77.52 (1) (b), (c), or (d) that is exempt from the taxes imposed under this subchapter, if the transaction includes food and food ingredients, drugs, durable medical equipment, mobility-enhancing equipment, prosthetic devices, or medical supplies and if the seller’s purchase price or the sales price of the taxable tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d) is no greater than 50 percent of the seller’s total purchase price or sales price of all the tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d) included in what would otherwise be a bundled transaction, as determined by the seller using either the seller’s purchase price or the sales price, but not a combination of both. (1fd) “Business” includes any activity engaged in by any person or caused to be engaged in by any person with the object of gain, benefit or advantage, either direct or indirect, and includes also the furnishing and distributing of tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or taxable services for a consideration by social clubs and fraternal organizations to their members or others. (1fm) “Candy” means a preparation of sugar, honey, or other natural or artificial sweetener combined with chocolate, fruit, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces. “Candy” does not include any of the following: (a) A preparation that contains flour or that requires refrigeration. (b) A preparation that has as its predominant ingredient dried or partially dried fruit along with one or more sweeteners, and which may also contain other additives including oils, natural flavorings, fiber, or preservatives. This paragraph does not apply to a preparation that includes chocolate, nuts, yogurt, or a preparation that has a confectionary coating or glazing on the dried or partially dried fruit. For purposes of this paragraph, “dried or partially dried fruit” does not include fruit that has been ground, crushed, grated, flaked, pureed, or jellied. (1fr) “Catalog” means a printed and bound, stitched, sewed, or stapled book containing a list and description of property or services for sale, regardless of whether a price is specified.
77.51 AND FEES (1g) “Certified service provider” means an agent that is certified jointly by the states that are signatories to the agreement, as defined in s. 77.65 (2) (a), and that performs all of a seller’s sales tax and use tax functions related to the seller’s retail sales, except that a certified service provider is not responsible for a retailer’s obligation to remit tax on the retailer’s own purchases. (1m) “Cloth diaper” means a cloth diaper used for sanitary purposes. (1n) “Computer” means an electronic device that accepts information in digital or similar form and that manipulates such information to achieve a result based on a sequence of instructions. (1p) “Computer software” means a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task. (1pd) “Computer software maintenance contract” means a contract that obligates a vendor of computer software to provide a customer with future updates or upgrades to computer software, computer software support services, or both. (1r) “Conference bridging service” means an ancillary service that links 2 or more participants of an audio or video conference call and may include providing a telephone number, but does not include the telecommunications services used to reach the conference bridge. (2) “Contractors” and “subcontractors” are the consumers of tangible personal property or items or goods under s. 77.52 (1) (b) or (d) used by them in real property construction activities, and the sales and use tax applies to the sale of tangible personal property or items or goods under s. 77.52 (1) (b) or (d) to them. A contractor engaged primarily in real property construction activities may use resale certificates only with respect to purchases of tangible personal property or items or goods under s. 77.52 (1) (b) or (d) that the contractor has sound reason to believe the contractor will sell to customers for whom the contractor will not perform real property construction activities involving the use of such tangible personal property or items or goods under s. 77.52 (1) (b) or (d). (2d) “Custom farming services” include services performed by a veterinarian to animals that are farm livestock or work stock and used exclusively in the business of farming. (2k) “Delivered electronically” means delivered to a purchaser by means other than by tangible storage media. (2m) “Delivery charges” means charges by a seller to prepare and deliver tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services to a location designated by the purchaser of the tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services, including charges for transportation, shipping, postage, handling, crating, and packing. (3) “Department” means the department of revenue, its duly authorized employees and agents. (3c) “Detailed telecommunications billing service” means an ancillary service that separately indicates information pertaining to individual calls on a customer’s billing statement. (3m) “Diaper service” means a business primarily engaged in the lease or rental, delivery and laundering of cloth diapers. (3n) “Dietary supplement” means a product, other than tobacco, that is intended to supplement a person’s diet, if all of the following apply: (a) The product contains any of the following ingredients or any combination of any of the following ingredients: 1. A vitamin. 2. A mineral. 3. An herb or other botanical.
