Tax 11.09(2)
(2)
Items which are drugs. Drugs include the following items described in sub.
(1):
Tax 11.09(2)(c)
(c) Analgesics (aspirin, acetaminophen, ibuprofen, ketoprofen, naproxen, etc.).
Tax 11.09(2)(k)
(k) Contraceptives (creams, gels, foams, and medicated condoms).
Tax 11.09(2)(t)
(t) Gases — medical grade (air, carbon dioxide, helium, nitrogen, oxygen).
Tax 11.09(2)(z)
(z) Nutrition formulas (enteral and parenteral with a drug facts label).
Tax 11.09(2)(zf)
(zf) Smoking cessation products such as gums, lozenges, and patches that contain nicotine.
Tax 11.09 Note
Note: A listing that contains numerous items and descriptions of items that have been categorized as drugs, durable medical equipment, mobility-enhancing equipment, and prosthetic devices can be found in the Rules and Procedures of the Streamlined Sales Tax Governing Board, Inc., available at
http://www.streamlinedsalestax.org.
Tax 11.09(3)
(3)
Items which are not drugs. Items which are not described in sub.
(1) and which are not drugs include:
Tax 11.09(4)
(4)
Exempt sales or use of drugs. Drugs shall be exempt if:
Tax 11.09(4)(a)
(a) Prescribed for the treatment of a human being by a person authorized to prescribe the drugs, and dispensed on prescription filled by a registered pharmacist in accordance with law. Insulin furnished by a pharmacist to a person for treatment of diabetes as directed by a physician shall be deemed dispensed on prescription.
Tax 11.09(4)(b)
(b) Sold to a licensed physician, surgeon, podiatrist, dentist, or hospital for the treatment of a human being.
Tax 11.09(4)(c)
(c) Furnished by a licensed physician, surgeon, podiatrist, or dentist to a patient who is a human being for treatment of the patient.
Tax 11.09(4)(d)
(d) Furnished by a hospital for treatment of any person pursuant to the order of a licensed physician, surgeon, dentist, or podiatrist. For this exemption, “hospital" has the meaning described in s.
50.33 (2), Stats., and does not include nursing homes.
Tax 11.09(4)(e)
(e) Sold to this state or any political subdivision or municipal corporation of the state, for use in the treatment of a human being; or furnished for the treatment of a human being by a medical facility or clinic maintained by this state or any political subdivision or municipal corporation of the state.
Tax 11.09(4)(f)
(f) Furnished without charge to a physician, surgeon, nurse anesthetist, advanced practice nurse, osteopath, dentist licensed under ch.
447, Stats., podiatrist licensed under ch.
448, Stats., or optometrist licensed under ch.
449, Stats., if the drug may not be dispensed without a prescription.
Tax 11.09(5)
(5)
Taxable sales of drugs. Taxable sales of drugs include:
Tax 11.09 Note
Note: For exemption of drugs used on farm livestock or other animals, refer to ss.
Tax 11.12 and
11.61.
Tax 11.09 Note
Note: The interpretations in s.
Tax 11.09 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The exemption for certain medicines furnished without charge became effective October 14, 1997, pursuant to
1997 Wis. Act 27; and (b). The definition of “drug" is effective October 1, 2009, pursuant to
2009 Wis. Act 2.
Tax 11.09 History
History: Cr.
Register, September, 1977, No. 261, eff. 10-1-77; r. (3) (g),
Register, September, 1984, No. 345, eff. 10-1-84; am. (4) (d) and (6),
Register, July, 1987, No. 379, eff. 8-1-87; am. (5) (b),
Register, June, 1990, No. 414, eff. 7-1-90; am. (2) (c), (3) (c) and (4) (a),
Register, March, 1991, No. 423, eff. 4-1-91; am. (1), (4) (e), cr. (4) (f), r. (6),
Register, May, 1999, No. 521, eff. 6-1-99;
EmR0924: emerg. r. and recr. (title), (1), (2) and (3), am. (4) (title), (intro), (a) to (d), (f), (5) (title), (intro.) and (b), eff. 10-1-09;
CR 09-090: r. and recr. (title), (1), (2) and (3), am. (4) (title), (intro), (a) to (d), (f), (5) (title), (intro.) and (b)
Register May 2010 No. 653, eff. 6-1-10;
CR 10-094: am. (1) (b), renum. (2) to be (2) (intro.) and am., cr. (2) (a) to (zj)
Register November 2010 No. 659, eff. 12-1-10;
CR 20-027: am. (4) (a)
Register July 2021 No. 787, eff. 8-1-21.
