Sourcing

77.522 for the entire current calendar year. cludes any of the following: (c) If an out-of-state retailer’s annual gross sales into this state (a) Any retailer owning any real property in this state. are $100,000 or less in the previous calendar year, the retailer is (ab) Any retailer leasing or renting out any tangible personal property, or items or property under s. 77.52 (1) (b) or (c), if such not required to register with the department and collect the taxes administered under s. 77.52 or 77.53 on sales sourced to this state property or items are located in this state. under s. 77.522 until the retailer’s gross sales exceed $100,000 (ac) Any retailer maintaining, occupying, or using, permafor the current calendar year, at which time the retailer shall regisnently or temporarily, directly or indirectly, or through a subsidiary, an agent, or some other person, an office, place of distri- ter with the department and collect the tax for the remainder of bution, sales or sample room or place, warehouse or storage the current calendar year. (d) All of the following apply for purposes of this subsection: place, or other place of business in this state. 2. “Gross sales” includes both taxable and nontaxable sales. (b) Any retailer having any representative, including a manu5. An out-of-state retailer’s annual gross sales include all facturer’s representative, agent, salesperson, canvasser, or solicitor operating in this state under authority of the retailer or its sub- sales into this state by the retailer on behalf of other persons and sidiary for the purpose of selling, delivering, or the taking orders all sales into this state by another person on the retailer’s behalf. for any tangible personal property, or items, property, or goods (13h) “Retailer engaged in business in this state”, notwithunder s. 77.52 (1) (b), (c), or (d), or services or for the purpose of standing sub. (13g), beginning on the applicable date does not inperforming any of the other activities described in this clude a foreign corporation that is the publisher of printed materisubsection. als the only activities of which in this state do not exceed the stor(c) Any retailer selling tangible personal property, or items, age of its raw materials for any length of time in this state in or on property, or goods under s. 77.52 (1) (b), (c), or (d), or taxable property owned by a person other than the foreign corporation services for storage, use, or other consumption in this state, un- and the delivery of its raw materials to another person in this state less otherwise limited by federal law. if that storage and delivery are for printing by that other person, (d) Any person who has an affiliate in this state, if the person and the purchase from a printer of a printing service or of printed is related to the affiliate and if the affiliate uses facilities or em- materials in this state for the publisher and the storage of the ployees in this state to advertise, promote, or facilitate the estab- printed materials for any length of time in this state in or on proplishment of or market for sales of items by the related person to erty owned by a person other than the publisher and do not expurchasers in this state or for providing services to the related per- ceed maintaining, occupying and using, directly or by means of son’s purchasers in this state, including accepting returns of pur- another person, a place that is in this state, that is not owned by chases or resolving customer complaints. For purposes of this the publisher and that is used for the distribution of printed mateparagraph, 2 persons are related if any of the following apply: rials. In this subsection, “applicable date” for publishers of 1. One person, or each person, is a corporation and one per- books and periodicals other than catalogs means January 1, 1980, son and any person related to that person in a manner that would and for all other publishers means January 1, 1990. In this subrequire a stock attribution from the corporation to the person or section “raw materials” means tangible personal property which from the person to the corporation under section 318 of the Inter- becomes an ingredient or component part of the printed materials 77.51

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or which is consumed or destroyed or loses its identity in the printing of the printed materials. (13r) Any person purchasing from a retailer as defined in sub. (13) shall be deemed the consumer of the tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services purchased. (13rm) “Retail sale” or “sale at retail” means any sale, lease, or rental for any purpose other than resale, sublease, or subrent. (13rn) “Ringtones” means digitized sound files that are downloaded onto a device and that may be used to alert the customer regarding a communication, but not including ringback tones or other digital audio files that are not stored on the purchaser’s communication device. (13s) “Safety classes” means all classes approved by the department of natural resources related to hunting, including hunting with a bow, and related to firearms, all-terrain vehicles, utility terrain vehicles, off-highway motorcycles, boats, and snowmobiles. (14) “Sale” includes any of the following: the transfer of the ownership of, title to, possession of, or enjoyment of tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services for use or consumption but not for resale as tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services and includes: (a) Any sale at an auction with respect to tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) which are sold to a successful bidder, except the sale of tangible personal property, items, or goods sold at auction which are bid in by the seller and on which title does not pass to a new purchaser. (b) The furnishing or 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. (c) A transaction whereby the possession of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) are transferred but the seller retains the title as security for the payment of the price. (f) The furnishing, preparing or serving for consideration of food, meals, confections or drinks. (h) A transfer for a consideration of the title or possession of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) which have been produced, fabricated, or printed to the special order of the customer or of any publication. (j) The granting of possession of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) by a lessor to a lessee, or to another person at the direction of the lessee. Such a transaction is deemed a continuing sale. (m) A transaction for which a person’s books and records show the transaction created, with regard to the transferee, an obligation to pay a certain amount of money or an increase in accounts payable or, with regard to the transferor, a right to receive a certain amount of money or an increase in accounts receivable. (n) All activities described in this subsection regardless of all of the following: 1. Whether the transaction is mercantile in nature. 2. Whether the seller sells smaller quantities from inventory. 3. Whether the seller makes or intends to make a profit on the sale. 4. Whether the seller or the buyer receives a benefit the seller or buyer bargained for. 5. The percentage of the seller’s total sales that the sale represents.

77.51 AND FEES 6. Any activities other than those described in sub. (13) (a) to (o) in which the seller is engaged. 7. Whether the seller sells on the seller’s own behalf or on behalf of another person. (14a) For purposes of ss. 77.54, 77.55, and 77.56, “sale” includes licenses, leases, and rentals. (14g) “Sale” does not include: (a) The transfer of property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) to a corporation upon its organization solely in consideration for the issuance of its stock; (b) The contribution of property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) to a newly formed partnership solely in consideration for a partnership interest therein; (bm) The contribution of property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) to a limited liability company upon its organization solely in consideration for a membership interest; (c) The transfer of property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) to a corporation, solely in consideration for the issuance of its stock, pursuant to a merger or consolidation; (cm) The transfer of property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) to a limited liability company, solely in consideration for a membership interest, pursuant to a merger; (d) The distribution of property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) by a corporation to its stockholders as a dividend or in whole or partial liquidation; (e) The distribution of property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) by a partnership to its partners in whole or partial liquidation; (em) The distribution of property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) by a limited liability company to its members in whole or partial liquidation; (f) Repossession of property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) by the seller from the purchaser when the only consideration is cancellation of the purchaser’s obligation to pay the remaining balance of the purchase price; (fm) The transfer of transmission facilities, as defined in s. 196.485 (1) (h), to a transmission company, as defined in s. 196.485 (1) (ge), after the organizational start-up date, as defined in s. 196.485 (1) (dv), of such company in exchange for securities, as defined in s. 196.485 (1) (fe); (g) The transfer of property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) in a reorganization as defined in section 368 of the internal revenue code in which no gain or loss is recognized for franchise or income tax purposes; or (h) Any transfer of all or substantially all the property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) held or used by a person in the course of an activity requiring the holding of a seller’s permit, if after the transfer the real or ultimate ownership of the property, items, or goods is substantially similar to that which existed before the transfer. For the purposes of this section, stockholders, bondholders, partners, members or other persons holding an interest in a corporation or other entity are regarded as having the real or ultimate ownership of the property, items, or goods of the corporation or other entity. In this paragraph, “substantially similar” means 80 percent or more of ownership. (15a) (a) “Sales, lease, or rental for resale, sublease, or subrent” includes transfers of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) to a service provider that the service provider transfers in conjunction with but not incidental to the selling, performing, or furnishing of any

May 22, 2026, are designated by NOTES. (Published 5-22-26)

