Tax 11.52(4)(b)
(b) Coin-operated machines which provide a taxable service, such as telephones, car washes, televisions, vacuums, parking meters, shoe shine machines, bowling ball cleaning machines and coin-operated amusement devices such as juke boxes, pinball machines, shuffleboards, pool tables, slot racing, mechanical rides and games, and penny arcades.
Tax 11.52(4)(c)
(c) Coin-operated machines of non-governmental retailers located on army, navy, or air force installations, hospitals, or other facilities of the United States government.
Tax 11.52(5)
(5)
Nontaxable receipts. Receipts from the following are not taxable:
Tax 11.52(5)(a)
(a) Laundry, dry cleaning and pressing machines when the service is performed by the customer through the use of self-service machines.
Tax 11.52(5)(b)
(b) Coin-operated storage lockers, pay toilets, and scales.
Tax 11.52(5)(d)
(d) Hospitals sales from vending machines of food and food ingredients, except soft drinks to patients, staff, or visitors.
Tax 11.52(5)(e)
(e) Sales from a vending machine of food and food ingredients except, candy, soft drinks, dietary supplements, and prepared foods.
Tax 11.52(5m)(a)
(a) Tangible personal property sold to a person who provides a taxable service through an amusement device, as defined in s.
77.54 (65m) (b), Stats., is exempt from sales and use tax if the property is used exclusively as a prize awarded or transferred through the use of the amusement device.
Tax 11.52(5m)(b)
(b) An amusement device operator shall pay sales or use tax on purchases of tangible personal property that is used to play an amusement device but not awarded as a prize. Examples include tokens used to play the amusement device and paper tickets dispensed from the amusement device and redeemed for prizes.
Tax 11.52(6)(a)
(a) The receipts from the sale of taxable property, items, goods, or services from vending machines and amusement devices are subject to sales tax. Thus, taxable receipts include, for example, receipts from property, items, goods, and services selling for one, 5, and 10 cents and more. No deduction shall be permitted for the cost of the property, item, good, or service sold, materials used, labor or service cost, or any other expense, including commissions paid to place machines in an establishment.
Tax 11.52(6)(b)
(b) Sales tax collected from customers may be deducted from the total receipts before computing the tax payable, if customers are notified the prices include sales tax. If customers are not notified that the prices include sales tax, no deduction shall be allowed. The notification of the customer may be made by either:
Tax 11.52(6)(b)1.
1. Conspicuously posting the bracket system charts issued by the department.
Tax 11.52(6)(b)2.
2. Conspicuously posting a sign that states “Prices Include Sales Tax."
Tax 11.52(6)(c)
(c) Each retailer shall maintain adequate and complete records including:
Tax 11.52(6)(c)3.
3. Purchases and inventories of all merchandise sold through machines.
Tax 11.52(6)(c)5.
5. Purchase records of all machines and the cost of all supplies of which the retailer is deemed to be the user or consumer.
Tax 11.52 Note
Example: Purchase records shall be maintained for a vending machine or juke box, including repairs and parts, and records or compact discs used in the juke box.
Tax 11.52(7)
(7)
Sale, license, lease, or rental of machines. Tax 11.52(7)(a)
(a) Except as provided in pars.
(b),
(c),
(d) and
(e), receipts from the sale, lease, rental, or license to use coin-operated machines and attachments, parts and supplies for the machines are subject to the sales tax. Taxable receipts include sales to persons providing a service, such as laundry and dry cleaning service. If the machines, attachments, parts, or supplies are purchased for use in Wisconsin from an unregistered out-of-state supplier, the purchaser shall remit the use tax directly to the department.
Tax 11.52(7)(b)
(b) Nontaxable receipts include the lease of coin-operated machines by non-governmental retailers to exchanges of the army, air force, navy, or marine corps which acquire title to and sell merchandise through the machines to authorized purchasers from such exchanges.
Tax 11.52(7)(c)
(c) Machines purchased exclusively for license, lease, or rental to others may be purchased by the lessor without tax if the lessor gives an exemption certificate to the lessor's supplier. If the lessor intends to make any use of the machines other than license, lease, or rental, an exemption certificate claiming resale may not be given. In either event, the lessor's rental receipts are taxable.
Tax 11.52(7)(d)
(d) Music sold in a tangible
or digital form to a person described in s.
77.54 (63), Stats., for use in a jukebox is exempt from sales and use tax if the music is used exclusively for the jukebox. When the music is sold with a jukebox, the music is exempt as a separate sale from the jukebox if the sales price of the music is stated separately from the sales price of the jukebox on the invoice or bill of sale the seller gives to the purchaser.