May 22, 2026, are designated by NOTES. (Published 5-22-26)
Updated 23-24 Wis. Stats. 10 SALES AND USE TAXES; MANAGED FOREST LANDS; OTHER TAXES AND FEES 4. An amino acid. (3pe) “Directory assistance” means an ancillary service that 5. A dietary substance that is intended for human consump- provides telephone numbers or addresses. tion to supplement the diet by increasing total dietary intake. (3pf) “Distinct and identifiable product” does not include any of the following: 6. A concentrate, metabolite, constituent, or extract. (a) Packaging, including containers, boxes, sacks, bags, bot(b) The product is intended for ingestion in tablet, capsule, powder, soft-gel, gel-cap, or liquid form, or, if not intended for in- tles, and envelopes; and other materials, including wrapping, lagestion in such forms, is not represented as conventional food and bels, tags, and instruction guides; that accompany, and are incidental or immaterial to, the retail sale of any product. is not represented for use as the sole item of a meal or diet. (b) A product that is provided free of charge to the consumer (c) The product is required to be labeled as a dietary supplein conjunction with the required purchase of another product, if ment as required under 21 CFR 101.36. (3p) “Digital audiovisual works” means a series of related the sales price of the other product does not vary depending on images that, when shown in succession, impart an impression of whether the product provided free of charge is included in the motion, along with accompanying sounds, if any, and that are transaction. (c) Any items specified under sub. (12m) (a) or (15b) (a). transferred electronically. “Digital audiovisual works” includes motion pictures, musical videos, news and entertainment pro(3pj) “Drug” means a compound, substance, or preparation, grams, and live events, but does not include video greeting cards or any component of them, other than food and food ingredients, dietary supplements, or alcoholic beverages, to which any of the or video or electronic games. (3pa) “Digital audio works” means works that result from the following applies: (a) It is listed in the United States Pharmacopoeia, Homeofixation of a series of musical, spoken, or other sounds that are transferred electronically, including prerecorded or live music, pathic Pharmacopoeia of the United States, or National Formuprerecorded or live readings of books or other written materials, lary, or any supplement to any of them. prerecorded or live speeches, ringtones, or other sound recordings (b) It is intended for use in diagnosing, curing, mitigating, but not including audio greeting cards sent by electronic mail. treating, or preventing a disease. (3pb) “Digital books” means works that are generally recog(c) It is intended to affect a function or structure of the body. nized in the ordinary and usual sense as books and are transferred (3pm) “Durable medical equipment” means equipment, inelectronically. “Digital books” includes any literary work, other cluding the repair parts and replacement parts for the equipment, than a digital audio work or digital audiovisual work, that is ex- that is primarily and customarily used for a medical purpose repressed in words, numbers, or other verbal or numerical symbols lated to a person; that can withstand repeated use; that is not genor indicia, if the literary work is generally recognized in the ordi- erally useful to a person who is not ill or injured; and that is not nary and usual sense as a book, work of fiction or nonfiction, or a placed in or worn on the body. “Durable medical equipment” short story, but does not include newspapers or other news or in- does not include mobility-enhancing equipment. formation products, periodicals, chat room discussions, or blogs. (3pn) “Eight hundred service” means a telecommunications (3pc) “Digital code” means a code that provides the person service that allows a caller to dial a toll-free number without inwho holds the code a right to obtain an additional digital good, a curring a charge for the call and is marketed under “800,” “855,” digital audiovisual work, digital audio work, or digital book and “866,” “877,” or “888” toll-free calling, or any other number desthat may be obtained by any means, including tangible forms and ignated as toll-free by the federal communications commission. electronic mail, regardless of whether the code is designated as (3po) “Electronic” means relating to technology having elecsong code, video code, or book code. “Digital code” includes trical, digital, magnetic, wireless, optical, electromagnetic, or codes used to access or obtain any specified digital goods, or any similar capabilities. additional digital goods that have been previously purchased, and (3r) “File” means mail or deliver a document that the departpromotion cards or codes that are purchased by a retailer or other ment prescribes to the department or, if the department prebusiness entity for use by the retailer’s or entity’s customers. scribes another method of submitting or another destination, use “Digital code” does not include the following: that other method or submit to that other destination. (a) A code that represents any redeemable card, gift card, or (3rm) “Finished artwork” means the final art used for actual gift certificate that entitles the holder of such card or certificate to reproduction by photomechanical or other processes or for disselect any specified digital goods or additional digital goods at play purposes, but does not include website or home page dethe cash value indicated by the card or certificate. signs. “Finished artwork” includes all of the following items re(b) Digital cash that represents a monetary value that a cus- gardless of whether such items are reproduced: tomer may use to pay for a future purchase. (a) Drawings. (3pd) “Direct mail” means printed material that is delivered (b) Paintings. or distributed by the U.S. postal service or other delivery service (c) Designs. to a mass audience or to addressees on a mailing list provided by (d) Photographs. or at the direction of the purchaser of the printed material, if the (e) Lettering. cost of the printed material or any tangible personal property or (f) Paste-ups. items, property, or goods under s. 77.52 (1) (b), (c), or (d) included with the printed material is not billed directly to the recip(g) Mechanicals. ients of the printed material. “Direct mail” includes any tangible (h) Assemblies. personal property, or items, property, or goods under s. 77.52 (1) (i) Charts. (b), (c), or (d) provided directly or indirectly by the purchaser of (j) Graphs. the printed material to the seller of the printed material for inclu(k) Illustrative materials. sion in any package containing the printed material, including (3rn) “Fixed wireless service” means a telecommunications billing invoices, return envelopes, and additional marketing materials. “Direct mail” does not include multiple items of printed service that provides radio communication between fixed points. material delivered to a single address. (3t) “Food and food ingredient” means a substance in liquid, 77.51
May 22, 2026, are designated by NOTES. (Published 5-22-26)
11
Updated 23-24 Wis. Stats. SALES AND USE TAXES; MANAGED FOREST LANDS; OTHER TAXES
concentrated, solid, frozen, dried, or dehydrated form, that is sold for ingestion, or for chewing, by humans and that is ingested or chewed for its taste or nutritional value. “Food and food ingredient” does not include alcoholic beverages or tobacco. (4m) “Gun club” includes a trapshooting club, skeet-shooting club, sporting-clay club, rifle and pistol club, sportsmen’s club, hunting club, rod and gun club, hunting and fishing club, and conservation club. “Gun club” does not include a wild animal farm or bird hunting preserve licensed under ch. 169. (5) For purposes of subs. (13) (e) and (f) and (15a) and s. 77.52 (2m), “incidental” means depending upon or appertaining to something else as primary; something necessary, appertaining to, or depending upon another which is termed the principal; or something incidental to the main purpose of the service. Tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) transferred by a service provider is incidental to the service if the purchaser’s main purpose or objective is to obtain the service rather than the property, items, or goods, even though the property, items, or goods may be necessary or essential to providing the service. (5d) “International telecommunications services” means telecommunications services that originate or terminate in the United States, including the District of Columbia and any U.S. territory or possession and originate or terminate outside of the United States, including the District of Columbia and any U.S. territory or possession. (5f) “Internet access services” means sending messages and information transmitted through the use of local, toll and widearea telephone service; channel services; telegraph services; teletypewriter; computer exchange services; cellular mobile telecommunications service; specialized mobile radio; stationary twoway radio; paging service; or any other form of mobile and portable one-way or two-way communications; or any other transmission of messages or information by electronic or similar means between or among points by wire, cable, fiber optics, laser, microwave, radio, satellite or similar facilities. “Internet access services” does not include telecommunications services to the extent that such services are taxable under s. 77.52 (2) (a) 5. am. (5n) “Interstate telecommunications services” means telecommunications services that originate in one state or U.S. territory or possession and terminate in a different state or U.S. territory or possession. (5r) “Intrastate telecommunications services” means telecommunications services that originate in one state or U.S. territory or possession and terminate in the same state or U.S. territory or possession. (6) “In this state” or “in the state” means within the exterior limits of the state of Wisconsin. (7) (a) “Lease or rental” means any transfer of possession or control of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) for a fixed or indeterminate term and for consideration and includes: 1. A transfer that includes future options to purchase or extend. 2. Agreements related to the transfer of possession or control of motor vehicles or trailers, if the amount of any consideration may be increased or decreased by reference to the amount realized on the sale or other disposition of such motor vehicles or trailers, consistent with section 7701 (h) (1) of the Internal Revenue Code. (b) “Lease or rental” does not include any of the following: 1. A transfer of possession or control of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) under a security agreement or deferred payment plan, if such
77.51 AND FEES agreement or plan requires transferring title to the tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) after making all required payments. 2. A transfer of possession or control of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) under any agreement that requires transferring title to the tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) after making all required payments and after paying an option price that does not exceed the greater of $100 or 1 percent of the total amount of the required payments. 3. Providing tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) along with an operator, if the operator is necessary for the tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) to perform in the manner for which it is designed and if the operator does more than maintain, inspect, or set up the tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d). (c) 1. Transfers described under par. (a) are considered a lease or rental, regardless of whether such transfer is considered a lease or rental under generally accepted accounting principles, or any provision of federal or local law, or any other provision of state law. 2. Transfers described under par. (b) are not considered a lease or rental, regardless of whether such transfer is considered a lease or rental under generally accepted accounting principles, or any provision of federal or local law, or any other provision of state law. (7g) “Load-and-leave” means delivery to a purchaser by using a tangible storage media that is not physically transferred to the purchaser. (7h) (a) “Manufacturing” means the production by machinery of a new article of tangible personal property or item or property under s. 77.52 (1) (b) or (c) with a different form, use, and name from existing materials, by a process popularly regarded as manufacturing, and that begins with conveying raw materials and supplies from plant inventory to the place where work is performed in the same plant and ends with conveying finished units of tangible personal property or item or property under s. 77.52 (1) (b) or (c) to the point of first storage in the same plant. “Manufacturing” includes: 1. Crushing, washing, grading and blending sand, rock, gravel and other minerals. 2. Ore dressing, including the mechanical preparation, by crushing and other processes, and the concentration, by flotation and other processes, of ore, and beneficiation, including the preparation of ore for smelting. 3. Conveying work in progress directly from one manufacturing process to another in the same plant; testing or inspecting, throughout the manufacturing process, the new article of tangible personal property or item or property under s. 77.52 (1) (b) or (c) that is being manufactured; storing work in progress in the same plant where the manufacturing occurs; assembling finished units of tangible personal property or item or property under s. 77.52 (1) (b) or (c); and packaging a new article of tangible personal property or items or property under s. 77.52 (1) (b) or (c), if the manufacturer, or another person on the manufacturer’s behalf, performs the packaging and if the packaging becomes part of the new article as it is customarily offered for sale by the manufacturer. (b) “Manufacturing” does not include storing raw materials or finished units of tangible personal property or items or property under s. 77.52 (1) (b) or (c), research or development, delivery to or from the plant, or repairing or maintaining plant facilities. (7i) “Marketplace provider” means any person who facili-