Updated 23-24 Wis. Stats. 18 SALES AND USE TAXES; MANAGED FOREST LANDS; OTHER TAXES AND FEES service, and transfers of tangible personal property or items, 2. Interest, financing, and carrying charges from credit that is property, or goods under s. 77.52 (1) (b), (c), or (d) to a service extended on a sale of tangible personal property, or items, propprovider that the service provider physically transfers in conjunc- erty, or goods under s. 77.52 (1) (b), (c), or (d), or services, if the tion with the selling, performing, or furnishing services under s. amount of the interest, financing, or carrying charges is sepa77.52 (2) (a) 7., 10., 11., or 20. This paragraph does not apply to rately stated on the invoice, bill of sale, or similar document that sub. (2). the seller gives to the purchaser. (b) “Sales, lease, or rental for resale, sublease, or subrent” 3. Any taxes legally imposed directly on the purchaser that does not include any of the following: are separately stated on the invoice, bill of sale, or similar docu1. The sale of building materials, supplies, and equipment to ment that the seller gives to the purchaser. owners, contractors, subcontractors, or builders for use in real 3m. Taxes imposed on the seller that are separately stated on property construction activities or the alteration, repair, or im- the invoice, bill of sale, or similar document that the seller gives provement of real property, regardless of the quantity of such ma- to the purchaser if the law imposing or authorizing the tax proterials, supplies, and equipment sold. vides that the seller may, but is not required to, pass on to and col2. Any sale of tangible personal property or items, property, lect the tax from the user or consumer. or goods under s. 77.52 (1) (b), (c), or (d) to a purchaser even 3s. The federal tax imposed on the seller in a retail sale of a though such property, items, or goods may be used or consumed heavy truck or trailer under section 4051 of the Internal Revenue by some other person to whom such purchaser transfers the prop- Code that is separately stated on the invoice, bill of sale, or simierty, items, or goods without valuable consideration, such as lar document that the seller gives to the purchaser. gifts, and advertising specialties distributed at no charge and 4. Delivery charges for direct mail, if the delivery charges for apart from the sale of other tangible personal property, or items, direct mail are separately stated on the invoice, bill of sale, or property, or goods under s. 77.52 (1) (b), (c), or (d) or service. similar document that the seller gives to the purchaser. 3. Transfers of tangible personal property or items, property, 5. In all transactions in which an article of tangible personal or goods under s. 77.52 (1) (b), (c), or (d) to a service provider property, an item under s. 77.52 (1) (b), property under s. 77.52 that the service provider transfers in conjunction with the selling, (1) (c), or a good under s. 77.52 (1) (d) is traded toward the purperforming, or furnishing of any service, if the tangible personal chase of an article, item, property, or good of greater value, the property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) are incidental to the service, unless the service provider is amount of the sales price that represents the amount allowed for selling, performing, or furnishing services under s. 77.52 (2) (a) the article, item, property, or good traded, except that this subdivision does not apply to any transaction to which subd. 7. or 8. 7., 10., 11., or 20. applies. 4. A sale of tangible personal property or items, property, or 6. If a person who purchases a motor vehicle presents a stategoods under s. 77.52 (1) (b), (c), or (d) to a contractor or subconment issued under s. 218.0171 (2) (cq) to the seller at the time of tractor for use in the performance of contracts with the United States or its instrumentalities for the construction of improve- purchase, and the person presents the statement to the seller within 60 days from the date of receiving a refund under s. ments on or to real property. 218.0171 (2) (b) 2. b., the trade-in amount specified in the state(15b) (a) “Sales price” means the total amount of considerament issued under s. 218.0171 (2) (cq), but not to exceed the sales tion, including cash, credit, property, and services, for which tanprice from the sale of the motor vehicle. This subdivision applies gible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d) or services are sold, licensed, leased, or only to the first motor vehicle purchased by a person after receivrented, valued in money, whether received in money or otherwise, ing a refund under s. 218.0171 (2) (b) 2. b. 7. Thirty-five percent of the sales price, excluding trade-ins, without any deduction for the following: 1. The seller’s cost of the property or items, property, or of a new manufactured home, as defined in s. 101.91 (11). This subdivision does not apply to a lease or rental. goods under s. 77.52 (1) (b), (c), or (d) sold. 8. At the retailer’s option; except that after the retailer 2. The cost of materials used, labor or service cost, interest, losses, all costs of transportation to the seller, all taxes imposed chooses an option the retailer may not use the other option for on the seller, except as provided in par. (b) 3m. and 3s., and any other sales without the department’s written approval; either 35 percent of the sales price of a modular home, as defined in s. other expense of the seller. 3. Charges by the seller for any services necessary to com- 101.71 (6), or an amount equal to the sales price of the home minus the cost of materials that become an ingredient or component plete a sale, not including delivery and installation charges. part of the home. 4. a. Delivery charges, except as provided in par. (b) 4. (c) “Sales price” includes consideration received by the seller b. If a shipment includes property or items that are subject to from a 3rd party, if: tax under this subchapter and property or items that are not sub1. The seller actually receives consideration from a 3rd party, ject to tax under this subchapter, the amount of the delivery charge that the seller allocates to the property and items that are other than the purchaser, and the consideration is directly related subject to tax under this subchapter is based either on the total to a price reduction or discount on a sale. 2. The seller is obliged to pass the price reduction or discount sales price of the property and items that are subject to tax under this subchapter as compared to the total sales price of all the to the purchaser. property and items or on the total weight of the property and 3. The amount of the consideration that is attributable to the items that are subject to tax under this subchapter as compared to sale is a fixed amount and the seller is able to determine that the total weight of all the property and items. amount at the time of the sale to the purchaser. 5. Installation charges. 4. One of the following also applies: (b) “Sales price” does not include: a. The purchaser presents a coupon, certificate, or other doc1. Discounts, including cash, terms, or coupons, that are not umentation to the seller to claim the price reduction or discount, reimbursed by a 3rd party, except as provided in par. (c); that are if the coupon, certificate, or other documentation is authorized, allowed by a seller; and that are taken by a purchaser on a sale. distributed, or granted by the 3rd party with the understanding 77.51

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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. (16) “Sales tax” means the tax imposed by s. 77.52. (17) “Seller” includes every person selling, licensing, leasing, or renting tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) or selling, performing, or furnishing services of a kind the sales price from the sale, license, lease, rental, performance, or furnishing of which is required to be included in the measure of the sales tax, regardless of all of the following: (a) Whether the transaction is mercantile in nature. (b) Whether the seller sells smaller quantities from inventory. (c) Whether the seller makes or intends to make a profit on the sale. (d) Whether the seller or the buyer receives a benefit the seller or buyer bargained for. (e) The percentage of the seller’s total sales that the sale represents. (f) Any activities other than those described in sub. (13) (a) to (o) in which the seller is engaged. (g) Whether the seller sells on the seller’s own behalf or on behalf of another person. (17m) “Service address” means any of the following: (a) The location of the telecommunications equipment to which a customer’s telecommunications service is charged and from which the telecommunications service originates or terminates, regardless of where the telecommunications service is billed or paid. (b) If the location described under par. (a) is not known by the seller who sells the telecommunications service, the location where the signal of the telecommunications service originates, as identified by the seller’s telecommunications system or, if the signal is not transmitted by the seller’s telecommunications system, by information that the seller received from the seller’s service provider. (c) If the locations described under pars. (a) and (b) are not known by the seller who sells the telecommunications service, the customer’s place of primary use. (17r) “Sign” means write one’s signature or, if the department prescribes another method of authenticating, use that other method. (17w) “Soft drink” means a beverage that contains less than 0.5 percent of alcohol and that contains natural or artificial sweeteners. “Soft drink” does not include a beverage that contains milk or milk products; soy, rice, or similar milk substitutes; or more than 50 percent vegetable or fruit juice by volume. (17x) “Specified digital goods” means digital audio works, digital audiovisual works, and digital books. For purposes of this subchapter, the sale, license, lease, or rental of or the storage, use, or other consumption of a digital code is treated the same as the sale, license, lease, or rental of or the storage, use, or other consumption of any specified digital goods for which the digital code relates. (18) “Storage” includes any keeping or retention in this state of tangible personal property or items, property, or goods under s.

77.51 AND FEES 77.52 (1) (b), (c), or (d) purchased from a retailer for any purpose except sale in the regular course of business. (20) “Tangible personal property” means personal property that can be seen, weighed, measured, felt, or touched, or that is in any other manner perceptible to the senses, and includes electricity, gas, steam, water, and prewritten computer software, regardless of how it is delivered to the purchaser. (21) “Taxpayer” means the person who is required to pay, collect, or account for or who is otherwise directly interested in the taxes imposed by this subchapter, including a certified service provider. (21n) “Telecommunications services” means electronically transmitting, conveying, or routing voice, data, audio, video, or other information or signals to a point or between or among points. “Telecommunications services” includes the transmission, conveyance, or routing of such information or signals in which computer processing applications are used to act on the content’s form, code, or protocol for transmission, conveyance, or routing purposes, regardless of whether the service is referred to as a voice over Internet protocol service or classified by the federal communications commission as an enhanced or value-added nonvoice data service. “Telecommunications services” does not include any of the following: (a) Data processing and information services that allow data to be generated, acquired, stored, processed, or retrieved and delivered to a purchaser by an electronic transmission, if the purchaser’s primary purpose for the underlying transaction is the processed data. (b) Installing or maintaining wiring or equipment on a customer’s premises. (c) Tangible personal property. (d) Advertising, including directory advertising. (e) Billing and collection services provided to 3rd parties. (f) Internet access services. (g) Radio and television audio and video programming services, regardless of the medium in which the services are provided, including cable service, as defined in 47 USC 522 (6), audio and video programming services delivered by commercial mobile radio service providers, as defined in 47 CFR 20.3, and the transmitting, conveying, or routing of such services by the programming service provider. (h) Ancillary services. (i) Digital products delivered electronically, including software, music, video, reading materials, or ringtones. (21p) “Tobacco” means cigarettes, cigars, chewing tobacco, pipe tobacco, and any other item that contains tobacco. (21q) “Transferred electronically” means accessed or obtained by the purchaser by means other than tangible storage media. (22) (a) “Use” includes the exercise of any right or power over tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or taxable services incident to the ownership, possession or enjoyment of the property, items, goods, or services, or the results produced by the services, including installation or affixation to real property and including the possession of, or the exercise of any right or power over tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), by a lessee under a lease, except that “use” does not include the activities under sub. (18). (b) In this subsection “enjoyment” includes a purchaser’s right to direct the disposition of property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), whether or not the purchaser has possession of the property, items, or goods. “Enjoyment” also includes, but is not limited to, having shipped into this

May 22, 2026, are designated by NOTES. (Published 5-22-26)

Updated 23-24 Wis. Stats. 20 SALES AND USE TAXES; MANAGED FOREST LANDS; OTHER TAXES AND FEES state by an out-of-state supplier printed material which is de- of tangible personal property sold, licensed, leased or rented at signed to promote the sale of property, or items, property, or retail in this state, as determined under s. 77.522. goods under s. 77.52 (1) (b), (c), or (d), or services, or which is (b) For the privilege of selling, licensing, leasing, or renting at otherwise related to the business activities, of the purchaser of the retail coins and stamps of the United States that are sold, liprinted material or printing service. censed, leased, rented, or traded as collectors’ items above their (bm) In this subsection, “exercise of any right or power over face value, a tax is imposed on all retailers at the rate of 5 percent tangible personal property, or items, property, or goods under s. of the sales price from the sale, license, lease, or rental of such 77.52 (1) (b), (c), or (d), or taxable services” includes distribut- coins and stamps. ing, selecting recipients, determining mailing schedules, or other(c) For the privilege of leasing property that is affixed to real wise directing the distribution, dissemination, or disposal of tan- property, a tax is imposed on all retailers at the rate of 5 percent gible personal property, or items, property, or goods under s. of the sales price from the lease of such property, if the lessor has 77.52 (1) (b), (c), or (d), or taxable services, regardless of the right to remove the leased property upon breach or terminawhether the purchaser of such property, items, goods, or services tion of the lease agreement, unless the lessor of the leased propowns or physically possesses, in this state, the property, items, erty is also the lessor of the real property to which the leased property is affixed. goods, or services. (d) A tax is imposed on all retailers at the rate of 5 percent of (23) “Use tax” means the tax imposed by s. 77.53. (24) “Value-added nonvoice data service” means a service the sales price from the sale, lease, license, or rental of specified that otherwise meets the definition of telecommunications ser- digital goods and additional digital goods at retail for the right to vices, in which computer processing applications are used to act use the specified digital goods or additional digital goods on a on the form, content, code, or protocol of the information or data permanent or less than permanent basis and regardless of whether provided by the service and are used primarily for a purpose other the purchaser is required to make continued payments for such right. than for transmitting, conveying, or routing data. (1b) All sales, licenses, leases, or rentals of tangible personal (25) “Vertical service” means an ancillary service that is proproperty or items, property, or goods under sub. (1) (b), (c), or (d) vided with one or more telecommunications services and allows at retail in this state are subject to the tax imposed under sub. (1) customers to identify callers and to manage multiple calls and unless an exemption in this subchapter applies. call connections, including conference bridging services. (1m) The sales tax applies to the receipts of operators of (26) “Voice mail service” means an ancillary service that alvending machines located on army, navy or air force installations lows a customer to store, send, or receive recorded messages, not in this state and dispensing tangible personal property. This subincluding any vertical service that the customer must have to use section shall not be deemed to require payment of sales tax meathe voice mail service. sured by receipts of such operators who lease the machines to exHistory: 1973 c. 333; 1975 c. 39, 41, 99, 224; 1975 c. 413 s. 18; 1977 c. 29, 418; changes of the army, air force, navy or marine corps which ac1979 c. 1 ss. 57 to 59, 61, 62; 1979 c. 174; 1981 c. 20; 1981 c. 79 s. 17; 1983 a. 23, 27; 1983 a. 189 ss. 92 to 108, 329 (12); 1983 a. 510, 538; 1983 a. 544 ss. 13 to 46, 47 quire title to and sell the merchandise through the machines to au(1) (b); 1985 a. 29, 332; 1987 a. 27, 399; 1989 a. 31, 335, 336; 1991 a. 39, 269, 316; thorized purchasers from such exchanges. The term “operator” 1993 a. 16, 112, 184; 1997 a. 27, 237; 1999 a. 9, 83; 2001 a. 45, 102; 2003 a. 48; as used in this subsection, means any person who owns or pos2005 a. 25, 327, 441, 479; 2007 a. 11, 20, 130; 2009 a. 2 ss. 225 to 345, 389; 2009 a. 12 s. 18; 2009 a. 28 ss. 1830b to 1836h, 1844 to 1846; 2009 a. 276, 330; 2011 a. sesses vending machines and who controls the operations of the 208; 2013 a. 20 ss. 1475 to 1484, 1489 to 1491; 2015 a. 55, 170, 361; 2017 a. 17, 59, machines as by placing the merchandise therein or removing the 190, 324; 2017 a. 365 ss. 111, 112; 2017 a. 366, 368; 2019 a. 10; 2021 a. 1, 58; 2023 coins therefrom, and who has access thereto for any purpose cona. 12, 138. A tax on personal property assets was upheld since the seller had a permit under nected with the sale of merchandise through the machines, and sub. (10) (a) [now sub. (9) (a) 1.]. Ramrod, Inc. v. DOR, 64 Wis. 2d 499, 219 whose compensation is based, in whole or in part, upon receipts N.W.2d 604 (1974). from sales made through such machines. Provisions of the Uniform Commercial Code as to the time title passes are inapplicable to sales tax law. Discussing the application of this section. Harold W. (2) For the privilege of selling, licensing, performing or furFuchs Agency, Inc. v. DOR, 91 Wis. 2d 283, 282 N.W.2d 625 (Ct. App. 1979). nishing the services described under par. (a) at retail in this state, The sale of business assets of a taxpayer who held a seller’s permit was not exas determined under s. 77.522, to consumers or users, regardless empted as an “occasional sale” under sub. (10) (a) [now sub. (9) (a)]. Discussing constitutionality. Midcontinent Broadcasting Co. of Wisconsin, Inc. v. DOR, 98 of whether the consumer or user has the right of permanent use or Wis. 2d 379, 297 N.W.2d 191 (1980). less than the right of permanent use and regardless of whether the A manhole fabricator was not engaged in real property construction activities unservice is conditioned on continued payment from the purchaser, der sub. (2) [now sub. (12t)]. Advance Pipe & Supply Co. v. DOR, 128 Wis. 2d 431, 383 N.W.2d 502 (Ct. App. 1986). a tax is imposed upon all persons selling, licensing, performing or Photocopying expenses billed to a law firm’s clients are not subject to sales tax. furnishing the services at the rate of 5 percent of the sales price Frisch, Dudek & Slattery, Ltd. v. DOR, 133 Wis. 2d 444, 396 N.W.2d 355 (Ct. App. from the sale, license, performance or furnishing of the services. 1986). Whether articles of personal property are fixtures and thus real estate is deter(a) The tax imposed herein applies to the following types of mined by the following tests: 1) actual physical annexation to the real estate; 2) apservices: plication or adaptation to the use or purpose to which the realty is devoted; and 3) an intention on the part of the person making the annexation to make a permanent ac1. The furnishing of rooms or lodging to transients by hotelcession to the freehold. All City Communication Co. v. DOR, 2003 WI App 77, 263 keepers, motel operators and other persons furnishing accommoWis. 2d 394, 661 N.W.2d 845, 02-1201. dations that are available to the public, irrespective of whether For the use tax to apply to intercompany transfers with wholly-owned subsidiaries, the subsidiaries that transferred the fixed assets must be considered “retailmembership is required for use of the accommodations. In this ers” under sub. (13). It is not the case that Wisconsin has a statutory scheme that subdivision, “transient” means any person residing for a continutaxes all transfers of tangible personal property, unless an explicit exemption apous period of less than one month in a hotel, motel or other furplies. When the person transferring tangible personal property lacks mercantile intent, the person will not be subject to tax, even though no explicit exemption applies. nished accommodations available to the public. In this subdiviDOR v. River City Refuse Removal, Inc., 2007 WI 27, 299 Wis. 2d 561, 729 N.W.2d sion, “hotel” or “motel” means a building or group of buildings in 396, 04-2468. which the public may obtain accommodations for a considera77.52 Imposition of retail sales tax. (1) (a) For the priv- tion, including, without limitation, such establishments as inns, ilege of selling, licensing, leasing or renting tangible personal motels, tourist homes, tourist houses or courts, lodging houses, property at retail a tax is imposed upon all retailers at the rate of rooming houses, summer camps, apartment hotels, resort lodges 5 percent of the sales price from the sale, license, lease or rental and cabins and any other building or group of buildings in which 77.51

May 22, 2026, are designated by NOTES. (Published 5-22-26)

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accommodations are available to the public, except accommodations, including mobile homes as defined in s. 101.91 (10), manufactured homes as defined in s. 101.91 (2), and recreational vehicles as defined in s. 340.01 (48r), rented for a continuous period of more than one month and accommodations furnished by any hospitals, sanatoriums, or nursing homes, or by corporations or associations organized and operated exclusively for religious, charitable or educational purposes provided that no part of the net earnings of such corporations and associations inures to the benefit of any private shareholder or individual. In this subdivision, “one month” means a calendar month or 30 days, whichever is less, counting the first day of the rental and not counting the last day of the rental. 2. a. Except as provided in subd. 2. b. and c., the sale of admissions to amusement, athletic, entertainment or recreational events or places except county fairs, the sale, rental or use of regular bingo cards, extra regular cards, special bingo cards and the sale of bingo supplies to players and the furnishing, for dues, fees or other considerations, the privilege of access to clubs or the privilege of having access to or the use of amusement, entertainment, athletic or recreational devices or facilities, including the sale or furnishing of use of recreational facilities on a periodic basis or other recreational rights, including but not limited to membership rights, vacation services and club memberships. b. Taxable sales do not include the sale of admissions by a gun club, including the sale of a gun club membership, if the gun club is a nonprofit organization and if the gun club provides safety classes to at least 25 individuals in the calendar year. c. Taxable sales do not include the sale of admissions by a nonprofit organization to participate in any sports activity in which more than 50 percent of the participants are 19 years old or younger. 5. am. The sale of prepaid calling services and intrastate, interstate, and international telecommunications services, except interstate 800 services. c. The sale of ancillary services, except detailed telecommunications billing services. 5m. The sale of services that consist of recording telecommunications messages and transmitting them to the purchaser of the service or at that purchaser’s direction, but not including services that are taxable under subd. 5. or services that are incidental, as defined in s. 77.51 (5), to another service that is not taxable under this subchapter and sold to the purchaser of the incidental service. 6. Laundry, dry cleaning, pressing, and dyeing services, except when performed on raw materials or goods in process destined for sale, except when performed on cloth diapers by a diaper service, and except when the service is performed by the customer through the use of self-service machines. 7. Photographic services including the processing, printing and enlarging of film as well as the service of photographers for the taking, reproducing and sale of photographs. 8m. The towing and hauling of motor vehicles by a tow truck, as defined in s. 340.01 (67n), unless at the time of towing or hauling a sale sourced to this state under s. 77.522 of the motor vehicle to the purchaser would be exempt from the taxes imposed under this subchapter, not including the exempt sale of a motor vehicle to a nonresident under s. 77.54 (5) (a) and nontaxable sales described under s. 77.585 (8). 9. Parking or providing parking space for motor vehicles and aircraft for a consideration and docking or providing storage space for boats for a consideration. 10. Except for the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, and maintenance of any aircraft or aircraft parts; except for services provided by veterinari-

77.52 AND FEES ans; and except for installing or applying tangible personal property, or items or goods under sub. (1) (b) or (d), that, subject to par. (ag), when installed or applied, will constitute an addition or capital improvement of real property; the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, and maintenance of all items of tangible personal property or items, property, or goods under sub. (1) (b), (c), or (d), unless, at the time of that repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance, a sale in this state of the type of property, item, or good repaired, serviced, altered, fitted, cleaned, painted, coated, towed, inspected, or maintained would have been exempt to the customer from sales taxation under this subchapter, other than the exempt sale of a motor vehicle or truck body to a nonresident under s. 77.54 (5) (a) and other than nontaxable sales under s. 77.522 or unless the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance is provided under a contract that is subject to tax under subd. 13m. The tax imposed under this subsection applies to the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance of items listed in par. (ag), regardless of whether the installation or application of tangible personal property or items, property, or goods under sub. (1) (b), (c), or (d) related to the items is an addition to or a capital improvement of real property, except that the tax imposed under this subsection does not apply to the original installation or the complete replacement of an item listed in par. (ag), if that installation or replacement is a real property construction activity. 11. The producing, fabricating, processing, printing, or imprinting of tangible personal property or items, property, or goods under sub. (1) (b), (c), or (d) for a consideration for consumers who furnish directly or indirectly the materials used in the producing, fabricating, processing, printing, or imprinting. This subdivision does not apply to the printing or imprinting of tangible personal property or items, property, or goods under sub. (1) (b), (c), or (d) that results in printed material, catalogs, or envelopes that are exempt under s. 77.54 (25), (25m), or (59). 12. The sale of cable television system services, or video services, as defined in s. 66.0420 (2) (y), including installation charges. 13m. The sale of contracts, including service contracts, maintenance agreements, computer software maintenance contracts for prewritten computer software, and warranties, that provide, in whole or in part, for the future performance of or payment 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), unless the sale, license, lease, or rental in this state of the property, items, or goods to which the contract relates is or was exempt, to the purchaser of the contract, from taxation under this subchapter. 20. The sale of landscaping and lawn maintenance services including landscape planning and counseling, lawn and garden services such as planting, mowing, spraying and fertilizing and shrub and tree services. (ag) For purposes of par. (a) 10., the following items shall be considered to have retained their character as tangible personal property, regardless of the extent to which the item is fastened to, connected with, or built into real property: 1. Furnaces. 2. Boilers. 3. Stoves. 4. Ovens, including associated hoods and exhaust systems. 5. Heaters. 6. Air conditioners.

May 22, 2026, are designated by NOTES. (Published 5-22-26)

Updated 23-24 Wis. Stats. 22 SALES AND USE TAXES; MANAGED FOREST LANDS; OTHER TAXES AND FEES 7. Humidifiers. L. Compressors. m. Condensing units and evaporative condensers. 8. Dehumidifiers. n. Pneumatic conveying systems. 9. Refrigerators. 40. Laundry, dry cleaning, and pressing machines. 10. Coolers. 41. Power tools. 11. Freezers. 42. Burglar alarm and fire alarm fixtures. 12. Water pumps. 43. Electric clocks. 13. Water heaters. 44. Electric signs. 14. Water conditioners and softeners. (am) For purposes of par. (a) 12. “cable television system” 15. Clothes washers. means any facility which, for a fee, regularly amplifies and trans16. Clothes dryers. mits by wire, coaxial cable, lightwave or microwave, simultane17. Dishwashers. ously to 50 or more subscribers, programs broadcast by television 18. Garbage disposal units. or radio stations or originated by themselves or any other party. 19. Radios and radio antennas. “Cable television system” does not include a master antenna sys20. Incinerators. tem which serves one residential, commercial or government 21. Television receivers and antennas. building or complex of buildings under common ownership or control if that facility does not provide any broadcast signals 22. Record players. other than those which may be viewed in that facility. 23. Tape players. (2m) (a) With respect to the services subject to tax under 24. Jukeboxes. sub. (2), no part of the charge for the service may be deemed a 25. Vacuum cleaners. sale or rental of tangible personal property or items, property, or 26. Furniture and furnishings. goods under sub. (1) (b), (c), or (d) if the property, items, or 27. Carpeting and rugs. goods transferred by the service provider are incidental to the 28. Bathroom fixtures. selling, performing or furnishing of the service, except as pro29. Sinks. vided in par. (b). 30. Awnings. (am) A person selling, performing, or furnishing any service in sub. (2) (a) 1., regardless of whether the selling, performing, or 31. Blinds. furnishing of the service is a retail sale, is the consumer of any 32. Gas and electric logs. services under sub. (2) (a) 5. or 12. purchased by the person for 33. Heat lamps. the person’s use or for the use of the person’s customers. 34. Electronic dust collectors. (b) With respect to the type of services under sub. (2) (a) 7., 35. Grills and rotisseries. 10., 11., and 20. and except as provided in s. 77.54 (60) (b) and 36. Bar equipment. (bm) 2., all tangible personal property or items, property, or 37. Intercoms. goods under sub. (1) (b), (c), or (d) physically transferred, or 38. Recreational, sporting, gymnasium, and athletic goods transferred electronically, to the customer in conjunction with the and equipment including, by way of illustration but not of limita- selling, performing, or furnishing of the service is a sale of tangition, all of the following: ble personal property or items, property, or goods under sub. (1) (b), (c), or (d) separate from the selling, performing, or furnishing a. Bowling alleys. of the service, regardless of whether the purchaser claims an exb. Golf practice equipment. emption on its purchase of the service. This paragraph does not c. Pool tables. apply to services provided by veterinarians. d. Punching bags. (2n) The selling, licensing, performing, or furnishing of the e. Ski tows. services described under sub. (2) (a) at retail in this state, as def. Swimming pools. termined under s. 77.522, is subject to the tax imposed under sub. 39. Equipment in offices, business facilities, schools, and (2) unless an exemption in this subchapter applies. hospitals but not in residential facilities including personal resi(3) The taxes imposed by this section may be collected from dences, apartments, long-term care facilities, as defined under s. the consumer or user. 16.009 (1) (em), prisons, mental health institutes, as defined in s. (3m) (a) Except as provided in par. (b), a marketplace 51.01 (12), centers for the developmentally disabled, as defined provider is liable for the tax imposed under this section on the enin s. 51.01 (3), Type 1 juvenile correctional facilities, as defined tire sales price charged to the purchaser, including any amount in s. 938.02 (19), or similar facilities including, by way of illustracharged by the marketplace provider for facilitating the sale, from tion but not of limitation, all of the following: the sale, license, lease, or rental of tangible personal property, or a. Lamps. items, property, or goods under sub. (1) (b), (c), or (d), or services b. Chandeliers. under sub. (2). c. Fans. (b) A marketplace provider whose only activities are facilitatd. Venetian blinds. ing sales of tangible personal property or services described in sub. (2) (a) 1. on behalf of marketplace sellers operating under a e. Canvas awnings. hotel, motel, or restaurant brand name shared with the marketf. Office and business machines. place provider may submit an application to the department to reg. Ice and milk dispensers. quest a waiver from collecting and remitting tax on sales facilih. Beverage-making equipment. tated on behalf of marketplace sellers. The application shall ini. Vending machines. clude the name and address of all marketplace sellers selling or j. Soda fountains. furnishing such tangible personal property or services in this k. Steam warmers and tables. state, the marketplace seller’s sales or use tax permit number ob77.52

