77.54 General exemptions. There are exempted from the taxes imposed by this subchapter: (1) The sales price from the sale of and the storage, use or other consumption in this state of tangible personal property, and items and property under s. 77.52 (1) (b) and (c), and services the sales price from the sale of which, or the storage, use or other consumption of which, this state is prohibited from taxing under the constitution or laws of the United States or under the constitution of this state. (2) The sales price from the sales of and the storage, use, or other consumption of tangible personal property or item under s. 77.52 (1) (b) that is used exclusively and directly by a manufacturer in manufacturing an article of tangible personal property or item or property under s. 77.52 (1) (b) or (c) that is destined for sale and that becomes an ingredient or component part of the article of tangible personal property or item or property under s. 77.52 (1) (b) or (c) destined for sale or is consumed or destroyed or loses its identity in manufacturing the article of tangible personal property or item or property under s. 77.52 (1) (b) or (c) destined for sale, except as provided in sub. (30) (a) 6. (2m) The sales price from the sales of and the storage, use, or other consumption of tangible personal property or services that are used exclusively and directly by a manufacturer in manufacturing shoppers guides, newspapers, or periodicals and that become an ingredient or component of shoppers guides, newspapers, or periodicals or that are consumed or lose their identity in the manufacture of shoppers guides, newspapers, or periodicals, whether or not the shoppers guides, newspapers, or periodicals are transferred without charge to the recipient. In this subsection, “shoppers guides,” “newspapers,” and “periodicals” have the meanings under sub. (15). The exemption under this subsection does not apply to advertising supplements that are not newspapers. (3) (a) The sales price from the sale of and the storage, use, or other consumption of tractors and machines, including accessories, attachments, and parts, lubricants, nonpowered equipment, and other tangible personal property, or items or property under s. 77.52 (1) (b) or (c), that are used exclusively and directly, or are consumed or lose their identities, in the business of farming, including dairy farming, agriculture, horticulture, floriculture, silviculture, beekeeping, and custom farming services, but excluding automobiles, trucks, and other motor vehicles for highway use; excluding personal property that is attached to, fastened to, connected to, or built into real property or that becomes an addition to, component of, or capital improvement of real property; and excluding tangible personal property, or items or property under s. 77.52 (1) (b) or (c), used or consumed in the erection of buildings or in the alteration, repair, or improvement of real property, regardless of any contribution that that personal property, or item or property under s. 77.52 (1) (b) or (c), makes to the production process in that building or real property and regardless of the extent to which that personal property, or item or property under s. 77.52 (1) (b) or (c), functions as a machine, except as provided in par. (c). (b) In par. (a): 1. “Building” has the meaning given under s. 70.111 (10) (a) 1. 2. “Machine” means an assemblage of parts that transmits force, motion and energy from one part to another in a predetermined manner.
May 22, 2026, are designated by NOTES. (Published 5-22-26)
Updated 23-24 Wis. Stats. 32 SALES AND USE TAXES; MANAGED FOREST LANDS; OTHER TAXES AND FEES 3. “Used exclusively” means used to the exclusion of all 4. Motor vehicles or truck bodies sold to persons who are not other uses except for other use not exceeding 5 percent of total residents of this state and who will not use such motor vehicles or use. trucks for which the truck bodies were made in this state other(c) For purposes of this subsection, the following items retain wise than in the removal of such motor vehicles or trucks from their character as tangible personal property, regardless of the ex- this state. tent to which they are fastened to, connected to or built into real (am) Modular homes, as defined in s. 101.71 (6), and manuproperty: factured homes, as defined in s. 101.91 (2), that are used in real property construction activities outside this state. 1. Auxiliary power generators. (b) Motor trucks, truck tractors, road tractors, buses, trailers 2. Bale loaders. and semitrailers, and accessories, attachments, parts, supplies 3. Barn cleaners and elevators. and materials therefor, sold to common or contract carriers who 4. Conveyors. use such motor trucks, truck tractors, road tractors, buses, trailers 5. Feed elevators and augers. and semitrailers exclusively as common or contract carriers, in6. Grain dryers and grinders. cluding the urban mass transportation of passengers as defined in 7. Milk coolers. s. 71.38. 8. Milking machines; including piping, pipeline washers and (c) Motor vehicles which are not required to be licensed for compressors. highway use and which are exclusively and directly used in con9. Powered feeders, excluding platforms and troughs con- junction with waste reduction or recycling activities which reduce structed from ordinary building materials. the amount of solid waste generated, reuse solid waste, recycle 10. Silo unloaders. solid waste, compost solid waste or recover energy from solid (3m) The sales price from the sale of and the storage, use, or waste. For the purposes of this paragraph, “solid waste” means other consumption of the following items if they are used exclu- garbage, refuse, sludge or other materials or articles, whether sively by the purchaser or user in the business of farming; includ- these materials or articles are discarded or purchased, including ing dairy farming, agriculture, horticulture, floriculture, silvicul- solid, semisolid, liquid or contained gaseous materials or articles ture, beekeeping, and custom farming services: resulting from industrial, commercial, mining or agricultural operations or from domestic use or from public service activities. (a) Seeds for planting. (d) Mobile units used for mixing and processing and the mo(b) Plants. tor vehicle or trailer on which the unit is mounted, including ac(c) Feed. cessories, attachments, parts, supplies and materials for those ve(d) Fertilizer. hicles, trailers and units. (e) Soil conditioners. (6) (am) The sales price from the sale of and the storage, use (f) Animal bedding. or other consumption of: (g) Sprays, pesticides and fungicides. 1. Machines and specific processing equipment and repair (h) Breeding and other livestock. parts or replacements thereof, exclusively and directly used by a (hm) Bees, beehives, and bee combs. manufacturer in manufacturing tangible personal property or (i) Poultry. items or property under s. 77.52 (1) (b) or (c) and safety attach(j) Farm work stock. ments for those machines and equipment. (k) Baling twine and baling wire. 2. Containers, labels, sacks, cans, boxes, drums, bags or (L) Containers for fruits, vegetables, bee products, grain, hay, other packaging and shipping materials for use in packing, packsilage, and animal wastes. aging or shipping tangible personal property or items or property (m) Plastic bags, plastic sleeves and plastic sheeting used to under s. 77.52 (1) (b) or (c), if the containers, labels, sacks, cans, boxes, drums, bags, or other packaging and shipping materials store or cover hay or silage. (4) The sales price from the sale of tangible personal property are used by the purchaser to transfer merchandise to customers or and items and property under s. 77.52 (1) (b) and (c) and the stor- physically transferred to the customer in conjunction with the age, use or other consumption in this state of tangible personal selling, performing, or furnishing of the type of services under s. property and items and property under s. 77.52 (1) (b) and (c), 77.52 (2) (a) 7., 10., 11., or 20. that are exempt from or not subwhich is the subject of any such sale, by any elementary school or ject to taxation under this subchapter. This subdivision does not secondary school, exempted as such from payment of income or apply to services provided by veterinarians. franchise tax under ch. 71, whether public or private. 2m. Meat casing, wrapping paper, tape, containers, labels, (5) The sales price from the sale of and the storage, use or sacks, cans, boxes, drums, bags or other packaging and shipping materials for use in packing, packaging or shipping meat or meat other consumption of: (a) 1. Aircraft, including accessories, attachments, and fuel products regardless of whether such items are used to transfer for such aircraft, sold to persons using the aircraft as certified or merchandise to customers. 