Sales and Use Tax Information for Colleges, Universities, and Technical Colleges - State of Wisconsin Department of Revenue
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State of Wisconsin
Department of Revenue
Sales and Use Tax
Information for
Colleges, Universities,
and Technical
Colleges
Publication 204 (09/13)
Printed on
Recycled PaperTable of Contents
Page
I. INTRODUCTION ...............................................................................................................................................3
A. General ............................................................................................................................................................ 3
B. Definitions of College, University, and Technical College ............................................................................. 3
C. Difference Between the Sales and Use Tax..................................................................................................... 4
D. Which Sales Are Subject to Sales and Use Taxes?.......................................................................................... 4
E. Tax Rate and Tax Base .................................................................................................................................... 5
F. Seller’s Permits ............................................................................................................................................... 5
G. Filing Tax Returns and Payment of Tax .......................................................................................................... 5
II. SALES BY COLLEGES, UNIVERSITIES, AND TECHNICAL COLLEGES.............................................6
A. General ............................................................................................................................................................ 6
B. Taxable Sales, Leases, Licenses, or Rentals.................................................................................................... 6
C. Nontaxable Sales ............................................................................................................................................. 9
D. Student Organizations ................................................................................................................................... 11
III. PURCHASES BY COLLEGES, UNIVERSITIES, AND TECHNICAL COLLEGES ...............................12
A. Operated by the State of Wisconsin or Another Federal or Wisconsin Governmental Unit ........................... 12
B. Private College, University, or Technical College .......................................................................................... 12
C. Student Organizations ..................................................................................................................................... 12
IV. CONSTRUCTION FOR COLLEGES, UNIVERSITIES, AND TECHNICAL COLLEGES....................12
V. RECORDKEEPING..........................................................................................................................................13
A. General .......................................................................................................................................................... 13
B. Exemption Certificates and Exemption Claims ............................................................................................ 13
VI. QUESTIONS OR ADDITIONAL INFORMATION ......................................................................................14
A. Department of Revenue Assistance ............................................................................................................... 14
B. Other Aids ..................................................................................................................................................... 14
VII. ANY SUGGESTIONS? .....................................................................................................................................15
2Sales and Use Tax Information for Colleges, Universities, and Technical Colleges
rentals in municipalities wholly or partially
IMPORTANT CHANGES within Milwaukee County.
Self-Service Laundry Machines. Receipts (d) Premier resort area tax: Publication 403, Prem-
from token and magnetic card operated laundry ier Resort Area Tax. Applies to certain types of
machines become exempt on October 1, 2013. sellers and their sales of tangible personal prop-
Page 8. erty; items, property, and goods listed in
Exemption for Printing Services Resulting in Part I.D.2. to 4.; and taxable services in the Vil-
Advertising and Promotional Direct Mail. Ef- lage of Lake Delton, City of Wisconsin Dells,
fective July 1, 2013, the sale and purchase of City of Bayfield, and the City of Eagle River.
printing or imprinting services that result in ad-
vertising and promotional direct mail is exempt. CAUTION
Page 8.
• The information in this publication reflects the
I. INTRODUCTION position of the Wisconsin Department of Reve-
nue of laws enacted by the Wisconsin
A. General Legislature and in effect as of September 1,
2013. Laws enacted and in effect after that date,
This publication provides information about the new administrative rules, and court decisions
Wisconsin sales and use tax as it affects colleges, may change the interpretations in this publica-
universities, and technical colleges. tion.
• The examples and lists of taxable and nontaxa-
Note: Certain sales which are subject to the 5% ble sales and purchases provided in this
state sales and use tax may also be subject to the: publication are not all-inclusive. They merely
(a) 0.5% county sales and use tax, (b) 0.1% or 0.5% set forth common examples.
stadium sales and use tax, (c) 0.5% food and bever-
age local exposition tax, and (d) 0.5% premier
resort area sales tax for the City of Bayfield and the B. Definitions of College, University, and Technical
City of Eagle River or 1.0% premier resort area College
sales tax for the City of Wisconsin Dells and the
Village of Lake Delton. (Note: Prior to July 1, “School,” for purposes of this publication, means a
2010, the food and beverage local exposition tax college, university, or technical college.
