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Wisconsin Department of Revenue

 Dry Cleaning Facility License and Products Fees

  1. What is the dry cleaning facility license?
  2. What is the dry cleaning license fee?
  3. What is the dry cleaning products fee?
  4. How do I register as a dry cleaner or dry cleaning products seller?
  5. Am I required to file a Wisconsin Dry Cleaning License Fee Return?
  6. Am I required to file a Wisconsin Dry Cleaning Products Fee Return?
  7. Where do I file my Wisconsin return?
  8. What is the deadline for filing my Wisconsin return?
  9. How can I send in money if I do not have the proper Wisconsin forms?
  10. Should I notify the Wisconsin Department of Revenue if I close my business?
  1. What is the dry cleaning facility license?

    Any person who operates a dry cleaning facility in Wisconsin is required to apply for a dry cleaning facility license on Form BTR-101. The Department will issue a license to each person who submits an application for each dry cleaning facility the person operates. The license has no expiration date and must be displayed prominently in the facility to which it applies. The Department may require a security deposit before or after issuing a license.

    A dry cleaning facility means a facility that dry cleans apparel or household fabrics for the general public other than the following facilities:

    • Coin-operated facilities.
    • Facilities that are located on U.S. military installations.
    • Industrial laundries.
    • Commercial laundries.
    • Linen supply facilities.
    • Facilities that are located at a prison or other penal institution.
    • Facilities that are located at a nonprofit hospital or at a nonprofit health care institution.
    • Facilities that are located on property that is owned by the U.S. government or by this state.
    • Formal wear rental firms.

    Dry stores, storefronts, and drop-off and pick-up points are not considered dry cleaning facilities. However, receipts from dry cleaning facilities where the items cleaned are shipped, delivered, or billed to a storefront location, pick-up and drop-off point, or another dry cleaning retailer are subject to the dry cleaning license fee.

    The Department may revoke a dry cleaning facility license if a person fails to comply with laws or rules related to the dry cleaning license fee, is delinquent with respect to any taxes, or fails to timely file any returns when requested by the Department. Any person who operates a dry cleaning facility without holding a valid dry cleaning facility license may be charged with a misdemeanor.

  2. What is the dry cleaning license fee?

    A dry cleaning license fee is imposed on the operator of a dry cleaning facility in Wisconsin. This license fee is equal to 2.8% of the gross receipts from the previous three months from dry cleaning apparel and household fabrics, but not from dry cleaning formal wear that the facility rents to the general public.

    For purposes of determining the 2.8% dry cleaning license fee, "gross receipts" means the total amount of the sale without any deduction for the cost of property sold, labor or service cost, or other expenses. "Gross receipts" includes pick-up, cleaning, processing, packaging, and delivery of the dry cleaning apparel or household fabric, but does not include sales taxes or the dry cleaning license fee, or separately stated charges unrelated to the dry cleaning such as tailoring, seamstress, or laundry services, or formal wear rentals.

    A "laundry" service is one that uses water and detergent as the main process for cleaning apparel or household fabrics rather than a dry cleaning process.

Note: For returns due January 25, 2008 and before, the dry cleaning license fee rate is 1.8%.

  1. What is the dry cleaning products fee?

    A dry cleaning products fee is imposed on any person who sells a dry cleaning product to a dry cleaning facility. The fee is $5 per gallon of perchloroethylene sold and $0.75 per gallon of any dry cleaning product sold, other than perchloroethylene.

    A "dry cleaning product" is a hazardous substance used to clean apparel or household fabrics. It does not include substances used to launder apparel or household products.

  2. How do I register as a dry cleaner or dry cleaning products seller?

    If you are subject to the dry cleaning license fee or dry cleaning products fee, you must register with the Wisconsin Department of Revenue. To register, contact the Wisconsin Department of Revenue by writing to Mail Stop 3-80, P.O. Box 8902, Madison, WI 53708-8902, by calling (608) 266-2776, or by e-mail.

  3. Am I required to file a Wisconsin Dry Cleaning License Fee Return?

    A dry cleaning facility as defined in Question 1 above is required to register for a dry cleaning license and file a Form DRY-012, Wisconsin Dry Cleaning Facility Fee Return.

  4. Am I required to file a Wisconsin Dry Cleaning Products Fee Return?

    If you sell dry cleaning products to dry cleaners in Wisconsin, you are required to file a Form DRY-013, Wisconsin Dry Cleaning Products Fee Return, to report and remit the dry cleaning products fee to the Wisconsin Department of Revenue.

  5. Where do I file my Wisconsin return?

    Mail your return, with your check made payable to "Wisconsin Department of Revenue," to:

    Wisconsin Department of Revenue
    Mail Stop 3-56
    P.O. Box 8946
    Madison, WI 53708-8946

  6. What is the deadline for filing my Wisconsin return?

    The dry cleaning license fee and products fee returns are due quarterly, on or before April 25, July 25, October 25, and January 25, respectively.

    A year's supply of returns is mailed by the end of March of each calendar year to be filed for each quarter that year.

    A dry cleaner or dry cleaning products seller that files its dry cleaning license fee or products fee return after the due date is subject to a late filing fee, as well as delinquent interest on the fee due with the return. A dry cleaner or dry cleaning products seller that files late may also be assessed a negligence penalty.

    For corporations, the late filing fee is $30. For businesses other than corporations, the late filing fee is as follows:

    • $2 when the license or products fee for the quarter is less than $10.
    • $3 when the license or products fee for the quarter is $10 or more, but less than $20.
    • $5 when the license or products fee for the quarter is $20 or more.
    • $30 when the return is 60 or more days late regardless of the amount of the license or products fee.

    The license or products fee due with a late-filed return is subject to interest at 1.5% per month until paid. If the return is filed late due to negligence, the license or products fee due on the return is also subject to a negligence penalty of 5% for each month or fraction of month the return is late, up to 25%.

  7. How can I send in money if I do not have the proper Wisconsin forms?

    You may contact the Wisconsin Department of Revenue by writing to Mail Stop 5-77, P.O. Box 8949, Madison, WI 53708-8949, by calling (608) 266-2776, or by e-mail to have duplicate returns sent to you.

Note: It is best to use the preprinted forms supplied by our office; however, if you are close to the deadline and do not have the preprinted form, use this link to obtain the form: Form DRY-012.

  1. Should I notify the Wisconsin Department of Revenue if I close my business?

Yes, you should notify the Wisconsin Department of Revenue if you close your business.

The dry cleaning license is transferable to the new owner if you sell your business.

FOR MORE INFORMATION PLEASE CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Customer Service & Education Bureau
Mail Stop 5-77
P.O. Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2776
Fax: (608) 267-1030
E-Mail Additional Questions

Last updated January 2, 2008