SALT Report 1552 – Due to recent sales and use tax law changes the Wisconsin Department of Revenue has released an updated tax publication for manufacturers. The publication describes the nature of “manufacturing,” defines the term “manufacturer” and outlines the requirements for meeting the definition of manufacturer.
The publication also addresses the new exemption for property used in qualified research. Effective January 1, 2012 sections 77.54(57)(b)1 and 77.54(57)(b)2 provide an exemption from sales and use taxes for the following:
- Machinery and equipment, including attachments, parts, and accessories, that are sold to persons who are engaged primarily in manufacturing or biotechnology in this state and are used exclusively and directly in qualified research.
- Tangible personal property or item that is sold to persons who are engaged primarily in manufacturing or biotechnology in this state, if the tangible personal property or item or property is consumed or destroyed or loses its identity while being used exclusively and directly in qualified research.
To qualify for the exemption, businesses must establish that the research activity being performed meets all four of the tests outlined in the publication.
Additionally, the publication provides updated information regarding permit and registration requirements; return filing and payment requirements; manufacturing machines and processing equipment; component parts and consumable items; containers, packaging and shipping materials; fuel and electricity used in manufacturing; waste treatment, waste reduction, and recycling; printed advertising materials, raw materials for printing and printing services; when and where a sale occurs; bundled transactions; use tax; and sales by manufacturers.
For Further Information: