SALT Report 3081 – The Wisconsin Department of Revenue updated a fact sheet that explains the sales and use tax exemption as it applies to chambers of commerce. The fact sheet states that a chamber of commerce is not specifically exempt from sales or use taxes; therefore, it must pay tax on its purchases of taxable products and services unless an exemption, or a resale exemption, applies.
Also, sales of taxable products and services made by a chamber of commerce are subject to tax unless an exemption, such as the resale or the occasional sales exemption, applies. Additionally, the taxability of a product or service sold by a chamber will not be determined by whether the chamber donates its sales proceeds to charity.
If a chamber sells or purchases taxable and nontaxable products together for a single price, the sale is considered a bundled transaction, and the entire sales price is subject to tax. However, if the retailer is able to identify the portion of the sales price that is attributable to the nontaxable products, the retailer may choose to charge sales tax only on those taxable products. This option is not applicable to a bundled transaction that includes food and food ingredients, drugs, durable medical equipment, mobility-enhancing equipment, prosthetic devices, or medical supplies.
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