May 22, 2026, are designated by NOTES. (Published 5-22-26)
Updated 23-24 Wis. Stats. 12 SALES AND USE TAXES; MANAGED FOREST LANDS; OTHER TAXES AND FEES tates a retail sale by a seller by listing or advertising for sale by the goods under s. 77.52 (1) (b), (c), or (d), or taxable services. No seller, in any manner, tangible personal property, or items, prop- sale of any tangible personal property, or items, property, or erty, or goods under s. 77.52 (1) (b), (c), or (d), or a service spec- goods under s. 77.52 (1) (b), (c), or (d), or taxable service may be ified under s. 77.52 (2) (a) and, who directly or indirectly, through deemed an occasional sale if at the time of such sale the seller agreements or arrangements with 3rd parties, processes the pay- holds or is required to hold a seller’s permit, except that this proment from the purchaser for the retail sale, regardless of whether vision does not apply to an organization required to hold a seller’s the person receives compensation or other consideration in ex- permit solely for the purpose of conducting bingo games and except as provided in par. (am). change for the services provided by the person. 2. For purposes of subd. 1., it is presumed that a seller is not (7j) “Marketplace seller” means a seller who sells products through a physical or electronic marketplace operated by a mar- pursuing a vocation, occupation, or business or a partial vocation ketplace provider, regardless of whether the seller is required to or occupation or part-time business as a vendor of tangible personal property, or items, property, or goods under s. 77.52 (1) (b), be registered with the department. (7k) “Mobile wireless service” means a telecommunications (c), or (d), or taxable services if the seller’s total taxable sales service for which the origination or termination points of the ser- price from sales of tangible personal property, items, property, vice’s transmission, conveyance, or routing are not fixed, regard- and goods under s. 77.52 (1) (b), (c), and (d), and taxable services less of the technology used to transmit, convey, or route the ser- is less than $2,000 during a calendar year. (am) The sale of personal property or items, property, or vice. “Mobile wireless service” includes a telecommunications service provided by a commercial mobile radio service provider. goods under s. 77.52 (1) (b), (c), or (d), other than inventory held for sale, previously used by a seller to conduct its trade or busi(7m) “Mobility-enhancing equipment” means equipment, inness at a location after that person has ceased actively operating cluding the repair parts and replacement parts for the equipment, in the regular course of business as a seller of tangible personal that is primarily and customarily used to provide or increase the property, or items, property, or goods under s. 77.52 (1) (b), (c), ability of a person to move from one place to another; that may be or (d), or taxable services at that location, even though the seller used in a home or motor vehicle; and that is generally not used by holds a seller’s permit for one or more other locations. a person who has normal mobility. “Mobility-enhancing equip(e) Five or fewer auctions that are the sale of personal farm ment” does not include a motor vehicle or any equipment on a motor vehicle that is generally provided by a motor vehicle manu- property or household goods and that are held by the same aucfacturer. “Mobility-enhancing equipment” does not include tioneer at the same location during the year. In this paragraph, with respect to indoor locations, “location” means a building, exdurable medical equipment. cept that in the case of a shopping center or a shopping mall “lo(8) “Newspaper” means those publications which are com- cation” means a store. monly understood to be newspapers and which are printed and (9p) “One nonitemized price” does not include a price that is distributed periodically at daily, weekly or other short intervals separately identified by product on a binding sales document, or for the dissemination of current news and information of a genother sales-related document, that is made available to the cuseral character and of a general interest to the public. In addition, tomer in paper or electronic form, including an invoice, a bill of any publication which qualifies as a newspaper under s. 985.03 sale, a receipt, a contract, a service agreement, a lease agreement, (1) is a newspaper. “Newspaper” also includes advertising supa periodic notice of rates and services, a rate card, or a price list. plements if they are printed by a newspaper and distributed as a (9r) (a) “Other direct mail” means any direct mail that is not component part of one of that newspaper’s publications or if they are printed by a newspaper or a commercial printer and sold to a advertising and promotional direct mail, regardless of whether newspaper for inclusion in publications of that newspaper. A advertising and promotional direct mail is included in the same “newspaper” does not include handbills, circulars, flyers, or the mailing. “Other direct mail” includes all of the following: 1. Transactional direct mail that contains personal informalike, advertising supplements not described in this subsection which are distributed with a newspaper, nor any publication tion specific to the addressee, including invoices, bills, account which is issued to supply information on certain subjects of inter- statements, and payroll advices. 