Tax 11.52(7)(e)1.1. A video or electronic game sold in a tangible or digital form to a person in the business of providing a taxable service through an amusement device, as defined in s.
77.54 (65m) (b), Stats., is exempt from sales and use tax if the video or electronic game is used exclusively for the amusement device. For exemption, the sales price of the video or electronic game shall be stated separately from the amusement device on the invoice, bill of sale, or similar document the seller gives to the purchaser.
Tax 11.52(7)(e)2.
2. Persons that are not in the business of providing taxable services through amusement devices are required to pay sales or use tax on purchases of video or electronic games used for amusement devices.
Tax 11.52(7)(e)3.
3. The operator of any device, machine, or game that is illegal to operate in Wisconsin, is required to pay sales or use tax on the purchase of the video or electronic game that is used for such device, machine, or game.
Tax 11.52 Note
Examples: 1) Distributor is in the business of providing taxable admission services through amusement devices. Distributor owns an arcade game console that is an amusement device. The arcade game console is placed in a tavern. The tavern owner gives the receipts from customers playing arcade games on the console to Distributor, less a commission. Distributor purchases a software upgrade that is an electronic game played on the console, but does not replace the arcade game console. Distributor's purchase of the software upgrade is exempt.
Tax 11.52 Note
2) Arcade purchases a pinball machine it used in providing taxable admission services. The invoice to Arcade separately states the purchase price of the pinball machine from the video game component of the pinball machine. Arcade's purchase of the video game that is used in the pinball machine is exempt from tax because it is separately stated on the invoice. Arcade's purchase of the pinball machine is taxable.
Tax 11.52 Note
3) Tavern purchases a dart board that is an amusement device. Customers insert $1 to use the dart board. Although Tavern's primary business is selling food and drinks, its business also includes taxable admission services. Tavern's purchase of the dart board is taxable. Tavern's purchase of the dart board's game component is not taxable if separately stated on the invoice.
Tax 11.52 Note
4) Distributor is in the business of providing taxable admission services through amusement devices. Distributor purchases a video gambling machine that will be placed in a tavern. A commission will be paid to the tavern based on receipts from the video gambling machine. Distributor's invoice for the video gambling machine separately states the purchase price of the video gambling machine from the electronic game that is a component of the video gambling machine. Distributor's purchase of the video gambling machine and the electronic game is taxable, even though the electronic game is separately stated. The video gambling machine is not an amusement device because it is a device, machine, or game that is illegal to operate in Wisconsin. The operation of video gambling machines is in violation of Wisconsin law, as provided in ss.
945.03 and
945.04, Stats.
Tax 11.52 Note
Note: Section
Tax 11.52 interprets ss.
77.51 (1fm),
(3n),
(3t),
(13), and
(17w),
77.52 (1),
(1m),
(2) (a) 2.,
6.,
7.,
10., and
11., and
(2m), and
77.54 (20n),
(63), and
(65m), Stats.
Tax 11.52 Note
Note: The interpretations in s.
Tax 11.52 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The definitions of “candy," “dietary supplement," “food and food ingredient," and “soft drink," the exemption for food and food ingredients, the change of the term “gross receipts" to “sales price," and the separate impositions of tax on coins and stamps sold above face value under s.
77.52 (1) (b), Stats., certain leased property affixed to real property under s.
77.52 (1) (c), Stats., and digital goods under s.
77.52 (1) (d), Stats., became effective October 1, 2009, pursuant to
2009 Wis. Act 2; (b) Receipts from all self-service laundry, dry cleaning, pressing, and dyeing machines, including those that are not coin-operated, are not taxable effective October 1, 2013, pursuant to
2013 Wis. Act 20; (c) The exemption for music sold to a jukebox operator for use in jukeboxes in s.
77.54 (63), Stats., became effective June 1, 2016, pursuant to
2015 Wis. Act 251; and (d) The exemptions for a video or electronic game sold to an amusement device operator for use in the amusement device and prizes awarded or transferred through the use of the amusement device under s.
77.54 (65m) became effective December 1, 2017, pursuant to
2017 Wis. Act 59.
Tax 11.52 History
History: Cr.
Register, January, 1978, No. 265, eff. 2-1-78; am. (3) (a) 1. and r. (4) (c),
Register, December, 1983, No. 336, eff. 1-1-84; am. (1) (intro.), (3) (a) 1., (5) (c) 5. and (6) (a),
Register, June, 1991, No. 426, eff. 7-1-91;
EmR0924: emerg. r. and recr. eff. 10-1-09;
CR 09-090: r. and recr.
