SALT Report 1187 – The Wisconsin Department of Revenue has updated its guidance on the sales and use tax exemption for property that is consumed, destroyed, or loses its identity during the manufacturing process. The update was changed to reflect that the property is to be used “exclusively and directly by a manufacturer.” Therefore, the exemptions longer no apply to purchases of:
- Consumables by non-manufacturers used in performing a service for a manufacturer.
- Chemicals and cleaning agents used by a manufacturer to clean walls, ceilings, floors, drains, windows, and doors, where manufacturing takes place to meet sanitation standards required by state and federal regulatory agencies.
- Cardboard placed under manufacturing machines to collect waste raw materials and supplies used in manufacturing a product.