May 22, 2026, are designated by NOTES. (Published 5-22-26)

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tained under sub. (7) or s. 77.53 (9), and any other information the department requires. The department may grant the waiver if it is satisfied that the tax due under this chapter is collected and remitted by the marketplace sellers. A marketplace provider that is granted the waiver must, within 60 days from a written request by the department, provide the name and address of all marketplace sellers selling or furnishing such tangible personal property or services in this state, the marketplace seller’s sales or use tax permit number obtained under sub. (7) or s. 77.53 (9), and any other information the department requires. (c) The department may grant waivers under par. (b) for other types of marketplace providers if there is evidence that the marketplace sellers have a history of reliably collecting and remitting to the department the tax on sales or there is other evidence that the marketplace sellers will reliably collect and remit to the department the tax on sales. (5) The department may by rule provide that the amount collected by the retailer from the consumer or user in reimbursement of the retailer’s tax be displayed separately from the list price, the price advertised in the premises, the marked price, or other price on the sales check or other proof of sale. (7) (a) Except as provided in par. (b), every person desiring to operate as a seller within this state who holds a valid certificate under s. 73.03 (50) shall file with the department an application for a permit for each place of operations. Every application for a permit shall be made upon a form prescribed by the department and shall set forth the name under which the applicant intends to operate, the location of the applicant’s place of operations, and the other information that the department requires. If an owner elects under s. 77.58 (3) (a) to file a separate electronic return for each of the owner’s disregarded entities, each disregarded entity is an applicant under this subsection. Except as provided in sub. (7b), the application shall be signed by the owner if a sole proprietor; in the case of sellers other than sole proprietors, the application shall be signed by the person authorized to act on behalf of such sellers. A nonprofit organization that has a sales price taxable under s. 77.54 (7m) shall obtain a seller’s permit and pay taxes under this subchapter on all taxable sales prices received after it is required to obtain that permit. If that organization becomes eligible later for the exemption under s. 77.54 (7m) except for its possession of a seller’s permit, it may surrender that permit. (b) An out-of-state business, as defined in s. 323.12 (5) (a) 6., performing disaster relief work, as defined in s. 323.12 (5) (a) 3., is not required to register with the department under par. (a) and is not required to obtain a certificate under s. 73.03 (50) for sales made during a disaster period, as defined in s. 323.12 (5) (a) 2. (7b) Any person who may register under sub. (7) may designate an agent, as defined in s. 77.524 (1) (ag), to register with the department under sub. (7), in the manner prescribed by the department. (9) After compliance with sub. (7) and s. 77.61 (2) by the applicant, the department shall grant and issue to each applicant a separate permit for each place of operations within the state. A permit is not assignable and is valid only for the person in whose name it is issued and for the transaction of operations at the place designated in it. It shall at all times be conspicuously displayed at the place for which it was issued. (11) If any person fails to comply with any provision of this subchapter relating to the sales tax or any rule of the department relating to the sales tax adopted under this subchapter, is delinquent in respect to any tax imposed by the department or fails timely to file any return or report in respect to any tax under ch. 71, 72, 76, 77, 78, or 139 after having been requested to file that return or report, the department upon hearing, after giving the

77.52 AND FEES person 10 days’ notice in writing specifying the time and place of hearing and requiring the person to show cause why the permit should not be revoked or suspended, may revoke or suspend any one or more of the permits held by the person. The department shall give to the person written notice of the suspension or revocation of any of the permits. The notices required in this subsection may be served as provided in s. 73.03 (73m). If the department suspends or revokes a permanent permit under this subsection, the department may grant a temporary permit that is valid for one month and may then grant additional temporary permits if the person pays all amounts owed under this chapter for the month for which the previous temporary permit was issued. A person that receives a temporary permit waives the notice requirement under s. 77.61 (2). The department may not issue a new permanent permit after the revocation of a permit unless the department is satisfied that the former holder of the permit will comply with the provisions of this subchapter, the rules of the department relating to the sales tax, and the provisions relating to other taxes administered by the department. (12) A person who operates as a seller in this state without a permit or after a permit has been suspended or revoked or has expired, unless the person is not required to obtain a permit as provided under sub. (7) (b) or unless the person has a temporary permit under sub. (11), and each officer of any corporation, partnership member, limited liability company member, or other person authorized to act on behalf of a seller who so operates, is guilty of a misdemeanor. Except for a person who is registered in accordance with the agreement, as defined in s. 77.65 (2) (a), permits shall be held only by persons actively operating as sellers of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or taxable services. Any person not so operating shall forthwith surrender that person’s permit to the department for cancellation. The department may revoke the permit of a person found not to be actively operating as a seller of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or taxable services. (13) For the purpose of the proper administration of this section and to prevent evasion of the sales tax it shall be presumed that all receipts are subject to the tax until the contrary is established. The burden of proving that a sale of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services is not a taxable sale at retail is upon the person who makes the sale unless that person takes from the purchaser an electronic or a paper certificate, in a manner prescribed by the department, to the effect that the property, item, good, or service is purchased for resale or is otherwise exempt, except that no certificate is required for the sale of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services that are exempt under s. 77.54 (5) (a) 3., (7), (7m), (8), (10), (11), (14), (15), (17), (20n), (21), (22b), (31), (32), (35), (36), (37), (42), (44), (45), (46), (51), (52), (64), (66), (67), (71), (72), and (74) [s. 77.54 (5) (a) 3., (7), (7m), (8), (10), (11), (14), (15), (17), (20n), (21), (22b), (31), (32), (35), (36), (37), (42), (44), (45), (46), (51), (52), (64), (66), (71), (72), and (74) and s. 77.54 (67), 2023 stats.]. NOTE: The correct cross-reference is shown in brackets. Section 77.54 (67) was repealed by 2025 Wis. Act 118. Corrective legislation is pending.

(14) (a) The certificate referred to in sub. (13) relieves the seller of the tax otherwise applicable only if the seller obtains a fully completed exemption certificate, or the information required to prove the exemption, from a purchaser no later than 90 days after the date of the sale of the tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services, except as provided in par. (am). The certificate under sub. (13) shall not relieve the seller of the tax otherwise applicable if the seller fraudulently fails to collect sales tax, solicits the pur-

May 22, 2026, are designated by NOTES. (Published 5-22-26)

Updated 23-24 Wis. Stats. 24 SALES AND USE TAXES; MANAGED FOREST LANDS; OTHER TAXES AND FEES chaser to claim an unlawful exemption, or accepts an exemption of property, or items, property, or goods under sub. (1) (b), (c), or certificate from a purchaser who claims to be an entity that is not (d), or taxable service is exempt, knowing at the time of purchase subject to the taxes imposed under this subchapter, if the subject that it is not exempt, for the purpose of evading payment to the of the transaction sought to be covered by the exemption certifi- seller of the amount of the tax applicable to the transaction, is cate is received by the purchaser at a location operated by the guilty of a misdemeanor. seller in this state and the exemption certificate clearly and affir(17) If a purchaser gives a certificate with respect to the purmatively indicates that the claimed exemption is not available in chase of fungible goods and thereafter commingles these goods this state. The certificate referred to in sub. (13) shall provide in- with other fungible goods not so purchased but of such similarity formation that identifies the purchaser and shall indicate the basis that the identity of the constituent goods in the commingled mass for the claimed exemption and a paper certificate shall be signed cannot be determined, sales from the mass of commingled goods by the purchaser. The certificate shall be in such form as the de- shall be deemed to be sales of the goods so purchased until a partment prescribes by rule. quantity of commingled goods equal to the quantity of purchased (am) 1. If the seller has not obtained a fully completed ex- goods so commingled has been sold. emption certificate or the information required to prove the ex(17m) (a) A person who holds a valid certificate issued unemption, as provided in par. (a), the seller may, no later than 120 der s. 73.03 (50) may apply for a direct pay permit by filing a days after the department requests that the seller substantiate the completed form that the department prescribes. exemption, either provide proof of the exemption to the depart(b) The department shall issue a direct pay permit, at the bement by other means or obtain, in good faith, a fully completed ginning of a taxpayer’s taxable year, if the following requirements exemption certificate from the purchaser. are fulfilled: 2. An exemption certificate is received by the seller in good 1. Because of the nature of the applicant’s business, issuing faith if the certificate claims an exemption for which all of the fol- the permit will significantly reduce the work of administering the lowing apply: taxes under this subchapter. a. It was an exemption authorized by law on the date of the 2. The applicant’s accounting system will clearly indicate the transaction in the jurisdiction where the transaction is sourced. amount of tax that the applicant owes under this subchapter. b. It could be applicable to the property, item, good, or ser3. The applicant makes enough purchases that are taxable vice being purchased. under this subchapter to justify the expense of regular audits by c. It is reasonable for the purchaser’s type of business. the department. 3. If the seller obtains the information described in subd. 2., 4. The applicant is not liable for delinquent taxes; including the seller is relieved of any liability for the tax on the transaction costs, penalties, surcharges and interest; under ch. 71, 72, 76, 78 unless it is discovered through the audit process that the seller had or 139 or this chapter of $400 or more if any part of the tax is knowledge, or had reason to know, at the time such information delinquent for at least 5 months. was provided that the information relating to the exemption 5. It is in this state’s best interests to issue the permit. claimed was materially false or the seller otherwise knowingly 6. The applicant purchases enough tangible personal propparticipated in activity intended to purposefully evade the tax that erty or items, property, or goods under s. 77.52 (1) (b), (c), or (d) is properly due on the transaction. In order to enforce this subdivision, the state must establish that the seller had knowledge, or under circumstances that make it difficult to determine whether had reason to know, at the time the information was provided that the property, items, or goods will be subject to a tax under this subchapter. the information was materially false. 7. The applicant holds a permit under sub. (9) or is registered (bm) A certified service provider is relieved from liability for under s. 77.53 (9). the tax otherwise applicable to the same extent as the seller, who (c) A holder of a permit that is issued under par. (b) may not is the certified service provider’s client, is relieved from liability transfer or assign it. for the tax otherwise applicable under par. (a) or (am). (d) The department may revoke a permit that is issued under (c) A marketplace provider shall obtain and maintain each exemption certificate from a purchaser claiming an exemption for a par. (b) if the holder misuses it or the department determines that sale facilitated by the marketplace provider on behalf of a market- revocation is in this state’s best interests. (e) A retailer may not collect a tax under this subchapter, and place seller. (15) If a purchaser who purchases tangible personal property, is not liable for a tax under this subchapter, on any sale, except or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or those of a type specified as ineligible for an exemption under this taxable services without paying a sales tax or use tax on such pur- paragraph by a rule promulgated by the department, for which the chase because such property, items, goods, or services were for buyer furnishes to the retailer a copy of the permit that is issued resale makes any use of the property, items, goods, or services under par. (b) or a statement that the buyer holds such a permit, a other than retention, demonstration or display while holding the statement of that permit’s number and a statement of the date that property, items, goods, or services for sale, lease or rental in the the permit was issued. (f) A person who holds a permit that is issued under par. (b) regular course of the purchaser’s operations, the use shall be taxable to the purchaser under s. 77.53 as of the time that the prop- shall keep a record of all retailers from whom the person made a erty, items, goods, or services are first used by the purchaser, and purchase for which the person used a permit that is issued under the purchase price of the property, items, goods, or services to the par. (b) and shall do one of the following: purchaser shall be the measure of the tax. 1. Fulfill the requirements for an exempt sale under par. (e) (16) Any person who gives a resale certificate for property, or for every purchase that the person makes that may be exempt unitems, property, or goods under sub. (1) (b), (c), or (d), or services der that paragraph and pay the tax under s. 77.53 (1) to the dewhich that person knows at the time of purchase is not to be partment on all of those purchases for which the tax is due. 2. Maintain accounting records that show the tax under ss. resold by that person in the regular course of that person’s operations as a seller for the purpose of evading payment to the seller 77.52 (1) and (2) and 77.53 (3) paid on each purchase during each of the amount of the tax applicable to the transaction is guilty of reporting period under s. 77.58 and the total tax paid during each a misdemeanor. Any person certifying to the seller that the sale reporting period, pay the tax under ss. 77.52 (1) and (2) and 77.53 77.52

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(3) on either all or none of the purchases made from each retailer during each reporting period and pay the tax under s. 77.53 (1) to the department on all of the purchases for which the tax is due. (18) (am) If any retailer liable for any amount of tax under this subchapter sells out the retailer’s business or stock of goods or quits the business, the retailer’s successors or assigns shall withhold sufficient of the purchase price to cover such amount until the former owner produces a receipt from the department that it has been paid or a certificate stating that no amount is due. (bm) If the purchaser of a stock of goods fails to withhold from the purchase price as required, the purchaser becomes personally liable for the payment of the amount required to be withheld by the purchaser to the extent of the purchase price valued in money. Within 60 days after receiving a written request from the purchaser for a certificate, or within 60 days from the date the former owner’s records are made available for audit, whichever period expires later, but in any event not later than 90 days after receiving the request, the department shall either issue the certificate or send notice to the purchaser at the purchaser’s address as it appears on the records of the department of the amount that must be paid as a condition of issuing the certificate. Failure of the department to send the notice releases the purchaser from any further obligation to withhold the purchase price as above provided. The obligation of the successor may be enforced within 4 years of the time the retailer sells out the retailer’s business or stock of goods or at the time that the determination against the retailer becomes final, whichever event occurs later. (19) The department shall by rule provide for the efficient collection of the taxes imposed by this subchapter on sales of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services by persons not regularly engaged in selling at retail in this state or not having a permanent place of business, but who are temporarily engaged in selling from trucks, portable roadside stands, concessions at fairs and carnivals, and the like. The department may authorize such persons to sell property or items, property or goods under sub. (1) (b), (c), or (d) or sell, perform, or furnish services on a permit or nonpermit basis as the department by rule prescribes and failure of any person to comply with such rules constitutes a misdemeanor. (20) (a) Except as provided in par. (b), the entire sales price of a bundled transaction is subject to the tax imposed under this subchapter. (b) At the retailer’s option, if the retailer can identify, by reasonable and verifiable standards from the retailer’s books and records that are kept in the ordinary course of its business for other purposes, including purposes unrelated to taxes, the portion of the price that is attributable to products that are not subject to the tax imposed under this subchapter, that portion of the sales price is not taxable under this subchapter. This paragraph does not apply to a bundled transaction that contains food and food ingredients, drugs, durable medical equipment, mobility enhancing equipment, prosthetic devices, or medical supplies. (21) (a) Except as provided in par. (b), a person who provides a product that is not distinct and identifiable because it is provided free of charge, as provided in s. 77.51 (3pf) (b), is the consumer of the product that is provided free of charge and shall pay the tax imposed under this subchapter on the purchase price of that product. (b) Except as provided in sub. (2m) (a), a person who provides a product that is not distinct and identifiable because it is provided free of charge to a purchaser who must also purchase another product that is subject to the tax imposed under this subchapter from that person in the same transaction may purchase the product provided free of charge without tax, for resale. (22) With regard to transactions described in s. 77.51 (1f) (b),

