Wisconsin – Department of Revenue Sales and Use Tax Report December 2013

SALT Report 3191 – The Wisconsin DOR has issued their December 2013 Sales and Use Tax Report which highlights the following:

Hanging Holiday Lights – The service of hanging someone else’s holiday lights and/or decorations is a taxable service per Wisconsin Statutes, Section 77.52(2)(a)(10).

Increase in Sales and Use Tax Filing Frequency Thresholds – Effective 1/1/14, the amounts used to determine whether a taxpayer files annual, quarterly, or monthly sales tax returns will change due to a law change in 2013 (Wisc. Act 20).  The new thresholds are:

Early monthly: $3,601 or more/quarter
Monthly: $1,201 – $3,600/quarter
Quarterly: $601 – $1,200/quarter
Annual: $600/year or less

Change in Taxes Included in Taxable Sales Price – The definitions of “sales price” and “purchase price” were amended effective 7/2/13, pursuant to 2013 Wisconsin Act 20.  According to the DOR, “Changes in the tax treatment of the following are a result of the amendment:

State Universal Service Fund (USF) Fee – The state USF fee is not included in the retailer’s taxable sales price.  Therefore, the retailer should not charge tax on this fee.

Federal Excise Tax on Heavy Trucks and Trailers – The federal excise tax imposed on the first retail sales of heavy trucks and trailers under s. 4051 of the Internal Revenue Code is included in the retailer’s taxable sales price.”

The DOR goes on to state that “When taxes are imposed on a retailer, the tax is not included in the retailer’s taxable sales price if both of the following apply:

  1. The retailer separately states the tax on the invoice, bill of sale, or similar document that the retailer gives to the purchaser; and
  2. The law imposing or authorizing the tax provides that the seller may, but is not required to, pass on and collect the tax from the user or consumer.”

Snow Removal Services – The sale of snow removal services is not taxable.  Snow removal services are not among the taxable services provided in Wisconsin Statutes, Section 77.52(2)(a).  The report goes on to clarify that “the service provider (in this case, the person or company providing the snow removal services) is the consumer of any tangible personal property that it transfers to its customers with such services and is liable for sales or use tax on its purchase of such property.”

For Further Information:

Wisconsin DOR December 2013 Sales and Use Tax Report

Wisconsin Legislation – Act 20 2013

Wisconsin DOR “Sales and Use Tax Filing Frequency Threshold Changes for 2014”