77.55 Exemptions from sales tax. (1) There is exempted means a project that has the purpose of undertaking the confrom the computation of the amount of the sales tax the sales trolled fusion of atomic nuclei or research thereupon, including price from the sale of any tangible personal property, or items or energy generation, propulsion systems, materials research, mediproperty under s. 77.52 (1) (b) or (c), or services to: cal isotope production, neutron sources, plasma physics research, (a) The United States, its unincorporated agencies and and any other application making use of fusion reactions or fuinstrumentalities. sion-enabling technologies. (b) Any incorporated agency or instrumentality of the United (c) This subsection does not apply after December 31, 2076. 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, 146, 200; 1977 c. 29; 1977 c. 83 ss. 13, 26; 1977 c. 250, 368, 418; 1979 c. 1, 34, 87, wholly owned by the United States. 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, 329 (5), (12), (13); 1983 a. 192, 287, 405, 426, 498, 510, 538, 544; 1985 a. 29, 149, the sales tax the sales price from sales of tangible personal prop332; 1987 a. 27; 1987 a. 312 s. 17; 1987 a. 399; 1989 a. 31, 238, 270, 335, 359; 1991 erty, and items and property under s. 77.52 (1) (b) and (c), to a 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, 103, 109; 2003 a. 99, 128; 2005 a. 25, 74, 141, 149, 335, 366, 479; 2007 a. 11, 19, ing carrier under a bill of lading whether the freight is paid in ad20, 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 a. 181; 2021 a. 1, 130, 167; 2021 a. 238 ss. 17, 45; 2023 a. 12, 19, 40, 88, 121, 138, to the out-of-state destination for use by the carrier in the conduct 141, 146, 149; 2025 a. 15, 17, 108, 118, 130, 165, 190, 211. of its business as a carrier. A taxpayer in the business of processing scrap metal is engaged in manufacturing under s. 77.51 (27) [now sub. (6m)]. H. Samuels Co. v. DOR, 70 Wis. 2d 1076, 236 (2m) There is exempted from the computation of the amount 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, even though the operator owns the goods at the time of transport and carries them the purchasing carrier under a bill of lading, whether the freight is 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 conducted as a related enterprise with the purpose of profiting from the transportaof-state destination for use by the carrier in the conduct of its tion. 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 190 (1976). state does not invalidate the exemption under this subsection. 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). To satisfy s. 77.51 (27) [now sub. (7h)], a change in name must be attributable to erty, and items and property under s. 77.52 (1) (b) and (c), pura 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, Inc., 104 Wis. 2d 39, 310 N.W.2d 612 (1981). of preparing goods for export or arranging for their exportation, 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). “Merchandise” as used in sub. (6) (b) denotes commodities that are bought and sold. Luetzow Industries v. DOR, 197 Wis. 2d 916, 541 N.W.2d 810 (Ct. App. 1995).
History: 1985 a. 29; 1999 a. 83; 2009 a. 2, 28.