Instructions For Wisconsin Sales And Use Tax Return (Page 2 of 4) in pdf

Line 4. Other: Enter the total amount of allowable deductions

Line 7b. County sales tax: Begin by completing Column A on

included in gross receipts. Examples include:

Schedule CT, on the back of this return. Enter in this column, in

the applicable counties, the amount of taxable receipts (gross

• State, county, and stadium sales tax charged to customers which

receipts less applicable deductions) included in line 6 which are

is included in line 1, but only if the customer was notified that

also subject to the county tax.

tax was charged. This information should be obtained from your

records, not by multiplying the amount on line 1 by the tax rate.

Transfer the total receipts subject to county tax from the back of

the return, Column A, to the entry line on line 7b. Multiply this

• Trade-in allowances and cash discounts allowed on taxable

amount by .005 and enter the resulting county sales tax on line 7b.

sales.

• Refunds or credits for returned merchandise, if the sale of such

Line 7c. Stadium sales tax: Enter the amount of taxable receipts

merchandise was reported as a taxable receipt on a prior return

(gross receipts less applicable deductions) included in line 6

or this return and the tax was refunded to the purchaser.

which are also subject to the stadium tax (Milwaukee, Ozaukee,

Racine, Washington, and Waukesha counties) for this period on

• Bad debts on taxable sales, charged off for income tax or

the entry line on line 7c. Multiply this amount by .001 and enter

franchise tax purposes, if your sales are reported on the accrual

the resulting stadium sales tax on line 7c.

basis.

• Tax paid purchases resold for other than exempt sales. (For

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

example, Company A purchases materials, paying sales tax at

enter the total on line 8.

the time of purchase. Prior to making any use of these materi-

als, Company A makes a taxable sale of these materials.

Line 9. Discount: The retailer’s discount, effective for “periods

Company A must include the selling price of this sale in its

covered” after January 1, 1997, is computed as follows:

gross receipts, but it may take a deduction for its purchase

price, less tax, on line 4.)

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

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

• 2% bingo gross receipt tax.

must still be filed by the due date.) If the amount on line 8 is from

• Local exposition taxes (room, food and beverage, rental car) or

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

premier resort area taxes.

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

• Rental vehicle fee.

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

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

Line 5. Total deductions: Add the amounts on lines 2 through 4

paid only when all of the following conditions are met: it is mailed

and enter the total on line 5.

in a properly addressed envelope with the postage duly prepaid;

the envelope is postmarked on or before the due date; and it is

Line 6. State taxable receipts: Subtract line 5 from line 1 and

received by the department within 5 days of the due date.

enter the result on line 6.

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

Line 7a. State sales tax: Multiply the amount on line 6 by 5%

result on line 10.

(.05) and enter the result on line 7a.

PURCHASES SUBJECT TO STATE USE TAX

RECEIPTS SUBJECT TO COUNTY AND STADIUM

SALES TAX

Wisconsin use tax is imposed on the purchase price of taxable

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

Even if you are not located in one of the counties that imposes a

consumed in Wisconsin, upon which a Wisconsin sales or use tax

county tax (taxable county), or in the stadium district (Milwaukee,

has not previously been paid. Examples include:

Ozaukee, Racine, Washington, and Waukesha counties) you may

still be subject to the county or stadium tax if you deliver property,

• Property to be used in Wisconsin is purchased outside the state

perform taxable services, or are in some other way engaged in

and the property would have been subject to sales tax if

business in a taxable county or in the stadium district.

purchased in Wisconsin.

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

Tangible personal property and services that are subject to the 5%

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

state sales and use tax are also subject to both the 0.5% county and

manner. No sales tax was paid when purchasing the property.

0.1% stadium sales and use tax. If property and services are

exempt from the 5% state tax, they are also exempt from the

• Property is purchased and later furnished free of charge to the

county and stadium tax.

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

property.

Note: Dealers of motor vehicles, boats, snowmobiles, mobile

homes 45 feet or less in length, trailers, semi-trailers, all-terrain

Credit for state taxes paid in another state

vehicles, and aircraft, must also collect a 0.5% county and a 0.1%

stadium tax on property which must be registered or titled with the

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

State of Wisconsin when that property is customarily kept in a

purchases of tangible personal property or taxable services, a

taxable county or in the stadium district. (CAUTION: This applies

special computation is required to claim credit for the tax paid to

to all dealers of motor vehicles, boats, etc., regardless of where the

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

dealer is located.)

state’s tax rate is less than 5%. Determine the “measure of tax” by

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

Instructions For Wisconsin Sales And Use Tax Return Page 2

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