Wis. Stat. § 77.53 — WI Code / Chapter 77 / Section 77.53
Imposition of use tax.
Status: in_force

(1) Except as provided in sub. (1m) , an excise tax is levied and imposed on the use or consumption in this state of taxable services under s. 77.52 purchased from any retailer, at the rate of 5 percent of the purchase price of those services; on the storage, use or other consumption in this state of tangible personal property and items or property under s. 77.52 (1) (b) or (c) purchased from any retailer, at the rate of 5 percent of the purchase price of the property or items; on the storage, use, or other consumption of goods in this state under s. 77.52 (1) (d) purchased from any retailer, if the purchaser has the right to use the goods on a permanent or less than permanent basis and regardless of whether the purchaser is required to make continued payments for such right, at the rate of 5 percent of the purchase price of the goods; and on the storage, use or other consumption of tangible personal property or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) manufactured, processed or otherwise altered, in or outside this state, by the person who stores, uses or consumes it, from material purchased from any retailer, at the rate of 5 percent of the purchase price of that material.

(1b) The storage, use, or other consumption in this state of tangible personal property or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , and the use or other consumption in this state of a taxable service, purchased from any retailer is subject to the tax imposed in this section unless an exemption in this subchapter applies.

(1m) For motor vehicles that are used for a purpose in addition to retention, demonstration or display while held for sale in the regular course of business by a dealer who is licensed under ss. 218.0101 to 218.0163 , the base for the tax imposed under sub. (1) is the following:

(a) If the motor vehicle is assigned to and used by an employee of the dealer for whom the dealer is required to withhold amounts for federal income tax purposes or by a person who both has an ownership interest in the dealership and actively participates in the day-to-day operation of the dealership, $96 per month for each motor vehicle registration plate held by the dealer, except that beginning in 1997 the department shall annually, as of January 1, adjust the dollar amount under this paragraph, rounded to the nearest whole dollar, to reflect the annual percentage change in the U.S. consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor, for the 12 months ending on June 30 of the year before the change. In this paragraph, “actively participates” means performs services for the motor vehicle dealership; including selling, accounting, managing and consulting; for more than 500 hours in a taxable year for which the person receives compensation, and “actively participates” does not include services performed only in the capacity of an investor; including studying and reviewing financial statements or reports on the operation of the business, preparing or compiling summaries or analyses of the finances of the business for the investor’s own use or monitoring the finances or operations of the activity in a nonmanagerial capacity.

(b) If the motor vehicle is used by the dealer or any person other than an employee of the dealer, the lease value as shown in the lease value tables that the internal revenue service prepares to interpret section 61 of the internal revenue code.

(2) Every person storing, using, or otherwise consuming in this state tangible personal property, or items, property, or goods specified under s. 77.52 (1) (b) , (c) , or (d) , or taxable services purchased from a retailer is liable for the tax imposed by this section. The person’s liability is not extinguished until the tax has been paid to this state, but a receipt with the tax separately stated from a retailer engaged in business in this state or from a retailer who is authorized by the department, under such rules as it prescribes, to collect the tax and who is regarded as a retailer engaged in business in this state for purposes of the tax imposed by this section given to the purchaser under sub. (3) relieves the purchaser from further liability for the tax to which the receipt refers.

(3) Every retailer engaged in business in this state and making sales of tangible personal property, or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , or taxable services that are sourced to this state under s. 77.522 , shall, at the time of making the sales, collect the tax from the purchaser and give to the purchaser a receipt in the manner and form prescribed by the department.

(5) The tax required to be collected by the retailer constitutes a debt owed by the retailer to the state.

(7) The tax required to be collected by the retailer from the purchaser shall be displayed separately from the list price, the price advertised in the premises, the marked price, or other price on the sales check, invoice or other proof of sale.

(8) Any person violating sub. (3) or (7) is guilty of a misdemeanor.

(9)

(a) Except as provided in par. (b) , every retailer selling tangible personal property, or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , or taxable services for storage, use or other consumption in this state shall register with the department and obtain a certificate under s. 73.03 (50) and give the name and address of all agents operating in this state, the location of all distribution or sales houses or offices or other places of business in this state, the standard industrial code classification of each place of business in this state and the other information that the department requires. Any person who may register under this subsection may designate an agent, as defined in s. 77.524 (1) (ag) , to register with the department under this subsection, in the manner prescribed by the department.

(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 the disaster period, as defined in s. 323.12 (5) (a) 2.

(9m)

(a) Any person who is not otherwise required to collect any tax imposed by this subchapter and who makes sales to persons within this state of tangible personal property, or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , or taxable services the use of which is subject to tax under this subchapter may register with the department under the terms and conditions that the department imposes and shall obtain a valid certificate under s. 73.03 (50) and thereby be authorized and required to collect, report, and remit to the department the use tax imposed by this subchapter.

(b) Any person who may register under par. (a) may designate an agent, as defined in s. 77.524 (1) (ag) , to register with the department under par. (a) , in the manner prescribed by the department.