Register May 2010 No. 653, eff. 6-1-10; correction to numbering of (4) (a) 4m. made under s.
13.92 (4) (b) 1., Stats.,
Register May 2010 No. 653;
CR 14-006: am. (5) (a)
Register August 2014 No. 704, eff. 9-1-14;
CR 19-112: cr. (7) (d)
Register June 2020 No. 774, eff. 7-1-20; correction in (7) (d) made under s.
35.17, Stats.,
Register June 2020 No. 774;
CR 20-018: cr. (5m), am. (7) (a), cr. (7) (e)
Register July 2021 No. 787, eff. 8-1-21.
Tax 11.53(1)(1)
Definition. In this section, “temporary event" means an activity at one place of operation for a brief duration where taxable sales are made. A place of operation includes a fair, carnival, circus, festival or portable roadside stand.
Tax 11.53(2)
(2)
Permits for temporary events. Except as provided in sub.
(3), a person conducting business as a retailer at a temporary event shall hold a seller's permit.
Tax 11.53 Note
Note: Refer to s.
Tax 11.002 for a description of permit requirements, how to apply for a permit, and the 15-day time period within which the department is required to act on permit applications.
Tax 11.53(3)
(3)
Exception. Persons, other than nonprofit organizations, who do not hold and are not otherwise required to hold a seller's permit who have total taxable sales of tangible personal property, items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., or taxable services of less than $2,000 during the calendar year are not required to hold a seller's permit. Sales by such persons are exempt occasional sales. However, a person's purchases of tangible personal property, items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., and taxable services which when resold are exempt occasional sales under this section, are taxable purchases by that person.
Tax 11.53(4)
(4)
Security. Application for a seller's permit shall be on a form prescribed by the department. The applicant shall be subject to security requirements of s.
77.61 (2), Stats., and may be required to deposit security in an amount determined by the department, but not in excess of $15,000.
Tax 11.53(5)
(5)
Returns. Sales and use tax returns due from persons holding seller's permits are subject to the provisions of s.
77.58, Stats. The returns shall report the tax due for the period of time or event covered by the returns and shall be due quarterly, on the last day of the next month following a calendar quarter unless notified by the department to file on some other basis under s.
77.52 (19) or
77.58 (1) and
(2), Stats., and shall include on the return receipts from all temporary events and other taxable transactions of the permittee during the reporting period.
Tax 11.53(6)
(6)
Violation. Under s.
77.52 (12), Stats., any person required to hold a seller's permit who operates without a permit is guilty of a misdemeanor and shall immediately cease selling when requested by a department representative.
Tax 11.53(7)
(7)
Operator reporting requirements. An operator of a swap meet, flea market, craft fair, or similar event shall report to the department for each event, the legal and business name, address, telephone number, e-mail address, tax account number, if available, social security number and federal employer identification number, if applicable, for each vendor selling merchandise at the swap meet, flea market, craft fair, or similar event as provided in s.
Tax 11.535.
Tax 11.53 Note
Note: Section
Tax 11.53 interprets ss.
73.03 (38) and
(50),
77.51 (9),
77.52 (1),
(7),
(9),
(11),
(12), and
(19),
77.54 (7),
77.58, and
77.61 (2), Stats.
Tax 11.53 Note
Note: The interpretations in s.
Tax 11.53 are effective under the general sales and use tax law effective on and after September 1, 1969, except: (a) The security amounts given in sub. (4) became effective February 1, 1982; (b) The provisions of sub. (7) became effective May 17, 1988, pursuant to
1987 Wis. Act 399; (c) The change of the term “gross receipts" to “sales price" and the separate impositions of tax on coins and stamps sold above face value under s.
77.52 (1) (b), Stats., certain leased property affixed to real property under s.
77.52 (1) (c), Stats., and digital goods under s.
77.52 (1) (d), Stats., became effective October 1, 2009, pursuant to
2009 Wis. Act 2; and (d) The threshold for exempt occasional sales was changed to less than $2,000 in annual sales, effective for sales beginning January 1, 2018, pursuant to
2017 Wis. Act 59.
Tax 11.53 History
History: Cr.
Register, 1965, No. 114, eff. 7-1-65; am.