was 0.25%. Prior to January 1, 2010, the premier
resort area tax rate for the City of Wisconsin Dells “College” and “university” mean a nonprofit or
and the Village of Lake Delton was 0.5%.) Addi- public educational institution which provides an ed-
tional information about these taxes is contained in ucational program for which it awards a bachelor’s
the following: or higher degree, or provides a program which is
acceptable for full credit toward such a degree or a
(a) County tax: Publication 201, Wisconsin Sales program of training to prepare students for gainful
and Use Tax Information, Section XVIII. employment in a recognized occupation, and admits
as regular students only individuals having a certifi-
(b) Stadium tax: Publication 201, Wisconsin Sales cate of graduation from a high school or the
and Use Tax Information, Section XVIII. Ap- recognized equivalent of such a certificate. Exam-
plies to sales and purchases made in Brown, ples include the University of Wisconsin, Alverno
Milwaukee, Ozaukee, Racine, Washington, and College, Beloit College, Cardinal Stritch College,
Waukesha counties. Carroll College, Carthage College, Concordia Uni-
versity, Edgewood College, Lakeland College,
(c) Local exposition taxes: Publication 410, Local Lawrence University, Marian College, Marquette
Exposition Taxes. Applies to sales and purchas- University, Mount Mary College, Mount Senario
es of certain lodging, food, beverages, and car College, Northland College, Ripon College, St.
3Publication 204
Norbert College, Silver Lake College, Viterbo Col- D. Which Sales Are Subject to Sales and Use
lege, and Wisconsin Lutheran College. Taxes?
“Technical college” is a school subject to regulation Sales, licenses, leases, and rentals of the following
established by the Wisconsin Technical College property, items, and goods are subject to sales and
System Board. Examples include Blackhawk Tech- use taxes:
nical College, Chippewa Valley Technical College,
1. Tangible personal property;
Fox Valley Technical College, Gateway Technical
College, Lakeshore Technical College, Madison 2. Coins or stamps of the United States that are
Area Technical College, Mid-State Technical Col- sold, licensed, leased, rented, or traded as collec-
lege, Milwaukee Area Technical College, Moraine tor’s items above their face value;
Park Technical College, Nicolet Area Technical 3. Leased property that is affixed to real property, if
College, Northcentral Technical College, Northeast the lessor has the right to remove the leased
Wisconsin Technical College, Southwest Wisconsin property upon breach or termination of the lease
Technical College, Waukesha County Technical agreement, unless the lessor of the leased proper-
College, Western Wisconsin Technical College, and ty is also the lessor of the real property to which
Wisconsin lndianhead Technical College. the leased property is affixed;
C. Difference Between the Sales and Use Tax 4. Specified digital goods, additional digital goods,
and digital codes. These digital goods are char-
1. Sales tax: The Wisconsin sales tax is a 5% tax acterized by the fact that they are transferred
imposed on the sales price of colleges, universi- electronically to the purchaser (i.e., accessed or
ties, and technical colleges who sell, license, obtained by the purchaser by means other than
lease, or rent tangible personal property; items, tangible storage media). “Specified digital
property, and goods listed in Part I.D.2. to 4; or goods” means “digital audio works,” “digital au-
taxable services at retail in Wisconsin. General- diovisual works,” and “digital books.”
ly, a sale of such property, items, goods, and “Additional digital goods” means greeting cards,
services is at retail unless the buyer purchases finished artwork, periodicals, video or electronic
the property for the purpose of reselling it. games, and newspapers or other news or infor-
mation products.
2. Use tax: The Wisconsin use tax is a 5% tax im-
posed on the purchase price of tangible personal See Publication 240 for a description of the
property; items, property, and goods listed in products that are included.
Part I.D.2. to 4.; and taxable services that are
used, stored, or consumed in Wisconsin, upon In addition, certain services are subject to Wiscon-
which a Wisconsin sales or use tax has not pre- sin sales and use taxes. For a list of taxable services,
viously been paid. see Part X.B. of Publication 201.
Note: Wisconsin universities, colleges, and As used throughout this publication, the terms
technical colleges are not subject to use tax. “property, items, and goods,” “property, items, or
The reason for this is that all purchases by Wis- goods,” or “property, item, good,” refers to the
consin governmental units and nonprofit property, items, and goods described in Part I.D.1.
schools organized and operated exclusively for to 4.
religious, educational, scientific, or charitable
purposes are exempt from use tax. As used throughout this publication, the term “digi-
tal goods” refers collectively to products listed in
Part I.D.4.
4Sales and Use Tax Information for Colleges, Universities, and Technical Colleges
E. Tax Rate and Tax Base 3. Business Tax Registration Fees
The tax rate of 5% is the same for both the Wiscon- Colleges, universities, and technical colleges
sin state sales and use tax. The sales tax is based applying for a seller’s permit may be required
upon the sales price from retail sales. The use tax is to pay a Business Tax Registration (BTR) fee
based upon the purchase price of the property, item, of $20. The initial BTR fee covers a period of
good, or service purchased. two years. At the end of that period, a $10 BTR
renewal fee applies. The Department of Reve-
If a sale is subject to the 0.5% county tax, the tax nue will send a renewal notice.
rate is 5.5% (5% state tax and 0.5% county tax). If
the sale is subject to the 0.5% football stadium tax, G. Filing Tax Returns and Payment of Tax
the tax rate is 5.5%. If the sale is subject to the
0.1% baseball stadium tax, the tax rate is 5.1%, or Every holder of a Seller’s Permit, Use Tax Certifi-
5.6% if both county tax and the baseball stadium cate, or Consumer’s Use Tax Certificate must file a
tax apply. return for each reporting period, even if no tax is
due for that period. A reporting period may be
F. Seller’s Permits monthly, quarterly, or annually, depending on the
person’s annual tax liability. The Department of
1. Who Must Have a Seller’s Permit? Revenue will notify each person of their reporting
period and the due date for filing returns.
