Tax 11.32 Note • $65,000 is the sales price of the modular home by Building Manufacturer to Dealer.

Tax 11.32 Note The amount subject to sales tax on the sale of the modular home to Dealer is one of the following:

Tax 11.32 Note (1) $42,250, which is the $65,000 sales price reduced by $22,750 (35% of the sales price).

Tax 11.32 Note (2) $40,000, which is the $65,000 sales price reduced by $25,000 (the sales price minus the cost of materials).

Tax 11.32 Note If Building Manufacturer chooses the method under (1) for computing the sales price from the sale of this modular home, it must use the method under (1) for computing the sales price from all future sales of modular homes, until the department approves in writing the use of the method under (2).

Tax 11.32(8)(d) (d) Sales of modular homes as defined in s. 101.71 (6), Stats., to a contractor-consumer for use in real property construction activities outside Wisconsin are exempt from Wisconsin sales and use tax.

Tax 11.32 Note Note: Section Tax 2 interprets ss. 77.51 (12m) (a) (intro.) and 2., 3. and 4., (b) 1., 5., 7. and 8. and (c), (15a), (15b) (a) (intro.), 2., 3., and 4., (b) 1., 5., 7. and 8. and (c), 77.54 (8), 77.585 (7), and 77.61 (3m), Stats.

Tax 11.32 Note Note: The interpretations in s. Tax 11.32 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The 5% sales and use tax rate became effective May 1, 1982 (previously the rate was 4%); (b) The 35% reduction of gross receipts from the sale of a new mobile home that is a primary housing unit became effective January 1, 1987, pursuant to 1985 Wis. Act 29; (c) The 35% reduction of gross receipts from the sale of a new mobile home transported in 2 sections became effective October 1, 1991, pursuant to 1991 Wis. Act 39; (d) The reduction of gross receipts and sales price for sales of manufactured buildings, as defined in s. 101.71 (6), Stats., became effective for sales of property pursuant to contracts entered into on or after December 1, 1997, pursuant to 1997 Wis. Act 27; (e) The term “manufactured building” was changed to “modular home” and the term “mobile home” was changed to “manufactured home” effective January 1, 2008 pursuant to 2007 Wis. Act 11; (f) 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; and (g) The exemption for modular homes and manufactured homes used in real property construction activities outside Wisconsin became effective September 1, 2011 pursuant to 2011 Wis. Act 32.

Tax 11.32 History History: Cr. Register, December, 1977, No. 264, eff. 1-1-78; am. (4) (a) and (b), (5) (b) and (c), r. and recr. (5) (a), Register, January, 1983, No. 325, eff. 2-1-83; am. (3) (c), Register, December, 1983, No. 336, eff. 1-1-84; emerg. am. (5) (a), eff. 3-24-86; am. (5) (a) and (am), Register, October, 1986, No. 370, eff. 11-1-86; cr. (6), Register, April, 1990, No. 412, eff. 5-1-90; cr. (7), am. (2), (3) (a) and (c) and (5) (d), Register, June, 1991, No. 426, eff. 7-1-91; am. (2), (4) (a) and (c), (5) (a), (am) and (b) and (7), Register, December, 1992, No. 444, eff. 1-1-93; cr. (4) (a) 1., 2., 3. and (6), am. (4) (b) and (c), r. and recr. (5), renum. (4) (a), (6) and (7) to be (4) (a) (intro.), (7) and (8) and am. (4) (a) (intro.), Register, October, 1997, No. 502, eff. 11-1-97; cr. (9), Register, August, 1999, No. 524, eff. 9-1-99; EmR0924: emerg. am. (title), (1) to (3), (4) (a) (intro.), (b) and (c), cr. (3) (d) and (7), r. and recr. (5), r. (6) and (8), renum. (7) and (9) to be (6) and (8) and am., eff. 10-1-09; CR 09-090: am. (title), (1) to (3), (4) (a) (intro.), (b) and (c), cr. (3) (d), (3m) and (7), r. and recr. (5), r. (6) and (8), renum. (7) and (9) to be (6) and (8) and am. Register May 2010 No. 653, eff. 6-1-10; CR 10-094: am. (2) Register November 2010 No. 659, eff. 12-1-10; CR 12-014: am. (6) (Example), renum. (7) to be (7) (a), cr. (7) (b), (c), (8) (d) Register August 2012 No. 680, eff. 9-1-12; CR 22-044: am. (4) (a) 2. Register June 2023 No. 810, eff. 7-1-23.

subch. V of ch. Tax 11 Subchapter V — Occasional Sales

Tax 11.33 Tax 11.33 Occasional sales.