Register, May, 1966. No. 125. eff. 6-1-66; am. (1),
Register, June, 1975, No. 234, eff. 7-1-75; renum. from Tax 11.01,
Register, January, 1978, No. 265, eff. 2-1-78; r. and recr.,
Register, January, 1982, No. 313, eff. 2-1-82; am. (1) (c), cr. (3) and (7), renum. (3) to be (4) and am., renum. (4) and (5) to be (5) and (6) and am. (5) (a) 1.,
Register, March, 1991, No. 423, eff. 4-1-91; r. (1) (a), (b), (e), renum. (1) (c) and (d) to be (1) (a) and (b) and am. (1) (a), r. and recr. (2) and (5), am. (3), (4) and (6),
Register, August, 1999, No. 524, eff. 9-1-99; correction in (1) (a) made under s. 13.93 (2m) (b) 7., Stats.,
Register, August, 1999, No. 524;
EmR0924: emerg. r. and recr. (1), renum. (2) (intro.) to be (2) and am., r. (2) (a) and (b), am. (3) to (5) and (7), eff. 10-1-09;
CR 09-090: r. and recr. (1), renum. (2) (intro.) to be (2) and am., r. (2) (a) and (b), am. (3) to (5) and (7)
Register May 2010 No. 653, eff. 6-1-10;
CR 20-018: am. (3)
Register July 2021 No. 787, eff. 8-1-21.
Tax 11.535
Tax 11.535 Operators of a swap meet, flea market, craft fair, or similar event. Tax 11.535(1)(1)
Purpose. This section clarifies requirements and establishes a time standard for the reports required under s.
73.03 (38), Stats., which authorizes the department to require operators of swap meets, flea markets, craft fairs, and similar events to report to the department specific identifying information of each vendor selling merchandise at these events.
Tax 11.535(2)(a)
(a) “Event" means an occurrence, occasion, activity, or function at which merchandise is sold or traded.
Tax 11.535(2)(b)
(b) “Operator" means a person who, or an entity such as an association, partnership, corporation, or nonprofit organization, which arranges, organizes, promotes, or sponsors an event.
Tax 11.535(2)(c)
(c) “Selling merchandise" means the sale, rental, license, lease, exchange, trade or barter of, or taking orders for, merchandise, goods, or products for money or other consideration, or both.
Tax 11.535(2)(d)
(d) “Similar events" means events which are similar to swap meets, flea markets and craft fairs and includes tradeshows, carnivals, fairs, and fund-raising events.
Tax 11.535(2)(e)
(e) “Vendor" means a person or entity selling merchandise at retail at an event. An operator might also be a vendor at an event.
Tax 11.535(3)
(3)
Report required. Each operator shall furnish to the department within 10 days following the close of an event, the name, address, telephone number and e-mail address of the operator; the name of the event; the date or dates of the event; and the location of the event; and the legal name, business name, address, telephone number, e-mail address, tax account number, if available, social security number and the federal employer identification number of each vendor, if applicable.
Tax 11.535(4)
(4)
Forms. Operators shall report the information required by sub.
(3) on forms provided by the department or in a format similar to that form.
Tax 11.535 Note
Note: Copies of Form S-240, “Wisconsin Temporary Event Operator and Seller Information," may be obtained from the department's website at
www.revenue.wi.gov, at any Department of Revenue office, by calling (608) 266-1961, by email at
dorformsrequests@wisconsin.gov, or by writing to Wisconsin Department of Revenue, Post Office Box 8949, Madison, WI 53708-8949.
Tax 11.535(5)
(5)
Alternative reporting method. Operators of continuing or successive events may report all vendors for each event or may report under an alternative method approved by the department. Any operator may request approval from the department of an alternative method of reporting which will provide the department with the required information on all vendors at each event. The request shall be made in writing to: Wisconsin Department of Revenue, Temporary Events Program, PO Box 8910, Madison, WI 53708-8910. It shall list the dates and locations of events to be held during the calendar year and the proposed method for reporting the information required.
Tax 11.535 History
History: Cr.
Register, June, 1990, No. 414, eff. 7-1-90; correction in (1) (a) made under s. 13.93 (2m) (b) 7., Stats.,
Register July 2002 No. 559;
EmR0924: emerg. am. (title), (1), (2) (b) to (d), (3), and (5), eff. 10-1-09;
CR 09-090: am. (title), (1), (2) (b) to (d), (3), and (5)
Register May 2010 No. 653, eff. 6-1-10;
CR 10-094: am. (2) (c)
Register November 2010 No. 659, eff. 12-1-10;
CR 20-027: am. (5)
Register July 2021 No. 787, eff. 8-1-21.
Tax 11.54
Tax 11.54
Temporary amusement, entertainment, or recreational events or places. Tax 11.54(1)(a)
(a) “Admission" means the right or privilege to have access to or use of a place, facility or location in Wisconsin where amusement, entertainment, or recreation is provided.
Tax 11.54(1)(b)
(b) Pursuant to s.