Every college, university, and technical college
making taxable sales in Wisconsin, regardless The law requires that sales and use tax returns be
of whether its sales are mercantile in nature, is filed electronically. Wisconsin sales and use tax re-
required to have a seller’s permit, unless all turns should be filed using one of the following
sales by the seller are exempt from sales and electronic filing methods:
use taxes.
1. My Tax Account
The seller’s permit shows that the seller is
properly registered with the Department of My Tax Account is a free, secure online appli-
Revenue, as required by law. It is a misde- cation that allows you to file and pay your sales
meanor to make taxable sales of property, and use taxes electronically. It performs the
items, goods, or services without a seller’s per- necessary computations of tax based on infor-
mit. mation that you enter and allows you to make
your tax payment via electronic funds transfer,
2. Application credit card, or paper check. My Tax Account al-
so allows you to:
A person may apply for a seller’s permit using
one of the following methods: • View business tax filing and payment history
and identify any tax periods that need atten-
• Use the Department of Revenue’s online tion.
• Change your address, obtain an extension to
Business Tax Registration Process to sub-
file a return, or inactivate your account.
mit the application electronically.
• File a buyer’s claim for refund of sales tax
• Complete Form BTR-101, Application for paid to a seller in error.
Business Tax Registration, and mail it to • Appeal adjustment notices.
the Department of Revenue. Keep a copy of
the completed application for your records. To use My Tax Account, you must obtain a lo-
gon ID and password from the Department of
You should apply for a seller’s permit at least Revenue. Go to the My Tax Account Common
three weeks before your business operations Questions on the Department of Revenue’s
begin. website for more information, including how to
obtain your logon ID and password.
5Publication 204
2. Sales TeleFile portion of the publication describes how the sales
tax applies to sales by colleges, universities, and
You can file your Wisconsin sales and use tax technical colleges.
return with any touch-tone telephone using Te-
leFile. This program accepts four payment B. Taxable Sales, Leases, Licenses, or Rentals
types: Direct withdrawal from your checking or
savings account (only available during the call Caution: The following sales are not taxable if they
in which you file your return); credit card, are mandatory charges which are included in the
check, or money order. To use TeleFile, obtain billing for tuition, as explained in Part II.C.1.
a Sales TeleFile Worksheet and Payment
Voucher from the Department of Revenue’s 1. Property, Items, and Goods.
website. When you have completed the work-
sheet, call (608) 261-5340 (Madison number) or Important: If the school charges the purchaser
(414) 227-3895 (Milwaukee number) to actual- for the delivery of any of the following items,
ly file your return. the school’s total charge, including the shipping
and handling charge, is taxable.
3. eFile Transmission
• Over-the-counter sales of magazines, but
This program is a service for taxpayers using not newspapers.
approved private vendors’ software or who
have the technical expertise to create a file in • Books, yearbooks, annuals, lecture notes,
XML format. eFile transmission places return directories, and bulletins.
data into a file format that can be directly pro-
cessed into the Department of Revenue system. • Student course materials (e.g., lab sup-
Using secure transmission over the Internet you plies).
can submit a payment at the same time that you
• Textbooks, whether a paper version or digi-
file your return using ACH debit or ACH credit.
tal version.
You will receive an email acknowledgement to
confirm receipt of a successful file transmis- • Digital books.
sion. Information about file transmission can be
found on the Department of Revenue’s website • Digital audio works.
at revenue.wi.gov/eserv/eftgen.html. • Digital audiovisual works.
If you have questions about electronic filing or • Certain other digital goods. See Publica-
payments, contact the department by writing to tion 240, Digital Goods, for additional
Wisconsin Department of Revenue, Electronic information.
Funds Transfer Assistance, Mail Stop 3-80, • Sales of candy, soft drinks, dietary supple-
PO Box 8902, Madison, WI 53708-8902; calling ments, and prepared foods.
