Tax 11.10(6) (6) Exemption for energy produced by a product.

Tax 11.10(6)(a) (a) The exemption under sub. (1) (b) applies to a direct sale from the producer of electricity or energy to the consumer of the same electricity or energy where all of the following apply:

Tax 11.10(6)(a)1. 1. The electricity or energy is produced by a product that qualifies for exemption under sub. (1) (a).

Tax 11.10(6)(a)2. 2. The sale does not qualify for exemption under s. 77.54 (30), Stats.

Tax 11.10 Note Note: Section 77.54 (30) (a), Stats., includes an exemption for electricity sold from November through April for residential use, fuel and electricity sold for use in farming, and fuel and electricity consumed in manufacturing tangible personal property in Wisconsin.

Tax 11.10(6)(b) (b) The exemption under sub. (1) (b) does not apply to electricity or energy which is first purchased for resale from the producer and is then sold in a subsequent retail sale, unless the person making the retail sale is able to account for the quantity of electricity or energy that qualifies for exemption under s. 77.54 (56) (b), Stats., and is able to identify the person to whom such electricity or heat is sold.

Tax 11.10 Note Example: Electricity that would otherwise qualify for exemption under s. 77.54 (56) (b), Stats., is commingled in a distribution network with electricity that is not produced by a product whose power source is wind energy, direct radiant energy received from the sun, or gas generated from anaerobic digestion of animal manure and other agricultural wastes. It is not possible to determine to whom, or in what amount, the electricity that qualifies for exemption is sold. A purchaser of this electricity will not be able to provide an exemption certificate to a utility and properly claim what portion of the electricity it has purchased is exempt pursuant to s. 77.54 (56) (b), Stats., nor is it possible for a utility to know what portion of the electricity purchased by the consumer was from eligible sources.

Tax 11.10(6)(c) (c) The exemption under sub. (1) (b) does not apply to the sale of, or the storage, use or other consumption of gas produced by the anaerobic digestion of animal manure or other agricultural wastes unless such gas is produced by a product described in sub. (1) (a).

Tax 11.10 History History: EmR1110: emerg. cr., eff. 6-29-11; CR 11-052: cr. Register July 2012 No. 679, eff. 8-1-12.

Tax 11.11 Tax 11.11 Utility, industrial and governmental waste treatment facilities.

Tax 11.11(1) (1) General. Section 77.54 (26), Stats., provides a sales and use tax exemption for tangible personal property and items and property under s. 77.52 (1) (b) and (c), Stats., which becomes a component part of certain waste treatment facilities.

Tax 11.11(2) (2) Utility waste treatment exemption. If a utility waste treatment facility that is taxed under ch. 76, Stats., qualifies for property tax exemption under s. 76.025 (1), Stats., as approved by the department, it qualifies for the sales and use tax exemption under s. 77.54 (26), Stats.

Tax 11.11 Note Note: Refer to s. Tax 6.40 for information on how to request approvals for property tax exemption for utility waste treatment facilities. For more information regarding exemptions for waste treatment facilities owned by a utility, including railroads, airlines, and pipelines, approved by the department, write to Wisconsin Department of Revenue, Manufacturing and Utility Bureau, PO Box 8971, Madison WI 53708-8971; telephone [phone]; send an e-mail to [e-mail]; or access the department’s web site at www.revenue.wi.gov and search ”waste treatment facilities”.

Tax 11.11(2m) (2m) Industrial waste treatment exemption.

Tax 11.11(2m)(a) (a) An industrial waste treatment facility is any property purchased or constructed as a waste treatment facility used exclusively and directly to remove, store, or cause a physical or chemical change in industrial waste or air contaminants for the purpose of abating or eliminating pollution of surface waters, the air, or waters of the state if that property is not used to grow agricultural products for sale. In this paragraph, “used exclusively” means to the exclusion of all other uses except:

Tax 11.11(2m)(a)1. 1. For other use not exceeding 5% of total use.

Tax 11.11(2m)(a)2. 2. To produce heat or steam for a manufacturing process, if the fuel consists of either 95% or more industrial waste that would otherwise be considered superfluous, discarded, or fugitive material or 50 percent or more of wood chips, sawdust, or other wood residue from the paper and wood products manufacturing process, if the wood chips, sawdust, or other wood residue would otherwise be considered superfluous, discarded, or fugitive material.

Tax 11.11(2m)(b) (b) Tangible personal property and items and property under s. 77.52 (1) (b) and (c), Stats., becoming a component part of an industrial waste treatment facility is exempt from the sales and use tax under s. 77.54 (26), Stats., if the facility qualifies for property tax exemption under s. 70.11 (21), Stats.

Tax 11.11 Note Note: For information regarding the property tax exemption for industrial waste treatment facilities of manufacturers write or call the district office of the Wisconsin Department of Revenue, Bureau of Manufacturing and Telco Assessments. To locate the district office, write or call Wisconsin Department of Revenue, Bureau of Manufacturing and Telco Assessment, PO Box 8971, Madison WI 53708-8971; telephone [phone]. The web site is http://www.revenue.wi.gov/contact/slfbmta.html. To ascertain whether a non-manufacturing property would be exempt under s. 70.11 (21), Stats., owners may refer to the Wisconsin Property Assessment Manual or contact the local property tax assessor.

Tax 11.11(3) (3) Municipal waste treatment exemption. Tangible personal property and items and property under s. 77.52 (1) (b) and (c), Stats., which become a component or ingredient part of municipal facilities that treat waste qualifies for exemption from Wisconsin sales and use tax under s. 77.54 (26), Stats. Municipal facilities that treat waste include:

Tax 11.11(3)(a) (a) Wastewater treatment facility.

Tax 11.11(3)(a)1. 1. Only the central waste treatment plant which actually treats the sewage qualifies for the exemption.

Tax 11.11(3)(a)2. 2. Storm sewers, water supply systems and private domestic waste water facilities do not qualify for the sales and use tax exemption.

Tax 11.11(3)(a)3. 3. The collection system throughout the area served by the treatment facility, the effluent pipeline carrying the treated sewage away from the central treatment plant, earthen dikes, and chain link fences on the boundary of a treatment plant, and dredge material disposal sites are not exempt. The collection systems includes the lift stations, force mains, and associated pumping equipment used to bring the raw sewage to the central treatment plant.

Tax 11.11(3)(b) (b) Material recovery facility.

Tax 11.11(3)(b)1. 1. A facility constructed by a municipality to meet mandates of ch. 287, Stats., regarding the reuse, recycling, and recovery of waste material to reduce the need for waste disposal is exempt if the activities include all of the following:

Tax 11.11(3)(b)1.a. a. Sorting recyclable materials delivered from municipalities.

Tax 11.11(3)(b)1.b. b. Processing recyclable materials which may include removing contaminants, baling paper, shredding paper, pelletizing plastics, and crushing glass.

Tax 11.11(3)(b)1.c. c. Storing processed recyclable materials for sale to others.