Wisconsin – Occasional Sale Exemption for Nonprofits

SALT Report 3082 – The Wisconsin Department of Revenue updated its fact sheet that discusses the occasional sales exemption available to nonprofit organizations.  Nonprofit organizations are often referred to as tax exempt because they are exempt from federal and state income taxes.  However, in Wisconsin, nonprofit organizations are not automatically exempt from sales or use taxes.

Because of this, the Department advises that sales made by a nonprofit will only be exempt if all of the following conditions are met:

  • The nonprofit is not engaged in a trade or business
  • Entertainment is not involved at an event for which the nonprofit charges for admission, and
  • The nonprofit does not have, and is not required to have, a seller’s permit

To clarify these conditions, the fact sheet provides several examples of situations that will help determine, whether a nonprofit is engaged in a trade or business; the taxability of admission charges when entertainment is not provided, and situations in which a nonprofit would otherwise qualify for exempt occasional sales, except for the involvement of entertainment.

For Further Information

Wisconsin Department of Revenue – Fact Sheet No. 2106