(608) 266-2776; or emailing at DOR-
SalesandUse@revenue.wi.gov. Example: Sales of candy, soft drinks, die-
tary supplements, and prepared foods to
II. SALES BY COLLEGES, teachers and visitors are taxable.
UNIVERSITIES, AND TECHNICAL Exception: Sales of candy, soft drinks, die-
COLLEGES tary supplements, and prepared foods that
are furnished in accordance with any con-
A. General tract or agreement or paid to the school
through the use of an account of the school
All sales of property, items, and goods are subject to the following are exempt from tax (see
to the sales tax, unless an exemption applies. How- Part II.C.2.):
ever, sales of only certain services are taxable. This
6Sales and Use Tax Information for Colleges, Universities, and Technical Colleges
– Students who consume the candy, soft Exception: Sales of photocopies of public
drinks, dietary supplements, or pre- or confidential records by schools operated
pared foods and are enrolled for credit by the state, or another governmental unit
at the college, university, or technical that is included in the definition of “au-
college; or thority” in sec. 19.32(l), Wis. Stats., are
exempt. This exemption applies primarily
– A National Football League team.
to transcripts and other records. Copyright-
ed printed material is not a public record.
• A restaurant’s sales of candy, soft drinks,
Therefore, photocopy charges in a library
dietary supplements, and prepared foods to
generally are taxable.
the restaurant’s employees, even if sold to
employees during the employee’s work
Caution: Private schools are not included
hours.
in the definition of “authority’ and all re-
ceipts from their sales of photocopies are
Refer to Publication 220, Grocers - How
taxable, unless some other exemption ap-
Do Wisconsin Sales and Use Taxes Affect
plies.
Your Operations? for more information in-
cluding the definitions of "candy," "soft • Auction sales. (See Publication 217, Auc-
drinks," "dietary supplements," and "pre- tioneers, for more information.)
pared food."
• Cap and gown rentals, including collections
• Fermented malt beverages (e.g., beer) and made by the school for a private vendor.
intoxicating liquors
• Uniforms for employees or others.
• Food for animals
• Parts and labor for repairing motor vehicles
• Food used in research and experimentation or other tangible personal property, items,
or goods. These charges are taxable even
• Gift shop sales. though the customer is only charged for
parts at the school’s cost.
• Vending machine sales of: • Motor vehicles, boats, snowmobiles, rec-
reational vehicles as defined in
o Soft drinks sec. 340.01(48r). Wis. Stats., trailers, semi-
trailers, all-terrain vehicles, and aircraft.
o Candy and chewing gum
• Computer hardware and prewritten com-
o Heated foods, heated beverages, puter software.
and other prepared foods
• Fundraiser sales.
o Dietary supplements
• Portable stages, public address systems,
o Fermented malt beverages and in- chairs, pianos, forklift trucks, music racks,
toxicating liquor spotlights, and projectors rented to groups
using a school’s theater.
o Hygiene products
2. Taxable Services
o Toiletries
• Parking or providing parking space for mo-
• Photocopies, microfilm, videotape, or CD tor vehicles and aircraft, and docking or
or DVD copies. providing storage space for boats.
Note: Parking fines are not taxable.
7Publication 204
• Admissions to events and places which are • Services that consist of recording telecom-
amusement, athletic, entertainment, or rec- munications messages and transmitting
reational in nature and the furnishing, for them to the purchaser of the service or at
dues, fees, or other considerations, the priv- the purchaser’s direction.
ilege of access to clubs or the privilege of
having access to, or the use of, amusement, Exception: These telecommunications
entertainment, athletic, or recreational facil- messaging services are not taxable if they
ities. are merely incidental to a nontaxable ser-
vice provided to the purchaser.
Examples include:
• Laundry, dry-cleaning, and pressing ser-
– Admissions to sporting events, plays, vices.
theatrical and musical performances,
and dances. Exception: Receipts from coin-operated
laundry machines are not taxable. Begin-
– Access to ball diamonds, tennis courts, ning on October 1, 2013, receipts from self-
swimming pools, gymnasiums, and golf service laundry machines that are operated
courses. by tokens and magnetic cards are also not
taxable. Prior to October 1, 2013, receipts
– Players’ or other persons’ use of the from self-service laundry machines that are
school’s ball diamonds or football operated by tokens or magnetic cards are
fields. taxable.
– Season tickets for amusement, athletic, • Landscaping and lawn maintenance ser-
entertainment, or recreational events. vices.
– Optional student activity fees which • Cable television services, including instal-
admit the student to taxable events, ser- lation or hookup charges.
vices, or facilities, or which permit the
student to use tangible personal proper- • Meals (i.e., prepared food), tickets to thea-
ty. tre performances, etc., provided to persons
in exchange for donations are subject to
– Intramural fees paid by students for use sales tax to the extent of their value when
of recreational facilities. the donation equals or exceeds that amount.
– Fees for bowling, unless for class in- Example: Patrons donate $100 and receive
struction. a $10 meal. Their actual donation is $90.