Tax 11.10
Tax 11.10
Wind, solar, and certain gas powered products. Tax 11.10(1)(1)
General. Section
77.54 (56), Stats., provides a sales and use tax exemption for the following:
Tax 11.10(1)(a)
(a) 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 200 watts of alternating current or 600 British thermal units per day, except that the exemption does not apply to an uninterruptible power source that is designed primarily for computers.
Tax 11.10(1)(b)
(b) Except for the sale of electricity or energy that is exempt from taxation under s.
77.54 (30), Stats., the sales price from the sale of and the storage, use, or other consumption of electricity or energy produced by a product described in par.
(a).
Tax 11.10(2)(d)
(d) “Gas" means a fuel that is comprised primarily of methane and exists in a gaseous state at normal room temperature and pressure.
Tax 11.10(2)(e)
(e) “Product" means
tangible personal property that converts wind energy, direct radiant energy received from the sun, or gas generated from the anaerobic digestion of animal manure and other agricultural waste into alternating current electricity or heat.
Tax 11.10(3)
(3)
Items which are products. Product, as defined in sub.
(2) (e), includes the following items:
Tax 11.10(3)(a)
(a) Wind turbine generators, including blade assembly and tower.
Tax 11.10(3)(d)
(d) Photovoltaic cells, modules, and arrays, including tracking equipment that maintains optimal orientation to the sun.
Tax 11.10(3)(f)
(f) Inverters used to transform direct current produced by an item described in sub.
(2) into alternating current, including property used to convey the direct current from the product to the inverter.
Tax 11.10(4)
(4)
Items which are not products. Product, as defined in sub.
(2) (e), excludes the following items:
Tax 11.10(4)(a)
(a) Tangible personal property that consumes electricity or heat produced by an item described in sub.
(2) (e).
Tax 11.10 Note
Example: A refrigerator that consumes electricity produced by a wind turbine generator is not itself a product whose power source is wind energy.
Tax 11.10 Note
Example: A solar tracking device that holds an array of photovoltaic cells is installed onto a concrete foundation. The concrete foundation is not a product whose power source is direct radiant energy received from the sun.
Tax 11.10(4)(c)
(c) Except as provided in sub.
(3) (f), property necessary to convey, transfer, or alter electricity or heat generated by an item described in sub.
(2) (e).
Tax 11.10(4)(d)
(d) Tangible personal property used to store electricity or heat produced by an item described in sub.
(2) (e).
Tax 11.10 Note
Examples: 1) A tank that stores hot water heated by a solar collector is not itself a product whose power source is direct radiant energy received from the sun.
Tax 11.10 Note
2) Batteries used to store electricity produced by a wind turbine generator or photovoltaic cells are not themselves products whose power source is wind energy or direct radiant energy received from the sun.
Tax 11.10(5)(a)(a) For purposes of the exemption under sub.
(1) (a), a product that produces direct current shall be considered to produce alternating current if the direct current is modified to alternating current prior to the direct current being stored, used, consumed, or sold by the producer.
Tax 11.10 Note
Examples: 1) An array of photovoltaic cells produces direct current. All of the current produced by the array is transferred directly to an inverter. The alternating current from the inverter is then either used to power equipment or it is sold to a utility. The photovoltaic array is considered to meet the requirement that it be a product that produces alternating current.
Tax 11.10 Note
2) A wind turbine generator produces direct current. The current is used to charge batteries. When needed, the batteries supply direct current to an inverter, producing alternating current used to power various devices. The direct current generator does not qualify for exemption since the direct current is being stored by the producer prior to changing it to alternating current.
