County Sales and Use Tax

  1. What's New?
  2. What is the county sales and use tax?
  3. How do I report the county sales and use tax?
  4. What is the tax rate?
  5. What is included in a monthly distribution?
  6. Can we review the transactions that are compiled into a month's distribution?
  7. Why do distributions vary so much from month to month?
  8. Are sales and use taxes by municipality available?
  9. Is a county liable for paying sales tax on its sales?
  10. Is a Wisconsin county liable for the paying sales tax on its purchases?
  1. What's New?

    Effective October 1, 2009, all retailers holding a Wisconsin seller's permit or use tax registration certificate or who are required to hold a Wisconsin seller's permit or use tax registration certificate, are required to collect all applicable local sales and/or use taxes for any sales that are sourced to (i.e., take place in) a local taxing jurisdiction (for example, a county that has adopted a county sales and use tax). Applicable local sales and/or use taxes include the following:

    • County sales and use tax (0.5%)
    • Baseball stadium district sales and use tax (0.1%)
    • Football stadium district sales and use taxes (0.5%)
    • Local food and beverage tax (0.25%)
    • Premier resort area tax (0.5% or 1.0%)

    This requirement applies regardless of whether the retailer is "engaged in business" in the local taxing jurisdiction.

  2. What is the county sales and use tax?

    The county sales tax is a 0.5% tax imposed on the sales price a retailer receives from its retail sales, licenses, leases, or rentals of the property, items, or goods listed in Parts A., B., C., and D., below, or from selling, licensing, performing, or furnishing taxable services, in a county with a county tax, with the following exception. All sales of motor vehicles, boats, recreational vehicles, and aircraft are subject to the county use tax (rather than the county sales tax) based on the county in which the motor vehicle, boat, recreational vehicle, or aircraft is customarily kept. The county use tax is a 0.5% tax that is imposed on the purchaser for the storage, use, or consumption of property, items, or goods listed in Parts A., B., C., and D., below, or taxable services, in a county with a county tax. The use tax is based on the purchase price of the property, item, good, or service.

    The county sales and use tax applies to sales, licenses, leases, and rentals of the following property, items, and goods:

    1. Tangible personal property;
    2. Coins or stamps of the United States that are sold, licensed, leased, rented, or traded as collector's items above their face value;
    3. Leased tangible personal property that is affixed to real property, if the lessor has the right to remove the leased property upon breach or termination of the lease agreement, unless the lessor of the leased property is also the lessor of the real property to which the leased property is affixed.
    4. Specified digital goods, additional digital goods, and digital codes. These digital goods are characterized by the fact that they are transferred electronically to the purchaser (i.e., accessed or obtained by the purchaser by means other than tangible storage media). "Specified digital goods" means "digital audio works," "digital audiovisual works," and "digital books." "Additional digital goods" means greeting cards, finished artwork, periodicals, video or electronic games, and newspapers or other news or information products. See Publication 240 for a description of the products that are included.

    In addition, certain services are subject to the county sales and use tax.

    For more information, see Wisconsin Publication 201, Wisconsin Sales and Use Tax Information.

  3. How do I report the county sales and use tax?

    The following electronic filing and payment options are available for retailers to report state, county, and stadium sales and use taxes:

    1. My Tax Account

      2. Beginning in February 2009, a new online ser-vice called "My Tax Account" became available to business taxpayers. My Tax Account is a free Internet-based taxpayer service that allows you to file and pay your sales and use taxes electronically. It performs the necessary computations of tax based on information that you enter and allows you to make your tax payment via electronic funds transfer, credit card or paper check. My Tax Account allows you to view the filing and payment history of your account and identify any tax periods that need attention. You can also direct requests to the Department of Revenue to change your address, obtain an extension to file a return or inactivate your account.

      To use My Tax Account, you will need to apply for and obtain a logon ID and password from the Department of Revenue. Please watch the Department of Revenue's web site at www.revenue.wi.gov for more details on the transition to this new service, including information about how to obtain your logon ID and password.

    2. Sales TeleFile

      3. You can file your Wisconsin sales and use tax return with any touch-tone telephone. This program accepts four payment types: Direct withdrawal (only available during the call in which you file your return), credit card, check, or money order. To use TeleFile, obtain a Sales TeleFile worksheet and payment voucher from the Department of Revenue's web site at https://ww2.revenue.wi.gov/TeleSIP/application. When you have completed the worksheet, call (608) 261-5340 to actually file your return.

    3. eFile Transmission

      4. This program is a service for taxpayers using approved private vendors' software or who have the technical expertise to create a file in XML format. eFile transmission places return data into a file format that can be directly processed into the Department of Revenue system. Using secure transmission over the Internet you can submit a payment at the same time that you file your return using ACH debit or ACH credit. You will receive an e mail acknowledgement to confirm receipt of a successful file transmission. Information about file transmission can be found on the Department of Revenue's web site at www.revenue.wi.gov/eserv/eftgen.html.

      IMPORTANT CHANGE: Electronic Funds Transfer (EFT) Payment and Registration System will no longer be available for the tax programs covered by My Tax Account after January 5, 2010. No new registrations for the taxes covered by My Tax Account are being accepted by the EFT Registration and Payment System.

    4. Questions?

      5. More information on all of the above services can be found under the "Business" or "E Services" sections of the Department of Revenue web site www.revenue.wi.gov. If you have questions about electronic filing or pay-ments, contact the department by writing to Wisconsin Department of Revenue, Electronic Funds Transfer Assistance, Mail Stop 3-80, P.O. Box 8902, Madison, WI 53708-8902; calling (608) 266-2776; or e-mailing at sales10@revenue.wi.gov.

