Change in Taxes Included In Sales Price - Federal Excise Tax on Heavy Trucks and Trailers

NOTE: This article replaces the information on the federal excise tax on heavy trucks and trailers provided in the article titled, Taxes Included in Taxable Sales Price dated October 2, 2014.

The definitions of "sales price" and "purchase price" were amended effective retroactively to September 1, 2014, pursuant to 2015 Wisconsin Act 361.

The federal excise tax imposed on the first retail sale of heavy trucks and trailers under s. 4051 of the Internal Revenue Code is not included in the retailer's taxable sales price, if the retailer separately states the federal excise tax on the invoice, bill of sale, or similar document that it gives to the purchaser.

Prior to the September 1, 2014, which is the effective date of this law change, this tax was not included in the retailer's taxable sales price.

NOTE: Sales and Use Tax Report 3-14 (September 2014) correctly stated that this federal excise tax is included in the retailer's taxable sales price effective September 1, 2014. However, since this law change takes effect retroactively to September 1, 2014, it may have resulted in an overpayment of sales tax. Information about filing a claim for refund of overpaid sales tax is provided in Publication 216, Filing Claims for Refund of Sales or Use Tax.

If you receive a refund of sales tax and interest for tax that you collected from a buyer, you must return the tax and interest to the buyer or to the Wisconsin Department of Revenue within 90 days after the refund. Sales and Use Tax Report 3-14, and Publication 216 are available on our website at Wisconsin Department of Revenue.

April 19, 2016