricity.

Tax 11.41(4)(a) (a) Fuel and electricity are specifically excluded from the exemption provided by s. 77.54 (2), Stats. However, an exemption is provided in s. 77.54 (30) (a) 6., Stats., for fuel and electricity consumed in manufacturing tangible personal property or items or property under s. 77.52 (1) (b) or (c), Stats., in this state. Consistent with s. 77.51 (7h), Stats., “fuel and electricity consumed in manufacturing” means only fuel and electricity used to operate machines and equipment used directly in the step-by-step manufacturing process and does not include fuel and electricity consumed in providing plant heating, cooling, air conditioning, communications, lighting, safety and fire prevention, storing raw materials or finished units of tangible personal property or items or property under s. 77.52 (1) (b) or (c), Stats., research and product development, delivery to or from the plant, repairing or maintaining plant facilities, or shipping, advertising, distribution, sales, or administrative department activities.

Tax 11.41(4)(b) (b) Fuel includes:

Tax 11.41(4)(b)1. 1. Oxygen used to enrich the fuel mixture in an industrial furnace, or oxygen and acetylene used in a welding process.

Tax 11.41(4)(b)2. 2. Coal or coke used by a foundry, except the portion of the coke which actually becomes an ingredient or component part of any grey-iron produced.

Tax 11.41(4)(b)3. 3. Gasoline, fuel oil, kerosene, natural gas, liquid propane gas, also called LPG, or other natural or synthetic liquids used as fuel.

Tax 11.41 Note Note: Since “fuel” is not defined in the sales and use tax statutes, it shall be given its ordinary meaning as provided in a dictionary. Dictionaries generally define fuel as a material used to produce heat or power by burning, or something that feeds a fire.

Tax 11.41 Note Note: Section Tax 11.41 interprets ss. 77.51 (7h) and 77.54 (2), (6) (am) 1. and (cn), and (30) (a) 6., Stats.

Tax 11.41 Note Note: The interpretations in s. Tax 11.41 are effective under the general sales and use tax law on and after September 1, 1969, except that (a) The exemption for wood residue was effective on September 1, 1987, pursuant to 1987 Wis. Act 27; (b) The exemption for fuel and electricity consumed in manufacturing was effective January 1, 2006 pursuant to 2003 Wis. Act 99; (c) The requirement that property and items which qualify for exemption under s. 77.54 (2), Stats., be consumed exclusively and directly by a manufacturer in manufacturing property and items destined for sale became effective August 1, 2009, pursuant to 2009 Wis. Act 28; and (d) 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., and certain leased property affixed to real property under s. 77.52 (1) (c), Stats., became effective October 1, 2009, pursuant to 2009 Wis. Act 2.

Tax 11.41 History History: Cr. Register, November, 1977, No. 263, eff. 12-1-77; cr. (3) (a) 15. and am. (4) (h), Register, October, 1979, No. 286, eff. 11-1-79; am. (3) (a) 4., Register, July, 1987, No. 379, eff. 8-1-87; am. (5) (intro.), Register, April, 1990, No. 412, eff. 5-1-90; am. (2) (intro.), (3) (b) and (4) (intro.), cr. (5) (c), Register, March, 1991, No. 423, eff. 4-1-91; r. and recr. (1), r. (2), (3) (b), cr. (2) (a) 4. b., (b), (4) (b) (intro.), renum. (3) (a) (intro.), 1. to 15., (4), (5) (intro.), (a), (b) and (c) to be (2) (a) (intro.), 1. to 4. a., 5 to 15., (3), (4) (a), (b) 1. to 3. and am. (2) (a) 4. a., (3) (intro.), (4) (a), Register, October, 1997, No. 502, eff. 11-1-97; am. (1) (b) 2. b., (3) (b) and (h), Register, August, 1999, No. 524, eff. 9-1-99; EmR0924: emerg. am. (title), (1) (a), (2) (title), (a) (intro.), (b) and (4) (a), r. and recr. (1) (b) and (3), eff. 10-1-09; CR 09-090: am. (title), (1) (a), (2) (title), (a) (intro.), (b) and (4) (a), r. and recr. (1) (b) and (3) Register May 2010 No. 653, eff. 6-1-10; CR 10-094: am. (2) (a) (intro.), 15., (3) (a) (intro.), r. and recr. (2) (a) 4., cr. (3) (a) 3., (b) 9. Register November 2010 No. 659, eff. 12-1-10; correction in (3) (b) (intro.) made under s. 13.92 (4) (b) 7., Stats., Register August 2014 No. 704; CR 19-112: am. (4) (a) Register June 2020 No. 774, eff. 7-1-20.

