Wisconsin Administrative Code › Department of Revenue › Chapter Tax 11 - Sales And Use Tax › Subchapter VI - Manufacturers and Producers › Section Tax 11.38 - Fabricating, processing, and printing

Current through June 24, 2024
(1) SALES OF
				FABRICATING, PROCESSING, AND PRINTING SERVICES. The producing, fabricating,
				processing, printing, or imprinting of tangible personal property or items,
				property, or goods under s.
				77.52(1) (b), (c),
				or (d), Stats., for a consideration for
				consumers who furnish directly or indirectly the materials used in the
				producing, fabricating, processing, printing or imprinting is subject to
				Wisconsin sales or use tax unless:
(a) The
				printing or imprinting is done on tangible personal property or items,
				property, or goods under s.
				77.52(1) (b), (c),
				or (d), Stats., that results in printed
				materials that are exempt under s.
				77.54(25),
				Stats., or catalogs and their mailing envelopes that are exempt under s.
				77.54(25m),
				Stats.
Example:
Printer ABC prints an advertising
				  flyer for Company DEF. Company DEF furnishes the paper and the ink. Company DEF
				  will send the flyer to its customers outside Wisconsin. The charge by Printer
				  ABC for printing the advertising flyer is not subject to Wisconsin sales tax
				  provided Company DEF provides Printer ABC with a properly completed exemption
				  certificate.
(b) An
				exemption under s.
				77.54 or
				77.55,
				Stats., applies.
Examples:
1) Company GHI is in the business of cleaning
				used oil. A Wisconsin municipality contracts with Company GHI to have all used
				oil it collects from residents cleaned by Company GHI. The charge by Company
				GHI to the municipality for cleaning the oil is not subject to Wisconsin sales
				or use tax because sales to Wisconsin municipalities are exempt from Wisconsin
				sales tax under s.
				77.54(9a),
				Stats.
2) The charge by a feed mill
				to grind a farmer's corn that the farmer will use as feed is not subject to
				Wisconsin sales or use tax because the sale of feed to a farmer is not subject
				to Wisconsin sales or use tax under s.
				77.54(3m),
				Stats. The farmer must provide the feed mill with a properly completed
				exemption certificate.
3) The
				charge by a cooperative to age a cigar manufacturer's tobacco is not subject to
				Wisconsin sales or use tax because a sale of tobacco to a cigar manufacturer is
				not subject to Wisconsin sales or use tax under s.
				77.54(2),
				Stats. The cigar manufacturer must provide the cooperative with a properly
				completed exemption certificate.
(c) The producing, fabricating or processing
				is for resale.
Example:
Company JKL is in the business of
				  custom making cabinets. A customer orders a cabinet from Company JKL. Due to
				  time constraints, Company JKL is unable to make the cabinet. Therefore, Company
				  JKL contracts with Company MNO to make the cabinet from materials provided by
				  Company JKL. Company MNO is not subject to Wisconsin sales or use tax on the
				  charge to Company JKL for making the cabinet if Company JKL provides Company
				  MNO with a properly completed exemption certificate claiming resale.