Sales of holiday trees and wreathes, whether live, cut, or artificial, are subject to sales tax, unless an exemption applies. A nursery or person in the business of tree farming may purchase the seedlings or trees without tax, for resale, by providing the vendor with a fully completed exemption certificate (e.g., Form S-211).

Are the sales of holiday trees subject to sales tax?

Yes, sales of holiday trees are taxable sales of tangible personal property, unless an exemption applies.

Are the sales of wreaths, boughs, and garland subject to sales tax?

Yes, sales of wreaths, boughs, and garland are taxable sales of tangible personal property, unless an exemption applies.

What reasons could the sale be exempt from tax?

  • The sale is made to a nonprofit organization holding a valid Certificate of Exempt Status (CES) number issued by the Department of Revenue.
  • The sale is made to another type of exempt entity (i.e., Wisconsin governmental agency).
  • The sale is made to another retailer for resale.
  • Seller qualifies for the occasional sale exemption. Information about the occasional sale exemption for nonprofit organizations can be found in Fact Sheet 2106. The occasional sale exemption for other sellers is explained in Part II.G.3. of Publication 228.

Is the seller's purchase of the trees taxable?

No, the seller may provide a fully completed Wisconsin Sales and Use Tax Exemption Certificate (Form S-211) to the nursery or tree provider claiming resale. However, if the seller makes any use of a tree other than to sell it, the seller owes use tax on its purchase price. For example, rather than selling a tree, the seller takes a tree out of inventory for her own home. The seller owes use tax on her purchase price of the tree that was used, rather than sold.

November 4, 2015