Change in Taxes Included in Taxable Sales Price

NOTE: This Article Has Been Replaced by two new articles dated April 19, 2016 titled "Change in Taxes Included in Sales Price - Federal Excise Tax on Heavy Trucks and Trailers" and "State Universal Service Fund (USF) Fee - Not Included in Taxable Sales Price".

The definitions of "sales price" and "purchase price" were amended effective July 2, 2013, pursuant to 2013 Wisconsin Act 20.

Changes in the tax treatment of the following are a result of this amendment:

  • State Universal Service Fund (USF) Fee - The state USF 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.
  • Federal Excise Tax on Heavy Trucks and Trailers - The federal excise tax imposed on the first retail sale of heavy trucks and trailers under s. 4051 of the Internal Revenue Code is included in the retailer's taxable sales price.

    Prior to July 2, 2013, this tax was not included in the retailer's sales price.

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.

November 12, 2013