77.52 AND FEES the service provider is the consumer of the tangible personal property or items, property, or goods under sub. (1) (b), (c), or (d) and shall pay the tax imposed under this subchapter on the purchase price of the property, items, or goods. (23) With regard to transactions described in s. 77.51 (1f) (c), the service provider is the consumer of the service that is essential to the use or receipt of the other service and shall pay the tax imposed under this subchapter on the purchase price of the service that is essential to the use or receipt of the other service. History: 1973 c. 156; 1975 c. 39; 1977 c. 29, 142, 418; 1979 c. 174, 221; 1981 c. 20, 317; 1983 a. 2, 27; 1983 a. 189 ss. 99, 103, 107, 329 (12); 1983 a. 341, 510, 544; 1985 a. 29, 149; 1987 a. 27, 399; 1989 a. 31, 335; 1991 a. 39, 316; 1993 a. 112, 213, 308, 437; 1995 a. 27, 225, 351; 1997 a. 27, 237, 291; 1999 a. 9, 83; 1999 a. 150 s. 672; 2001 a. 16, 104, 109; 2003 a. 33, 321; 2005 a. 149, 327, 344; 2007 a. 11, 20, 42, 97; 2009 a. 2, 12, 28, 330; 2011 a. 18, 32; 2013 a. 20, 185; 2015 a. 84, 216; 2017 a. 17, 59, 324, 365, 367; 2019 a. 10; 2021 a. 1; 2021 a. 239 s. 74; 2023 a. 121, 138, 141; 2025 a. 124; 2025 a. 127 s. 44; 2025 a. 129, 130. Meals served by a religious order in carrying out its religious work were not subject to sales tax for that portion of charges made to guests for lodging, food, and use of the order’s facilities. Kollasch v. Adamany, 104 Wis. 2d 552, 313 N.W.2d 47 (1981). Sub. (18) provides no relief from successor liability when the entire purchase price is paid to a secured creditor. Kastengren v. DOR, 179 Wis. 2d 587, 508 N.W.2d 431 (Ct. App. 1993). Contractors are considered to be the consumers of personal property used by them in real property construction and are subject to sales tax. Performing a real property construction activity for an exempt entity does not make a contractor exempt. Zignego Co. v. DOR, 211 Wis. 2d 819, 565 N.W.2d 590 (Ct. App. 1997), 961965. A resort’s sale of flexible time-share interests in condominiums was subject to sales tax. Sub. (2) (a) 1., as applied to sales of flexible time-shares, does not violate the article VIII, section 1, of the Wisconsin Constitution, “uniformity clause,” nor does it violate guarantees of equal protection. Telemark Development, Inc. v. DOR, 218 Wis. 2d 809, 581 N.W.2d 585 (Ct. App. 1998), 97-3133. A communications tower constructed on leased land was properly deemed “personal property.” The owner of the tower was liable for sales tax on proceeds from renting or leasing space on the tower, and a renter of space on the tower was liable for use tax on its rental of space on the tower. All City Communication Co. v. DOR, 2003 WI App 77, 263 Wis. 2d 394, 661 N.W.2d 845, 02-1201. Whether Milwaukee Symphony Orchestra concerts were entertainment events, ticket sales to which are subject to sales tax under sub. (2) (a) 2., depends on the “primary purpose” of the event. The determination is a holistic one that looks to the motivation, mission, or purpose of the sponsoring organization, as well as any evidence of the motivation and reaction of those paying admission and ultimately the nature of the place or event itself. If the primary purpose of an event or place is 50 percent or more “amusement, athletic, entertainment or recreational,” then admission to the event or place is taxable under this provision of the statute. Milwaukee Symphony Orchestra, Inc. v. DOR, 2010 WI 33, 324 Wis. 2d 68, 781 N.W.2d 674, 08-1684. Sub. (2) (a) 1. does not impose a sales tax on those selling the service of making reservations on behalf of members of the public with those who furnish rooms or lodging. The omission of the words “the sale of” in sub. (2) (a) 1. indicates that the legislature did not intend to impose a tax on those selling the services of making hotel reservations but not actually furnishing the accommodations. DOR v. Orbitz, L.L.C., 2016 WI App 22, 367 Wis. 2d 593, 877 N.W.2d 372, 15-0200. The term “processing” in sub. (2) (a) 11. encompasses the performance of a mechanical or chemical operation on tangible personal property, a task that can be completed without transforming the property into a new product or adding anything to it that was not already there. Processing includes the separation of river sediment into its component parts. Tetra Tech EC, Inc. v. DOR, 2018 WI 75, 382 Wis. 2d 496, 914 N.W.2d 21, 15-2019. The term “laundry services” in sub. (2) (a) 6. means work done for another to wash soiled clothes and linens. The undisputed facts of this case plainly show that, in exchange for a fee, the petitioner washed its clients’ soiled clothes and linens. The primary purpose of the petitioner’s contracts with its clients was not to have the petitioner merely provide a laundry department manager or the attendant managerial and administrative functions; it was for the client to obtain laundry services. The petitioner could not evade tax on laundry services simply by calling its services departmental or managerial, when the essence of those services was to clean its clients’ laundry. Healthcare Services Group, Inc. v. DOR, 2018 WI App 48, 383 Wis. 2d 699, 916 N.W.2d 635, 17-0567. Under sub. (1) (a) and s. 77.51 (15b) (a), the sales tax applies to the “sales price”—that is, the total amount of consideration paid for a sale, lease, or service, with no deductions for the seller’s or lessor’s costs. The sale of aircraft parts and maintenance, however, is exempt from sales tax under sub. (2) (a) 10. and s. 77.54 (5) (a) 3. When a lessor or lessee buys aircraft repairs or engine maintenance directly, that transaction is tax-exempt. But when a lessor passes those costs along to its lessees as part of the total amount of consideration in a lease, that transaction is taxable. When a lessor leases its aircraft, it is not selling aircraft repairs or engine maintenance. It is leasing an aircraft. Thus, the total lease price is taxable. Citation Partners, LLC v. DOR, 2023 WI 16, 406 Wis. 2d 36, 985 N.W.2d 761, 20-1683. A state may tax exclusively interstate commerce so long as the tax does not create any effect forbidden by the commerce clause. A court will sustain a tax so long as it: 1) applies to an activity with a substantial nexus with the taxing state; 2) is fairly apportioned; 3) does not discriminate against interstate commerce; and 4) is fairly related to the services the state provides. An out-of-state seller’s liability to collect and remit sales taxes to the consumer’s state does not depend on whether the seller has a physical presence in that state. Physical presence is not necessary to create a

May 22, 2026, are designated by NOTES. (Published 5-22-26)

Updated 23-24 Wis. Stats. 26 SALES AND USE TAXES; MANAGED FOREST LANDS; OTHER TAXES AND FEES substantial nexus. South Dakota v. Wayfair, Inc., 585 U.S. 162, 138 S. Ct. 2080, 201 (c) 1. Except as provided in subd. 3., the sale of advertising L. Ed. 2d 403 (2018). and promotional direct mail, including a sale characterized under Changes on the Horizon: Sales and Use Tax in the E-Commerce Era. Pascaly. the laws of this state as the sale of a service when that service is Wis. Law. Oct. 2015. an integral part of the production and distribution of printed ma77.522 Sourcing. (1) GENERAL. (a) In this section: terial that meets the definition of advertising and promotional di1. “Receive” means taking possession of tangible personal rect mail, is sourced to the location from which the advertising property or items or property under s. 77.52 (1) (b) or (c); making and promotional direct mail is shipped, if the purchaser does not first use of services; or taking possession or making first use of provide to the seller a direct pay permit, an exemption certificate digital goods under s. 77.52 (1) (d), whichever comes first. “Re- claiming direct mail, or other information that indicates the apceive” does not include a shipping company taking possession of propriate taxing jurisdiction to which the advertising and promotangible personal property or items or property under s. 77.52 (1) tional direct mail is delivered to the ultimate recipients. If the (b) or (c) on a purchaser’s behalf. purchaser provides an exemption certificate claiming direct mail 2. “Transportation equipment” means any of the following: or direct pay permit to the seller, the purchaser shall source the a. Locomotives and railcars that are used to carry persons or sales to the jurisdictions to which the advertising and promotional direct mail is delivered to the recipients and pay or remit, as property in interstate commerce. b. Trucks and truck tractors that have a gross vehicle weight appropriate, to the department the tax imposed under s. 77.53 on rating of 10,001 pounds or greater, trailers, semitrailers, and pas- all purchases for which the tax is due and the seller, in the absenger buses, if such vehicles are registered under the interna- sence of bad faith, is relieved of all obligation to collect, pay, or tional registration plan under s. 341.405 and operated under the remit the tax on any transaction to which the direct pay permit or authority of a carrier that is authorized by the federal government exemption certificate applies. If the purchaser provides delivery information indicating the jurisdictions to which the advertising to carry persons or property in interstate commerce. c. Aircraft that are operated by air carriers that are autho- and promotional direct mail is to be delivered to the recipients, rized by the federal government or a foreign authority to carry the seller shall source the sale to those jurisdictions and collect and remit the tax according to the delivery information provided persons or property in interstate or foreign commerce. by the purchaser and, in the absence of bad faith, the seller shall d. Containers that are designed for use on the vehicles debe relieved of any further obligation to collect tax on the sale of scribed in subd. 2. a. to c. and component parts attached to or seadvertising and promotional direct mail for which the seller has cured on such vehicles. sourced the sale and collected tax pursuant to the delivery infor(b) Except as provided in par. (c) and subs. (3), (4), and (5), mation provided by the purchaser. If a transaction is a bundled the location of a sale is determined as follows: transaction that includes advertising and promotional direct mail, 1. If a purchaser receives the product at a seller’s business lo- this subdivision only applies if the primary purpose of the transcation, the sale is sourced to that business location. action is the sales of products or services that meet the definition 2. If a purchaser does not receive the product at a seller’s of advertising and promotional direct mail. business location, the sale is sourced to the location where the 2. The sale of other direct mail, including a sale characterpurchaser, or the purchaser’s designated donee, receives the prod- ized under the laws of this state as the sale of a service when that uct, including the location indicated by the instructions known to service is an integral part of the production and distribution of the seller for delivery to the purchaser or the purchaser’s desig- printed material that meets the definition of other direct mail, is nated donee. sourced under par. (b) 3. if the purchaser does not provide to the 3. If the location of a sale of a product cannot be determined seller a direct pay permit or an exemption certificate claiming diunder subds. 1. and 2., the sale is sourced to the purchaser’s ad- rect mail. If the purchaser provides an exemption certificate dress as indicated by the seller’s business records, if the records claiming direct mail or direct pay permit to the seller, the purare maintained in the ordinary course of the seller’s business and chaser shall source the sale to the jurisdictions to which the other if using that address to establish the location of a sale is not in bad direct mail is to be delivered to the recipients and the purchaser faith. shall pay or remit, as appropriate, to the department the tax im4. If the location of a sale of a product cannot be determined posed under s. 77.53 on all purchases for which the tax is due and under subds. 1. to 3., the sale is sourced to the purchaser’s address the seller, in the absence of bad faith, is relieved of all obligation as obtained during the consummation of the sale, including the to collect, pay, or remit tax on any transaction to which the direct address indicated on the purchaser’s payment instrument, if no pay permit or exemption certificate claiming direct mail applies. other address is available and if using that address is not in bad 3. If advertising and promotional direct mail and other direct faith. mail are included in a single mailing, the sale of that mailing is 5. If the location of a sale of a product cannot be determined sourced the same as a sale of other direct mail. under subds. 1. to 4., including the circumstance in which the 4. Transactions that include the development of billing inforseller has insufficient information to determine the locations un- mation or the provision of a data processing service that is more der subds. 1. to 4., the location of the sale is determined as than incidental to producing direct mail are not direct mail and follows: are sourced under par. (b), but transactions that include incidental a. If the item sold is tangible personal property or an item or data processing services are direct mail and are sourced under property under s. 77.52 (1) (b) or (c), the sale is sourced to the lo- this paragraph. For purposes of this subdivision, “incidental” has cation from which the tangible personal property or item or prop- the meaning given in s. 77.51 (5). erty under s. 77.52 (1) (b) or (c) is shipped. (3) LEASE OR RENTAL. (a) Except as provided in pars. (b) b. If the item sold is a digital good or computer software de- and (c), with regard to the first or only payment on the lease or livered electronically, the sale is sourced to the location from rental, the lease or rental of tangible personal property or items, which the digital good or computer software was first available property, or goods under s. 77.52 (1) (b), (c), or (d) is sourced to for transmission by the seller, not including any location that the location determined under sub. (1) (b). Subsequent periodic merely provided the digital transfer of the product sold. payments on the lease or rental are sourced to the property’s, c. If a service is sold, the sale is sourced to the location from item’s, or good’s primary location as indicated by an address for which the service was provided. the property, item, or good that is provided by the lessee and that 77.52