2. Any legally required mailings, including privacy notices, est to particular groups, unless such publication otherwise qualifies as a newspaper within this subsection. In this subsection, ad- tax reports, and stockholder reports. vertising is not considered news of a general character and of a 3. Other nonpromotional direct mail, including newsletters general interest. and informational pieces, that is delivered to existing or former (8m) “Nine hundred service” means an inbound toll telecom- shareholders, customers, employees, or agents. (b) “Other direct mail” does not include printed materials that munications service purchased by a subscriber that allows the subscriber’s customers to call the subscriber’s prerecorded an- result from developing billing information or providing any data nouncement or live service. “Nine hundred service” does not in- processing service that is more than incidental, as defined in sub. clude any charge for collection services provided by the seller of (5), to producing the other direct mail. the telecommunications services to the subscriber or for any (9s) “Paging service” means a telecommunications service product or service the subscriber sells to the subscriber’s cus- that transmits coded radio signals to activate specific pagers and tomers. A “nine hundred service” is designated with the “900” may include messages or sounds. number or any other number designated by the federal communi(10) “Person” includes any natural person, firm, partnership, cations commission. limited liability company, joint venture, joint stock company, as(9) “Occasional sales” includes: sociation, public or private corporation, the United States, the (a) 1. Isolated and sporadic sales of tangible personal prop- state, including any unit or division of the state, any county, city, erty, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), village, town, municipal utility, municipal power district or other or taxable services where the infrequency, in relation to the other governmental unit, cooperative, unincorporated cooperative assocircumstances, including the sales price and the gross profit, sup- ciation, estate, trust, receiver, personal representative, any other port the inference that the seller is not pursuing a vocation, occu- fiduciary, any other legal entity, and any representative appointed pation or business or a partial vocation or occupation or part-time by order of any court or otherwise acting on behalf of others. business as a vendor of personal property, or items, property, or (10b) For purposes of sub. (7h), “plant” means a parcel of 77.51
May 22, 2026, are designated by NOTES. (Published 5-22-26)
13
Updated 23-24 Wis. Stats. SALES AND USE TAXES; MANAGED FOREST LANDS; OTHER TAXES
property or adjoining parcels of property, including parcels that are separated only by a public road, and the buildings, machinery, and equipment that are located on the parcel, that are owned by or leased to the manufacturer. (10c) For purposes of sub. (7h), “plant inventory” does not include unsevered mineral deposits. (10d) “Prepaid calling service” means the right to exclusively access telecommunications services, if that right is paid for in advance of providing such services, requires using an access number or authorization code to originate calls, and is sold in predetermined units or dollars that decrease with use in a known amount. (10f) “Prepaid wireless calling service” means a telecommunications service that provides the right to utilize mobile wireless service as well as other nontelecommunications services, including the download of digital products delivered electronically, content, and ancillary services, and that is paid for prior to use and sold in predetermined units or dollars that decrease with use in a known amount. (10m) (a) “Prepared food” means: 1. Food and food ingredients sold in a heated state. 2. Food and food ingredients heated by the retailer, except as provided in par. (b). 3. Food and food ingredients sold with eating utensils that are provided by the retailer of the food and food ingredients, including plates, bowls, knives, forks, spoons, glasses, cups, napkins, or straws. In this subdivision, “plate” does not include a container or packaging used to transport food and food ingredients. For purposes of this subdivision, a retailer provides utensils if any of the following applies: a. The utensils are available to purchasers and the retailer’s sales of prepared food under subds. 1., 2., and 4., and food for which plates, bowls, glasses, or cups are necessary to receive the food, are more than 75 percent of the retailer’s total sales of all food and food ingredients, as determined under par. (c). b. For retailers not described under subd. 3. a., the retailer’s customary practice is to physically give or hand the utensils to the purchaser, except that plates, bowls, glasses, or cups that are necessary for the purchaser to receive the food and food ingredients need only be made available to the purchaser. 4. Except as provided in par. (b), 2 or more food ingredients mixed or combined by a retailer for sale as a single item. (b) “Prepared food” does not include: 1. For purposes of par. (a) 2. and 4., 2 or more food ingredients mixed or combined by a retailer for sale as a single item, if the retailer’s primary classification in the North American Industry Classification System, 2002 edition, published by the federal office of management and budget, is manufacturing under subsector 311, not including bakeries and tortilla manufacturing under industry group number 3118. 2. For purposes of par. (a) 2. and 4., 2 or more food ingredients mixed or combined by a retailer for sale as a single item, sold unheated, and sold by volume or weight. 3. For purposes of par. (a) 2. and 4., bakery items made by a retailer, including breads, rolls, pastries, buns, biscuits, bagels, croissants, donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, and tortillas. 4. For purposes of par. (a) 4., food and food ingredients that are only sliced, repackaged, or pasteurized by a retailer. 5. For purposes of par. (a) 4., eggs, fish, meat, and poultry, and foods containing any of them in raw form, that require cooking by the consumer, as recommended by the food and drug administration in chapter 3, part 401.11 of its food code to prevent food-borne illnesses.
77.51 AND FEES (c) 1. The percentage specified under par. (a) 3. a. shall be determined using the following: a. A numerator that includes sales of prepared food, as defined in par. (a) 1., 2., and 4., and food for which plates, bowls, glasses, or cups are necessary to receive the food, but not including alcoholic beverages. b. A denominator that includes all food and food ingredients, including prepared food, candy, dietary supplements, and soft drinks, but not including alcoholic beverages. 2. a. If the percentage determined under subd. 1. is 75 percent or less, utensils are considered to be provided by the retailer if the retailer’s customary practice is to physically give or hand the utensils to the purchaser or, in the case of plates, bowls, glasses, or cups that are necessary to receive the food, to make such items available to the purchaser. b. If the percentage determined under subd. 1. is greater than 75 percent, utensils are considered to be provided by the retailer if the utensils are made available to the purchaser. 3. For a retailer whose percentage determined under subd. 1. is greater than 75 percent, an item sold by the retailer that contains 4 or more servings packaged as one item and sold for a single price does not become prepared food simply because the retailer makes utensils available to the purchaser of the item, but does become prepared food if the retailer physically gives or hands utensils to the purchaser of the item, except that plates, bowls, glasses, or cups necessary for the purchaser to receive the food need only be made available to the purchaser. For purposes of this subdivision 3., serving sizes are based on the information contained on the label of each item sold, except that, if the item has no label, the serving size is based on the retailer’s reasonable determination. 