3. Fuel converted to electric energy, gas or steam by utilities licensed carriers of persons or property in interstate or foreign commerce under authority of the laws of the United States or any and that portion of the amount of fuel converted to steam for purforeign government, or sold to any foreign government for use by poses of resale by persons other than utilities. such government outside this state. 4. Machines and specific processing equipment used exclu2. Aircraft, including attachments for such aircraft, sold to sively and directly in a fertilizer blending, feed milling, or grain persons who are not residents of this state and who will not use drying operation, including holding structures used for weighing such aircraft in this state otherwise than in the removal of such and dropping feed or fertilizer ingredients into a mixer, wet corn aircraft from this state or in the repair, service, alteration, fitting, holding bins, grain dryers, mixers, conveying equipment, and cleaning, painting, coating, towing, inspection, and maintenance grinding, mixing, and saturation bins, regardless of whether such of such aircraft in this state. items become an addition to, a component of, or a capital im3. Parts used to modify or repair aircraft. provement of real property. The exemption under this subdivi77.54
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sion applies to repair parts, replacements, and safety attachments for such machines and equipment. 5. Building materials acquired solely for and used solely in the construction or repair of holding structures used for weighing and dropping feed or fertilizer ingredients into a mixer or for storage of grain, if such structures are used in a fertilizer blending, feed milling, or grain drying operation. (bn) The exemptions under par. (am) 4. and 5. apply only to items located on the same parcel of property where the fertilizer blending, feed milling, or grain drying operation activities are conducted, or on an adjoining parcel, including parcels that are separated only by a public road. The exemptions under par. (am) 4. and 5. apply only to persons who are primarily engaged in fertilizer blending, feed milling, or grain handling operations which include grain drying operations, or primarily engaged in any combination of fertilizer blending, feed milling, or grain handling operations which include grain drying operations, and to contractors providing real property construction activities to such persons. (cn) The exemptions under this subsection shall be strictly construed. (7) (a) Except as provided in pars. (b) to (d), the occasional sales of tangible personal property, items and property under s. 77.52 (1) (b) and (c), and services and the storage, use or other consumption in this state of tangible personal property and items and property under s. 77.52 (1) (b) and (c) the transfer of which to the purchaser is an occasional sale. (b) If the item transferred is a motor vehicle, snowmobile, recreational vehicle, as defined in s. 340.01 (48r), trailer, semitrailer, all-terrain vehicle, utility terrain vehicle, off-highway motorcycle, as defined in s. 23.335 (1) (q), or aircraft and the item is registered or titled, or required to be registered or titled, in this state or if the item is a boat that is registered or titled, or required to be registered or titled, in this state or under the laws of the United States, the exemption under par. (a) applies only if all of the following conditions are fulfilled: 1. The item is transferred to a child, spouse, parent, father-inlaw, mother-in-law, daughter-in-law or son-in-law of the transferor or, if the item is a motor vehicle, from the transferor to a corporation owned solely by the transferor or by the transferor’s spouse. 2. The item has been registered or titled in the name of the transferor. 3. The transferor is not engaged in the business of selling the type of item that is transferred. (c) The exemption under par. (a) does not apply to the sale of bingo supplies to players or to the sale, rental or use of regular bingo cards, extra regular cards and special bingo cards. (d) The exemption under par. (a) does not apply to sales by a nonprofit organization. (7m) Occasional sales of tangible personal property, or items or property under s. 77.52 (1) (b) or (c), or services, including admissions or tickets to an event; by a neighborhood association, church, civic group, garden club, social club or similar nonprofit organization; not involving entertainment for which payment in the aggregate exceeds $50,000 for performing or as reimbursement of expenses unless access to the event may be obtained without payment of a direct or indirect admission fee; conducted by the organization if the organization is not engaged in a trade or business and is not required to have a seller’s permit. For purposes of this subsection, an organization is engaged in a trade or business and is required to have a seller’s permit if its sales of tangible personal property, and items, property, and goods under s. 77.52 (1) (b), (c), and (d), and services, not including sales of tickets to events, and its events occur on more than 75 days during
77.54 AND FEES the year, unless its taxable receipts do not exceed $50,000 during the year. The exemption under this subsection does not apply to the sales price from the sale of bingo supplies to players or to the sale, rental or use of regular bingo cards, extra regular cards and special bingo cards. (8) Charges for insurance, not including contracts under s. 77.52 (2) (a) 13m., where such charges are separately set forth upon the invoice given by the seller to the purchaser. (9) The sales price from sales of tickets or admissions to public and private elementary and secondary school activities, where the entire net proceeds therefrom are expended for educational, religious or charitable purposes. (9a) The sales price from sales to, and the storage by, use by or other consumption of tangible personal property, and items and property under s. 77.52 (1) (b) and (c), and taxable services by: (a) This state or any agency thereof, the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic Development Corporation, and the Fox River Navigational System Authority. (b) Any county, city, village, town or school district in this state. (c) A county-city hospital established under s. 66.0927. (d) A sewerage commission organized under s. 281.43 (4) or a metropolitan sewerage district organized under ss. 200.01 to 200.15 or 200.21 to 200.65. (e) Any other unit of government in this state or any agency or instrumentality of one or more units of government in this state. (ed) Any federally recognized American Indian tribe or band in this state. (em) Any joint local water authority created under s. 66.0823. (f) Any corporation, community chest, fund, or foundation that is exempt from federal income tax under section 501 (c) (3) of the Internal Revenue Code and has received a determination letter from the internal revenue service. The exemption under this paragraph applies to churches and religious organizations that meet the requirements of section 501 (c) (3) but are not required to apply for and obtain tax-exempt status from the internal revenue service. (fc) An entity described under section 501 (c) (2) of the Internal Revenue Code that is exempt from federal income tax under section 501 (a) of the Internal Revenue Code and that is organized for the exclusive purpose of holding title to property, collecting income from that property, and turning over the entire amount of that income, less expenses, to an entity described under par. (f). (g) A local exposition district under subch. II of ch. 229. (gm) A local professional baseball park district under subch. III of ch. 229. (h) A local cultural arts district under subch. V of ch. 229. (i) A cemetery company or corporation described under section 501 (c) (13) of the Internal Revenue Code, if the tangible personal property or taxable services are used exclusively by the cemetery company or corporation for the purposes of the company or corporation. (9g) The sales price from sales to, and the storage by, use by, or other consumption of products by a state veterans organization, as defined in s. 45.41 (1) (b), except products used primarily in preparing, storing, serving, selling, or delivering food and beverages sold by the organization. For purposes of this subsection, preparing, storing, serving, selling, or delivering food and beverages sold by the organization includes the cleaning of machinery and equipment before, during, and after the preparation of the food and beverages sold.
