Wisconsin – Updated Motor Vehicle Fuels Use Tax Publication

SALT Report 2456 – The Wisconsin Department of Revenue updated their publication regarding the use tax applicable to purchases of motor vehicle fuel for which the purchaser received a refund of the motor vehicle fuel tax. Generally, if you receive a refund of motor vehicle fuel tax, your purchase of the fuel is subject to use tax unless an exemption applies. Additionally, if the fuel is subject to use tax, a county and/or stadium use tax will also be due if you purchase or receive the fuel in a Wisconsin county that has county or stadium use tax.

The following are examples of fuel purchases that are subject to use tax, if the motor vehicle fuel tax is refunded:

  • Fuel used in real property construction, including road construction,
  • Fuel used in well drilling,
  • Fuel used in landscaping or logging,
  • Fuel used in refuse, recycling, and waste handling equipment,
  • Fuel used in golf carts and amusement rides,
  • Fuel used in all-terrain vehicles, and
  • Fuel that was purchased with an exemption certificate but was later used in a taxable manner

Fuel Purchases Not Subject to Use Tax

  • Fuel consumed in machines and equipment used directly in manufacturing tangible personal property,
  • Fuel used in farming,
  • Fuel used in logging when providing custom farming services (newly added),
  • Fuel used in mobile mixing and processing units,
  • Fuel used for heating a person’s permanent principal residence,
  • Fuel for rail freight or other rolling stock used in railroad operations,
  • Fuel converted to electric energy, gas, or steam by utilities and fuel converted to steam for purposes of resale
  • Fuel used in commercial vessels and barges of 50-ton burden or over which are primarily engaged in interstate or foreign commerce or commercial fishing,
  • Fuel used in taxicabs, and
  • Vegetable oil or animal fat that is converted into motor vehicle fuel

The publication also includes information on how to compute and report use tax to the Department.

For Further Information

Wisconsin Department of Revenue – Publication No. 222