State Universal Service Fund (USF) Fee - Not Included in Taxable Sales Price

​​For sales on and after July 2, 2013, the state universal service fund fee is not included in the retailer's taxable sales price. Therefore, the retailer should not charge tax on this fee.

Prior to July 2, 2013, the retailer was required to collect and remit tax on the state USF fee.

The definitions of "sales price" and "purchase price," were amended, effective July 2, 2013, pursuant to 2013 Wis. Act 20. When taxes are imposed on a retailer, the tax is not included in the retailer's taxable sales price if both of the following apply:

  1. The retailer separately states the tax on the invoice, bill of sale, or similar document that the retailer gives to the purchaser; and
  2. The law imposing or authorizing the tax provides that the seller may, but is not required to, pass on and collect the tax from the user or consumer.

April 19, 2016