Tax 11.12(4)(c)1. 1. Electricity and fuel sold for use in farming includes electricity and fuel sold for use in performing custom farming services.

Tax 11.12(4)(c)2. 2. Fuel includes oxygen used to enrich a fuel mixture, or oxygen and acetylene used in a welding process.

Tax 11.12(4)(d) (d) Section 77.54 (33), Stats., exempts the sales price from sales of and the storage, use or other consumption of drugs used on farm livestock, not including workstock, or on bees.

Tax 11.12(5) (5) Services furnished to farmers.

Tax 11.12(5)(a) (a) Sales tax imposed under s. 77.52 (2) (a) 10., Stats., does not apply to the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance of tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., if the farmer may purchase the property, item, or good without tax under s. 77.54 (3), (3m), (27), (30) (a) 3. and 5., (33), and (50), Stats.

Tax 11.12 Note Examples: 1) Charges to a farmer for labor to replace a water pump on a motor vehicle registered for highway use are taxable. However, charges to a farmer for labor to replace a water pump on a tractor used exclusively and directly in farming are not taxable.

Tax 11.12 Note 2) A farmer may claim an exemption when having draft horses or horses used exclusively in farming for breeding or to check on or herd livestock shod, but not when having horses ridden for pleasure shod.

Tax 11.12(5)(b) (b) Fees for breeding farm livestock or farm work stock, charges for artificial insemination of farm livestock or farm work stock, and medical and hospitalization services furnished by veterinarians are not taxable.

Tax 11.12(5)(c) (c) The exemptions under s. 77.54 (3), Stats., do not apply to farmers’ purchases of other services which are taxable under s. 77.52 (2) (a), Stats., including telephone, laundry, dry cleaning, photographic services, and breeding or artificial insemination of animals other than farm livestock or farm work stock.

Tax 11.12(6) (6) Services provided by farmers.

Tax 11.12(6)(a) (a) Nontaxable services. The following services performed by farmers are not subject to the sales tax:

Tax 11.12(6)(a)1. 1. ‘Custom work.’ The performance of custom farm services, such as plowing a field, planting seeds, harvesting grain, or logging timber.

Tax 11.12(6)(a)2. 2. ‘Training animals.’ The training of horses, dogs, or other animals.

Tax 11.12(6)(b) (b) Services to tangible personal property. Charges for the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance of tangible personal property or items, property or goods under s. 77.52 (1) (b), (c), or (d), Stats., are taxable, unless at the time such services are performed, a sale in Wisconsin of the type of property, item or good so serviced would have been exempt from Wisconsin sales tax. Taxable services to tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), or (d), Stats., include:

Tax 11.12(6)(b)1. 1. ‘Boarding animals.’ The boarding of dogs, cats, horses used for racing, pleasure riding or show, or other recreational animals. The entire boarding charge is taxable, but the retailer may purchase the feed for the animals without tax by supplying a properly completed exemption certificate claiming an exemption for resale.

Tax 11.12(6)(b)2. 2. ‘Grooming animals.’ The grooming of recreational animals.

Tax 11.12 Note Example: Charges by a farmer for labor to replace a radiator on a motor vehicle registered for highway use are taxable. However, charges by a farmer for labor to replace a radiator on a tractor used exclusively and directly in the business of farming are not taxable.

Tax 11.12(7) (7) Taxable sales. Sales of tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., by farmers which are taxable include:

Tax 11.12(7)(a) (a) Horses for use in racing, pleasure riding, or show.

Tax 11.12(7)(b) (b) Llamas for use as pack animals, pets, or to herd sheep.

Tax 11.12(7)(c) (c) Flowers, Christmas trees and other decorative trees, plants, or shrubs.

Tax 11.12(7)(d) (d) Timber or gravel when the purchaser acquires this property for removal, unless the purchaser pays royalties to lease land.

Tax 11.12 Note Note: Section Tax 11.12 interprets ss. 77.51 (1bm) and (2d), 77.52 (1) and (2) (a) 10., and 77.54 (3), (3m), (27), (30), and (33), Stats.

Tax 11.12 Note Note: The interpretations in s. Tax 11.12 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) Semen became exempt effective July 22, 1971, pursuant to Chapter 64, Laws of 1971; (b) Baling wire and twine became exempt effective December 24, 1975, pursuant to Chapter 146, Laws of 1975; (c) The exemption for electricity for residential use and use in farming and for fuel oil, propane, coal, steam or wood for residential use became effective July 1, 1979, pursuant to Chapter 1, Laws of 1979; (d) The definition of “feed lot” became effective December 1, 1981; (e) Farm livestock medicine, milk house supplies and animal bedding became exempt effective July 1, 1986, pursuant to 1985 Wis. Act 29; (f) The definition of “exclusively used” became effective October 1, 1989, pursuant to 1989 Wis. Act 31; (g) The farm machinery exemption was revised effective October 1, 1989, pursuant to 1989 Wis. Act 31; (h) The exemption for farm fuel for items other than machines became effective October 1, 1991, pursuant to 1991 Wis. Act 39; (i) The exemption for electricity sold for use in farming was expanded to include sales of electricity during the entire year, effective for sales on or after May 1, 2000, pursuant to 1999 Wis. Act 9; (j) The expansion of the exemption for tangible personal property consumed in farming and the addition of “silviculture” to the definition of farming became effective July 1, 2007, pursuant to 2005 Wis. Act 366; (k) 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; (L) The clarification that “custom farming services” includes services performed by veterinarians to farm livestock or work stock used exclusively in the business of farming became effective July 2, 2013, pursuant to 2013 Wis. Act 20; and (m) The addition of “beekeeping” to the definition of farming and various farming exemptions became effective December 1, 2017, pursuant to 2017 Wis. Act 59.