Tax 11.33(1) (1) Scope. This section describes the general rules for exempt occasional sales.

Tax 11.33(2) (2) General. Sales of tangible personal property, items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., and taxable services are not taxable if they are exempt “occasional sales.” However, if the number, scope and character of the sales are such that they exceed the standards in the statutes and this section, a taxable sale occurs.

Tax 11.33(3) (3) Statutes.

Tax 11.33(3)(a) (a) “Occasional sale” is defined in s. 77.51 (9), Stats.

Tax 11.33(3)(b) (b) Section 77.54 (7), Stats., exempts most occasional sales from the sales and use taxes.

Tax 11.33(4) (4) Sales which are exempt occasional sales. Sales which are exempt occasional sales include:

Tax 11.33(4)(a) (a) The 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 an exempt occasional sale only if one of the following applies:

Tax 11.33(4)(a)1. 1. The sale is to a spouse, parent, stepparent, father-in-law, mother-in-law, child, stepchild, son-in-law, or daughter-in-law, of the transferor provided the property 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 this type of property.

Tax 11.33(4)(a)2. 2. The item is a motor vehicle and the transferor sells the motor vehicle to a corporation owned solely by the transferor or the transferor’s spouse, provided 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. Transferor for purposes of this subdivision means a natural person.

Tax 11.33(4)(a)3. 3. The 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 is sold by a nonprofit organization meeting the requirements in s. Tax 11.35 (4).

Tax 11.33(4)(b) (b) Any sale of a boat that is registered or titled in Wisconsin or required to be registered or titled in Wisconsin or under the laws of the United States, is an exempt occasional sale only if one of the following applies:

Tax 11.33(4)(b)1. 1. The sale is to a spouse, parent, stepparent, father-in-law, mother-in-law, child, stepchild, son-in-law, or daughter-in-law, of the transferor provided the property 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 boats.

Tax 11.33(4)(b)2. 2. The boat is sold by a nonprofit organization meeting the requirements in s. Tax 11.35 (4).

Tax 11.33(4)(c) (c) Except as provided in pars. (a) and (b), five or fewer auctions that are the sale of personal farm property or household goods and that are held by the same auctioneer at the same location during the year. For indoor locations, “location” means a building, except that in the case of a shopping center or shopping mall, “location” means a store.

Tax 11.33 Note Note: Refer to s. Tax 11.50 (4) and (5) regarding exempt occasional sales at auction of personal farm property and household goods.

Tax 11.33(4)(d) (d) Except as provided in pars. (a) and (b), sales of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., by an individual who operates a sole proprietorship and who holds or is required to hold a seller’s permit, which have not been used in the course of the person’s business and the sales are not the type of property, items, or goods sold in the course of the person’s business. However, all tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., sold by a corporation or partnership which holds or is required to hold a seller’s permit shall be considered to be used or sold in the course of the organization’s business activities and are taxable.

Tax 11.33 Note Example: A taxpayer operates a service station as a sole proprietor and holds a seller’s permit for the purpose of selling cigarettes and repairing motor vehicles. The sales price from selling a refrigerator and stove used in the taxpayer’s residence are not subject to the sales tax. However, the sales price from the sale of a desk and refrigerator which were used in the service station’s business activities are subject to the sales tax.

Tax 11.33(4)(e) (e) Except as provided in pars. (a) and (b), the sale of a business or business assets, not including inventory held for sale, previously used by a seller to conduct its trade or business at a location after that person has 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.