Tax 11.82(1)(c) (c) Persons in the business of providing mailing lists are the consumers of the tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., they purchase and use in producing these lists. However, any tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., becoming a component part of mailing lists when the mailing lists are physically transferred to a customer by either sale, rental, lease, or license may be purchased for resale and without tax if the purchaser gives the seller a properly completed exemption certificate.

Tax 11.82(2) (2) Mailing services.

Tax 11.82(2)(a) (a) In this subsection, “addressing” means the preparation of property, items, and goods to be mailed by writing, typewriting, printing, imprinting, or affixing addresses or names and addresses to the property, items, or goods. Addressing includes the preparation of Cheshire tapes, Dick tapes, cards, gummed labels, or similar items which are to be affixed to, or enclosed in, property, items, or goods to be mailed for the purpose of serving as addresses for the property, item, or good. However, addressing does not include these tapes, cards, or labels when they are used for some other purpose, such as reproduction or reference.

Tax 11.82(2)(b) (b) The tax does not apply to charges for services rendered in preparing material for mailing, including addressing, enclosing, sealing, metering, affixing stamps, sorting, tying, and sacking in compliance with postal rules and regulations, if the charges are stated separately on invoices and in accounting records. The sales price from charges for envelopes is taxable, but not separately stated charges for postage in the sale of prestamped envelopes.

Tax 11.82(2)(c) (c) Persons in the business of providing mailing services are consumers of the tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., they purchase and use in performing these services. Consequently, they shall pay the tax when purchasing the property.

Tax 11.82 Note Note: Section Tax 11.82 interprets ss. 77.51 (20), 77.52 (1), and 77.53 (1), Stats.

Tax 11.82 Note Note: The interpretations in s. Tax 11.82 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) Written or typed lists of names and addresses are not tangible personal property effective January 1, 1979, pursuant to the Minnesota Supreme Court’s decision in Fingerhut Products Company et al. vs. Commissioner of Revenue, 258 N.W. 2d 606 (1977); (b) Mailing lists stored in machine-readable form are not tangible personal property, pursuant to the Wisconsin Tax Appeals Commission decision in A-K Corporation and Profile Publishing Co. dba Miles Kimball vs. Wisconsin Department of Revenue (1/15/87); (c) 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.

Tax 11.82 History History: Cr. Register, November, 1977, No. 263, eff. 12-1-77; am. (1) (b), Register, December, 1978, No. 276, eff. 1-1-79; am. (1) (b), (c) and (2), Register, January, 1994, No. 457, eff. 2-1-94; EmR0924: emerg. am. eff. 10-1-09; CR 09-090: am. Register May 2010 No. 653, eff. 6-1-10.

Tax 11.83 Tax 11.83 Motor vehicles.

Tax 11.83(1) (1) Definitions. In this section:

Tax 11.83(1)(a) (a) “Actively participates” means the person performs services for the motor vehicle dealership, including selling, accounting, managing, and consulting, for more than 500 hours in a taxable year for which the person receives compensation. “Actively participates” does not include services performed only in the capacity of an investor, including studying and reviewing financial statements or reports on the operation of the business, preparing or compiling summaries or analyses of the finances of the business for the investor’s own use, or monitoring the finances or operations of the activity in a nonmanagerial capacity.

Tax 11.83(1)(am) (am) “Mobility-enhancing equipment” means equipment, including the repair parts and replacement parts for the equipment, that is primarily and customarily used to provide or increase the ability of a person to move from one place to another; that may be used in a home or motor vehicle; and that is generally not used by a person who has normal mobility. “Mobility-enhancing equipment” does not include a motor vehicle or any equipment on a motor vehicle that is generally provided by a motor vehicle manufacturer. “Mobility-enhancing equipment” does not include durable medical equipment.