4. a. Except as provided in subd. 4. b., if a retailer sells food items that have a utensil placed in a package by a person other than the retailer, the utensils are considered to be provided by the retailer. b. Except as provided in subds. 2. and 3., if a retailer sells food items that have a utensil placed in a package by a person other than the retailer and the person’s primary classification in the North American Industry Classification System, 2002 edition, published by the federal office of management and budget, is manufacturing under subsector 311, the utensils are not considered to be provided by the retailer. 5. For purposes of par. (a) 3., a retailer shall determine the percentage for the retailer’s tax year or business fiscal year, based on the retailer’s data from the retailer’s prior tax year or business fiscal year, as soon as practical after the retailer’s accounting records are available, but not later than 90 days after the day on which the retailer’s tax year or business fiscal year begins. For a retailer with more than one establishment in this state, a single determination under subd. 1. that combines the information for all of the retailer’s establishments in this state shall be made annually, as provided in this subdivision, and apply to each of the retailer’s establishments in this state. A retailer that has no prior tax year or business fiscal year shall make a good faith estimate of its percentage for purposes of par. (a) 3. for the retailer’s first tax year or business fiscal year and shall adjust the estimate prospectively after the first 3 months of the retailer’s operations if the actual percentage is materially different from the estimated percentage. (10n) “Prescription” means an order, formula, or recipe that is issued by any oral, written, electronic, or other means of transmission and by a person who is authorized by the laws of this state to issue such an order, formula, or recipe. (10r) “Prewritten computer software” means computer software, including prewritten upgrades, that is not designed and de-
May 22, 2026, are designated by NOTES. (Published 5-22-26)
Updated 23-24 Wis. Stats. 14 SALES AND USE TAXES; MANAGED FOREST LANDS; OTHER TAXES AND FEES veloped by the author or other creator to the specifications of a which tangible personal property, or items, property, or goods unspecific purchaser. The combining of 2 or more “prewritten com- der s. 77.52 (1) (b), (c), or (d), or services are sold, licensed, puter software” programs or prewritten portions of computer leased, or rented, valued in money, whether paid in money or othsoftware does not cause the combination to be other than erwise, without any deduction for the following: “prewritten computer software.” “Prewritten computer software” 1. The seller’s cost of the property or items, property, or includes software designed and developed by the author or other goods under s. 77.52 (1) (b), (c), or (d) sold. creator to the specifications of a specific purchaser if it is sold to 2. The cost of materials used, labor or service cost, interest, a person other than the specific purchaser. For purposes of this losses, all costs of transportation to the seller, all taxes imposed subsection, if a person modifies or enhances computer software on the seller, except as provided in par. (b) 3m. and 3s., and any of which the person is not the author or creator, the person is the other expense of the seller. author or creator only of the person’s modifications or enhance3. Charges by the seller for any services necessary to comments. “Prewritten computer software” or a prewritten portion of plete a sale, not including delivery and installation charges. computer software that is modified or enhanced to any degree, 4. a. Delivery charges, except as provided in par. (b) 4. with regard to a modification or enhancement that is designed b. If a shipment includes property or items that are subject to and developed to the specifications of a specific purchaser, remains “prewritten computer software,” except that if there is a tax under this subchapter and property or items that are not subreasonable, separately stated charge or an invoice or other state- ject to tax under this subchapter, the amount of the delivery ment of the price given to the purchaser for the modification or charge that the seller allocates to the property and items that are enhancement, the modification or enhancement is not “prewrit- subject to tax under this subchapter is based either on the total purchase price of the property and items that are subject to tax ten computer software.” under this subchapter as compared to the total purchase price of (10rn) “Primarily” means more than 50 percent. all the property and items or on the total weight of the property (11) “Printing” and “imprinting” include lithography, phoand items that are subject to tax under this subchapter as comtolithography, rotogravure, gravure, letterpress, silk screen printing, multilithing, multigraphing, mimeographing, photostating, pared to the total weight of all the property and items, except that if the seller does not make the allocation under this subd. 4. b., steel die engraving and similar processes. the purchaser shall allocate the delivery charge amount, consis(11b) “Prison” means a prison described in s. 302.01, except tent with this subd. 4. b. it does not include the correctional institution under s. 301.046 5. Installation charges. (1) if the institution is the prisoner’s place of residence and does (b) “Purchase price” does not include: not include a Type 2 prison, as defined in s. 301.01 (6). 1. Discounts, including cash, terms, or coupons, that are not (11c) “Private communication service” means a telecommunications service that entitles the customer to exclusive or priority reimbursed by a 3rd party, except as provided in par. (c); that are use of a communications channel or group of communications allowed by a seller; and that are taken by a purchaser on a sale. 2. Interest, financing, and carrying charges from credit that is channels, regardless of the manner in which the communications channel or group of communications channels is connected, and extended on a sale of tangible personal property, or items, propincludes switching capacity, extension lines, stations, and other erty, or goods under s. 77.52 (1) (b), (c), or (d), or services, if the associated services that are provided in connection with the use amount of the interest, financing, or carrying charges is separately stated on the invoice, bill of sale, or similar document that of such channel or channels. (11d) For purposes of subs. (1ag), (1f), (3pf), (7j), and (9p) the seller gives to the purchaser. 