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Internet Services Taxable in Wisconsin

  • Jul 16, 2012 | Will Frei

The Wisconsin Department of Revenue informs taxpayers that Wisconsin is currently exempt from the Internet Tax Freedom Act, and therefore imposes sales tax on Internet access services. 

The Internet Tax Freedom Act 

The Internet Tax Freedom Act of 1998 places a moratorium on new taxes pertaining to ". . . the Internet, Internet access, online services, or electronic commerce." However, the Act makes an exception for those taxes enacted prior to March 1, 1998, provided the rate does not increase after that date.

The U.S. Legislature has since amended the Act to update its definitions of Internet services, and to provide a sunset date for those taxes established before the Act. The most recent amendment in 2007 pushes the sunset date to November 1, 2014.

Wisconsin Sales Tax on Internet Services

Wisconsin is one of the states exempted from the Internet Tax Freedom Act's moratorium, due to a pre-existing sales tax on Internet services. The Wisconsin Department of Revenue states that Wisconsin sales and use taxes ". . . apply to the monthly fees paid by customers to access the Internet. For example a $30 monthly fee for high-speed Digital Subscriber Line (DSL) service is taxable."

Note: the taxes only apply if the customer's "place of primary use" of Internet service is in Wisconsin.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Will Frei
Avalara Author Will Frei
Will Frei covers sales tax news including best practices, legislation and sales tax technology. He is the Social Media Manager at Avalara.