Tax 11.42 Tax 11.42 Fertilizer blending, feed milling, and grain drying operations. For purposes of s. 77.54 (6) (bn), Stats., primarily engaged in fertilizer blending, feed milling, or grain handling operations does not include the planting, harvesting, and tilling of grain, but may include the custom farming services of grain drying.

Tax 11.42 Note Examples: 1) Individual operates a dairy farm and also grows corn and soybeans. Individual conducts corn and soybean drying operations on the farm with respect to corn and soybeans grown and harvested by Individual. Individual also mills corn, soybeans, and other grains into feed for Individual’s dairy cattle. Individual’s primary activity is operating a dairy farm and the grain drying and feed milling operations are conducted as an incident to Individual’s grain growing and dairy farming activities. Individual is not a person described in s. 77.54 (6) (bn), Stats.

Tax 11.42 Note 2) Business’ primary business activity is the operation of a grain dryer. For a fee, Business will dry grain owned by farmers. Business is primarily engaged in “grain handling operations which include grain drying operations” for purposes of this section. Drying grain owned by a farmer for a fee is a “custom farming service” as defined in s. Tax 11.12 (2) (b). Business’ drying of a farmer’s grain for a fee, while a “custom farming service,” constitutes being engaged in “grain handling operations which include grain drying operations” for purposes of this section.

Tax 11.42 Note Note: Section Tax 11.42 interprets s. 77.54 (6) (am) 4. and 5., (bn), and (cn), Stats.

Tax 11.42 Note Note: The interpretations in s. Tax 11.42 are effective under the general sales and use tax law on and after September 1, 1969, except that the exemption for fertilizer blending, feed milling, and grain drying operations became effective on April 19, 2014, pursuant to 2013 Wis. Act 324.

Tax 11.42 History History: CR 16-054: cr. Register June 2018 No. 750, eff. 7-1-18.

subch. VII of ch. Tax 11 Subchapter VII — Types of Retailers

Tax 11.45 Tax 11.45 Sales by pharmacies and drug stores.

Tax 11.45(1) (1) Taxable sales. All sales of tangible personal property and items, property and goods under s. 77.52 (1) (b), (c) and (d), Stats., by a pharmacy or drug store are taxable under the general sales tax law unless exempted by a specific statute. The most common exemptions are described and enumerated in this section.

Tax 11.45(2) (2) Drugs and prescription drugs.

Tax 11.45(2)(a) (a) “Drug” is defined in s. 77.51 (3pj), Stats., to mean a compound, substance, or preparation, or any component of them, other than food and food ingredients, dietary supplements, or alcoholic beverages, to which any of the following applies:

Tax 11.45(2)(a)1. 1. It is listed in the United States Pharmacopoeia, Homeopathic Pharmacopoeia of the United States, or National Formulary, or any supplement to any of them.

Tax 11.45(2)(a)2. 2. It is intended for use in diagnosing, curing, mitigating, treating, or preventing a disease.

Tax 11.45(2)(a)3. 3. It is intended to affect a function or structure of the body.

Tax 11.45(2)(b) (b) Drugs are exempt from the tax if prescribed by a licensed physician, surgeon, podiatrist or dentist to a patient, who is a human being, for treatment and dispensed on prescription filled by a registered pharmacist in accordance with law.

Tax 11.45(2)(c) (c) Drugs described in par. (b) which are exempt from the tax include:

Tax 11.45(2)(c)1. 1. Pills and capsules.

Tax 11.45(2)(c)2. 2. Powders.

Tax 11.45(2)(c)3. 3. Liquids, including sterile water and irrigation solutions.