77.51 (10), Stats., “person" includes any natural person, firm, partnership, limited liability company, joint venture, joint stock company, association, public or private corporation, the United States, the state, including any unit or division of the state, any county, city, village, town, municipal utility, municipal power district, or other governmental unit, cooperative, unincorporated cooperative association, estate, trust, receiver, personal representative, any other fiduciary, any other legal entity, and any representative appointed by order of any court or otherwise acting on behalf of others.
Tax 11.54(1)(c)
(c) “Places of amusement, entertainment or recreation" include auditoriums, race tracks, street fairs, rock festivals, or other places where there is any show or exhibition for which any charge is made including the sale of tickets, gate charges, seat charges, entrance fees, and motor vehicle parking fees.
Tax 11.54(2)
(2)
General. The receipts from the sale of admissions to amusement, entertainment, and recreational events or places are subject to sales tax.
Tax 11.54(3)
(3)
Entrepreneurs, promoters, sponsors, or managers. Tax 11.54(3)(a)
(a) Entrepreneurs, promoters, sponsors, or managers of an amusement, entertainment, or recreational event shall be regarded as retailers for the purposes of s.
77.51 (13) (c), Stats., if the entrepreneurs, promoters, sponsors, or managers have control and direction of the event including activities such as controlling the sale of admissions or admission tickets; controlling or regulating the admittance of all persons to the event or place; determining the nature of the amusement, entertainment, or recreation to be offered; deciding the scale of the prices to be charged for admission; receiving the proceeds from ticket sales, including amounts from ticket agents or brokers; and deciding, or having the right to decide, the disposition of the net profits, if any, realized from the event.
Tax 11.54(3)(b)
(b) As retailers, the entrepreneurs, promoters, sponsors, or managers are persons liable for the sales tax and are required to hold a seller's permit for each place of operations pursuant to s.
77.52 (7), Stats., and may be required to post security as provided in s.
77.61 (2), Stats. The retailers are required to have a seller's permit on the first date on which tickets or admission to an event to be conducted in this state are offered for sale.
Tax 11.54(4)
(4)
Exceptions. This section does not apply to:
Tax 11.54(4)(a)
(a) Traveling attractions which perform in stadiums, theaters, or other places where the permanent management of the stadium, theater, or other location holds a valid seller's permit, controls the sale of tickets or admissions, and assumes the liability for the payment of the sales tax.
Tax 11.54(4)(b)
(b) Churches or other nonprofit groups which operate within the occasional sale limitations provided in s.
77.54 (7m), Stats.
Tax 11.54(4)(c)
(c) Sales of admissions or tickets by any baseball team affiliated with Wisconsin department of American legion baseball.
Tax 11.54(4)(d)
(d) Sales of admissions by a nonprofit organization to participate in any sports activity in which more than 50 percent of the participants are 19 years old or younger.
Tax 11.54 Note
Note: The interpretations in s.
Tax 11.54 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The exemption for sales by a baseball team of the Wisconsin department of American legion baseball pursuant to
1985 Wis. Act 29, is effective September 1, 1985; and (b) The exemption for certain sales of admissions by a nonprofit organization to participants in sports activities became effective July 1, 2009, pursuant to
2009 Wis. Act 28.
Tax 11.54 History
History: Cr.
Register, March, 1976, No. 243, eff. 4-1-76; renum. from Tax 11.02;
Register, January, 1978, No. 265, eff. 2-1-78; cr. (1) (intro.), (2) and (4) (c), renum. (1) to be (1) (a) and am., renum. (2) and (3) to be (1) (c) and (b) and am., renum. (4), (5) and (6) to be (3) (a), (b) and (4) and am.,
Register, March, 1991, No. 423, eff. 4-1-91;
EmR0924: emerg. am. (title), (1) (a) to (c), (2), (3), (4) (a) and (b), cr. (4) (d, eff. 10-1-09;
CR 09-090: am. (title), (1) (a) to (c), (2), (3), (4) (a) and (b), cr. (4) (d)
Register May 2010 No. 653, eff. 6-1-10.
Tax 11.55
Tax 11.55
Repossessions and sales of property to enforce liens. Tax 11.55(3)(3)
Enforcement of liens. Pawnbrokers, storage persons, and others selling tangible personal property and items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., to enforce a lien are retailers with respect to such sales, and tax applies to the receipts from such sales.
Tax 11.55(4)
(4)
Repossessions. Repossessions of tangible personal property and items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., by a seller from a purchaser when the only consideration is cancellation of the purchaser's obligation to pay for the property, item, or good is not a taxable transaction. However, sales at retail of repossessed property (e.g., by finance companies, insurance companies, banks and other financial institutions) are taxable sales.
