Wisconsin – Publication for Manufacturers Corrected

SALT Report 1135 – The Wisconsin Department of Revenue has corrected a publication that provides sales and use tax information for manufacturers.

The publication specifically addresses Wisconsin’s sales and use tax as it relates to manufacturers and describes the nature of manufacturing, what types of purchases or sales by manufacturers are taxable or exempt, and what a manufacturer must do to comply with the law.

The corrected publication reflects that chemicals and cleaning agents used by food processors to clean walls, ceilings, floors, and drains in rooms where manufacturing takes place are used indirectly in the manufacturing process and will be treated as taxable beginning November 1, 2011.

The publication also notes that cardboard used by a manufacturers to catch overspray is not used directly in the manufacturing process and will be taxable beginning November 1, 2011.  A previous version of the publication mistakenly indicated that purchases of these items were exempt.

The publication also discusses:

  • Bundled transactions;
  • Exemption certificates;
  • Use tax;
  • Sales by manufacturers;
  • The definition of “manufacturer” and the requirements for meeting the definition;
  • Exemptions for manufacturing machines and specific processing equipment;
  • Exemptions for containers and other packaging and shipping materials;
  • Fuel and electricity used in manufacturing;
  • Permit and registration requirements;
  • Collection of state and local taxes;
  • Return filing and payment requirements;
  • Sales subject to tax;
  • Exemptions for ingredients or component parts and consumable items;
  • Waste treatment, waste reduction, and recycling;
  • Mobile mixing units;
  • Printed advertising materials, raw materials for printing, and certain printing services; and,
  • Determining when and where a sale occurs

For Further Information:

Wisconsin Department of Revenue Publication No. 203