The $10 portion for the meal is subject to
– Rentals of auditoriums, gymnasiums, the sales tax.
and other multipurpose recreational or
entertainment type facilities to persons • Printing or imprinting tangible personal
who use the facilities for their self- property or other property, items, or goods,
entertainment. However, see Part II.C.4 except:
for exceptions.
– Catalogs and their mailing envelopes,
• Telecommunications and ancillary services, and
unless the services are furnished by the
school with lodging services. – Advertising and promotional direct
mail (effective July 1, 2013).*
• Internet access services.
8Sales and Use Tax Information for Colleges, Universities, and Technical Colleges
Exception: Printing or imprinting tangible b. Examples of sales of services which are not
personal property or other property, items, taxable include:
or goods that results in printed advertising
materials which will be subsequently trans- • Mandatory student activity fees which
ported outside Wisconsin by the purchaser are included in the billing for tuition.
for use solely outside Wisconsin is not tax- These activity fees may provide admis-
able. sions or reduced admissions to social,
sporting, recreational, or athletic events
*See Part VI.B. of Publication 235, Adver- or places, or to parking spaces.
tising Companies, for information about
exemptions for certain printed materials, Example: If a charge of $50 is includ-
including the definition of and explanation ed in the activity fee for parking
of advertising and promotional direct mail. privileges, and all students must pay
this fee, regardless of whether or not
C. Nontaxable Sales they drive, the $50 charge is not taxa-
ble.
Caution: The nontaxable sales and receipts illus-
trated below are applicable to schools. The Caution: If only the students who are
examples given may not apply to activities con- actually going to use the parking facili-
ducted by other entities. ties are charged the $50 parking fee, the
$50 charge is taxable.
1. Tuition, activity, and course instruction fees.
• Admission to a golf course or bowling
Charges for student tuition are not taxable be- center which is required as part of a
cause they are for educational services. If the specific course in golf or bowling.
billing for tuition includes mandatory charges
for materials (which are incidental to the educa- Minor deviations in billing procedures will not
tional services) or mandatory charges for void this basic exemption and the transaction
otherwise taxable services, the entire billing is will still be exempt. For example:
considered to be for a nontaxable educational
service. This is the case whether or not the • A course is dropped two weeks after the
mandatory charges for materials or taxable ser- original registration date and the student
vices are separately stated on the billing for pays for a substitute course at this later
tuition issued to the student. date.
a. Examples of sales, licenses, leases, or rent- • Activity fees are charged all students at the
als of tangible personal property which are main campus, but satellite locations not of-
not taxable include: fering activities do not have an activity fee.
• Mandatory charges for textbooks, la- • Each tuition billing includes charges for
boratory materials, or supplies and different materials, depending on courses.
equipment rentals included in the bill-
ing for tuition. • Separate charges for required textbooks are
included in the original tuition billing and
• Mandatory rentals of golf clubs includ- the student subsequently picks up the books
ed in the billing for tuition for a at the college operated bookstore.
specific educational course in golfing.
Caution:
(1) Except as described under minor deviations
above, mandatory charges for materials and
9Publication 204
other property, items, and goods billed sub- 3. Furnishing rooms or lodging to students or any
sequent to the billing for tuition are subject other persons, regardless of the duration.
to sales tax.
4. Rental of auditoriums, gymnasiums, and other
(2) Taxable services billed subsequent to the multipurpose facilities (including associated
billing for tuition are taxable, unless the charges for heat, light, and janitor fees) are not
services billed are required by a specific taxable admissions to amusement, athletic, en-
educational course and, therefore, consid- tertainment, or recreational facilities when:
ered to be part of the nontaxable
educational service. • The facility is rented to a promoter or pro-
fessional group which will convert it to a
2. Food and food ingredients, including candy, place of recreation, amusement, or enter-
soft drinks, dietary supplements, and prepared tainment and sell admissions to the public.
food, furnished in accordance with any contract The promoter or professional group must
or agreement or paid for to such institution provide the school with a fully completed
through the use of an account of such institu- exemption certificate (e.g., Form S-211)
tion, by a public or private institution of higher claiming resale.
education, are exempt if:
• The facility is rented to a promoter or group
• The items are furnished to an undergraduate which conducts a nonrecreational-type
student, a graduate student, or a student en- event on the premises, such as a religious
rolled in a professional school if the student meeting, graduation ceremony, political
is enrolled for credit at that institution and meeting, trade show, antique show, or wed-
if the items are consumed by that student, ding ceremony.
or
5. Membership dues in a school’s student union.
• The items are furnished to a National Foot-
ball League team. 6. Admission to facilities that are used primarily
for fitness or health.
Caution: The following sales of food products
are subject to Wisconsin sales or use tax, unless An admission to a facility is primarily for fit-
an exemption applies (e.g., sales to Wisconsin ness and health if users spend more than 50% of
governmental units, sales for resale, etc.): their overall time using the following nontaxa-
ble facilities:
• Prepared foods, candy, soft drinks, and die-
tary supplements sold to professors, • Aerobics classes
teachers, and administrators. • All lessons (swimming, tennis, golf, etc.)
