Sales And Use Tax Information For Motor Vehicle Sales, Leases, And Repairs - State Of Wisconsin Page 22
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49Publication 202
•
for which the person receives compensation.
Motor vehicles used to transport custom-
“Actively participate” does not include serv-
ers (e.g., courtesy shuttle)
ices performed only in the capacity of an
•
Motor vehicles assigned to owners of a
investor, including studying and reviewing fi-
dealership who do not actively participate
nancial statements or reports on the operation
in the daily operation of the dealership.
of the business, preparing or compiling sum-
See B.1. for a definition of “actively par-
maries or analyses of the finances of the
ticipate.”
business for the investor’s own use, or moni-
•
toring the finances or operations of the
Motor vehicles used by spouses or family
activity in a nonmanagerial capacity.
members of the dealer who are not (a)
dealer employes subject to withholding
Note: Motor vehicles not subject to use tax
for federal income tax purposes or (b)
(i.e., there is no sales tax due on a dealer plate
owners who actively participate in the
affixed to the vehicle) include the following:
daily operation of the dealership
•
•
Motor vehicles assigned to officers and
Motor vehicles used only as demonstra-
directors of the dealer who are not subject
tors for customers
to withholding for federal income tax
•
Motor vehicles that are driven to and
purposes
from auctions and that are held only for
•
Motor vehicles provided by a dealer to
sale
municipalities and nonprofit organiza-
•
Motor vehicles provided by a dealer to
tions who use them for community
customers without charge for use while
service projects (e.g., DARE)
their motor vehicle is being serviced or
•
Motor vehicles provided to athletic
repaired by the dealer
coaches, celebrities, and other dignitaries
without charge for their use
Example: A motor vehicle dealer holds a
dealer plate that it uses only on motor vehi-
If the motor vehicle is used for a purpose, in
cles it drives to auction to sell. Use tax is not
addition to retention, demonstration, or dis-
due.
play, for a period of less than one calendar
month, the lease value may be prorated to re-
2. Motor vehicles held for sale and not assigned
flect the period it was used during the
to specific dealer employes subject to with-
calendar month.
holding for federal income tax purposes on
wages or certain dealership owners
Example: Dealer A removes a new vehicle
from inventory on February 1, 1998, that it
The amount subject to tax is the “lease value”
will use as a courtesy shuttle for customers.
of the motor vehicle for the period the motor
The purchase price of the vehicle to the dealer
vehicle is used by the dealer for any purpose,
was $12,000. Using the federal lease value
in addition to retention, demonstration, or
tables, Dealer A computes a monthly lease
display. The “lease value” is computed using
value of $300 ($3,600 annual lease value ÷ 12
the IRS Lease Value Table contained in IRS
months). At the end of the business day on
Reg. § 1.61-21(d)(2).
February 15, Dealer A returns the vehicle to
inventory for sale. Dealer A owes Wisconsin
See Appendix I for a copy of the IRS Lease
use tax on the vehicle of $8.05 ($300 monthly
Value Table in effect as of February 1, 1998.
lease value x 15/28 (or $161) x 5%).
Examples of motor vehicles subject to use tax
based on amounts from the IRS Lease Value
Table include (this list is not all-inclusive):
20
ADVERTISEMENT
0 votes
Related Articles
Related forms
Form Cert-125 - Sales And Use Tax Exemption For Motor Vehicle Purchased Within The State Of Connecticut But Not Registered In This State By A Purchaser Who Does Not Reside In This State
Financial
Form Cert-125 - Sales And Use Tax Exemption For Motor Vehicle Purchased Within The State Of Connecticut But Not Registered In This State By A Purchaser Who Does Not Reside In This State
Financial
Form Cert-125 - Sales And Use Tax Exemption For Motor Vehicle Purchased Within The State Of Connecticut But Not Registered In This State By A Purchaser Who Does Not Reside In This State
Financial
Form Cert-135 - Reduced Sales And Use Tax Rate For Motor Vehicles Purchased By Nonresident Military Personnel And Their Spouses 2005
Financial
Form Cert-135 - Reduced Sales And Use Tax Rate For Motor Vehicles Purchased By Nonresident Military Personnel And Their Spouses
Financial
Form Cert-135 - Reduced Sales And Use Tax Rate For Motor Vehicles Purchased By Nonresident Military Personnel And Their Spouses
Financial
Related Categories
Parent category: Financial