(c) The registration under par. (a) by a person who is not otherwise required to collect any tax imposed by this subchapter shall not be used as a factor in determining whether the seller has nexus with this state for any tax at any time.

(10) For the purpose of the proper administration of this section and to prevent evasion of the use tax and the duty to collect the use tax, it is presumed that tangible personal property, or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , or taxable services sold by any person for delivery in this state is sold for storage, use, or other consumption in this state until the contrary is established. The burden of proving the contrary is upon the person who makes the sale unless that person takes from the purchaser an electronic or paper certificate, in a manner prescribed by the department, to the effect that the property, or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , or taxable service is purchased for resale, or otherwise exempt from the tax, except that no certificate is required for the sale of tangible personal property, or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , or services that are exempt under s. 77.54 (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.].

(11)

(a) The certificate under sub. (10) relieves the person selling the property, or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , or service of the tax otherwise applicable only if the seller obtains a fully completed exemption certificate, or the information required to prove the exemption, from the purchaser no later than 90 days after the date of the sale of the tangible personal property, or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , or taxable service, except as provided in par. (b) . The certificate under sub. (10) shall not relieve the seller of the tax otherwise applicable if the seller fraudulently fails to collect sales tax or solicits the purchaser to claim an unlawful exemption, or accepts an exemption certificate from a purchaser who claims to be an entity that is not subject to the taxes imposed under this subchapter, if the subject of the transaction sought to be covered by the exemption certificate is received by the purchaser at a location operated by the seller in this state and the exemption certificate clearly and affirmatively indicates that the claimed exemption is not available in this state. The certificate shall provide information that identifies the purchaser and shall indicate the basis for the claimed exemption and a paper certificate shall be signed by the purchaser. The certificate shall be substantially in the form that the department prescribes by rule.

(b)

1. If the seller has not obtained a fully completed exemption certificate or the information required to prove the exemption, as provided in par. (a) , the seller may, no later than 120 days after the department requests that the seller substantiate the exemption, either provide proof of the exemption to the department by other means or obtain, in good faith, a fully completed exemption certificate from the purchaser.

2. An exemption certificate is received by the seller in good faith if the certificate claims an exemption for which all of the following apply:

a. It was an exemption authorized by law on the date of the transaction in the jurisdiction where the transaction is sourced.

b. It could be applicable to the property, item, good, or service being purchased.

c. It is reasonable for the purchaser’s type of business.

3. If the seller obtains the information described in subd. 2. , the seller is relieved of any liability for the tax on the transaction unless it is discovered through the audit process that the seller had knowledge, or had reason to know, at the time such information was provided that the information relating to the exemption claimed was materially false or the seller otherwise knowingly participated in activity intended to purposefully evade the tax that is properly due on the transaction. In order to enforce this subdivision, the state must establish that the seller had knowledge, or had reason to know, at the time the information was provided that the information was materially false.

(12) If a purchaser who gives a certificate makes any storage or use of the property, or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , or service other than retention, demonstration, or display while holding it for sale in the regular course of operations as a seller, the storage or use is taxable as of the time the property, or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , or service is first so stored or used.

(13) If a purchaser gives a certificate with respect to the purchase of fungible goods and thereafter commingles these goods with other fungible goods not so purchased but of such similarity that the identity of the constituent goods in the commingled mass cannot be determined sales from the mass of commingled goods shall be deemed to be sales of the goods so purchased until a quantity of commingled goods equal to the quantity of purchased goods so commingled has been sold.

(14) It is presumed that tangible personal property, or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , or taxable services shipped or brought to this state by the purchaser were purchased from or serviced by a retailer.

(16) If the purchase, rental or lease of tangible personal property, or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , or service subject to the tax imposed by this section was subject to a sales tax by another state in which the purchase was made, the amount of sales tax paid the other state shall be applied as a credit against and deducted from the tax, to the extent thereof, imposed by this section, except no credit may be applied against and deducted from a sales tax paid on the purchase of advertising and promotional direct mail, if the advertising and promotional direct mail purchaser did not provide to the seller a direct pay permit, an exemption certificate claiming advertising and promotional direct mail, or other information that indicates the appropriate taxing jurisdiction to which the advertising and promotional direct mail is delivered to the ultimate recipients. In this subsection “sales tax” includes a use or excise tax imposed on the use of tangible personal property, or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , or taxable service by the state to which the sale was sourced and “state” includes the District of Columbia and the commonwealth of Puerto Rico but does not include the several territories organized by congress.

(16m) If the purchase, rental, license, or lease of tangible personal property, or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , or service subject to the tax imposed by this section was sourced to tribal lands and, prior to imposing the tax under this subchapter, was subject to a sales tax by a federally recognized American Indian tribe or band in this state, the amount of sales tax paid to the tribe or band may, as determined by an agreement between the department and the tribal council under s. 73.03 (65) , be applied as a credit against and deducted from the tax, to the extent thereof, imposed by this section. In this subsection “sales tax” includes a use or excise tax imposed on the use of tangible personal property, or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , or taxable service by the tribe or band.