• Free weights and machines
• Prepared foods, candy, soft drinks and die-
tary supplements sold at wedding • Whirlpool, sauna
receptions. • Running track (other than for races)
• Prepared foods, candy, soft drinks and die- • Exercycles, lifecycles
tary supplements sold to employees, even if • Rowing machines
sold to the employees during the employees • Stepping machines
work hours.
• X-country ski machines
• Treadmills
• Tanning booths and beds
• Massage table/room
10Sales and Use Tax Information for Colleges, Universities, and Technical Colleges
A reasonable method of determining nontaxable in nontaxable activities (running and exercis-
use is a representative survey of participants ing).
and their time spent in each facility. Schools
must keep adequate records to substantiate how Since the primary purpose of the members was
they determine the primary purpose of the par- to use the facilities for taxable activities, all of
ticipants’ use of the facilities. the club’s membership fees are subject to sales
tax.
Example 1: A school’s health and fitness center
has two membership plans. The blue card Note: Even in situations where the primary
membership ($30/month) entitles members to purpose of the members is to use the facilities
use the weight room, swimming pool, running for nontaxable activities and, therefore, the or-
track, and exercise machines. A separate fee is ganization’s fee has been determined to be
charged to blue card members for the use of nontaxable, any separate charges for taxable ac-
racquetball courts. The gold card membership tivities, services, or property are subject to sales
($40/month) entitles members to use all of the tax.
above facilities and also entitles the members to
use the racquetball courts with no additional 7. Lessons.
charge.
8. Charges for mandatory or optional appliance
Based on a survey of blue card members, the hookups or rentals of refrigerators, microwaves,
club has found that these members spend 30% etc., to dorm residents by the school, but not
of their time swimming (free swim or lap swim, cable television services. Appliance rentals
no lessons: taxable activity) and the remaining from other vendors are taxable unless the ven-
70% of their time in nontaxable activities, in- dor has a contract with the school and the
cluding running, exercising, and lifting weights. students directly pay the school.
Since the primary purpose of the blue card
members is to use the facilities for nontaxable 9. Library and book fines and charges for books
activities, the club’s receipts from all of the blue not returned.
card memberships are not subject to sales tax.
10. Advertising space in newspapers, brochures,
Based on a survey of gold card members, the and programs.
club has found that these members spend 75%
of their time swimming or playing racquetball D. Student Organizations
(taxable activities) and the remaining 25% of
their time in nontaxable activities. Since the 1. Independent, nonprofit student organizations
primary purpose of the gold card members is to which control their own funds, and are not oth-
use the facilities for taxable activities, the club’s erwise required to hold a seller’s permit, may
receipts from all of the gold card memberships not be required to charge sales tax on their sales
are subject to sales tax. of otherwise taxable tangible personal property,
property, items, goods, or services if the sales
Example 2: A school’s health and fitness center qualify as “occasional sales.”
charges a single fee to its members for the use
of tennis courts, racquetball courts, a swimming For additional information about sales by stu-
pool, a running track, and exercise machines. In dent organizations and the occasional sale
a study conducted by the club, in which it ob- exemption, see the following:
served and recorded the use made of each area
of the club, it found that 65% of the members’ • Publication 206, Sales Tax Exemption for
time was spent in taxable activities (playing Nonprofit Organizations.
tennis, racquetball, and swimming) and the re-
maining 35% of the members’ time was spent
11Publication 204
• Publication 245, Sales and Use Tax Infor- seller the CES number issued by the Wisconsin De-
mation for Schools, Part VII., "School- partment of Revenue or an exemption certificate
Related Organizations." (Form S-211 or Form S-211-SST).
2. If a student organization is a part of the school, C. Student Organizations
the tax treatment of its sales is the same as that
of the school. 1. Student organizations which are a part of the
school may make purchases exempt from sales
tax in the same manner as their respective
III. PURCHASES BY COLLEGES, schools, as outlined in Part III.A. or B. above.
UNIVERSITIES, AND TECHNICAL
COLLEGES 2. Student organizations which are separate from
the school, but are organized and operated ex-
The exemption that a college, university, or tech- clusively for religious, charitable, scientific, or
nical college has for its purchases does not extend educational purposes, may qualify for a CES
to purchases by others, such as contractors hired by and should apply to the Wisconsin Department
the college, university, or technical college or an- of Revenue for their own number. The school’s
other state's university system. CES number should not be used.
A. Operated by the State of Wisconsin or Another For additional information, see Publication 245,
Federal or Wisconsin Governmental Unit (e.g., Sales and Use Tax Information for Schools,
UW-Madison, UW Eau Claire, Madison Area Part VII, "School-Related Organizations."
