Wisconsin Administrative Code › Department of Revenue › Chapter Tax 11 - Sales And Use Tax › Subchapter II - Exempt Entities › Section Tax 11.05 - Governmental units

Current through June 24, 2024
(1) GENERAL. Sales by the state of Wisconsin,
				any agency thereof and governmental units within this state are generally
				subject to the Wisconsin sales tax. However, sales by the United States
				government or any agency thereof are not taxable.
(2) TAXABLE SALES. Taxable sales by
				governmental units include the following:
(a)
				Admissions to facilities if the activity being conducted at the facility is
				amusement, athletic, entertainment, or recreational in nature, except as
				provided in sub. (3) (r), (s), and (y).
Example:
Green fees, campground fees, swimming
				  fees, ice skating fees and park shelter house fees are taxable if the activity
				  being conducted at the facility is amusement, athletic, entertainment or
				  recreational in nature.
(b)
				Food and gift stand sales, including sales of candy, soft drinks, prepared
				foods, cigarettes, tobacco products, postcards, books, magazines and other
				periodicals described in s.
				Tax
				11.19, and novelties. Newspaper sales are exempt.
Note:
See s.
				  Tax
				  11.51 for a list of food products subject to
				  tax.
(c) Sales or rental of
				recreational equipment and supplies.
(d) Charges for access to or use of athletic
				facilities such as baseball and softball diamonds, stadiums, and gymnasiums,
				including entry fees and any charges for lights, heat, janitor fees and
				equipment, when used for activities which are amusement, athletic,
				entertainment or recreational in nature, except as provided in sub. (3) (r),
				(s), (y), and (zg).
(e) Sales of
				electricity, gas, and steam by municipal utilities, except as provided in sub.
				(3) (b).
(f) Sales of maps, plat
				books, photocopies, or other printed material, except as provided in sub. (3)
				(q).
(g) Sales or rental of
				equipment and office furniture, including the rental of motor vehicles to
				employees.
(gm) Sales of motor
				vehicles, boats, snowmobiles, recreational vehicles as defined in s.
				340.01(48r),
				Stats., trailers, semitrailers, all-terrain vehicles, utility terrain vehicles,
				off-highway motorcycles, and aircraft. Governmental units must collect the
				sales tax on its sales of these items. If the governmental unit does not
				collect the tax from the purchaser, the purchaser shall file a sales tax return
				and pay the tax prior to titling or registering the property in this
				state.
(h) Sales of buildings or
				timber when the purchaser acquires the property for removal.
(i) Furnishing of rooms or lodging
				facilities, available to the public, to any person residing for a continuous
				period of less than one month, except that the tax does not apply to the
				receipts from accommodations furnished by any hospitals, sanatoriums, nursing
				homes, colleges, or universities operated by governmental units and the tax
				does not apply to furnishing rooms or lodging to a person through the sale of
				any kind of time-share property.
(j) Sales of taxable items, property, or
				goods dispensed through vending machines, and sales of access to or the use of
				amusement devices, if the governmental unit owns the machine or device or has
				control of the contents of the machine or the device.
(k) Sales of soft drinks and alcoholic
				beverages, including sales of these items by hospitals, sanatoriums, nursing
				homes, retirement homes, community-based residential facilities as defined in
				s.
				50.01(1g),
				Stats., and any facility certified or licensed under ch. 48, Stats.
(l) Charges for candy, soft drinks, dietary
				supplements and prepared foods to "Huber" law prisoners.
(m) Sales of books and supplies, including
				sales by technical college districts. Sales of tangible personal property and
				items, property, and goods under s.
				77.52(1) (b), (c),
				and (d), Stats., by elementary and secondary
				schools are exempt under s.
				77.54(4),
				Stats.
(n) Sales of craft supplies
				for playground craft programs.
(o)
				Auction sales of tangible personal property and items, property, and goods
				under s.
				77.52(1) (b), (c),
				and (d), Stats., including motor
				vehicles.
(p) Sales and delivery of
				trees, shrubs, or gravel to private purchasers. A sale of gravel is not taxable
				if the seller of the gravel puts the gravel in its final resting place.
Examples:
1) Governmental Unit A sells a load of gravel
				to Individual B. Governmental Unit A dumps the gravel in a pile at Individual
				B's home. Individual B will then spread the gravel and put it in its final
				resting place. The sale of the gravel by Governmental Unit A to Individual B is
				a sale of tangible personal property that is subject to Wisconsin sales or use
				tax.
2) Governmental Unit X dump
				spreads or gate spreads gravel on Customer Z's driveway. Customer Z, or someone
				other than Governmental Unit X, will then grade, rake, and compact the
				materials into their final resting place. Since Governmental Unit X is not
				placing the gravel in its final resting place, Governmental Unit X's sale of
				the gravel to Customer Z is subject to sales tax as a sale of tangible personal
				property.
3) Governmental Unit G
				spreads gravel on Individual H's driveway. Governmental Unit G grades and
				compacts the gravel so that it is in its final resting place. Governmental Unit
				G's charges to Individual H are not subject to Wisconsin sales or use tax since
				Governmental Unit G is performing a real property construction activity by
				putting the gravel in its final resting place.
(q) Sales of impounded animals, even though
				the amount received may be designated as a placement fee.
(r) The sales price received for parking and
				providing parking space for motor vehicles and aircraft, and docking or
				providing storage space for boats.
(s) The sales price received for landscaping
				and lawn maintenance services, including weed cutting in lawn and garden areas
				and along highways, streets, and walkways, but not charges for damages
				described in sub. (3) (c).
(t)
				Charges for salvage vehicle inspections.