Nonprofit Organizations - Occasional Sale Exemption Standards Increase for 2017

A nonprofit organization is required to charge Wisconsin sales tax on sales of taxable products, unless such sales are exempt occasional sales or are otherwise exempt. Certain standards, including an entertainment standard, a receipts standard, and a number of days of sales standard, must be met for a nonprofit organization's sales to qualify as exempt occasional sales. Beginning with sales made in calendar year 2017, these standards have been increased.

Number of Days and Receipts Standards

The standard relating to a nonprofit organization's taxable receipts will increase from $25,000 to $50,000, and the standard relating to the number of days on which sales of taxable products can occur will increase from 20 to 75 days. A nonprofit organization engaged in a trade or business is required to hold a seller's permit if its sales of taxable products and services exceeds $50,000 and its sales of taxable products and services are made on more than 75 days in a calendar year.

Entertainment Standard

The standard to determine whether entertainment is involved at an event will increase from $500 to $10,000. "Entertainment," for purposes of this exemption, means entertainment provided at an admission event by all persons or groups who are paid in the aggregate more than $10,000 for performing, for reimbursement of expenses, or prize money. A nonprofit organization is required to hold a seller's permit if it makes sales of taxable products or services at an entertainment event in which admissions are charged, even if the Number of Days and Receipts Standards described above have not been exceeded.

Additional information regarding nonprofit organizations and standards for the occasional sales exemption can be found in Publication 206, Sales Tax Exemption for Nonprofit Organizations.

October 31, 2016