Instructions For Wisconsin Sales And Use Tax Return Page 3
ADVERTISEMENT
1
2
3
4tax liability is the difference between the 5% Wisconsin use tax
• Dealer/regular plates on vehicles held for sale and not assigned
and the state sales tax paid to another state. If the state sales tax
to specific employes subject to withholding or owners who
paid to another state equals or exceeds the 5% Wisconsin use tax,
actively participate in the business. The measure of tax is the
do not enter a “measure of tax.”
“lease value” of the vehicle.
Example: A Wisconsin dentist purchased dental equipment in South
Line 11b. County use tax: Begin by completing Column B on
Dakota for $10,000. The dentist paid South Dakota’s 4% sales tax of
Schedule CT, on the back of this return. Enter in this column the
$400. The dentist should make the following computation:
amount of purchases subject to the 0.5% county use tax which
were used, stored, or consumed in a taxable county, unless a
1) Purchase price
$10,000
county or similar local tax was paid in the other state. Copy the
2) 5% Wisconsin use tax ($10,000 x .05)
$500
total purchases subject to county use tax from the back of the
3) Less 4% tax paid to South Dakota
- 400
return, Column B, to the entry line on line 11b. Multiply this
4) Net state use tax due to Wisconsin
$100
amount by .005 and enter the resulting county use tax on line 11b.
5) Measure of tax ($100 x 20)
$ 2,000
Example: A Dunn County firm purchased office supplies from a
The dentist should report $2,000 as the “measure of tax” on the
Minnesota seller for $5,000. The firm (buyer) paid the 6%
entry line for line 11a. Multiply this amount by .05 and enter the
Minnesota state sales tax of $300, but did not pay any county or
state use tax on line 11a.
local sales tax in Minnesota. Since the buyer paid the 6% Minne-
sota state sales tax, the buyer is not liable for the 5% Wisconsin
Line 11a. State use tax: Enter the total purchase price of the
state use tax, yet is liable for the 0.5% Dunn County use tax. The
following, multiply this amount by 5% (.05), and enter the result
buyer must include $5,000 on the Dunn County line in Column B.
on line 11a:
Motor vehicle dealers who reported a measure of tax for motor
Asset additions which are subject to sales or use tax but which
vehicles used for any purpose in addition to retention, demonstra-
were a) acquired without payment of Wisconsin state sales tax and
tion, or display on line 11a must also include that measure of tax
b) used, stored, or consumed by you in Wisconsin. Examples
in Column B, if these vehicles were customarily kept in one of the
include:
taxable counties.
• Office furniture and equipment
Contractors must include the purchase price of tangible personal
• Counters, shelving, and other equipment used in operating a
property which becomes a component part of real property lo-
business
cated in a taxable county, unless a Wisconsin county tax (or
similar local tax of 0.5% or more in another state) was paid on the
• Materials used in constructing a new building
tangible personal property.
• Materials used in remodeling or improving real property
• Dealers’ motor vehicles not held for sale (measure of tax is sale
Exception from county use tax: If the tangible personal
price of the vehicle to the dealer)
property or taxable service, other than construction materials used
in real property construction and certain registered or titled items,
Repair and supply items which are purchased, without payment of
was purchased in a Wisconsin county that has not adopted the tax
Wisconsin state sales tax, and used by you in repairing or main-
and later brought to a taxable county where it was stored, used, or
taining your property or equipment. Examples include:
consumed, the purchase is not subject to the county use tax.
• Repair parts used to repair your own taxable equipment
Credit for county taxes paid in another state
• Office or cleaning supplies
• Tools
If you paid a county tax (or similar local tax) on purchases made
in another state, a special computation is required to claim a credit
Other items which are taxable but which were a) purchased
of local taxes paid in another state. A “measure of tax” must be
without payment of the Wisconsin state sales tax and b) used,
entered in Column B for the appropriate county. Determine the
stored, or consumed by you in Wisconsin. Examples include:
“measure of tax” by multiplying the net county use tax liability by
200. The net county use tax liability is the difference between the
• Coin banks, commemorative medals, calendars, playing cards,
0.5% county use tax and the amount of county (or similar local)
etc., to be given away free to customers
tax paid in the other state. If the county or local tax paid in another
• Forms furnished to customers free of charge
state equals or exceeds the 0.5% Wisconsin county use tax, do not
enter a “measure of tax.”
• Christmas or grand opening gifts
• Color cards distributed by a paint dealer
Example: A Rusk County dentist purchased equipment in Georgia
• Materials used to construct a prototype for a research and
for $10,000. He paid a 0.25% county tax of $25 in Georgia. The
development contract
dentist should make the following computation:
• Compact disks purchased by a juke box operator
1) Purchase price
$10,000
• Computer programs, except custom computer programs
2) 0.5% Rusk County use tax ($10,000 x .005) $50
• Dealer/regular plates on vehicles held for sale and assigned to
3) Less 0.25% county tax paid in Georgia
- 25
specific employes subject to withholding or owners who ac-
4) Net county use tax due to Rusk County
$25
tively participate in the business. From January 1, 1998
5) Measure of tax ($25 x 200)
$ 5,000
through December 31, 1998 the measure of tax is $102 per
plate per month. The measure of tax was $99 per plate per
The dentist should enter $5,000 on the Rusk County line in
month from January 1, 1997 through December 31, 1997.
Column B.
3
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial