Publication 203 - Wisconsin Department of Revenue - State of Wisconsin

Jun 1, 2016 - It is reasonable for the purchaser's type of business. 7. A certified service provider is relieved from liability for the tax otherwise applicable to the ...
908KB Sizes 2 Downloads 202 Views
State of Wisconsin Department of Revenue

Important Changes • Sheboygan County tax begins January 1, 2017 • Kewaunee County tax begins April 1, 2017 • Brown County football stadium tax ended September 30, 2015

Sales and Use Tax Information for Manufacturers

Publication 203 (06/16)

Table of Contents Page I.

INTRODUCTION ............................................................................................................................... 5 A. General ........................................................................................................................................... 5 B. Nature of Sales and Use Taxes .......................................................................................................... 6 C. Collecting State and Local Sales and Use Taxes ................................................................................. 6

II.

OBTAINING A PERMIT AND FILING RETURNS ............................................................................ 6 A. Who Must Obtain a Permit ............................................................................................................... 6 B. Filing Returns.................................................................................................................................. 7

III.

WHICH SALES ARE SUBJECT TO SALES AND USE TAXES?....................................................... 7

IV.

WHO IS A MANUFACTURER? ......................................................................................................... 8 A. B. C. D. E. F.

V.

Statutory Definition ......................................................................................................................... 8 Wisconsin’s Definition Requires That a New Article Be Produced ...................................................... 9 Wisconsin’s Definition As Interpreted By the Wisconsin Supreme Court ............................................. 9 By Way of Illustration and Not of Limitation, the Following Are Ordinarily Manufacturers: ................. 9 By Way of Illustration and Not of Limitation, the Following Are Deemed Nonmanufacturers: ............ 10 Fabrication .................................................................................................................................... 10

EXEMPTION FOR MANUFACTURING MACHINES AND SPECIFIC PROCESSING EQUIPMENT .................................................................................................................................... 10 A. B. C. D. E. F.

Statutory Language ........................................................................................................................ 10 Scope of Manufacturing ................................................................................................................. 11 Size of Operation ........................................................................................................................... 12 Exclusively Used Requirement ....................................................................................................... 12 Directly Used Requirement ............................................................................................................ 12 Only Machines, Processing Equipment, Safety Attachments and Repair Parts Qualify for Exemption..................................................................................................................................... 12 G. Real Estate Improvements Do Not Qualify for the Exemption .......................................................... 13

VI.

EXEMPTION FOR INGREDIENTS OR COMPONENT PARTS AND CONSUMABLE ITEMS .... 14 A. B. C. D. E.

VII.

EXEMPTION FOR CONTAINERS AND OTHER PACKAGING AND SHIPPING MATERIALS .. 17 A. B. C. D. E. F. G.

VIII.

Statutory Language .....................