Tax 11.56(4)(a)2. 2. Enclosing, sealing, and preparing for mailing.

Tax 11.56(4)(a)3. 3. Mailing letters or other printed matter.

Tax 11.56(4)(b) (b) Tax also does not apply to a printer’s sales of:

Tax 11.56(4)(b)1. 1. Catalogs, as defined in s. Tax 11.19 (5m) (b), and the envelopes in which the catalogs are mailed.

Tax 11.56(4)(b)2. 2. Printed advertising materials for out-of-state use, as provided in s. Tax 11.19 (4) (a).

Tax 11.56(4)(b)3. 3. Advertising and promotional direct mail, as defined in s. Tax 11.19 (5s) (b).

Tax 11.56(5) (5) Exempt printing machinery and equipment. Section 77.54 (6) (am) 1., Stats., provides that machines and specific processing equipment and repair parts or replacements thereof, exclusively and directly used by a manufacturer in manufacturing tangible personal property or items or property under s. 77.52 (1) (b) or (c), Stats., and safety attachments for those machines and equipment are exempt from the sales or use tax. This includes machinery and equipment and repair parts or replacements of the machinery and equipment used exclusively and directly by a manufacturer in the printing process to manufacture tangible personal property or items or property under s. 77.52 (1) (b) or (c), Stats.

Tax 11.56 Note Note: Interpretations of s. 77.54 (6) (am) 1., Stats., are contained in s. Tax 11.40.

Tax 11.56(6) (6) Purchases for use in manufacturing printed matter for sale.

Tax 11.56(6)(a) (a) Persons engaged in manufacturing printed matter for sale may purchase the following property and items without tax under the statutes indicated:

Tax 11.56(6)(a)1. 1. Section 77.54 (2), Stats. Property and items, such as paper stock or printing ink, used exclusively and directly in manufacturing an article of tangible personal property or item or property under s. 77.52 (1) (b) or (c), Stats., that is destined for sale and that becomes an ingredient or component part of an article of tangible personal property or item or property under s. 77.52 (1) (b) or (c), Stats., destined for sale.

Tax 11.56(6)(a)2. 2. Section 77.54 (2), Stats. Property and items such as chemicals, emulsions, acids, raw film, lubricating oils, greases, nonoffset spray, finished art, color separations, plate-ready film, other positives and negatives, flats, and similar items, used exclusively and directly in manufacturing an article of tangible personal property or item or property under s. 77.52 (1) (b) or (c), Stats., destined for sale and which are consumed, destroyed, or lose their identity in the manufacture of tangible personal property and items and property under s. 77.52 (1) (b) and (c), Stats., destined for sale.

Tax 11.56 Note Example: A printer’s purchases of positives and negatives which are used exclusively and directly to produce catalogs and shoppers guides it sells to other persons are exempt from the tax.

Tax 11.56(6)(a)3. 3. Section 77.54 (6) (am) 2., Stats. Containers and packaging and shipping materials for use in packing, packaging, or shipping printed matter to their customers.

Tax 11.56(6)(b) (b) The exemption under s. 77.54 (2), Stats., described in par. (a) 1. and 2., applies to property and items purchased by a person who does not use the property other than to provide it to a manufacturer described in par. (a) for use by the manufacturer exclusively and directly in manufacturing tangible personal property and items and property under s. 77.52 (1) (b) and (c), Stats., to be sold. The exemption under s. 77.54 (2), Stats., does not apply if the manufactured tangible personal property or item or property under s. 77.52 (1) (b) or (c), Stats., is not to be sold by the manufacturer to its customer or by the customer.

Tax 11.56 Note Examples: 1) A paper manufacturer’s purchases of negatives which it transfers to a printer, who uses the negatives exclusively and directly to produce printing which the printer sells to the paper manufacturer are exempt from the tax.

Tax 11.56 Note 2) An advertising agency’s purchases of color separations which are furnished to a commercial printer who uses the color separations exclusively and directly to produce advertising material the printer sells to the advertising agency are exempt from the tax.

Tax 11.56(7) (7) Purchases for use in manufacturing printed matter not for sale.

Tax 11.56(7)(a) (a) The exemption under s. 77.54 (2m), Stats., applies to tangible personal property or services that are used exclusively and directly by a manufacturer in manufacturing shoppers guides, newspapers, or periodicals and that become an ingredient or component of the shoppers guides, newspapers, or periodicals or that are consumed or lose their identity in the manufacture of the shoppers guides, newspapers, or periodicals, whether or not they are transferred without charge to a recipient.

Tax 11.56 Note Examples: Examples of nontaxable purchases for use in manufacturing printed matter include:

Tax 11.56 Note 1) A shoppers guide publisher, who distributes the publication without charge, purchases paper and furnishes it to a printer who charges for the printing of the shoppers guide.

Tax 11.56 Note 2) A shoppers guide publisher purchases paper it uses to print a shoppers guide which it distributes without charge to recipients.

Tax 11.56(7)(b) (b) Section 77.54 (43), Stats., provides that Wisconsin sales or use tax is not imposed on raw materials if both of the following conditions are met:

Tax 11.56(7)(b)1. 1. The raw materials are processed, fabricated, or manufactured into, attached to, or incorporated into printed materials.

Tax 11.56(7)(b)2. 2. The resulting printed materials will be transported and used solely outside Wisconsin.

Tax 11.56 Note Examples: 1) Company A, a Wisconsin company, publishes catalogs to promote the sale of its products. Company A purchases paper from a company that does not have nexus in Wisconsin. The paper is delivered to a Wisconsin printer that prints the catalogs for Company A. The catalogs are shipped outside Wisconsin for use solely outside Wisconsin.

Tax 11.56 Note The paper purchased by Company A for the catalogs is not subject to Wisconsin use tax.

Tax 11.56 Note 2) Assume the same facts as 1) above, except that the company selling the paper is located in Wisconsin.

Tax 11.56 Note The paper purchased by Company A for the catalogs is not subject to Wisconsin sales tax.