Sales and Use Taxes in Wisconsin

April 13, 2006

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In Wisconsin a tax is imposed on all retailers for the privilege of selling, leasing or renting tangible personal property. The tax is also imposed on the following services:

furnishing of rooms or lodging to transients (less than one month)
admissions to amusement, athletic, or entertainment events, and access fees to clubs,
sales of telecommunication services
qualified laundry, dry cleaning, pressing, and dyeing services
photographic services, processing, printing, and enlarging film
parking or providing parking space for motor vehicles, aircraft, and boats
the repair, service, or maintenance of taxable tangible personal property
producing, printing, imprinting, fabricating, or processing of tangible personal property for consumers who furnish the materials used
the sale of cable television services including installation charges
landscaping and lawn maintenance services

Sales and use tax rate. The Wisconsin sales and use tax rate is 5 percent. In addition, make sure you contact your local governments in Wisconsin because they are allowed to assess a local sales and use tax.

Tax-exempt items. Wisconsin has many specific items that are exempt from sales tax — for example, certain prescription medications are exempt from Wisconsin sales tax. You'll want to check and see if you are exempt from the sales tax.

Responsibility for paying sales tax. In Wisconsin the sales tax is imposed on retailers and persons providing taxable services. However, the retailer, service provider, or the Department of Revenue can collect the sales tax from the consumer or user.

Use tax. An excise tax (use tax) is imposed on the storage, use or other consumption in Wisconsin of tangible personal property or taxable services purchased from any retailer. The use tax is a complementary tax and does not apply in situations where the sales tax is collected.

Responsibility for collecting use tax. The use tax is imposed on any person who stores, uses, or otherwise consumes tangible personal property or taxable services in Wisconsin. However, this liability is extinguished with a receipt from a retailer showing that the tax has been paid.

Obtaining tax permits in Wisconsin. The Wisconsin Department of Revenue will issue a permit for each place of operation in the state to any person who requests one and who holds a valid business registration certificate. The permit is valid indefinitely.

Leases. In Wisconsin the lease or rental of tangible personal property at retail in Wisconsin is subject to sales tax. Tax is due on rental receipts for any period of time leased property is in Wisconsin. The lease is considered a continuing sale for the duration of the lease while the leased property is situated in the state.

The following discussions address additional sales and use tax issues that many small business owners face: