Instructions For Wisconsin Sales And Use Tax Return - State Of Wisconsin (Page 3 of 6) in pdf

Line 7c. Baseball stadium sales tax: Enter the amount of

Credit for state taxes paid in another state

taxable receipts (gross receipts less applicable deductions)

If you properly paid state sales or use tax to another state on

included in line 6 which are also subject to the baseball stadium

purchases of tangible personal property or taxable services, a

tax (Milwaukee, Ozaukee, Racine, Washington, and

special computation is required to claim credit for the tax paid

Waukesha counties) in the gray shaded box on line 7c.

to the other state. A “measure of tax” must be determined if the

Multiply this amount by .001 and enter the resulting baseball

other state’s tax rate is less than 5%. Determine the “measure

stadium sales tax on line 7c.

of tax” by multiplying the net state use tax liability by 20. The

net state use tax liability is the difference between the 5%

Line 7d. Football stadium sales tax: Enter the amount of

Wisconsin use tax and the state sales tax paid to another state.

taxable receipts (gross receipts less applicable deductions)

If the state sales tax paid to another state equals or exceeds the

included in line 6 which are also subject to the football stadium

5% Wisconsin use tax, do not enter a “measure of tax.”

tax (Brown County) in the gray shaded entry box on line 7d.

Multiply this amount by .005 and enter the resulting football

Example: A Wisconsin dentist purchased dental equipment in

stadium tax on line 7d. Caution: The football stadium sales

South Dakota for $10,000. The dentist paid South Dakota’s

tax applies only to sales made on or after 11/01/00.

4% sales tax of $400. The dentist should make the following

computation:

Line 8. Total sales tax: Add the amounts on lines 7a, 7b, 7c,

and 7d. Enter the total on line 8.

1) Purchase price

$10,000

2) 5% Wisconsin use tax ($10,000 x .05)

$500

Line 9. Discount: The retailer’s discount is computed as

3) Less 4% tax paid to South Dakota

- 400

follows:

4) Net state use tax due to Wisconsin

$100

If line 8 is less than $10, the discount is the amount on line 8.

5) Measure of tax ($100 x 20)

$ 2,000

(Note: Even though this may result in no sales tax due, the

return must still be filed by the due date.) If the amount on line

The dentist should include $2,000 as the “measure of tax” in

8 is from $10 to $2,000, the discount is $10. If the amount on

the gray shaded box for line 11a. Multiply this amount by .05

line 8 is greater than $2,000, the discount is .005 times the

and enter the state use tax on line 11a.

amount on line 8.

Line 11a. State use tax: Enter the total purchase price of the

The retailer’s discount is only allowed on timely reported and

following in the gray shaded box, multiply this amount by 5%

paid sales tax. A return is considered timely filed and the tax

(.05), and enter the result on line 11a:

timely paid only when all of the following conditions are met:

it is mailed in a properly addressed envelope with the postage

Asset additions which are subject to sales or use tax but which

duly prepaid; the envelope is postmarked on or before the due

were a) acquired without payment of Wisconsin state sales tax

date; and it is received by the department within 5 days of the

and b) used, stored, or consumed by you in Wisconsin.

due date.

Examples include:

• Office furniture and equipment

Line 10. Net sales tax: Subtract line 9 from line 8 and enter the

result on line 10.

• Counters, shelving, and other equipment used in operating

a business

PURCHASES SUBJECT TO STATE USE TAX

• Materials used in constructing a new building

• Materials used in remodeling or improving real property

Wisconsin use tax is imposed on the purchase price of taxable

tangible personal property or services that are used, stored, or

• Dealers’ motor vehicles not held for sale (measure of tax is

consumed in Wisconsin, upon which a Wisconsin sales or use

sales price of the vehicle to the dealer)

tax has not previously been paid. Examples include:

Repair and supply items which are purchased, without pay-

• Property to be used in Wisconsin is purchased outside the

ment of Wisconsin state sales tax, and used by you in repairing

state and the property would have been subject to sales tax

or maintaining your property or equipment. Examples include:

if purchased in Wisconsin.

• Repair parts used to repair your own taxable equipment

• Property is purchased for resale (to sell to others) or for a

nontaxable use and is then used by the purchaser in a taxable

• Office or cleaning supplies

manner. No sales tax was paid when purchasing the

property.

• Tools

• Property is purchased and later furnished free of charge to

the buyer’s customers. No sales tax was paid when

purchasing the property.

Instructions For Wisconsin Sales And Use Tax Return - State Of Wisconsin Page 3

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