Wisconsin — Sales & Use Tax

## Sales tax imposition

Wisconsin imposes a 5% sales tax on retailers for the privilege of selling, licensing, leasing, or renting tangible personal property at retail in the state.

Source: Wis. Stat. § 77.52(1)(a)

The sales tax also applies at the 5% rate to the retail sale, license, lease, or rental of:

• Coins and stamps sold as collectors' items above face value
• Certain leased property affixed to real property (if the lessor retains the right to remove it upon breach or termination of the lease)
• Specified digital goods and additional digital goods

Source: Wis. Stat. § 77.52(1)(b), (c), (d)

Wisconsin also imposes sales tax at the 5% rate on certain taxable services sold, licensed, performed, or furnished at retail, including admissions to amusement or entertainment events; furnishing rooms or lodging; certain telecommunications services; landscaping and lawn maintenance services; laundry and dry cleaning; and other enumerated services.

Source: Wis. Stat. § 77.52(2)

## Use tax imposition

Wisconsin imposes a complementary 5% use tax on the storage, use, or other consumption in Wisconsin of tangible personal property, items and goods under Wis. Stat. § 77.52(1)(b), (c), or (d), and taxable services if no Wisconsin sales or use tax has been previously paid.

Source: Wisconsin DOR Publication 201, Wisconsin Sales and Use Tax Information

## Local taxes

Many Wisconsin counties impose an additional 0.5% county sales and use tax. Milwaukee County is an exception: effective January 1, 2024, Milwaukee County's rate increased from 0.5% to 0.9%.

The city of Milwaukee is the only municipality in Wisconsin that imposes a city sales and use tax. Effective January 1, 2024, the city of Milwaukee imposes a 2% city sales and use tax. Combined with the 5% state rate and the 0.9% Milwaukee County rate, the total sales and use tax rate in the city of Milwaukee is 7.9%.

Source: Wisconsin DOR County and City Sales and Use Taxes FAQs, Wisconsin DOR Fact Sheet 2414, Milwaukee Sales and Use Taxes

Certain counties also impose a 0.1% baseball stadium tax. Premier resort areas may impose an additional tax of up to 1.25%.

Source: Wisconsin DOR Publication 201, Wisconsin Sales and Use Tax Information

## Measure of tax

The sales tax is measured by the "sales price" from retail sales. The use tax is measured by the "purchase price" of the property or service.

Source: Wisconsin DOR Publication 207, Sales and Use Tax Information for Contractors, p. 4

All sales of tangible personal property and items, property, or goods at retail in Wisconsin are presumed subject to tax unless an exemption applies.

Source: Wis. Stat. § 77.52(1b)

Wisconsin requires out-of-state retailers to register and collect sales or use tax if their annual gross sales into Wisconsin exceed $100,000 in the previous or current calendar year. A retailer exceeding $100,000 in the previous calendar year must collect tax for the entire current calendar year; a retailer exceeding $100,000 for the first time in the current calendar year must register and collect tax for the remainder of that year. "Gross sales" includes both taxable and nontaxable sales, and includes sales made by the retailer on behalf of other persons and sales made by another person on the retailer's behalf. Wisconsin eliminated its separate 200-transaction threshold effective February 20, 2021.

Source: Wis. Stat. § 77.51(13gm)

Wisconsin requires marketplace providers to collect and remit sales or use tax on sales they facilitate on behalf of marketplace sellers. A marketplace provider is any person who facilitates a retail sale by listing or advertising for sale tangible personal property or specified taxable services and who, directly or indirectly through agreements with third parties, processes the payment from the purchaser. The marketplace provider is liable for tax on the entire sales price charged to the purchaser, including any amount the provider charges for facilitating the sale.

Source: Wis. Stat. § 77.52(3m)(a), Wis. Stat. § 77.51(7i))

Wisconsin requires every person making retail sales, leases, or rentals of tangible personal property or furnishing taxable services at retail in Wisconsin to obtain a seller's permit for each place of operation, unless the seller is exempt from taxation. Out-of-state retailers engaged in business in Wisconsin and not required to hold a seller's permit must obtain a use tax registration certificate.

Source: Wis. Admin. Code Tax 11.002(2)(a), (b)

Wisconsin exempts purchases for resale from sales and use tax when the seller obtains proper documentation from the purchaser. The resale exemption is foundational to Wisconsin's sales tax structure: Wisconsin law presumes all sales of tangible personal property and taxable services are subject to sales tax unless the seller can prove otherwise. For resale transactions, the burden of proving a sale is not taxable at retail rests on the seller unless the seller obtains a compliant exemption certificate from the purchaser.

