Tax 11.13(2)(a) (a) The holder of a direct pay permit may purchase tangible personal property, items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., and taxable services, except those in sub. (6) (a) and (b), from a retailer without paying Wisconsin sales or use tax to the retailer.

Tax 11.13(2)(b) (b) The direct pay permit holder shall report Wisconsin use tax on the purchase price of tangible personal property, items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., and taxable services purchased from a retailer without tax using a direct pay permit if the property, item, good, or service is subject to Wisconsin sales or use tax. The tax shall be reported on the direct pay permit holder’s Wisconsin sales tax return for the period in which the taxable storage, use, or consumption first occurs in Wisconsin.

Tax 11.13 Note Note: Purchase price, for purposes of this paragraph, has the meaning specified in s. 77.51 (12m), Stats.

Tax 11.13(3) (3) Issuance.

Tax 11.13(3)(a) (a) The department shall issue a direct pay permit to those applicants who meet the qualifications set forth in s. 77.52 (17m) (b), Stats.

Tax 11.13(3)(b) (b) Persons who wish to obtain a direct pay permit shall apply to the department using form S-101, “Application for Direct Pay Permit.”

Tax 11.13 Note Note: Form S-101 is available by writing to Wisconsin Department of Revenue, Mail Stop 5-77, PO Box 8902, Madison WI 53708-8902; calling [phone]; or downloading it from the department’s web site, www.revenue.wi.gov.

Tax 11.13(3)(c) (c) A direct pay permit shall be effective for purchases made beginning on the first day of the applicant’s taxable year, for Wisconsin franchise or income tax purposes, after the permit is issued.

Tax 11.13 Note Example: A person’s taxable year begins July 1 for Wisconsin franchise or income tax purposes. The person files an application for a direct pay permit with the department on January 1, 2009. The person is issued a direct pay permit which is effective for purchases made on or after July 1, 2009.

Tax 11.13(4) (4) Revocation or cancellation.

Tax 11.13(4)(a) (a) A direct pay permit issued by the department may be used indefinitely until it is revoked by the department or cancelled by the holder.

Tax 11.13(4)(b) (b) A permit may be cancelled by the holder by mailing the permit to the department for cancellation. A letter shall be enclosed with the permit, indicating the holder’s intention to cancel the permit.

Tax 11.13 Note Note: The permit to be cancelled and letter should be mailed to Wisconsin Department of Revenue, Mail Stop 5-77, PO Box 8902, Madison WI 53708-8902.

Tax 11.13(4)(c) (c) The cancellation of a direct pay permit shall become effective immediately following the last day of the holder’s taxable year in which the permit is received by the department.

Tax 11.13(5) (5) Using direct pay.

Tax 11.13(5)(a) (a) Documentation. A direct pay permit holder shall provide one of the following to a retailer when purchasing without paying tax to the retailer using a direct pay permit:

Tax 11.13(5)(a)1. 1. A copy of its direct pay permit. The direct pay permit holder shall also provide to the retailer a written statement as to whether the direct pay permit is for a single purchase or is continuous.

Tax 11.13(5)(a)2. 2. A form S-211, “Wisconsin Sales and Use Tax Exemption Certificate,” or other written document, either of which contains all of the following:

Tax 11.13(5)(a)2.a. a. The name and address of the direct pay permit holder.

Tax 11.13(5)(a)2.b. b. A statement that the direct pay permit holder is purchasing without Wisconsin sales or use tax using a direct pay permit.

Tax 11.13(5)(a)2.c. c. The direct pay permit holder’s direct pay permit number.

Tax 11.13(5)(a)2.d. d. The effective date of the direct pay permit.

Tax 11.13(5)(a)2.e. e. A statement as to whether the use of the direct pay permit is for a single purchase or is continuous.

Tax 11.13(5)(a)2.f. f. The signature of the direct pay permit holder.

Tax 11.13(5)(b) (b) Continuous use.

Tax 11.13(5)(b)1. 1. If a direct pay permit holder indicates in writing to a retailer that the use of the direct pay permit is continuous, that purchase and all subsequent purchases from the retailer, except those in sub. (6) (a) and (b), shall be made without paying Wisconsin sales or use tax to the retailer using the direct pay permit, unless the continuous use is voided by the direct pay permit holder. The direct pay permit holder may void the continuous use of its direct pay permit by furnishing the retailer a letter indicating that continuous use no longer applies.

Tax 11.13(5)(b)2. 2. If the use of a direct pay permit is continuous, it is necessary for the direct pay permit holder to provide the documentation in par. (a) to a retailer only at the time the direct pay permit holder begins making purchases without paying tax to that retailer using the direct pay permit, rather than at the time of each purchase.

Tax 11.13(5)(b)3. 3. While the use of a direct pay permit is continuous, all purchases from a retailer, except those in sub. (6) (a) and (b), shall be made using the direct pay permit even though an exemption certificate requiring different documentation may apply.

Tax 11.13 Note Example: On October 1, 2009, Company A begins using its direct pay permit when purchasing tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., from Company B. Company A provides a written statement to Company B that the use of its direct pay permit will be continuous. All purchases of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., or taxable services, except those described in sub. (6) (a) and (b), by Company A from Company B on or after October 1, 2009, while continuous use is in effect, must be made without paying sales or use tax to the retailer using the direct pay permit. While continuous use of a direct pay permit is in effect, no other exemption certificate may be used.