Wisconsin State Tax system has both a Sales tax and a Use tax.
The Wisconsin sales tax is a 5% tax imposed on the gross receipts of retailers who sell or lease tangible personal property or taxable services at retail in Wisconsin. The Sales tax applies to retail sales. All sales are generally considered retail sales unless the buyer purchases the tangible personal property or taxable service for the purpose of reselling it.
The Wisconsin use tax is a 5% tax imposed on the sales price of tangible personal property or taxable services that are used, stored, or consumed within Wisconsin, upon which a Wisconsin sales or use tax has not previously been paid. An exception to computing use tax based on the sales price of tangible personal property applies to motor vehicles used by licensed moor vehicle dealers for any purpose in addition to retention, demonstration, or display (refer to Wisconsin Publication 202, “Sales and Use Tax Information for Motor Vehicle Sales, Leases, and Repairs”)
Obtaining a seller’s permit
Every individual, partnership, corporation, or other organization making retail sales or rentals of tangible personal property or retail sales of taxable services in Wisconsin is required to have a seller’s permit, unless all sales by the seller are exempt from sales or use tax.
Apply for a seller’s permit at least three weeks before you open your business. If you buy an existing business, the seller’s permit cannot be transferred to you. You must apply for a new permit.
The purchaser of a business (the successor) is liable for any unpaid sales and use taxes of the seller for that business. The purchaser should withhold a sufficient amount from the purchase price to cover any unpaid sales and use taxes of the seller.
Wisconsin Tax Rates
Base: Net Income
(plus a recycling surcharge equal to3.00% of tax due before credits)*
Apportionment: 100% sales (effective in 2008)
Rates: 4.60% to 6.75%
(recycling surcharge also applies to net business income of individuals at the rate of 0.2%)*
Base: Real property and tangible personal property (exemptions for machinery and equipment used in manufacturing; manufacturing, merchant and farm inventories; and computer hardware and software)
Statewide average rate (excluding Milwaukee County) is estimated at
$18.36 per $1,000 of full value.
Sales & Use
State rate: 5.00%
(exemptions for manufacturing equipment, manufacturing consumables, pollution control equipment, and production fuel and electricity)
Local County option: 0.50%
Stadium Taxes: 0.10% / 0.50%
(Metro-Milwaukee / Brown County)
Premier Resort Tax: 0.50%
(Bayfield, Eagle River, WI Dells area)
Combined rates: 5.00% – 5.60%
Rates: 0.05% – 9.80%
New Employers: 3.25% to 3.40%
New Construction Employers: 6.60
*Surcharge limited to maximum of $9,800( minimum of $25). The surcharge is generally imposed on
taxpayers engaged in trade or business with gross receipts of at least $4,000,000 for the taxable year.
SOURCE: ALL STATES TAX HANDBOOK, 2009