## Certificate requirement and timing

A seller is relieved of liability for sales or use tax if the seller obtains from the purchaser, prior to the date of the sale or within 90 days after the date of the sale, a fully completed exemption certificate indicating that the property or service is purchased for resale or is otherwise exempt from Wisconsin sales and use tax. The 90-day window is a safe harbor: if the seller did not obtain a certificate at the time of sale, the seller may still be relieved of liability by obtaining one within 90 days. If the seller fails to obtain a certificate within 90 days, the seller may still avoid liability if, within 120 days after the Wisconsin Department of Revenue requests substantiation, the seller either obtains a fully completed exemption certificate in good faith or provides other proof that the transaction was not subject to tax.

Source: Wis. Stat. § 77.52(13)), Wis. Admin. Code Tax 11.14(3)(a)

## Effect of obtaining a resale certificate

Obtaining a resale exemption certificate—or capturing and maintaining the required data elements as an alternative—relieves the seller from both the duty to collect the sales tax and liability for the use tax on that transaction. If a purchaser gives a resale certificate and then uses the purchased property, item, good, or service in a manner other than holding it for sale, lease, or rental in the regular course of business (other than retention, demonstration, or display while holding for resale), the purchaser becomes liable for use tax measured by the purchase price, not the seller.

Source: Wis. Admin. Code Tax 11.14(6)(a)

## Acceptable forms of exemption certificates

Wisconsin accepts three types of exemption certificates for resale and other exempt transactions:

• Form S-211, Wisconsin Sales and Use Tax Exemption Certificate (multipurpose form usable for any Wisconsin sales and use tax exemption, including resale)
• Form S-211E, Electronic Wisconsin Sales and Use Tax Exemption Certificate
• Form S-211-SST (or SSTGB Form F0003), Streamlined Sales and Use Tax Exemption Certificate (multistate forms; purchasers should use caution as these contain exemptions applicable only in other states)

Wisconsin law does not require use of a department-designed form; sellers may accept other documentation or data capture methods, provided the seller captures and maintains the required data elements described in Wis. Admin. Code Tax 11.14(4)(a).

Source: Wis. Admin. Code Tax 11.14(2)(a)

## Purchaser liability for misuse

If a purchaser provides an exemption certificate claiming the purchase is for resale (or another exempt use) and subsequently uses the property, item, good, or service in a taxable manner, the purchaser is liable for the applicable sales or use tax. A purchaser who gives a resale certificate for property or services that the purchaser knows at the time of purchase will not be resold in the regular course of business—for the purpose of evading payment of the tax—is guilty of a misdemeanor under Wisconsin law.

Source: Wis. Admin. Code Tax 11.14(2)(c), Wis. Stat. § 77.52(16))

Wisconsin assigns each seller a filing frequency—annual, quarterly, monthly, or early monthly—based on the seller's sales and use tax liability during the prior measurement period. The Department of Revenue reviews filing frequencies each year by the end of November and notifies affected sellers of changes effective January 1 of the following year (or the start of a seller's fiscal year if different from the calendar year).

## Default filing frequency: quarterly

Unless the department notifies a seller of a different frequency, the baseline filing period is quarterly. A seller who registers through the Streamlined Sales Tax governing board's central registration system and makes a taxable sale sourced to Wisconsin must file a return by the last day of the month following the end of the calendar quarter in which the sale occurred, and continue to file quarterly returns thereafter unless the department notifies the seller in writing of a different frequency.

Source: Wis. Stat. § 77.58(2)(d)

## Annual filing

A seller who held a regular seller's permit and whose sales and use tax liability during the previous calendar or fiscal year did not exceed $600 will be notified by the department that it must file only one sales and use tax return for the following year. The seller may elect to continue filing quarterly by contacting the department. Annual returns and payments are due by the last day of the month following the close of the seller's calendar or fiscal year.

Source: Wis. Admin. Code Tax 11.93(1), (2)

## Monthly and early monthly filing

The department may require returns and payments for periods other than quarterly if it deems such a schedule necessary to ensure payment to or facilitate collection by the state. The department may also permit non-quarterly filing frequencies if satisfied that revenues will be adequately safeguarded.

For sellers assigned monthly filing frequency, returns and payments are due by the last day of the month next succeeding the end of the reporting period. For sellers assigned early monthly filing frequency—typically higher-volume sellers—the department may require by written notice that returns and payments are due by the 20th day of the month next succeeding the end of the reporting period.

Source: Wis. Stat. § 77.58(5)

## Annual frequency review and notification

The department conducts an annual review of sales and use tax filing frequencies by the end of November each year. Letters are mailed to sellers whose frequency will change, with the change taking effect for periods beginning January 1 of the following year. Sellers with a fiscal year end date other than December 31 are notified before the start of their fiscal year, and the change becomes effective the first day of the new fiscal year.

Source: Wisconsin DOR Annual Filing Frequency Scan

## Due date adjustments

If a filing due date falls on a weekend or legal holiday, the due date is extended to the business day immediately following the weekend or legal holiday.

Source: Wisconsin DOR Sales and Use Tax FAQs