Frac Sand Mining and Processing

  1. ​​​​​What is "Frac Sand"?

  2. If I purchase land for mining frac sand, is the sale of the land subject to Wisconsin sales or use taxes?

  3. If I am the lessor of land and the lessee obtains the right to extract the frac sand on the leased land, are my lease receipts subject to Wisconsin sales or use taxes?

  4. A business purchases or leases land for extracting the frac sand from the land. Rather than selling the frac sand, the business ships the frac sand out of state where a business' natural gas production wells will use the frac sand. Does this business owe Wisconsin use tax on the frac sand it extracted in Wisconsin?

  5. A business has extracted frac sand from land owned or leased. The business sells the frac sand extracted. The frac sand is loaded onto rail cars in Wisconsin and shipped by a railroad company to purchasers in other states. Is sale of the frac sand subject to Wisconsin sales or use taxes?

  6. A business purchased or leased land for the purpose of extracting and producing frac sand. Is there an exemption from Wisconsin sales and use taxes for the equipment the business uses in extracting the frac sand from the earth?

  7. Are there any Wisconsin sales and use taxes exemptions for equipment and consumables used in washing, cleaning, and drying extracted material to produce frac sand?

  8. What is "manufacturing" for purposes of the sales and use tax exemptions?

  9. How do I know when the extraction process ends and the manufacturing process begins?

  10. How do I know when the manufacturing process has ended?

Applicable Laws and Rules

This document provides statements or interpretations of the following laws and regulations enacted as of October 19, 2021: Sections 77.51, 77.52, 77.522, and 77.54, ​​Wis. Stats.

Laws enacted and in effect after this date, new administrative rules, and court decisions may change the interpretations in this document. Guidance issued prior to this date, that is contrary to the information in this document is superseded by this document, according to sec. 73.16(2)(a), Wis. Stats.

​​​Contact Us

MS 5-77
Wisconsin Department of Revenue​
Customer Service Bureau
PO Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2776
Fax: (608) 267-1030
Email: ​ ​

The department welcomes your input on our guidance. Submit comments on this guidance document.

Guidance Document Number: 100130

October 19, 2021​​