Wisconsin – Sales and Use Tax Bulletin

SALT Report 1375 – The latest issue of the Wisconsin Sales and Use Tax Report provides information regarding recent changes to sales and use tax law and other pertinent sales and use tax information.
Advertising and Promotional Direct Mail
A seller of advertising and promotional direct mail must collect Wisconsin sales and use tax based on the location of where the direct mail was shipped, unless:
  • The purchaser gives an exemption certificate stating direct mail. In this case the seller will collect no Wisconsin sales or use tax and the purchaser is responsible for remitting Wisconsin state, county and stadium use tax based on the recipient’s tax jurisdiction.
  • The purchaser provides each recipient’s tax jurisdiction information.
In most cases the seller will collect Wisconsin, state, county and stadium tax based on the recipient’s tax jurisdiction.  However, if a recipients’ address is provided as jurisdiction information but the information is insufficient to determine the recipient’s county, the seller should collect and remit state tax on sales of advertising and promotional direct mail and should collect and remit county and stadium taxes based on the county where the advertising and promotional direct mail was shipped.
Remote Deposit Capture Services
Remote deposit capture services provided by a financial institution are not subject to Wisconsin sales and use tax.  RCDS is the electronic capturing of a check image at a remote location for deposit into an account at a financial institution.  Merchants using an RDCS scan checks at their location and then send the scanned images to the financial institution for posting and clearing.  The service is usually provided for a monthly fee.
Merchants must purchase a scanner and prewritten computer software from the financial institution in order to receive the RCDS service.  The transaction is considered the sale of a nontaxable service since the scanner and prewritten computer software are furnished to the customer incidental to the service. Therefore, the monthly charges by the financial institution for the use of the scanner, prewritten computer software, and system support, as well as per-item check charges and per-deposit charges, are generally not taxable.
In most cases, the financial institution’s purchase of the scanners and prewritten computer software that it provides to its customers is subject to tax as well as its charges for the use of equipment and software if the charge is separate from the RDCS and optional.  In certain situations, the financial institution may purchase the equipment and software tax-free for resale.
Rental Car Fuel Charges
Separate and optional charges for motor vehicle fuel by a rental car company are not subject to Wisconsin sales and use tax, provided that the proper excise taxes were paid by the rental car company to the motor vehicle fuel supplier.  In addition, a separate and optional flat fee charged to a customer who prepays for a full tank of gas so the customer does not have to fill the car’s gas tank upon return is not taxable.
Sales Tax Articles Updated:
  • Sales of used motor vehicles, boats, snowmobiles, recreational vehicles, trailers, semitrailers, all-terrain vehicles, and aircraft by persons who are not dealers
  • Sales & use tax exemption: property consumed, destroyed, or losing its identity in manufacturing
  • Reporting Sales Tax on Sales of Motor Vehicles, Boats, Snowmobiles, Recreational Vehicles, Trailers, Semitrailers, All-Terrain Vehicles, and Aircraft

For Further Information:

Wisconsin Department of Revenue – Tax Bulletin No. 174