May 22, 2026, are designated by NOTES. (Published 5-22-26)
Updated 23-24 Wis. Stats. 34 SALES AND USE TAXES; MANAGED FOREST LANDS; OTHER TAXES AND FEES 2. A surgeon. (9m) The sales price from the sale of and the storage, use, or other consumption of tangible personal property, or items or 3. A nurse anesthetist. property under s. 77.52 (1) (b) or (c), sold to a construction conNOTE: Subd. 3. is repealed eff. 9-1-26 by 2025 Wis. Act 17. tractor that, in fulfillment of a real property construction activity, 4. An advanced practice registered nurse who may issue pretransfers the tangible personal property, or items or property un- scription orders under s. 441.09 (2). NOTE: Subd. 4. is shown as amended eff. 9-1-26 by 2025 Wis. Act 17. Prior der s. 77.52 (1) (b) or (c), to an entity described under sub. (9a) (b), (c), (d), (em), (f), or (fc) or (9g), a technical college district, to 9-1-26 it reads: 4. An advanced practice nurse. the University of Wisconsin Hospitals and Clinics Authority, the 5. An osteopath. Board of Regents of the University of Wisconsin System, an insti6. A dentist who is licensed under subch. I of ch. 447 or who tution, as defined in s. 36.05 (9), a college campus, as defined in s. 36.05 (6m), or the University of Wisconsin-Extension, if such holds a compact privilege under subch. II of ch. 447. 7. A podiatrist who is licensed under ch. 448. tangible personal property, or items or property, becomes a component of a facility in this state that is owned by the entity. In this 8. An optometrist who is licensed under ch. 449. subsection, “facility” means any building, shelter, parking lot, (14r) For purposes of sub. (14) hospital has the meaning asparking garage, athletic field, athletic park, storm sewer, water cribed to it in s. 50.33 (2). supply system, or sewerage and waste water treatment facility, but (15) The sales price from the sale of and the storage, use or does not include a highway, street, or road. other consumption of all newspapers, of periodicals sold by sub(10) The sales price from the sale of all admission fees, ad- scription and regularly issued at average intervals not exceeding 3 mission stickers or camping fees under s. 27.01 (7) to (11) and all months, or issued at average intervals not exceeding 6 months by admission fees to any museum operated by a nonprofit corpora- an educational association or corporation sales to which are extion under a lease agreement with the state historical society. empt under sub. (9a) (f), of controlled circulation publications (11) The sales price from the sales of and the storage, use or sold to commercial publishers for distribution without charge or other consumption in this state of motor vehicle fuel, general avi- mainly without charge or regularly distributed by or on behalf of ation fuel or alternate fuel, subject to taxation under ch. 78, unless publishers without charge or mainly without charge to the recipithe motor vehicle fuel or alternate fuel tax is refunded under s. ent and of shoppers guides which distribute no less than 48 issues 78.75 because the buyer does not use the fuel in operating a motor in a 12-month period. In this subsection, “shoppers guide” vehicle upon the public highways. means a community publication delivered, or attempted to be de(11m) The sales price from the sales of and the storage, use, livered, to most of the households in its coverage area without a or other consumption of vegetable oil or animal fat that is con- required subscription fee, which advertises a broad range of prodverted into motor vehicle fuel that is exempt under s. 78.01 (2n) ucts and services offered by several types of businesses and individuals. In this subsection, “controlled circulation publication” from the taxes imposed under s. 78.01 (1). (12) The sales price from the sales of and the storage, use or means a publication that has at least 24 pages, is issued at regular other consumption in this state of rail freight or passenger cars, intervals not exceeding 3 months, that devotes not more than 75 locomotives or other rolling stock used in railroad operations, or percent of its pages to advertising and that is not conducted as an auxiliary to, and essentially for the advancement of, the main accessories, attachments, parts, lubricants or fuel therefor. (13) The sales price from the sales of and the storage, use or business or calling of the person that owns and controls it. (16) The sales price from the sale of and the storage, use or other consumption in this state of commercial vessels and barges of 50-ton burden or over primarily engaged in interstate or foreign other consumption of fire trucks and fire fighting equipment, incommerce or commercial fishing, and the accessories, attach- cluding accessories, attachments, parts and supplies therefor, sold to volunteer fire departments. ments, parts and fuel therefor. (17) The sales price from the sales of and the storage, use or (14) The sales price from the sales of and the storage, use, or other consumption in this state of drugs that are any of the other consumption of water, that is not food and food ingredient, when delivered through mains. following: (18) When the sale of a service or tangible personal property, (a) Prescribed for the treatment of a human being by a person authorized to prescribe the drugs, and dispensed on prescription or items, property, and goods under s. 77.52 (1) (b), (c), and (d), that was previously exempt or not taxable under this subchapter filled by a pharmacist in accordance with law. (b) Furnished by a licensed physician, naturopathic doctor, becomes taxable, and the service or tangible personal property, surgeon, podiatrist, or dentist to a patient who is a human being or item, property, or good under s. 77.52 (1) (b), (c), or (d) is furnished under a written contract by which the seller is uncondifor treatment of the patient. (c) Furnished by a hospital for treatment of any person pur- tionally obligated to provide the service or tangible personal suant to the order of a licensed physician, surgeon, podiatrist, or property, or item, property, or good under s. 77.52 (1) (b), (c), or (d) for the amount fixed under the contract, the seller is exempt dentist. from sales or use tax on the sales price for services or tangible (d) Sold to a licensed physician, naturopathic doctor, surgeon, personal property, or items, property, or goods under s. 77.52 (1) podiatrist, dentist, or hospital for the treatment of a human being. (b), (c), or (d) provided until the contract is terminated, extended, (e) Sold to this state or any political subdivision or municipal renewed or modified. However, from the time the service or tancorporation thereof, for use in the treatment of a human being. gible personal property, or item, property, or good under s. 77.52 (em) Furnished for the treatment of a human being by a med- (1) (b), (c), or (d) becomes taxable until the contract is termiical facility or clinic maintained by this state or any political sub- nated, extended, renewed or modified the user is subject to use division or municipal corporation thereof. tax, measured by the purchase price, on the service or tangible (en) Insulin furnished by a pharmacist to a person for treat- personal property, or item, property, or good under s. 77.52 (1) ment of diabetes of a human being. (b), (c), or (d) purchased under the contract. (f) Furnished without charge to any of the following if the (20n) (a) The sales price from the sale of and the storage, drug may not be dispensed without a prescription: use, or other consumption of food and food ingredients, except 1. A physician. candy, soft drinks, dietary supplements, and prepared food. 77.54
May 22, 2026, are designated by NOTES. (Published 5-22-26)
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(b) The sales price from the sale of and the storage, use, or other consumption of food and food ingredients, except soft drinks, sold by hospitals, sanatoriums, nursing homes, retirement homes, and community-based residential facilities, as defined in s. 50.01 (1g), and any facility certified or licensed under ch. 48, including prepared food that is sold to the elderly or handicapped by persons providing mobile meals on wheels. In this paragraph, “retirement home” means a nonprofit residential facility where 3 or more unrelated adults or their spouses have their principal residence and where support services, including meals from a common kitchen, are available to residents. (c) The sales price from the sale of and the storage, use, or other consumption of food and food ingredients, furnished in accordance with any contract or agreement or paid for to such institution through the use of an account of such institution, by a public or private institution of higher education to any of the following: 1. An undergraduate student, a graduate student, or a student enrolled in a professional school if the student is enrolled for credit at the public or private institution of higher education and if the food and food ingredients are consumed by the student. 2. A national football league team. (d) The sales price from the sale of and the storage, use, or other consumption of prepared food that is sold by a retailer and that meets all of the following conditions: 1. The prepared food is not candy, soft drinks, or dietary supplements. 2. The retailer manufactures the prepared food on real property assessed as manufacturing property under s. 70.995, or that would be assessed as manufacturing property under s. 70.995 if the real property was located in this state. 3. The retailer makes no retail sales of prepared food at the location described in subd. 2. 4. Any of the following applies: a. The retailer freezes the prepared food prior to its sale and sells the prepared food at retail in a frozen state, and the prepared food is not sold with eating utensils that are provided by the retailer, as described in s. 77.51 (10m) (a) 3. b. The prepared food consists of more than 50 percent yogurt. (20r) The sales price from the sales of and the storage, use, or other consumption of candy, soft drinks, dietary supplements, and prepared foods, and disposable products that are transferred with such items, furnished for no consideration by a restaurant to the restaurant’s employee during the employee’s work hours. (21) The sales price from the sales of and the storage, use or other consumption of caskets and burial vaults for human remains. (22b) The sales price from the sale of and the storage, use, or other consumption of durable medical equipment that is for use in a person’s home, mobility-enhancing equipment, and prosthetic devices, and accessories for such equipment or devices, if the equipment or devices are used for a human being. (23m) The sales price from the sale of or the storage, use or other consumption of motion picture film or tape, and motion pictures or radio or television programs for listening, viewing, or broadcast, and advertising materials related thereto, sold to a motion picture theater or radio or television station. (23n) The sales price from the sales of tangible personal property and property under s. 77.52 (1) (c) to, and the storage, use, or other consumption of tangible personal property and property under s. 77.52 (1) (c) by, a person who is licensed to operate a commercial radio or television station in this state, if the tangible personal property or property under s. 77.52 (1) (c) is
77.54 AND FEES used exclusively and directly in, or is fuel or electricity consumed in, the origination or integration of various sources of program material for commercial radio or television transmissions that are generally available to the public free of charge without a subscription or service agreement. This subsection applies to vehicles licensed for highway use and equipment used to transmit or receive signals from a satellite. (25) The sales price from the sale of and the storage of printed material which is designed to advertise and promote the sale of merchandise, or to advertise the services of individual business firms, which printed material is purchased and stored for the purpose of subsequently transporting it outside the state by the purchaser for use thereafter solely outside the state. This subsection does not apply to catalogs and the envelopes in which the catalogs are mailed. (25m) The sales price from the sale of and the storage, use, or other consumption of catalogs, and the envelopes in which the catalogs are mailed, that are designed to advertise and promote the sale of merchandise or to advertise the services of individual business firms. (26) The sales price from the sales of and the storage, use, or other consumption of tangible personal property and items and property under s. 77.52 (1) (b) and (c) which becomes a component part of an industrial waste treatment facility that is exempt under s. 70.11 (21) or that would be exempt under s. 70.11 (21) if the property were taxable under ch. 70, or tangible personal property and items and property under s. 77.52 (1) (b) and (c) which becomes a component part of a waste treatment facility of this state or any agency thereof, or any political subdivision of the state or agency thereof as provided in s. 40.02 (28). The exemption includes replacement parts therefor, and also applies to chemicals and supplies used or consumed in operating a waste treatment facility and to purchases of tangible personal property and items and property under s. 77.52 (1) (b) and (c) made by construction contractors who transfer such property to their customers in fulfillment of a real property construction activity. This exemption does not apply to tangible personal property and items and property under s. 77.52 (1) (b) and (c) installed in fulfillment of a written construction contract entered into, or a formal written bid made, prior to July 31, 1975. (26m) The sales price from the sale of and the storage, use or other consumption of waste reduction or recycling machinery and equipment, including parts therefor, exclusively and directly used for waste reduction or recycling activities which reduce the amount of solid waste generated, reuse solid waste, recycle solid waste, compost solid waste or recover energy from solid waste. The exemption applies even though an economically useful end product results from the use of the machinery and equipment. For the purposes of this subsection, “solid waste” means garbage, refuse, sludge or other materials or articles, whether these materials or articles are discarded or purchased, including solid, semisolid, liquid or contained gaseous materials or articles resulting from industrial, commercial, mining or agricultural operations or from domestic use or from public service activities. (27) The sales price from the sale of semen used for artificial insemination of livestock. (28) The sales price from the sale of and the storage, use or other consumption to or by the ultimate consumer of supplies used to determine blood sugar level. (29) The sales price from the sales of and the storage, use or other consumption of equipment used in the production of maple syrup. (30) (a) The sales price from the sale of: 1. Coal, fuel oil, propane, steam, peat, fuel cubes produced from solid waste and wood used for fuel sold for residential use.
May 22, 2026, are designated by NOTES. (Published 5-22-26)
Updated 23-24 Wis. Stats. 36 SALES AND USE TAXES; MANAGED FOREST LANDS; OTHER TAXES AND FEES 1m. Biomass, as defined in s. 196.378 (1) (ar), that is used erty, or items or property under s. 77.52 (1) (b) or (c), tickets, or for fuel sold for residential use. admissions by any baseball team affiliated with the Wisconsin Department of American Legion baseball. 2. Electricity and natural gas sold for residential use. (36) The sales price from the rental for a continuous period of 3. Electricity sold for use in farming, including agriculture, dairy farming, floriculture, silviculture, horticulture, and one month or more of a mobile home, as defined in s. 101.91 (10), or a manufactured home, as defined in s. 101.91 (2), that is beekeeping. 4. Any residue that is used as fuel in a business activity and used as a residence. In this subsection, “one month” means a calthat results from the harvesting of timber or the production of endar month or 30 days, whichever is less, counting the first day wood products, including slash, sawdust, shavings, edgings, of the rental and not counting the last day of the rental. (37) The sales price from revenues collected under s. 256.35 slabs, leaves, wood chips, bark and wood pellets manufactured primarily from wood or primarily from wood residue. (3). 5. Fuel sold for use in farming, including agriculture, dairy (38) The sales price from the sale of and the storage, use or farming, floriculture, silviculture, horticulture, and beekeeping. other consumption of snowmobile trail groomers and attach6. Fuel and electricity consumed in manufacturing tangible ments for them that are purchased, stored, used or consumed by a personal property, or items or property under s. 77.52 (1) (b) or snowmobile club that meets at least 3 times a year, that has at least 10 members, that promotes snowmobiling and that partici(c), in this state. 7. Fuel sold for use in motorboats that are regularly employed pates in the department of natural resources’ snowmobile proin carrying persons for hire for sport fishing in and upon the out- gram under s. 350.12 (4) (b). (39) The sales price from the sale of and the storage, use or lying waters, as defined in s. 29.001 (63), and the rivers and tributaries specified in s. 29.2285 (2) (a) 1. and 2., if the owner and other consumption of off-highway, heavy mechanical equipment all operators are licensed under s. 29.514 to operate the boat for such as feller bunchers, slashers, delimbers, chippers, hydraulic loaders, loaders, skidder-forwarders, skidders, timber wagons that purpose. (b) For purposes of this subsection, electricity or natural gas and tractors used exclusively and directly in the harvesting or prois considered sold at the time of billing. If the billing is by mail, cessing of raw timber products in the field by a person in the logging business. In this subsection, “heavy mechanical equipment” the time of billing is the day on which the billing is mailed. (c) If fuel or electricity is sold partly for a use exempt under does not include hand tools such as axes, chains, chain saws and this subsection and partly for a use which is not exempt under this wedges. (41) The sales price from the sale of building materials, supsubsection, no tax shall be collected on that percentage of the sales price equal to the percentage of the fuel or electricity which plies and equipment to; and the storage, use or other consumption is used for an exempt use, as specified in an exemption certificate of those kinds of property by; owners, contractors, subcontractors or builders if that property is acquired solely for or used solely in, provided by the purchaser to the seller. (d) In this subsection “residential use” means use in a struc- the construction, improvement, renovation, repair, maintenance, ture or portion of a structure which is a person’s permanent resi- or development of property that would be exempt under s. 70.11 dence, but does not include use in transient accommodations, as (36). (42) The sales price from the sale of and the storage, use or specified in s. 77.52 (2) (a) 1., motor homes, travel trailers or other consumption of animal identification tags provided under s. other recreational vehicles. (e) For purposes of this subsection, a seller of electricity or 93.06 (1h) and standard samples provided under s. 93.06 (1s). natural gas is not required to comply with the requirement of ob(43) The sales price from the sale of and the storage, use or taining exemption certificates under s. 77.52 (13) for sales of other consumption of raw materials used for the processing, fabelectricity or natural gas to accounts not covered by par. (c) which ricating or manufacturing of, or the attaching to or incorporating are properly classified as residential or farms pursuant to sched- into, printed materials that are transported and used solely outules which are filed for rate tariff purposes with the public ser- side this state. vice commission under s. 196.19 and which are in force at the (44) The sales price from the collection of low-income assistime of the sales or are properly so classified for classification tance fees that are charged under s. 16.957 (4) (a) or (5) (a). purposes as directed by the federal rural electrification adminis(45) The sales price from the sale of and the use or other contration. Nothing in this paragraph shall be construed to broaden sumption of a onetime license or similar right to purchase admisthe exemption specified in par. (a). sion to professional football games at a football stadium, as de(f) Sellers of coal, fuel oil, propane, steam, peat, fuel cubes fined in s. 229.821 (6), that is granted by a municipality; a local produced from solid waste and wood used for fuel shall not be re- professional football stadium district; or a professional football quired to obtain an exemption certificate under s. 77.52 (13) from team or related party, as defined in s. 229.821 (12); if the person a purchaser if all the fuel sold is for residential use and the seller who buys the license or right is entitled, at the time the license or maintains adequate records to identify which sales are exempt. right is transferred to the person, to purchase admission to at least (31) The sales price from the sale of and the storage, use or 3 professional football games in this state during one football other consumption in this state, but not the lease or rental, of used season. mobile homes, as defined in s. 101.91 (10), and used manufac(46) The sales price from the sale of and the storage, use, or tured homes, as defined in s. 101.91 (12). other consumption of the U.S. flag or the state flag. This subsec(32) The sales price from charges, including charges for a tion does not apply to a representation of the U.S. flag or the state search, imposed by an authority, as defined in s. 19.32 (1), for flag. copies of a public record that a person may examine and use un(46m) The sales price from the sale of and the storage, use, or der s. 16.61 (12) or for copies of a record under s. 19.35 (1). other consumption of telecommunications services, if the (33) The sales price from the sale of and the storage, use, or telecommunications services are obtained by using the rights to other consumption of drugs used on farm livestock, not including purchase telecommunications services, including purchasing workstock, or on bees. reauthorization numbers, by paying in advance and by using an (35) The sales price from the sales of tangible personal prop- access number and authorization code; and if the tax imposed un77.54
May 22, 2026, are designated by NOTES. (Published 5-22-26)
37
Updated 23-24 Wis. Stats. SALES AND USE TAXES; MANAGED FOREST LANDS; OTHER TAXES
der s. 77.52 or 77.53 was previously paid on the sale or purchase of such rights. (47) The sales price from the sale of and the storage, use, or other consumption of all of the following: (a) Live game birds and clay pigeons that are sold to bird hunting preserves licensed under s. 169.19. (b) Clay pigeons that are sold to a shooting facility, if any of the following applies: 1. The shooting facility is required to pay the tax imposed under s. 77.52 on the sales price from charges for shooting at the facility. 2. The shooting facility is a nonprofit organization that charges for shooting at the facility, but is not required to pay the tax imposed under s. 77.52 on its sales price from such charges because the charges are for occasional sales, as provided under sub. (7m), or because the charges satisfy the exemption under s. 77.52 (2) (a) 2. b. (49) The sales price from the sale of and the storage, use, or other consumption of taxable services and tangible personal property or items or property under s. 77.52 (1) (b) or (c), that are physically transferred to the purchaser as a necessary part of services that are subject to the taxes imposed under s. 77.52 (2) (a) 7., 10., 11., and 20., if the seller and the purchaser of such services and property or item are members of the same affiliated group under section 1504 of the Internal Revenue Code and are eligible to file a single consolidated return for federal income tax purposes. For purposes of this subsection, if a seller purchases a taxable service, or item or property under s. 77.52 (1) (b) or (c), or tangible personal property, as described in this subsection, that is subsequently sold to a member of the seller’s affiliated group and the sale is exempt under this subsection from the taxes imposed under this subchapter, the original purchase of the taxable service, or item or property under s. 77.52 (1) (b) or (c), or tangible personal property by the seller is not considered a sale for resale or exempt under this subsection. (50) The sales price from the sale of and the storage, use, or other consumption of specified digital goods or additional digital goods, if the sale of and the storage, use, or other consumption of such goods sold in a tangible form is exempt from, or not subject to, taxation under this subchapter. (51) The sales price from the sales of and the storage, use, or other consumption of products sold in a transaction that would be a bundled transaction, except that it contains taxable and nontaxable products as described in s. 77.51 (1f) (d), and except that the first person combining the products shall pay the tax imposed under this subchapter on the person’s purchase price of the taxable items. (52) The sales price from the sales of and the storage, use, or other consumption of products sold in a transaction that would be a bundled transaction, except that the transaction meets the conditions described in s. 77.51 (1f) (e). (54) The sales price from the sale of and the storage, use, or other consumption of tangible personal property, and items and property under s. 77.52 (1) (b) and (c), and taxable services that are sold by a home exchange service that receives moneys from the appropriation account under s. 20.485 (1) (g) and is operated by the department of veterans affairs. (55) The sales price from the 911 fee imposed under s. 196.025 (6). (56) (a) Beginning July 1, 2011, the sales price from the sale of and the storage, use, or other consumption of a product whose power source is wind energy, direct radiant energy received from the sun, or gas generated from anaerobic digestion of animal manure and other agricultural waste, if the product produces at least
77.54 AND FEES 200 watts of alternating current or 600 British thermal units per day, except that the exemption under this subsection does not apply to an uninterruptible power source that is designed primarily for computers. (b) Except for the sale of electricity or energy that is exempt from taxation under sub. (30), beginning on July 1, 2011, the sales price from the sale of and the storage, use, or other consumption of electricity or energy produced by a product described under par. (a). (57) (a) In this subsection: 1d. “Animals” include bacteria, viruses, and other microorganisms. 2. “Machinery” has the meaning given in s. 70.11 (27) (a) 2. 5. “Qualified research” has the meaning given in sub. (57d) (a) 4. 6. “Used exclusively” has the meaning given in sub. (3) (b) 3. (b) The sales price from the sale of and the storage, use, or other consumption of all of the following: 3. Machines and specific processing equipment, including accessories, attachments, and parts for the machines or equipment, that are used exclusively and directly in raising animals that are sold primarily to a biotechnology business, a public or private institution of higher education, or a governmental unit for exclusive and direct use by any such entity in qualified research or manufacturing. 4. The items listed in sub. (3m) (a) to (m), drugs, semen for artificial insemination, fuel, and electricity that are used exclusively and directly in raising animals that are sold primarily to a biotechnology business, a public or private institution of higher education, or a governmental unit for exclusive and direct use by any such entity in qualified research or manufacturing. (57d) (a) In this subsection: 2. “Combined group” has the meaning given in s. 71.255 (1) (a). 3. “Machinery” has the meaning given in s. 70.11 (27) (a) 2. 4. “Qualified research” means qualified research as defined under section 41 (d) (1) of the Internal Revenue Code, except that it includes qualified research that is funded by a member of a combined group for another member of a combined group. 5. “Used exclusively” has the meaning given in sub. (3) (b) 3. (b) The sales price from the sale of and the storage, use, or other consumption of machinery and equipment, including attachments, parts, and accessories, and other tangible personal property or items or property under s. 77.52 (1) (b) or (c) that are sold to any of the following and that are consumed or destroyed or lose their identities while being used exclusively and directly in qualified research: 1. A person engaged in manufacturing in this state on real property assessed under s. 70.995. 2. A person engaged primarily in biotechnology in this state. 3. A combined group member who is conducting qualified research for another combined group member and that other combined group member is a person described under subd. 1. or 2. (58) The sales price from the sale of and the storage, use, or other consumption of snowmaking and snow-grooming machines and equipment, including accessories, attachments, and parts for the machines and equipment and the fuel and electricity used to operate such machines and equipment, that are used exclusively and directly for snowmaking and snow grooming at ski hills, ski slopes, and ski trails. (59) The sales price from the sales of and the storage, use, or other consumption of advertising and promotional direct mail.