3. Any taxes legally imposed directly on the purchaser that and ss. 77.52 (20) and (21), 77.522, 77.54 (9g), (51), (52), and (60), and 77.59 (5r), “product” includes tangible personal prop- are separately stated on the invoice, bill of sale, or similar docuerty, and items, property, and goods under s. 77.52 (1) (b), (c), ment that the seller gives to the purchaser. and (d), and services. 3m. Taxes imposed on the seller that are separately stated on (11m) “Prosthetic device” means a replacement, corrective, the invoice, bill of sale, or similar document that the seller gives or supportive device, including the repair parts and replacement to the purchaser if the law imposing or authorizing the tax proparts for the device, that is placed in or worn on the body to artifi- vides that the seller may, but is not required to, pass on to and colcially replace a missing portion of the body; to prevent or correct lect the tax from the user or consumer. a physical deformity or malfunction; or to support a weak or de3s. The federal tax imposed on the seller in a retail sale of a formed portion of the body. heavy truck or trailer under section 4051 of the Internal Revenue Code that is separately stated on the invoice, bill of sale, or simi(12) “Purchase” includes: (a) Any transfer of title, possession, ownership, enjoyment, or lar document that the seller gives to the purchaser. 4. Delivery charges for direct mail, if the delivery charges for use by: cash or credit transaction, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means direct mail are separately stated on the invoice, bill of sale, or whatever of tangible personal property or items, property, or similar document that the seller gives to the purchaser. goods under s. 77.52 (1) (b), (c), or (d) for a consideration, in5. In all transactions in which an article of tangible personal cluding any transaction for which a person’s books and records property, an item under s. 77.52 (1) (b), property under s. 77.52 show the transaction created, with regard to the transferee, an (1) (c), or a good under s. 77.52 (1) (d) is traded toward the purobligation to pay a certain amount of money or an increase in ac- chase of an article, item, property, or good of greater value, the counts payable or, with regard to the transferor, a right to receive amount of the purchase price that represents the amount allowed a certain amount of money or an increase in accounts receivable. for the article, item, property, or good traded, except that this sub(b) A transaction whereby the possession of property, or division does not apply to any transaction to which subd. 7. or 8. items, property, or goods under s. 77.52 (1) (b), (c), or (d) is applies. transferred but the seller retains the title as security for the pay6. If a person who purchases a motor vehicle presents a statement of the price. ment issued under s. 218.0171 (2) (cq) to the seller at the time of (12m) (a) “Purchase price” means the total amount of con- purchase, and the person presents the statement to the seller sideration, including cash, credit, property, and services, for within 60 days from the date of receiving a refund under s. 77.51
May 22, 2026, are designated by NOTES. (Published 5-22-26)
15
Updated 23-24 Wis. Stats. SALES AND USE TAXES; MANAGED FOREST LANDS; OTHER TAXES
218.0171 (2) (b) 2. b., the trade-in amount specified in the statement issued under s. 218.0171 (2) (cq), but not to exceed the purchase price from the sale of the motor vehicle. This subdivision applies only to the first motor vehicle purchased by a person after receiving a refund under s. 218.0171 (2) (b) 2. b. 7. Thirty-five percent of the purchase price, excluding tradeins, of a new manufactured home, as defined in s. 101.91 (11). This subdivision does not apply to a lease or rental. 8. At the retailer’s option; except that after the retailer chooses an option the retailer may not use the other option for other sales without the department’s written approval; either 35 percent of the purchase price of a modular home, as defined in s. 101.71 (6), or an amount equal to the purchase price of the home minus the cost of materials that become an ingredient or component part of the home. (c) “Purchase price” includes consideration received by the seller from a 3rd party, if: 1. The seller actually receives consideration from a 3rd party, other than the purchaser, and the consideration is directly related to a price reduction or discount on a sale. 2. The seller is obliged to pass the price reduction or discount to the purchaser. 3. The amount of the consideration that is attributable to the sale is a fixed amount and the seller is able to determine that amount at the time of the sale to the purchaser. 4. One of the following also applies: a. The purchaser presents a coupon, certificate, or other documentation to the seller to claim the price reduction or discount, if the coupon, certificate, or other documentation is authorized, distributed, or granted by the 3rd party with the understanding that the 3rd party will reimburse the seller for the amount of the price reduction or discount. b. The purchaser identifies himself or herself to the seller as a member of a group or organization that may claim the price reduction or discount. c. The seller provides an invoice to the purchaser, or the purchaser presents a coupon, certificate, or other documentation to the seller, that identifies the price reduction or discount as a 3rdparty price reduction or discount. (12p) “Purchaser” means a person to whom a sale of tangible personal property is made or to whom a service is furnished. (12t) “Real property construction activities” means activities that occur at a site where tangible personal property or items or goods under s. 77.52 (1) (b) or (d) that are applied or adapted to the use or purpose to which real property is devoted are permanently affixed to that real property. “Real property construction activities” does not include affixing property subject to tax under s. 77.52 (1) (c) to real property or affixing to real property tangible personal property that remains tangible personal property after it is affixed. The department may promulgate rules to determine whether activities that occur at a site where tangible personal property or items or goods under s. 77.52 (1) (b) or (d) are affixed to real property are real property construction activities for purposes of this subchapter. If the classification of property or an activity is not identified by rule, the department’s determination of whether personal property becomes a part of real property shall be made by considering the following criteria: (a) Actual physical annexation to the real property. (b) Application or adaptation to the use or purpose to which the real property is devoted. (c) An intention on the part of the person making the annexation to make a permanent accession to the real property. (13) “Retailer” includes: (a) Every seller who makes any sale on the seller’s own behalf
