SALT Report 1911 – The Wisconsin Department of Revenue issued guidance regarding the taxability of sales of Internet access services to customers whose place of primary use is in Wisconsin.
Place of primary use means the street address where the customer primarily uses the Internet access service and is all of the following:
- The residential street address or the primary business street address of the customer, and
- Within the licensed service area of the service provider
The Department explains that although the federal Internet Tax Freedom Act provides a moratorium on the taxation of Internet access services until November 1, 2014, Wisconsin is exempt from the moratorium.
Therefore, Wisconsin sales and use taxes apply to the monthly fees paid by customers to access the Internet. For example, a $30 monthly fee paid for high-speed Internet service is taxable.
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