Technical College)
All property, items, goods, and services may be IV. CONSTRUCTION FOR COLLEGES,
purchased exempt from Wisconsin sales or use tax. UNIVERSITIES, AND TECHNICAL
To claim the exemption, the college, university, or COLLEGES
technical college must give the seller one of the fol-
lowing: Even though a contractor is constructing, altering, re-
pairing, or improving real property for a school, sales of
1. A completed purchase order or similar docu- building materials to the contractor for use in real prop-
ment clearly identifying the college, university, erty construction are taxable. The reason for this
or technical college as the purchaser. treatment is that the contractor is the consumer of the
building materials used in constructing, altering, repair-
2. A Wisconsin Sales and Use Tax Exemption ing, or improving the real property. Therefore, the sale
Certificate (Form S-211 or Form S-211-SST). to the contractor is a retail sale and is subject to tax.
3. The Certificate of Exempt Status (CES) number Note: The exemption that a college, university, or tech-
issued by the Department of Revenue. nical college has for its purchases does not extend to
purchases by others, such as contractors hired by the
B. Private College, University, or Technical College college, university, or technical college or another
(e.g., private nonprofit schools which are not oper- state's university system.
ated by the State of Wisconsin or another
governmental unit or agency, but which are operat- For more information about construction for schools
ed exclusively for religious, charitable, scientific, or and other exempt entities, see Publication 207, Sales
educational purposes and have been issued a CES and Use Tax Information for Construction Contractors.
by the Wisconsin Department of Revenue)
All property, items, goods, and services may be
purchased exempt from Wisconsin sales or use tax.
To claim the exemption, the school must give the
12Sales and Use Tax Information for Colleges, Universities, and Technical Colleges
V. RECORDKEEPING clares that he or she is going to resell the item
or service.
A. General
2. The purchaser uses the item purchased in an
Every school required to have a seller’s permit must exempt manner (for example, the item is going
keep adequate records of business transactions to to be used exclusively and directly in manufac-
enable the school, as well as the Department of turing or in farming and is, therefore, exempt).
Revenue, to determine the correct amount of tax for The seller should obtain a completed exemption
which the school is liable. The law requires that all certificate from the purchaser.
persons (including schools) must report their sales
using the accrual accounting method, unless the 3. The purchaser is an exempt organization (such
Department of Revenue determines an undue hard- as a church, federal governmental unit, federal-
ship would result. The cash basis is then permitted. ly recognized American Indian tribe or band in
Wisconsin, or Wisconsin governmental unit, in-
Schools selling taxable property, items, goods, or cluding Wisconsin municipalities and public
taxable services that are sourced to a county which schools). Sales to federal and Wisconsin gov-
has adopted the county tax or a stadium district ernmental units, including Wisconsin
must also keep records showing the sales and use municipalities and public schools, and sales to
tax due in that county or stadium district. any federally recognized American Indian tribe
or band in Wisconsin do not have to be sup-
See sec. Tax 11.92, Wis. Adm. Code, "Records and ported by exemption certificates. However, an
record keeping," exemption certificate, a copy of the purchase
order from the governmental unit, or an invoice
B. Exemption Certificates and Exemption Claims copy indicating the unit’s CES number must be
retained as part of the seller’s records.
If a school claims that part or all of its retail sales of
property, items, goods, or taxable services are ex- For exempt sales to organizations holding a
empt from sales and use tax, the school must keep a CES number (such as a church), the number
record of the name and address of the person to should be recorded on the invoice or an exemp-
whom the exempt sale was made, the date of sale, tion certificate obtained.
the article sold, the amount of exemption, and the
reason the sale was exempt from tax. Nonprofit organizations organized and operated
exclusively for religious, charitable, scientific,
The reason for keeping such records is that the sales or educational purposes, or for the prevention
and use tax law provides that all receipts are taxable of cruelty to children or animals, may apply to
until the contrary is established. The seller (school) the Department of Revenue for a CES and if
has the burden of proving that a sale of the proper- approved, will be issued an exempt status num-
ty, item, good, or taxable service is exempt, unless ber by the department.
the seller takes a certificate (or other information as
described in Part V.B.3. and 4. below) in an ap- 4. The purchaser furnishes the seller (a) a copy of
proved form from the purchaser no more than 90 its Wisconsin direct pay permit or (b) a state-
days after the date of the sale which indicates that ment that the purchaser holds a Wisconsin
the property, item, good, or service being purchased direct pay permit, the permit number, and the
is for resale or is otherwise exempt. date the permit was issued. The purchaser is
subject to Wisconsin use tax on the purchase
Four common reasons that sales of property, items, price if the property or service purchased is
goods, or taxable services may be exempt are: used in a taxable manner.