77.51 AND FEES or on behalf of another person, regardless of whether the sale is mercantile in nature, of tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or a service specified under s. 77.52 (2) (a). (am) Any person making any retail sale of a motor vehicle, aircraft, snowmobile, recreational vehicle, as defined in s. 340.01 (48r), trailer, semitrailer, all-terrain vehicle, utility terrain vehicle, off-highway motorcycle, as defined in s. 23.335 (1) (q), or boat registered or titled, or required to be registered or titled, under the laws of this state or of the United States. (b) Every person engaged in the business of making sales of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) for storage, use or consumption or in the business of making sales at auction of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) owned by the person or others for storage, use or other consumption. (c) When the department determines that it is necessary for the efficient administration of this subchapter to regard any salespersons, representatives, peddlers, marketplace providers, or canvassers as the agents of the dealers, distributors, marketplace sellers, supervisors, or employers under whom they operate or from whom they obtain the tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) sold by them, irrespective of whether they are making the sales on their own behalf or on behalf of such dealers, distributors, marketplace sellers, supervisors, or employers, the department may so regard them and may regard the dealers, distributors, marketplace sellers, supervisors, or employers as retailers for purposes of this subchapter. (d) Every wholesaler to the extent that the wholesaler sells tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) to a person other than a seller as defined in sub. (17) provided such wholesaler is not expressly exempt from the sales tax on such sale or from collecting the use tax on such sale. (e) A person selling tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) to a service provider who transfers the property, items, or goods in conjunction with the selling, performing or furnishing of any service and the property, items, or goods are incidental to the service, unless the service provider is selling, performing or furnishing services under s. 77.52 (2) (a) 7., 10., 11. and 20. This subsection does not apply to sub. (2). (f) A service provider who transfers tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) in conjunction with but not incidental to the selling, performing or furnishing of any service and a service provider selling, performing or furnishing services under s. 77.52 (2) (a) 7., 10., 11. and 20. This subsection does not apply to sub. (2). (fm) A person selling, performing, or furnishing any service under s. 77.52 (2) (a) 5. or 12. to a service provider described in s. 77.52 (2m) (am). (i) A person selling items, property, or goods under s. 77.52 (1) (b), (c), or (d), materials, or supplies to barbers, beauty shop operators, or bootblacks for use by them in the performance of their services. (j) A person selling items, property, and goods under s. 77.52 (1) (b), (c), and (d), materials, and supplies to producers of X-ray films. (k) With respect to a lease, any person deriving rentals from a lease of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) sourced to this state as provided under s. 77.522. (m) A person selling tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) to a veterinar-
May 22, 2026, are designated by NOTES. (Published 5-22-26)
Updated 23-24 Wis. Stats. 16 SALES AND USE TAXES; MANAGED FOREST LANDS; OTHER TAXES AND FEES ian to be used or furnished by the veterinarian in the performance nal Revenue Code owns directly, indirectly, beneficially, or conof services in some manner related to domestic animals, includ- structively at least 50 percent of the corporation’s outstanding ing pets or poultry. stock value. (n) A person selling household furniture, furnishings, equip2. One person, or each person, is a partnership, estate, or ment, appliances or other items of tangible personal property or trust and any partner or beneficiary; and the partnership, estate, items, property, or goods under s. 77.52 (1) (b), (c), or (d) to a or trust and its partners or beneficiaries; own directly, indirectly, landlord for use by tenants in leased or rented living quarters. beneficially, or constructively, in the aggregate, at least 50 percent (o) A person selling drugs for animals or bees to a veterinar- of the profits, capital, stock, or value of the other person or both ian. As used in this paragraph, “animal” includes livestock, pets, persons. and poultry. 3. An individual stockholder and the members of the stock(p) All persons described in this subsection regardless of all holder’s family, as defined in section 318 of the Internal Revenue of the following: Code, owns directly, indirectly, beneficially, or constructively, in the aggregate, at least 50 percent of both persons’ outstanding 1. Whether the transaction is mercantile in nature. 2. Whether the seller sells smaller quantities from inventory. stock value. (e) Any person servicing, repairing, or installing equipment or 3. Whether the seller makes or intends to make a profit on other tangible personal property, or items, property, or goods unthe sale. 4. Whether the seller or the buyer receives a benefit the seller der s. 77.52 (1) (b), (c), or (d) in this state. (f) Any person delivering tangible personal property or items or buyer bargained for. 5. The percentage of the seller’s total sales that the sale under s. 77.52 (1) (b) into this state in a vehicle operated by the person that sells the property or items that are delivered. represents. (g) Any person performing construction activities in this state. 6. Any activities other than those described in pars. (a) to (o) (13gm) (a) “Retailer engaged in business in this state” does in which the seller is engaged. 7. Whether the seller sells on the seller’s own behalf or on not include a retailer who has no activities as described in sub. (13g), except for activities described in sub. (13g) (c), unless the behalf of another person. (q) A marketplace provider who facilitates, on behalf of a retailer’s annual gross sales into this state exceed $100,000 in the marketplace seller, sales that are sourced to this state as provided previous or current calendar year. (b) If an out-of-state retailer’s annual gross sales into this state under s. 77.522 of tangible personal property, or items, property, exceed $100,000 in the previous calendar year, the retailer shall or goods under s. 77.52 (1) (b), (c), or (d), or services. (13g) Except as provided in subs. (13gm) and (13h), “retailer register with the department and collect the taxes administered engaged in business in this state”, for purposes of the use tax, in- under s. 77.52 or 77.53 on sales sourced to this state under s.