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Wisconsin Sales and Use Tax Changes, Explained


 Wisconsin Department of Revenue explains tax changes.

The Department of Revenue has released a tax bulletin explaining numerous changes to Wisconsin tax law recently enacted by the Wisconsin Legislature. The bulletin provides "brief descriptions of the major changes" to income tax, estate tax, sales and use tax, and fees, among other items.

Section F explains noteworthy changes to sales and use tax, some of which took effect earlier this month, and some of which will not take effect until later this year or early 2014. Examples include:

  • Deduction on Current Return -- Exemption Certificate Received After Sales Tax Paid, effective July 2, 2013. Under this law, a retailer who reports a sale and later receives a fully completed exemption certificate from the purchaser "may claim a deduction on its sales tax return for the sales price of the items covered by the exemption certificate," provided certain conditions are met.
  • Federal Legislation for Remote Sellers -- Revenues Must Be Used to Reduce Wisconsin Income Tax, effective July 2, 2013. If the federal government passes the Marketplace Fairness Act of 2013 (MFA), or similar legislation that would allow a state to collect remote sales tax, the state requires the Department of Revenue "to determine the amount of additional revenue collected from [the additional] sales and use taxes… [and] to determine how much the individual income tax rates may be reduced in the following taxable year…" based on the amount of additional sales and use tax collected. If all goes as planned, new income tax rates will eventually be imposed.

Exemptions

The tax bulletin also explains new sales and use tax exemptions that include:

  • Taxable items and services sold by a contractor as a part of a lump sum contract;
  • Purchases by a person primarily engaged in certain commercial printing businesses; and
  • Machinery and equipment (including attachments and parts) for items and property consumed or destroyed while being used exclusively and directly in qualified research, as defined by state statute.

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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.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.