Tax 11.12 History History: Cr. Register, March, 1978, No. 267, eff. 4-1-78; am. (2) (intro.), (4) (a) 1., (4) (b) (intro.) and (5) (c), renum. (2) (a) to be (2) (a) 1. and am., cr. (2) (a) 2., Register, November, 1981, No. 311, eff. 12-1-81; am. (2) (a) 1., (4) (b) 5., 6. c. and 9., Register, June, 1983, No. 330, eff. 7-1-83; am. (4) (a) 1., 3. and 5., and (5) (c), cr. (5) (d), Register, September, 1984, No. 345, eff. 10-1-84; am. (4) (a) (intro.) and 7., (4) (b) 6. b., Register, July, 1987, No. 379, eff. 8-1-87; am. (2) (a) 1. and (4) (b) 7., cr. (7), Register, November, 1988, No. 395, eff. 12-1-88; renum. (2) (a) to (d) and (4) (b) 7. and 8. to be (2) (c), (g), (f), (b), (h) and (e), cr. (2) (a), and (d) and (i), am. (4) (b) (intro.) and 3. b., Register, June, 1990, No. 414, eff. 7-1-90; cr. (2) (b), (4) (a) 2., 4. c. and d. and 5. a., am. (1), (4) (a) (intro.), (4) (b) 3. a., 4. b. and 6. b. and d., renum. (2) (b) to be (2) (c), renum. (2) (c) 1. and 2. to be (2) (d) and (g) and am. (g), renum. (2) (d) to (g) to be (2) (e), (f), (h) and (i) and am. (f), renum. (2) (h) and (i) to be (2) (j) and (k), renum. (4) (a) 2. to be 3., and am., renum. (4) (a) 3. and 4. a. and b. to be (4) (a) 4. and 5. b. and c., and am. 4. a. and b. and 5. b. and c., renum. (4) (a) 5., 6., and 7. to be (4) (a) 6., 7. and 8. and am. 7. b. and 8., Register, June, 1991, No. 426, eff. 7-1-91; am. (2) (d), (e), (i) and (3), (4) (a) (intro.), 3., 5. c., 6., 7. c., (b) (intro.), 4. a., 5. and 6. c., renum. (4) (b) 9. to be (4) (b) 7., r. (5) (d), Register, April, 1993, No. 448, eff. 5-1-93; am. (1), (3), (4) (a) (intro.), 7. c. and (b) (intro.), 1. and 6., a., b., c., and e., (5), (6) (b) 1. and (7) (b), r. (4) (a) 5. c., renum. (2) (d), (e) and (f) to be (2) (f), (d) and (e) and am. (e) and (f), Register, May, 1999, No. 521, eff. 6-1-99; EmR0924: emerg. am. (title), (1), (2) (intro.), (d), (f), (4) (a) (intro.), 1., 3., 4. b. to d., 5. b., 7. a., 8., (b) (intro.), 2., 6. c., 7., (5) (a), (6) (a) 1., (b) 1., and (7) (intro.), r. and recr. (2) (k), (4) (a) 6., (6) (b) (title) and (intro.), cr. (4) (a) 2g., 2r., (c) and (d), r. (4) (a) 7. c., (b) 6. e., and (7) (a), renum. (7) (b) to (e) to be (7) (a) to (d), eff. 10-1-09; CR 09-090: am. (title), (1), (2) (intro.), (d), (f), (4) (a) (intro.), 1., 3., 4. b. to d., 5. b., 7. a., 8., (b) (intro.), 2., 6. c., 7., (5) (a), (6) (a) 1., (b) 1., and (7) (intro.), r. and recr. (2) (k), (4) (a) 6., (6) (b) (title) and (intro.), cr. (4) (a) 2g., 2r., (c) and (d), r. (4) (a) 7. c., (b) 6. e., and (7) (a), renum. (7) (b) to (e) to be (7) (a) to (d) and am. Register May 2010 No. 653, eff. 6-1-10; CR 10-094: am. (2) (a), (c), (d), (f), (h), (i), (k) 1., 2. e., (4) (a) (intro.), 3., 4. b., d., 5. a., 6., 7. b., (b) 2., 5., (5), (6) (a) 2., (b) (intro.) Register November 2010 No. 659, eff. 12-1-10; CR 12-014: am. (3) Register August 2012 No. 680, eff. 9-1-12; CR 14-006: am. (2) (b) Register August 2014 No. 704, eff. 9-1-14; CR 20-018: am. (1), cr. (1) (am), am. (2) (f), (4) (a) (intro.), (b) (intro.), 6. (title), a., (c), (d) Register July 2021 No. 787, eff. 8-1-21; renum. (1) (am) to (2) (am) under s. 13.92 (4) (b) 1., Stats., Register July 2021 No. 786.

Tax 11.13 Tax 11.13 Direct pay.

Tax 11.13(1) (1) Definitions. In this section:

Tax 11.13(1)(a) (a) “Continuous” use of a direct pay permit means that the purchase without tax applies to the purchase being made from the retailer and subsequent purchases from that retailer and is considered a part of each order given to the retailer.

Tax 11.13(1)(b) (b) “Single purchase” use of a direct pay permit means that the purchase without tax applies only to the purchase being made from a retailer for which the direct pay permit is given.