May 22, 2026, are designated by NOTES. (Published 5-22-26)

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is available to the lessor in records that the lessor maintains in the ordinary course of the lessor’s business, if the use of such an address does not constitute bad faith. The location of a lease or rental as determined under this paragraph shall not be altered by any intermittent use of the property, item, or good at different locations. (b) The lease or rental of motor vehicles, trailers, semitrailers, and aircraft, that are not transportation equipment, is sourced to the primary location of such motor vehicles, trailers, semitrailers, or aircraft as indicated by an address for the property that is provided by the lessee and that is available to the lessor in records that the lessor maintains in the ordinary course of the lessor’s business, if the use of such an address does not constitute bad faith, except that a lease or rental under this paragraph that requires only one payment is sourced to the location determined under sub. (1) (b). The location of a lease or rental as determined under this paragraph shall not be altered by any intermittent use of the property at different locations. (c) The lease or rental of transportation equipment is sourced to the location determined under sub. (1) (b). (d) A license of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) shall be treated as a lease or rental of such tangible personal property, items, property, or goods under this subsection. (4) TELECOMMUNICATIONS. (a) In this subsection: 1. “Air-to-ground radiotelephone service” means a radio service in which common carriers are authorized to offer and provide radio telecommunications service for hire to subscribers in aircraft. 2. “Call-by-call basis” means any method of charging for telecommunications services by which the price of such services is measured by individual calls. 3. “Communications channel” means a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points. 4. “Customer” means a person who enters into a contract with a seller of telecommunications services or, in any transaction for which the end user is not the person who entered into a contract with the seller of telecommunications services, the end user of the telecommunications services. “Customer” does not include a person who resells telecommunications services or, for mobile telecommunications services, a serving carrier under an agreement to serve a customer outside the home service provider’s licensed service area. 5. “Customer channel termination point” means the location where a customer inputs or receives communications. 6. “End user” means the person who uses a telecommunications service. In the case of an entity, “end user” means the individual who uses the telecommunications service on the entity’s behalf. 7. “Home service provider” means a home service provider under section 124 (5) of P.L. 106-252. 8. “Mobile telecommunications service” means a mobile telecommunications service under 4 USC 116 to 126, as amended by P.L. 106-252. 9. “Place of primary use” means the residential street address or the primary business street address of the customer. In the case of mobile telecommunications services, “place of primary use” means a street address within the licensed service area of the home service provider. 10. “Postpaid calling service” means a telecommunications service that is obtained by paying for it on a call-by-call basis using a bankcard, travel card, credit card, debit card, or similar method, or by charging it to a telephone number that is not associ-

77.522 AND FEES ated with the location where the telecommunications service originates or terminates. “Postpaid calling service” includes a telecommunications service, not including a prepaid wireless calling service, that would otherwise be a prepaid calling service except that the service provided to the customer is not exclusively a telecommunications service. 14. “Radio service” means a communication service provided by the use of radio, including radiotelephone, radiotelegraph, paging, and facsimile service. 15. “Radiotelegraph service” means transmitting messages from one place to another by means of radio. 16. “Radiotelephone service” means transmitting sound from one place to another by means of radio. (b) Except as provided in pars. (d) to (j), the sale of a telecommunications service that is sold on a call-by-call basis is sourced to the taxing jurisdiction for sales and use tax purposes where the call originates and terminates, in the case of a call that originates and terminates in the same such jurisdiction, or the taxing jurisdiction for sales and use tax purposes where the call originates or terminates and where the service address is located. (c) Except as provided in pars. (d) to (j), the sale of a telecommunications service that is sold on a basis other than a call-bycall basis is sourced to the customer’s place of primary use. (d) The sale of a mobile telecommunications service, except an air-to-ground radiotelephone service and a prepaid calling service, is sourced to the customer’s place of primary use. (e) The sale of a postpaid calling service is sourced to the location where the signal of the telecommunications service originates, as first identified by the seller’s telecommunications system or, if the signal is not transmitted by the seller’s telecommunications system, by information that the seller received from the seller’s service provider. (f) The sale of a prepaid calling service or a prepaid wireless calling service is sourced to the location determined under sub. (1) (b), except that, if the service is a prepaid wireless calling service and the location cannot be determined under sub. (1) (b) 1. to 4., the prepaid wireless calling service occurs at the location determined under sub. (1) (b) 5. c. or at the location associated with the mobile telephone number, as determined by the seller. (g) 1. The sale of a private communication service for a separate charge related to a customer channel termination point is sourced to the location of the customer channel termination point. 2. The sale of a private communication service in which all customer channel termination points are located entirely in one taxing jurisdiction for sales and use tax purposes is sourced to the taxing jurisdiction in which the customer channel termination points are located. 3. If the segments are charged separately, the sale of a private communication service that represents segments of a communications channel between 2 customer channel termination points that are located in different taxing jurisdictions for sales and use tax purposes is sourced to an equal percentage in both such jurisdictions. 4. If the segments are not charged separately, the sale of a private communication service for segments of a communications channel that is located in more than one taxing jurisdiction for sales and use tax purposes is sourced to each such jurisdiction in a percentage determined by dividing the number of customer channel termination points in that jurisdiction by the number of customer channel termination points in all jurisdictions where segments of the communications channel are located. (i) The sale of an ancillary service is sourced to the customer’s place of primary use. (j) If the location of the customer’s service address, channel

May 22, 2026, are designated by NOTES. (Published 5-22-26)

Updated 23-24 Wis. Stats. 28 SALES AND USE TAXES; MANAGED FOREST LANDS; OTHER TAXES AND FEES termination point, or place of primary use is not known, the loca- actions that the provider processes for a seller, except as provided tion where the seller receives or hands off the signal shall be con- in sub. (3). sidered, for purposes of this section, the customer’s service ad(3) A seller that contracts with a certified service provider is dress, channel termination point, or place of primary use. not liable for sales and use taxes that are due the state on transac(5) FLORISTS. (a) For purposes of this subsection, “retail tions that the provider processed, unless the seller has misrepreflorist” means a person engaged in the business of selling cut sented the type of items that the seller sells or has committed flowers, floral arrangements, and potted plants and who prepares fraud. The seller is subject to an audit on transactions that the such flowers, floral arrangements, and potted plants. “Retail certified service provider processed only if there is probable florist” does not include a person who sells cut flowers, floral ar- cause to believe that the seller has committed fraud or made a marangements, and potted plants primarily by mail or via the terial misrepresentation. The seller is subject to an audit on transInternet. actions that the certified service provider does not process. The (b) Sales by a retail florist are sourced to the location deter- states that are signatories to the agreement, as defined in s. 77.65 mined by rule by the department. (2) (a), may jointly check the seller’s business system and review History: 2009 a. 2, 28, 276, 330; 2013 a. 20; 2017 a. 59. the seller’s business procedures to determine if the certified service provider’s system is functioning properly and to determine