Sales and Use Tax Information for Motor Vehicle Sales, Leases, and Repairs
constructed as to carry any load thereon either
3% rental vehicle fee if Company A is an es-
independently or any part of the weight of the
tablishment primarily engaged in the short-
vehicle or load so drawn.
term rental of vehicles without drivers.
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Truck tractors – Motor vehicles designed and
Rentals as a service or repair replacement ve-
use primarily for the drawing other vehicles
hicle
and not so constructed as to carry a load other
Example: Individual A takes his automobile
than a part of the weight of the vehicle and
to Company B for repair. For a fee of $20 per
load so drawn.
day, Company B provides Individual A with
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an automobile to use while his automobile is
Semitrailers – Vehicles of the trailer type so
being repaired. Individual A picks up the
designed and used in conjunction with a mo-
automobile in Wisconsin and uses it for five
tor vehicle that some part of its own weight
days.
and that of its own load rests upon or is car-
ried by another vehicle, but do not include
The charge by Company B to Individual A for
mobile homes. A vehicle used with a redi-mix
the use of the automobile is not subject to the
motor truck to spread the load is a semitrailer.
3% rental vehicle fee. Company B should
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obtain
an
exemption
certificate
(Form
Trailers – Vehicles without motive power de-
RV-207) from the customer.
signed for carrying property or passengers
wholly on its own structure and for being
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Rentals to the federal government
drawn by a motor vehicle, but do not include
mobile homes.
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Rentals to organizations under sec. 77.54(9a),
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Wis. Stats., including a Wisconsin state
Motor buses – Motor vehicles designed pri-
agency, county, city, village, town, public
marily for the transportation of persons rather
school, or school district and nonprofit or-
than property and having a passenger-
ganizations that hold a Certificate of Exempt
carrying capacity of 16 or more persons, in-
Status (CES) issued by the Wisconsin De-
cluding the operator. Passenger-carrying
partment of Revenue
capacity shall be determined by dividing by
20 the total seating space measured in inches.
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Rentals by any public or private elementary
or secondary school exempt from Wisconsin
2. Exemptions
income or franchise taxes, including school
The following exemptions apply to the rental ve-
districts
hicle fee:
Note: Exemptions, other than those listed above,
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that apply for Wisconsin sales or use tax purposes
Rerentals
(e.g., common or contract carriage) do not apply
for the rental vehicle fee.
Example: Company A leases an automobile
in Wisconsin from Company B for 30 days or
3. Returns
less. Company A will use the automobile
solely to lease to Individual C in Wisconsin.
The rental vehicle fee is reported on the Wiscon-
sin Rental Vehicle Fee Return (Form RV-012)
The charge by Company B to Company A for
Note: Do not report the rental vehicle fee on a
the lease of the automobile is not subject to
Wisconsin sales and use tax return, Form ST-12.
the 3% rental vehicle fee because it is for
rerental. Company A should provide Com-
pany B with a properly completed resale
certificate (Form S-205). The charge by
Company A to Individual C is subject to the
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