You are likely aware that, as a government entity, you are exempt from sales and use tax on purchases made by your organization. Wisconsin law provides a sales and use tax exemption for purchases made by federal and Wisconsin governmental units, including counties, cities, villages, towns and school districts, and any federally recognized American Indian tribe or band in Wisconsin.
However, there are some very complicated and specific rules that directly apply when a governmental unit is required to charge sales tax on the sale of tangible personal property or services.
Your governmental unit qualifies for the occasional sales exemption and is not required to charge sales tax if you meet all of the following three conditions:
- Your governmental unit does not hold and is not required to hold a seller's permit.
Exception: If your governmental unit holds a seller's permit solely for the purpose of conducting bingo events, this condition is still met.
- Your governmental unit does not have taxable receipts exceeding $25,000 during the calendar year, or, your sales of otherwise taxable tangible personal property, services, or admission events occur on 20 days or less during the calendar year. (For any sales of admissions or tickets, only the actual days of the events are counted, not the days of ticket or admission sales.)
Note: Both the $25,000 and 20-day standards must be exceeded for "Condition B" to be met.
- Your governmental unit does not conduct an event involving entertainment for which the governmental unit or other persons pay in excess of $500 for entertainment and admission.
If your governmental unit meets any one of the above criteria, you must charge and remit sales tax on the sale of tangible personal property and certain taxable services.
Sales commonly subject to tax
Some of the sales or services by governmental organizations that are typically subject to Wisconsin sales tax include:
| Sales or Rental of Tangible Personal Property |
|
Sales of Certain Services |
| Clothing and Uniforms |
|
Cable TV and Telecommunication Services |
| Recreational Equipment and Supplies |
|
Landscaping and Lawn Maintenance Services |
| Landscaping Materials and Culverts |
|
Laundry Services |
| Motor Vehicle Sales or Rental |
|
Lodging Services |
| Maps, Plat Books, Photocopies (except: “records”) |
|
Parking, Storage, and Docking Charges |
Utilities
• Exception: exempt for residential use during the months of November through April, for farm use, and fuel and electricity consumed in manufacturing tangible personal property |
|
Towing and Hauling Services
• Exception: charges for towing motor vehicles from “No Parking” areas to a municipal lot in connection with a parking violation are not taxable |
Rental of Multipurpose Facilities (pavilions, park shelters, auditorium, gymnasium, etc.)
• for amusement, athletic, entertainment or recreational purposes |
|
Admissions (including dues and certain entry fees)
• for amusement, athletic, entertainment or recreational events and places |
This list is not all-inclusive and certain exceptions can apply.
Sales tax laws are complex for governmental units, with numerous exemptions and exceptions. If you have questions about your situation or would like further information, please contact a member of our State & Local Tax team at 800-236-2246.