1. The purchaser furnishes the seller an exemption Note: If exemptions are claimed for any of the
certificate claiming resale. The certificate is above four reasons, the seller must keep the com-
given to the seller because the purchaser de-
13Publication 204
pleted certificates, purchase orders, and invoices to Number Subject
prove that the sales were exempt. 201 Wisconsin Sales and Use Tax In-
formation
VI. QUESTIONS OR ADDITIONAL 202 Motor Vehicle Sales, Leases, and
INFORMATION Repairs
203 Manufacturers
A. Department of Revenue Assistance
206 Sales Tax Exemption for Nonprofit
If you have a question about Wisconsin sales and Organizations
use taxes, you may contact the Department of Rev- 207 Contractors
enue as follows: 209 Wisconsin Counties and Municipali-
Visit our website . . . revenue.wi.gov ties
210 Sales and Use Tax Treatment of
Email . . . DORSalesandUse@revenue.wi.gov Landscaping
Write . . . Wisconsin Department of Revenue 211 Cemetery Monument Dealers
Mail Stop 5-77 212 Businesses: Do You Owe Use Tax
PO Box 8949 on Imported Goods?
Madison, WI 53708-8949
214 Businesses: Do You Owe Use Tax?
Telephone… (608) 266-2776 216 Filing Claims for Refund of Sales or
Fax . . . (608) 267-1030 Use Tax
You may also contact any of the Department of 217 Auctioneers
Revenue offices. For a listing of offices and their 219 Hotels, Motels, and Other Lodging
current hours, please see the department’s website Providers
at: revenue.wi.gov/faqs/ise/address.html. 220 Grocers
221 Farm Suppliers and Farmers
B. Other Aids
222 Motor Vehicle Fuel Users
Other informational aids available include: 223 Bakeries
224 Veterinarians
1. Sales and Use Tax Report
225 Barber and Beauty Shops
The Sales and Use Tax Report is published one 226 Golf Courses
or more times each year by the Department of 228 Temporary Events
Revenue. It includes general information about 229 Brackets for Collecting Wisconsin
sales and use tax, including new tax laws enact- Sales or Use Tax Paid on Retail
ed by the legislature. Sales
230 Sellers of Antiques, Crafts, and
Notification of new Sales and Use Tax Reports Artwork
will be sent to subscribers of the sales and use
tax electronic mail list. 231 Manufactured and Modular Homes
235 Advertising Companies
2. Publications 240 Digital Goods
245 Schools
The following sales and use tax and other local
tax publications are available on the depart- 403 Premier Resort Area Tax
ment's website. 405 Wisconsin Taxation of Native
Americans
Number Subject 410 Local Exposition Taxes
200 Electrical Contractors
14Sales and Use Tax Information for Colleges, Universities, and Technical Colleges
Notification of new and revised publications will be release, private letter ruling, or Attorney Gen-
sent to subscribers of the sales and use tax electron- eral opinion that deals with your particular tax
ic mail list. question. The second part of the index (a Court
Case Index) lists Wisconsin Tax Appeals
3. Wisconsin Tax Bulletin Commission, circuit Court, Court of Appeals,
and Wisconsin Supreme Court decisions relat-
The Wisconsin Tax Bulletin is a quarterly publi- ing to your question.
cation of the Department of Revenue which is
available on the department’s website. The Bul- 6. Electronic Mailing Lists
letin includes information on most taxes
administered by the Department of Revenue, The Department of Revenue has several elec-
including sales and use, income, franchise, and tronic mailing lists available to the public. The
excise taxes. It includes up-to-date information goal is to provide communication from the de-
on new tax laws, interpretations of existing partment to list members on information and
laws, and information on filing returns. It gives news specific to the respective list they have
brief excerpts of major Wisconsin tax cases de- signed up for.
cided by the Wisconsin Tax Appeals
Commission and the courts. For additional information or to subscribe, go to
revenue.wi.gov/html/lists.html.
Notification of new bulletins will be sent to
subscribers of the sales and use tax electronic
mail list. VII. ANY SUGGESTIONS?
4. Rules - Wisconsin Administrative Code The Department of Revenue wants this publication to
be as complete and informative as possible. If you
The Wisconsin Administrative Code includes have any suggestions to improve this publication,
administrative rules that interpret the Wisconsin please either call or write to:
Statutes. Rules have the force and effect of law.
The Department of Revenue has adopted a Wisconsin Department of Revenue
number of rules pertaining to sales and use tax. PO Box 8949, Mail Stop 5-77
Madison, WI 53708-8949
5. Topical and Court Case Index (608) 266-2776
The Topical and Court Case Index is a two-part
index. The first part (a Topical Index) will help
you find the particular Wisconsin Statute, ad-
ministrative rule, Wisconsin Tax Bulletin tax
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