May 22, 2026, are designated by NOTES. (Published 5-22-26)
Updated 23-24 Wis. Stats. 38 SALES AND USE TAXES; MANAGED FOREST LANDS; OTHER TAXES AND FEES 2. “Prepress activities” include making print-ready plates, (60) (b) The sales price from the sale of and the storage, use, or other consumption of products that are sold by a prime con- typesetting, trade binding, and sample mounting. tractor as part of a construction contract, if the total sales price of 3. “Temporarily” means not more than 180 days. all products is less than 10 percent of the total amount of the con(62) The sales price from the sale of and the storage, use, or struction contract. Except as provided in par. (c), the prime con- other consumption of farm-raised deer, as defined in s. 95.001 (1) tractor is the consumer of the products and shall pay the tax im- (ag), sold to a person who is operating a hunting preserve or game posed under this subchapter on the products. farm in this state. (bm) 1. The sales price from the sale of and the storage, use, (62m) The sales price from the sale of building materials, or other consumption of products that are sold by a subcontractor supplies, and equipment and the sale of services described in s. to a prime contractor, or to another subcontractor for eventual 77.52 (2) (a) 20. to; and the storage, use, or other consumption of sale to the prime contractor, as part of a construction contract, if the same property and services by; owners, lessees, contractors, any of the following applies: subcontractors, or builders if that property or service is acquired a. The total sales price of all products is less than 10 percent solely for or used solely in, the construction or development of sports and entertainment arena facilities, as defined in s. 229.41 of the total amount of the construction contract. b. The products will be sold by the prime contractor as part (11g), but not later than one year after the secretary of administration issues the certification under s. 229.42 (4e) (d). of a construction contract, and that sale is exempt under par. (b). (63) The sales price from the sale of and the storage, use, or 2. Except as provided in par. (c), the subcontractor is the consumer of the products exempted under this paragraph and shall other consumption of music sold in a tangible form to a person in the business of providing a taxable service through a jukebox if pay the tax imposed under this subchapter on the products. the music is used exclusively for the jukebox. For purposes of (c) If the construction contract under par. (b) is between a this subsection, music sold in a tangible form is a separate sale prime contractor and an entity that is exempt from taxation under from the jukebox through which the music is played if the sales sub. (9a), all of the following apply: price of such property is separately indicated from the sales price 1. The prime contractor is the consumer of all products used of the jukebox on the invoice, bill of sale, or similar document by the prime contractor in real property construction activities, that the seller gives to the purchaser. but the prime contractor may purchase without tax, for resale, (64) The sales price from the sale of and the storage, use, or products that are sold by the prime contractor to the entity as part other consumption of patient health care records that are sold to of the construction contract and that are not consumed by the the patient or to a person that the patient authorizes to receive the prime contractor in real property construction activities. records. 2. A subcontractor of the prime contractor is the consumer of (65) The sales price from the sale of building materials, supall products used by the subcontractor in real property construc- plies, and equipment and the sale of services described in s. 77.52 tion activities, but the subcontractor may purchase without tax, (2) (a) 20. to; and the storage, use, or other consumption of the for resale, products that are sold by the subcontractor to the prime same property and services by; owners, lessees, contractors, subcontractor or another subcontractor, as part of the subcontractor’s contractors, or builders if that property or service is acquired construction contract under par. (bm), for resale to the entity and solely for or used solely in, the construction or development of fathat are not consumed by the subcontractor in real property con- cilities located in an electronics and information technology manstruction activities. ufacturing zone designated under s. 238.396 (1m) and if the capi(d) In this subsection: tal expenditures for the construction or development of such fa1. “Construction contract” means a contract to perform real cilities may be claimed as a credit under s. 71.07 (3wm) (bm) or 71.28 (3wm) (bm), as certified by the Wisconsin Economic Deproperty construction activities and to provide products. 2. “Prime contractor” means a contractor who enters into a velopment Corporation. (65m) (a) The sales price from the sale of and the storage, construction contract with an owner or lessee of real property, except for leased property under s. 77.52 (1) (c), to perform real use, or other consumption of the following: 1. A video or electronic game sold in a tangible form to a perproperty construction activities on the real property. 3. “Subcontractor” means a contractor who enters into a con- son in the business of providing a taxable service through an struction contract with a prime contractor or another amusement device if the video or electronic game is used exclusively for the amusement device. For purposes of this subdivisubcontractor. sion, a video or electronic game sold in a tangible form is a sepa(61) The sales price from the sale to, and the storage, use, or rate sale from the amusement device through which the video or other consumption by, a person primarily engaged, as determined electronic game is played if the sales price of the video or elecby the department, in commercial printing, book printing, or suptronic game is separately indicated from the sales price of the port activities for printing described under 323111, 323117, and amusement device on the invoice, bill of sale, or similar docu323120 of the North American Industry Classification System, of ment that the seller gives to the purchaser. any of the following: 2. Tangible personal property sold to a person in the business (a) Computers and servers used primarily to store copies of of providing a taxable service through an amusement device if the product that are sent to a digital printer, a platemaking ma- the tangible personal property is used exclusively as a prize chine, or a printing press or used primarily in prepress or post- awarded or transferred through the use of the amusement device. press activities. 3. Tournament or league entrance fees advertised and set (b) Tangible personal property purchased from out-of-state aside as prize money. sellers that are temporarily stored, remain idle, and not used in (b) For purposes of this subsection, “amusement device” this state and that are then delivered and used solely outside of means a single or multiplayer device, machine, or game played this state. for amusement, the outcome of which depends at least in part on (c) In this subsection: the skill, precision, dexterity, or knowledge of the person playing, 1. “Postpress activities” include paper bronzing, die-cutting, but not predominantly on the element of chance. “Amusement edging, embossing, folding, gilding, gluing, and indexing. device” includes a pinball machine, console machine, crane ma77.54
May 22, 2026, are designated by NOTES. (Published 5-22-26)
39
Updated 23-24 Wis. Stats. SALES AND USE TAXES; MANAGED FOREST LANDS; OTHER TAXES
chine, claw machine, redemption game, stacker, arcade game, foosball or soccer table game, miniature racetrack or football machine, target or shooting gallery machine, basketball machine, shuffleboard table, kiddie ride game, Skee-Ball machine, air hockey machine, dart board, pool table, billiard table, or any other similar device, machine, or game. “Amusement device” does not include any device, machine, or game that is illegal to operate within this state. (66) The sales price from the sale of and the storage, use, or other consumption of farm-raised fish, as defined in s. 95.001 (1) (ah), sold to a fish farm, as defined in s. 95.001 (1) (aj), that is registered with the department of agriculture, trade and consumer protection under s. 95.60 (3m), or to a person who holds a valid permit under s. 29.736 for the stocking of fish. (68) (a) The sales price from the sale of and the use or other consumption of a service provided by an electric cooperative to another electric cooperative, or by a telecommunications utility to another telecommunications utility, for disaster relief work performed during a disaster period. (b) In this subsection: 2. “Disaster period” means the time that begins 10 days before a state of emergency and ends 60 days after the state of emergency ends. 3. “Disaster relief work” means work, including repairing, renovating, installing, building, or performing other services or activities, relating to infrastructure in this state that has been damaged, impaired, or destroyed in connection with a state of emergency. 4. “Electric cooperative” has the meaning given in s. 76.48 (1g) (c). 4m. “State of emergency” means the time when an electric cooperative wishing to receive services from another electric cooperative or a telecommunications utility wishing to receive services from another telecommunications utility invokes a mutual aid agreement and at least 20 percent of the electrical or telecommunications system is nonoperational. 5. “Telecommunications utility” has the meaning given in s. 196.01 (10). (69) (a) The sales price from the sale of tangible personal property that is stored in this state for not more than 120 days, if the property is to be used in fulfillment of a real property construction activity that occurs solely outside of this state at a nonprofit organization, a public school district, or a business district where business tax incentives have been granted and is used by a person engaged in an activity classified as construction under sector 23 of the North American Industry Classification System, 2017 edition, published by the federal office of management and budget, including property that is altered by converting, fabricating, manufacturing, printing, processing, or shaping before its use outside of this state. (b) The exemption under this subsection does not apply to tangible personal property that is stored in this state, leaves this state, and then is subsequently returned to this state. (70) (a) The sales price from the sale of and the storage, use, or other consumption of tangible personal property, regardless of whether the property is affixed to or incorporated into real property, and property under s. 77.52 (1) (c), used exclusively for the development, construction, renovation, expansion, replacement, repair, or operation of a qualified data center, as defined in s. 238.40 (1) (b), and used solely at the qualified data center, including computer server equipment and the chassis for such equipment; networking equipment; switches; racks; fiber-optic cabling, copper cabling, and other cabling, including cabling used to connect one or more qualified data centers; trays; conduit; substations; uninterruptible energy equipment; supplies; fuel piping
77.54 AND FEES and storage; duct banks; switches; switchboards; batteries; testing equipment; backup generation equipment; modular data centers and preassembled components; monitoring equipment; security systems; and electricity. (b) The sales price from the sales of and the storage, use, or other consumption of tangible personal property or property under s. 77.52 (1) (c) used in the development, construction, renovation, expansion, replacement, or repair of a water cooling or conservation system used exclusively to cool or conserve water for one or more qualified data centers, as defined in s. 238.40 (1) (b), including chillers, mechanical equipment, refrigerant piping, fuel piping and storage, adiabatic and free cooling systems, cooling towers, water softeners, air handling units, indoor direct exchange units, fans, ducting, and filters. (c) The sales price from the sale of and the storage, use, or other consumption of tangible personal property or property under s. 77.52 (1) (c) sold to a construction contractor that, in fulfillment of a real property construction activity, transfers the tangible personal property or property under s. 77.52 (1) (c) to a qualified data center, as defined in s. 238.40 (1) (b), if such tangible personal property or property under s. 77.52 (1) (c) becomes a component of the qualified data center. (71) (a) The sales price from the sale of electricity delivered or placed by a Level 3 charger of an electric vehicle charging station, as defined in s. 77.997 (1), into the battery or other energy storage device of an electric vehicle. (b) The sales price from the sale of electricity delivered or placed by a Level 1 charger or a Level 2 charger installed on or after March 22, 2024, of an electric vehicle charging station, as defined in s. 77.997 (1), into the battery or other energy storage device of an electric vehicle. (72) The sales price from the sale of and the storage, use, or other consumption of a membership sold to a real estate broker licensed under ch. 452 who, pursuant to the broker’s membership agreement, offers to compensate or cooperate with, or both, other real estate brokers in brokering sales of properties and who obtains access to information about real estate listings from other real estate brokers. NOTE: Sub. (72) is shown as amended eff. 6-1-26 by 2025 Wis. Act 108. Prior to 6-1-26 it reads: (72) The sales price from the sale of and the storage, use, or other consumption of a membership sold to a real estate broker licensed under ch. 452 who, pursuant to the broker’s membership agreement, offers to compensate and cooperate with other real estate brokers in brokering sales of properties and who obtains access to information about real estate listings and compensation offers from other real estate brokers.
(73) The sales price from the sale of and the storage, use, or other consumption of portable machinery and equipment, including accessories, attachments, parts, and supplies for such machinery and equipment, used primarily to crush, mill, produce, or pulverize asphalt, concrete, gravel, rock, or aggregate base for road or commercial surface lot construction or resurfacing. (74) (a) The sales price from the sale of and the use or other consumption of precious metal bullion. For purposes of this subsection, “precious metal bullion” means coins, bars, rounds, or sheets that contain at least 35 percent gold, silver, copper, platinum, or palladium and that are marked with weight, purity, and content or that a government authority minted on the basis of weight, purity, and content. (b) This subsection does not apply to any other tangible personal property that contains, in whole or in part, precious metal bullion, such as jewelry, works of art, scrap metal, or electronics. (75) The sales price from the sale of and the storage, use, or other consumption in this state of information products containing reports, statistics, records, or other data used exclusively by an insurance company possessing a certificate of authority issued by the commissioner of insurance, whether purchased by the insur-
May 22, 2026, are designated by NOTES. (Published 5-22-26)
Updated 23-24 Wis. Stats. 40 SALES AND USE TAXES; MANAGED FOREST LANDS; OTHER TAXES AND FEES “Merchandise” as used in sub. (6) (b) denotes commodities that are bought and ance company or an affiliate, as defined in s. 600.03 (1), or used Luetzow Industries v. DOR, 197 Wis. 2d 916, 541 N.W.2d 810 (Ct. App. exclusively by an insurance intermediary licensed by or subject to sold. 1995). the jurisdiction of the commissioner of insurance, for purposes of A Mississippi River excursion boat that embarked from a Wisconsin port, crossed quoting, underwriting, determining insurability, assessing risks, into out-of-state water without landing in that state, then disembarked in Wisconsin not engaged in “interstate commerce” under sub. (13). LaCrosse Queen, Inc. v. setting rates, or adjusting claims. The exemption under this para- was DOR, 208 Wis. 2d 439, 561 N.W.2d 686 (1997), 95-2754. graph applies regardless of whether such information products Newspaper carriers were found not to be customers of a publisher. The sub. (6) are transferred in tangible or digital form and regardless of (b) exemption for packing material was not applicable to materials used to package newspapers for delivery to the carriers. Madison Newspapers, Inc. v. DOR, 228 whether the charges for such products are made on a transactional Wis. 2d 745, 599 N.W.2d 51 (Ct. App. 1999), 98-2980. A corporation is a “resident of this state” under sub. (5) (a) if it is domiciled in basis or through a license, subscription, or similar fee for access Wisconsin and incorporated under the laws of this state. DOR v. Johnson Welding to the products. & Manufacturing Co., 2000 WI App 179, 238 Wis. 2d 243, 617 N.W.2d 193, 99(76) (a) The sales price from the sale of and the storage, use, 2429. Under ss. 77.51 (15b) (a) and 77.52 (1) (a), the sales tax applies to the “sales or other consumption of tangible personal property or property price”—that is, the total amount of consideration paid for a sale, lease, or service, under s. 77.52 (1) (c) exclusively and directly used for a nuclear with no deductions for the seller’s or lessor’s costs. The sale of aircraft parts and fusion technology project and used solely at the nuclear fusion maintenance, however, is exempt from sales tax under sub. (5) (a) 3. and s. 77.52 (2) 10. When a lessor or lessee buys aircraft repairs or engine maintenance directly, technology project’s location, including purchases of tangible (a) that transaction is tax-exempt. But when a lessor passes those costs along to its personal property or property under s. 77.52 (1) (c) made by con- lessees as part of the total amount of consideration in a lease, that transaction is taxstruction contractors who transfer such property to their cus- able. 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 tomers in fulfillment of a real property construction activity. Partners, LLC v. DOR, 2023 WI 16, 406 Wis. 2d 36, 985 N.W.2d 761, 20-1683. (b) In this subsection, “nuclear fusion technology project” means a project that has the purpose of undertaking the con- 77.55 Exemptions from sales tax. (1) There is exempted trolled fusion of atomic nuclei or research thereupon, including from the computation of the amount of the sales tax the sales energy generation, propulsion systems, materials research, medi- price from the sale of any tangible personal property, or items or cal isotope production, neutron sources, plasma physics research, property under s. 77.52 (1) (b) or (c), or services to: and any other application making use of fusion reactions or fu(a) The United States, its unincorporated agencies and sion-enabling technologies. instrumentalities. (c) This subsection does not apply after December 31, 2076. (b) Any incorporated agency or instrumentality of the United NOTE: Sub. (76) is created eff. 7-1-26 by 2025 Wis. Act 165. States wholly owned by the United States or by a corporation History: 1971 c. 64, 154, 215, 311; 1973 c. 90, 156, 240; 1975 c. 39, 96, 102, wholly owned by the United States. 146, 200; 1977 c. 29; 1977 c. 83 ss. 13, 26; 1977 c. 250, 368, 418; 1979 c. 1, 34, 87, 174; 1981 c. 20; 1981 c. 79 s. 18; 1981 c. 96 s. 67; 1981 c. 264; 1981 c. 282 s. 47; (2) There is exempted from the computation of the amount of 1981 c. 317; 1983 a. 27 ss. 1284d to 1284np, 2202 (38); 1983 a. 189 ss. 101, 106, the sales tax the sales price from sales of tangible personal prop329 (5), (12), (13); 1983 a. 192, 287, 405, 426, 498, 510, 538, 544; 1985 a. 29, 149, erty, and items and property under s. 77.52 (1) (b) and (c), to a 332; 1987 a. 27; 1987 a. 312 s. 17; 1987 a. 399; 1989 a. 31, 238, 270, 335, 359; 1991 a. 37, 39, 269, 316; 1993 a. 16, 263, 332; 1995 a. 27, 125, 225, 227; 1997 a. 27, 35, common or contract carrier, shipped by the seller via the purchas41, 184, 237, 291; 1999 a. 9, 65, 83; 1999 a. 150 s. 672; 1999 a. 167; 2001 a. 16, ing carrier under a bill of lading whether the freight is paid in ad103, 109; 2003 a. 99, 128; 2005 a. 25, 74, 141, 149, 335, 366, 479; 2007 a. 11, 19, 20, 97, 130; 2009 a. 2, 28, 185, 204, 330; 2011 a. 7, 10, 32, 208, 260; 2013 a. 20, vance, or the shipment is made freight charges collect, to a point 145, 185, 324, 346; 2015 a. 55, 60, 126, 216, 251, 364; 2017 a. 17, 58, 59, 190, 231, outside this state and the property or item is actually transported 290; 2017 a. 364 ss. 20, 48; 2017 a. 365 s. 111; 2017 a. 366 s. 99; 2017 a. 367; 2019 to the out-of-state destination for use by the carrier in the conduct a. 181; 2021 a. 1, 130, 167; 2021 a. 238 ss. 17, 45; 2023 a. 12, 19, 40, 88, 121, 138, 141, 146, 149; 2025 a. 15, 17, 108, 118, 130, 165. of its business as a carrier. A taxpayer in the business of processing scrap metal is engaged in manufacturing (2m) There is exempted from the computation of the amount under s. 77.51 (27) [now sub. (6m)]. H. Samuels Co. v. DOR, 70 Wis. 2d 1076, 236 N.W.2d 250 (1975). of sales tax the sales price from sales of railroad crossties to a A carrier’s contract status is established under the “primary business test” if the common or contract carrier, shipped wholly or in part by way of carrier’s primary occupation is the supplying of transportation for compensation, the purchasing carrier under a bill of lading, whether the freight is even though the operator owns the goods at the time of transport and carries them for the purpose of sale. If, however, the operator’s primary business is manufacturpaid in advance or the shipment is made freight charges collect, to ing or another noncarrier commercial enterprise, a determination must be made as a point outside this state if the property is transported to the outto whether the motor operations are in furtherance of the primary business or are of-state destination for use by the carrier in the conduct of its conducted as a related enterprise with the purpose of profiting from the transportation. Gensler v. DOR, 70 Wis. 2d 1108, 236 N.W.2d 648 (1975). business as a carrier. Interruption of the shipment for storage, The sale of a supper club’s furnishings and equipment was an “occasional sale” drying, processing or creosoting of the railroad crossties in this under sub. (7). Three Lions Supper Club, Ltd. v. DOR, 72 Wis. 2d 546, 241 N.W.2d state does not invalidate the exemption under this subsection. 190 (1976). Consumption of gas at interstate pipeline compressor stations in Wisconsin is (3) There is exempted from the computation of the amount of protected from state use tax by the commerce clause. Midwestern Gas Transmission the sales tax the sales price from sales of tangible personal propCo. v. DOR, 84 Wis. 2d 261, 267 N.W.2d 253 (1978). erty, and items and property under s. 77.52 (1) (b) and (c), purTo satisfy s. 77.51 (27) [now sub. (7h)], a change in name must be attributable to a change in the nature, purpose, and function of the article. DOR v. Bailey-Bohrman chased for use solely outside this state and delivered to a forwardSteel Corp., 93 Wis. 2d 602, 287 N.W.2d 715 (1980). ing agent, export packer, or other person engaged in the business Semitrailers are “truck bodies” under sub. (5) (a). DOR v. Trudell Trailer Sales, of preparing goods for export or arranging for their exportation, Inc., 104 Wis. 2d 39, 310 N.W.2d 612 (1981). A vending machine company, which placed machines in schools and hospitals, and actually delivered to a port outside the continental limits of was the “seller” of the products dispensed by its machines. Servomation Corp. v. the United States prior to making any use thereof. DOR, 106 Wis. 2d 616, 317 N.W.2d 464 (1982). 77.54
Under the “use or function” test, a greenhouse was a “machine” used in floriculture under sub. (3). DOR v. Greiling, 112 Wis. 2d 602, 334 N.W.2d 118 (1983). The exemption under sub. (9a) (f) is limited to services used by tax-exempt organizations and does not extend to services by those foundations. DOR v. EAA Aviation Foundation, Inc., 143 Wis. 2d 681, 422 N.W.2d 458 (Ct. App. 1988). Calf hutches are not “machines” exempt from sales tax under sub. (3). L.T. Hampel Corp. v. DOR, 157 Wis. 2d 422, 459 N.W.2d 598 (Ct. App. 1990). Motor vehicles and machinery used with motor vehicles are not used “directly” in recycling activities and are not exempt under sub. (26m). DOR v. Parks-Pioneer Corp., 170 Wis. 2d 44, 487 N.W.2d 63 (Ct. App. 1992). The exemption for occasional sales under sub. (7) cannot apply to a seller who continues to make sales in a business after the business was sold and surrender of the sales tax permit was attempted. Carrion Corp. v. DOR, 179 Wis. 2d 254, 507 N.W.2d 356 (Ct. App. 1993).
History: 1985 a. 29; 1999 a. 83; 2009 a. 2, 28.