Sales And Use Tax Report Instructions - Wisconsin Department Of Revenue

subject to the local food and beverage tax,

A person who purchased an item prior to Octo-

without regard to whether such items are for

ber 1, 2009 that qualified for exemption from

consumption on or off the seller’s premises.

Wisconsin sales and use tax at that time because

it fell within the definition of a particular exempt

Example 1: Bakery G in Milwaukee County

item and who subsequently stores, uses, or con-

sells bakery items and coffee and has a seat-

sumes the item in Wisconsin on or after

ing area where its customers may eat.

October 1, 2009 when the "new" definition (i.e., a

Bakery G's sells Customer H a cup of hot cof-

definition that no longer includes the item) ap-

fee and two donuts that are not sold heated,

plies, will not owe Wisconsin sales or use tax on

which Customer H consumes at the seating

the subsequent storage, use, or consumption of

area. Bakery G's sale of the coffee is subject

that item in Wisconsin.

to the local food and beverage tax (i.e., the

coffee is served in a heated condition and is a

Example:

"prepared food"). Bakery G's sale of the

• Individual A purchases a case of a sweetened

donuts is not subject to the local food and

tea beverage prior to October 1, 2009.

beverage tax (i.e., the donuts are not "pre-

pared food"). (Prior to October 1, 2009, the

• The purchase of the sweetened tea was not

sale of both the coffee and donuts was subject

subject to tax prior to October 1, 2009 be-

to the local food and beverage tax, since the

cause it was a "tea."

coffee and donuts were consumed on the

seller's premises.)

• Effective October 1, 2009, a purchase of that

same tea is subject to Wisconsin sales and use

Publication

410, Local Exposition Taxes, has

tax because it meets the definition of a "soft

been revised to reflect these changes and provides

drink."

numerous examples to illustrate the changes.

• Individual A did not drink any of the tea prior

PRODUCTS PURCHASED PRIOR TO

to October 1, 2009. Individual A continued to

OCTOBER 1, 2009 THAT NO LONGER

store the tea in Wisconsin after October 1,

QUALIFY FOR EXEMPTION

2009 and drank it (used or consumed it) in

BECAUSE OF CHANGES IN

Wisconsin after October 1, 2009.

DEFINITIONS - USE TAX NOT DUE

Question: Is Individual A's purchase of the "tea"

The legislation conforming Wisconsin's sales and

use tax laws to the requirements of the Stream-

subject to Wisconsin use tax since it is stored,

lined Sales and Use Tax Agreement (SSUTA)

used, or consumed in Wisconsin on or after Octo-

contained numerous changes in how certain terms

ber 1, 2009?

were defined and what was or was not included

Answer: No. Since Individual A purchased the

within a particular definition. As a result of the

tea prior to October 1, 2009, at which time the tea

adoption of these new definitions, sales of various

qualified for exemption from Wisconsin sales and

products that qualified for an exemption from

use tax, the subsequent change in the definition of

Wisconsin sales and use tax prior to October 1,

"soft drink" (which on and after October 1, 2009

2009, will no longer qualify for exemption on and

includes this sweetened tea), does not subject the

after October 1, 2009. For example, bottles of

original purchase price of the sweetened tea to

sweetened tea were not subject to Wisconsin sales

Wisconsin sales or use tax.

or use tax prior to October 1, 2009, but with the

adoption of the new definition of "soft drink" in

sec. 77.51(17w), Wis. Stats., as created by 2009

Wis. Act 2, sales of bottles of sweetened tea are

taxable on and after October 1, 2009.

Sales And Use Tax Report Instructions - Wisconsin Department Of Revenue - 2010 Page 4

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