Sales And Use Tax Information For Motor Vehicle Sales, Leases, And Repairs - State Of Wisconsin Page 5
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49Sales and Use Tax Information for Motor Vehicle Sales, Leases, and Repairs
make no other use of the motor vehicle in Wis-
county which has not adopted the county tax
consin other than its removal from Wisconsin to
(nontaxable county). Six months after the sale of
Minnesota. The motor vehicle is not subject to
the motor vehicle, the dealer contacts Customer F
Wisconsin sales or use tax. Therefore, the ex-
to determine satisfaction with the motor vehicle.
tended warranty is also not subject to Wisconsin
At that time, Customer F decides to purchase an
sales or use tax.
extended warranty on the motor vehicle from the
dealer. Because the sale of the motor vehicle to
Example 3: Customer C, a resident of Wisconsin,
which the extended warranty relates was not
purchases a motor vehicle in Wisconsin. At the
subject to the county tax, the sale of the extended
time of sale, Customer C decides not to purchase
warranty is also not subject to the county tax.
an extended warranty with the motor vehicle. Six
weeks after the sale of the motor vehicle, the
Note: A charge by an extended warranty or serv-
dealer contacts Customer C to determine his or
ice contract provider to a subsequent owner of a
her satisfaction with the motor vehicle. At that
motor vehicle for transferring the extended war-
time, Customer C decides to purchase an ex-
ranty or service contract is not subject to
tended warranty on the motor vehicle from the
Wisconsin sales or use tax. Similarly, a charge by
dealer. Because the sale of the motor vehicle to
a vehicle manufacturer to reassign the vehicle
which the extended warranty relates was subject
manufacturer warranty to a subsequent purchaser
to Wisconsin sales tax, the sale of the extended
is not subject to Wisconsin sales or use tax.
warranty is also subject to Wisconsin sales tax.
See Part IV.U. for treatment of repair work pro-
Example 4: Customer D, a resident of Wisconsin,
vided under an extended warranty or service
purchases a motor vehicle in a county which has
contract.
not adopted the county tax (nontaxable county).
See Part II.B.8 for definition and treatment of in-
Customer D also purchases an extended warranty
surance.
with the motor vehicle. Customer D lives in a
county which has adopted the county tax (taxable
3. Federal Gas Guzzler Tax
county). The motor vehicle will customarily be
kept in the taxable county. The sale of the motor
The federal gas guzzler tax imposed under sec.
vehicle is subject to the county tax. Therefore, the
4064 of the Internal Revenue Code is included in
extended warranty is also subject to the county
gross receipts subject to Wisconsin sales or use
tax.
tax.
Example 5: Customer E, a resident of Wisconsin,
4. Manufacturer’s Rebates and Coupons
purchases a motor vehicle in a county which has
adopted the county tax (taxable county). Cus-
a. Manufacturer’s Rebates
tomer E also purchases an extended warranty
with the motor vehicle. Customer E lives in a
An amount received from a manufacturer af-
county which has not adopted the county tax
ter the sale of the vehicle by the manufacturer
(nontaxable county). The motor vehicle will cus-
where the manufacturer specifies the amount
tomarily be kept in the nontaxable county. The
and that the amount must be passed on to the
sale of the motor vehicle is not subject to the
customer is a manufacturer’s rebate. Amounts
county tax. Therefore, the extended warranty is
received by a motor vehicle dealer from a
also not subject to the county tax.
manufacturer which the motor vehicle dealer
is not required to pass on to a customer are
Example 6: Customer F, a resident of Wisconsin,
manufacturer’s wholesale incentives and are
purchases a motor vehicle in a county which has
discussed in Part II.B.3.
adopted the county tax (taxable county). At the
time of sale, Customer F decides not to purchase
The amount of a manufacturer’s rebate ap-
an extended warranty with the motor vehicle.
plied against the purchase price of a vehicle
Customer F will keep the motor vehicle in a
3
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