Tax 11.83(1)(b) (b) “Motor vehicle” means a self-propelled vehicle, such as an automobile, truck, truck-tractor, or motorcycle, designed for and capable of transporting persons or property on a highway. In this section, “motor vehicle” does not include a self-propelled vehicle which is not designed or used primarily for transportation of persons or property, and is only incidentally operated on a public highway, such as a farm tractor, snowmobile, all-terrain vehicle, utility terrain vehicle, off-highway motorcycle, fork lift truck, or road machinery as defined in s. 340.01 (52), Stats. “Motor vehicle” does not include a vehicle which is not self-propelled, such as a trailer or semitrailer.

Tax 11.83(2) (2) Retailers’ taxable sales. The following sales in Wisconsin are taxable:

Tax 11.83(2)(a) (a) The sale of a motor vehicle minus any trade-in allowance, if the sale and trade-in are one transaction. A separate or independent sale of a motor vehicle by either the buyer or seller of another motor vehicle is not a trade-in, even if the proceeds from the sale are immediately applied by the seller to a purchase of another motor vehicle. A dealer does not realize taxable receipts from a transaction in which one motor vehicle is traded for another of lesser value, called a “trade-down,” unless cash or services are received by the dealer.

Tax 11.83 Note Examples: 1) Dealer A sells a motor vehicle to Individual B and accepts the trade-in of two motor vehicles owned by Individual B. The selling price of the new vehicle is $20,000. The values of the two motor vehicles traded in by Individual B are $8,000 and $9,000. The sales price subject to sales tax is $3,000, the $20,000 selling price less the $8,000 and $9,000 trade-ins.

Tax 11.83 Note 2) Dealer A sells two motor vehicles to Individual C and accepts the trade-in of a motor vehicle owned by Individual C. The selling prices of the new vehicles are $10,000 and $12,000. The value of the motor vehicle traded in is $15,000. The sales price subject to sales tax is $7,000, the $22,000 selling price less the $15,000 trade-in.

Tax 11.83(2)(am) (am) The sale of motor vehicles by any retailer registered or required to be registered to collect Wisconsin sales or use tax, regardless of whether the retailer is a motor vehicle dealer.

Tax 11.83 Note Example: Landscaper A is registered to collect and remit Wisconsin sales and use tax on its landscaping services. Landscaper A sells a motor vehicle that it had used in its landscaping business. Landscaper A must collect Wisconsin sales tax on its sale of the motor vehicle and remit the tax to the Department of Revenue on its Wisconsin sales and use tax return.

Tax 11.83(2)(b) (b) The delivery, handling, and preparation of a motor vehicle being sold and the sale of a warranty, relating to the sale of a motor vehicle that is taxable.

Tax 11.83 Note Note: See s. Tax 11.27 for information regarding the sales and use tax treatment of warranties.

Tax 11.83(2)(c) (c) The sale of equipment and accessories with a motor vehicle. However, equipment that is not generally provided by a motor vehicle manufacturer, but which is added to a motor vehicle may qualify for exemption under s. 77.54 (22b), Stats., as mobility-enhancing equipment, as defined in sub. (1) (am).

Tax 11.83(2)(d) (d) Sales of parts and labor for repair, service, and maintenance performed on a motor vehicle, including charges for installation of accessories or attachments, except charges for mobility-enhancing equipment, as described in par. (c).

Tax 11.83 Note Example: Charges for installation of a radio or air conditioner into a motor vehicle are taxable.

Tax 11.83(2)(e) (e) Towing or hauling a motor vehicle by a tow truck, as defined in s. 340.01 (67n), Stats.

Tax 11.83(3) (3) Occasional sale or purchase of motor vehicles from non-retailers.

Tax 11.83(3)(a) (a) The occasional sale of a motor vehicle is taxable, unless one of the following applies:

Tax 11.83(3)(a)1. 1. The transfer is to the spouse, parent, stepparent, father-in-law, mother-in-law, child, stepchild, son-in-law, or daughter-in-law of the transferor or is transferred from an individual to a corporation which is solely owned by the individual; and the motor vehicle has been previously registered or titled in Wisconsin in the name of the transferor, if required to be registered or titled; and the transferor is not engaged in the business of selling motor vehicles.

Tax 11.83(3)(a)2. 2. The motor vehicle is sold by a nonprofit organization meeting the requirements in s. Tax 11.35 (4).