  4. What is the tax rate?

    Retailers who make sales subject to the 0.5% county tax must collect 5.5% sales tax on their retail sales: 5% state sales tax, and 0.5% county sales tax.

    62 Wisconsin counties have adopted a county tax. To see which counties have adopted a county tax and the effective date of the county tax see the State, County, and Stadium Tax Rate Chart.

    Caution: Retailers who are not located in a county with a county tax and who have or are required to have a Wisconsin seller's permit or use tax registration certificate, are subject to the county tax and are required to collect and remit it, if they:

    • ship the property or items listed in Parts A., B., and C. in Answer 2, using a third party shipper, to an address in a county that has imposed a county sales and use tax;
    • deliver the property or items listed in Parts A., B., and C. in Answer 2, with their own vehicles into a county that has imposed a county sales and use tax;
    • furnish taxable services in a county that has imposed a county sales and use tax; or
    • otherwise sell the property, items, or goods listed in Parts A., B., and C., and D. in Answer 2, or taxable services, and the sale is sourced to (i.e., the sale takes place in) a location in a county that has imposed a county sales and use tax.
    • sell a motor vehicle, boat, recreational vehicle, or aircraft that will be customarily kept in a county that has adopted the county tax.

    To determine which county's sales and use tax applies to a particular transaction, click here.

  5. What is included in a monthly distribution?

A monthly distribution is the sum of all completed transactions posted in our processing system from the 16th of one month to the 15th of the next month. For example, the sales tax on a transaction in December should be reported on a sales tax return due by January 20 or 31. If the return is processed by February 15, the tax would be included in the February distribution to the county.

Each and every transaction can be traced to a specific return or action affecting a retailer's (or individual's) sales and use tax account. Transactions occur from processing sales & use tax returns (Forms ST-12 and UT-5), motor vehicle, boat, ATV and snowmobile private registrations, and refunds and audits issued. Entries of county use taxes from individual income tax returns are posted as these returns process throughout the year.

  1. Can we review the transactions that are compiled into a month's distribution?

This information is confidential but available. The Department of Revenue provides detail listings upon request. A County staff member who is authorized by their employer can sign a non-disclosure statement with the Department to be allowed access to the detailed information. The detail consists of a listing of all transactions that processed within the distribution period back to the original record that initiated the transaction in our system. To make a request to receive this detailed information, please contact Robert Kennedy at (608) 261-5167, or by e-mail at Robert.Kennedy@revenue.wi.gov.

  1. Why do distributions vary so much from month to month?

The underlying economic activity on which sales and use taxes are based varies by month and season but, in addition, the timing of payments and the processing of returns affects monthly distributions. Returns of taxpayers that remit $3,600 or more per calendar quarter file are due each month by the 20th while the returns of taxpayers that remit at least $600 per calendar quarter are due by the last day of the month. Taxpayers with smaller tax liabilities may file quarterly or annual returns. Each month's distribution is typically based on the returns processed from the 16th of one month to the 15th of the next. If a return that is due on the 20th is filed and processed on the 15th or before, one month's distribution may include two remittances from that taxpayer and the next month's distribution would include none. In addition, taxes are not distributed until any errors in the return have been corrected; contacting and verifying information with a taxpayer may be time-consuming and delay the distribution of those taxes.

  1. Are sales and use taxes by municipality available?

Since municipalities do not impose local sales and use taxes, taxpayers are not required to provide information by municipality. Calculating taxes remitted from select ZIP codes does not produce accurate information because ZIP codes are not contiguous with municipal boundaries. In addition, chain stores may file a single return from the ZIP code of the company's headquarters or accounting office rather than the location at which the sales took place.

  1. Is a county liable for paying sales tax on its sales?

Generally, a county is liable for the collection, reporting, and payment of sales tax on its sales of tangible personal property and taxable services. Examples of taxable sales made by counties include the following:

Examples of nontaxable sales by counties include:

The examples of taxable and nontaxable sales listed above are not all-inclusive.

If a county makes taxable retail sales of the property, items, or goods listed in Parts A., B., C., and D. in Answer 2, or sells, licenses, performs, or furnishes services, that are sourced to (i.e., the sale takes place in) a location in Wisconsin, it is required to have a seller's permit. A seller's permit shows that a seller is properly registered with the Department of Revenue, as required by law. To apply for a seller's permit, complete Form BTR-101, Application for Business Tax Registration, which is available at: www.revenue.wi.gov/forms/sales/btr-101.pdf. Information about applying online is available at: https://ww2.revenue.wi.gov/GenericFile/application?interview=1232807.

  1. Is a Wisconsin county liable for paying sales tax on its purchases?

The answer is no. Purchases by Wisconsin counties are exempt from Wisconsin sales and use taxes. To claim the exemption, the county must give the seller one of the following:

A county may apply for a Certificate of Exempt Status number using Form S-103, available at www.revenue.wi.gov/forms/sales/s-103.pdf

Additional information is provided in Publication 209, Sales and Use Tax Information for Wisconsin Counties and Municipalities.

FOR MORE INFORMATION PLEASE CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Customer Service Bureau
Mail Stop 5-77
P.O. Box 8949
Madison, WI 53708-8949
Phone: (608) 261-6261
Fax: (608) 267-1030
E-Mail Additional Questions

Last updated January 30, 2012