(17) This section does not apply to tangible personal property or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) purchased outside this state, as determined under s. 77.522 , other than motor vehicles, boats, snowmobiles, recreational vehicles, as defined in s. 340.01 (48r) , trailers, semitrailers, all-terrain vehicles, utility terrain vehicles, off-highway motorcycles, as defined in s. 23.335 (1) (q) , and airplanes registered or titled or required to be registered or titled in this state, which is brought into this state by a nondomiciliary for the person’s own storage, use or other consumption while temporarily within this state when such property, item, or good is not stored, used or otherwise consumed in this state in the conduct of a trade, occupation, business or profession or in the performance of personal services for wages or fees.

(17m) This section does not apply to a boat purchased in a state contiguous to this state, as determined under s. 77.522 , by a person domiciled in that state if the boat is berthed in this state’s boundary waters adjacent to the state of the domicile of the purchaser and if the transaction was an exempt occasional sale under the laws of the state in which the purchase was made.

(17r) This section does not apply to an aircraft if all of the following requirements are fulfilled:

(a) It is purchased in another state, as determined under s. 77.522 .

(b) Its owner or lessee has paid all of the sales and use taxes imposed in respect to it by the state where it was purchased.

(c) If the owner or lessee is a corporation, that corporation, and all corporations with which that corporation may file a consolidated return for federal income tax purposes, neither is organized under the laws of this state nor has real property or other tangible personal property; except aircraft and such property as hangars, accessories, attachments, fuel and parts required for operation of aircraft; in this state at the time the aircraft is registered in this state.

(d) If the owner or lessee is a partnership, all of the corporate partners fulfill the requirements under par. (c) and none of the general partners and none of the limited partners who has management or control responsibilities is domiciled in this state and the partnership has no other tangible personal property and no real property; except aircraft and such property as hangars, accessories, attachments, fuel and parts required for operation of aircraft; in this state at the time the aircraft is registered in this state.

(dm) If the owner or lessee is a limited liability company, all of the corporate members fulfill the requirements under par. (c) and none of the managers and none of the members who has management or control responsibilities is domiciled in this state and the limited liability company has no other tangible personal property and no real property; except aircraft and such property as hangars, accessories, attachments, fuel and parts required for operation of aircraft; in this state at the time the aircraft is registered in this state.

(e) If the owner or lessee is an individual, the owner or lessee is not domiciled in this state.

(f) If the owner or lessee is an estate, a trust, a cooperative, or an unincorporated cooperative association; that estate, that trust and its grantor or that cooperative or association does not have real property or other tangible personal property; except aircraft and such property as hangars, accessories, attachments, fuel and parts required for operation of aircraft; in this state at the time the aircraft is registered in this state.

(g) The department has not determined that the owner, if the owner is a corporation, trust, partnership or limited liability company, was formed to qualify for the exception under this subsection.

(18) This section does not apply to the storage, use or other consumption in this state of household goods or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) for personal use or to aircraft, motor vehicles, boats, snowmobiles, mobile homes, manufactured homes, as defined in s. 101.91 (2) , recreational vehicles, as defined in s. 340.01 (48r) , trailers, semitrailers, all-terrain vehicles, utility terrain vehicles, and off-highway motorcycles, as defined in s. 23.335 (1) (q) , for personal use, purchased by a nondomiciliary of this state outside this state, as determined under s. 77.522 , 90 days or more before bringing the goods, items, or property into this state in connection with a change of domicile to this state.

(19) This section does not apply to the storage, use, or other consumption in this state of tangible personal property, property, or goods under s. 77.52 (1) (a) , (c) , or (d) , or taxable services, purchased outside this state, as determined under s. 77.522 , by an out-of-state business, as defined in s. 323.12 (5) (a) 6. , and brought into this state and used solely for disaster relief work, as defined in s. 323.12 (5) (a) 3.

History: 1971 c. 125 , 211 ; 1977 c. 29 , 418 ; 1979 c. 1 , 174 ; 1981 c. 317 ; 1983 a. 2 ; 1985 a. 29 ; 1987 a. 27 , 268 , 399 ; 1991 a. 39 , 316 ; 1993 a. 16 , 112 ; 1995 a. 27 , 209 ; 1997 a. 27 , 41 , 237 ; 1999 a. 31 ; 2001 a. 109 ; 2003 a. 321 ; 2005 a. 441 ; 2007 a. 11 , 20 ; 2009 a. 2 , 28 , 276 , 330 ; 2011 a. 208 ; 2013 a. 20 ; 2015 a. 84 ; 2017 a. 59 , 367 ; 2021 a. 238 s. 45 ; 2023 a. 121 , 138 , 141 ; 2025 a. 124 ; 2025 a. 127 s. 45 ; 2025 a, 129, 130.