State Sales Tax Nexus and General Overview

Need to Understand a State's Sales Tax Situation? Here it is...

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Wisconsin (WI)

WI Sales Tax - Name of Tax and General Application:

Wisconsin imposes a tax on the privilege to sell tangible personal property or render certain services at retail in the state. This tax is known as a "sales tax". In addition a tax is imposed on storage, use or consumption of tangible personal property or taxable services purchased at retail. This tax is known as a "use tax" and only applies where no sales tax has been paid.

WI Nexus - General Requirements:

The word "nexus" means a link or connection. If you are determined to have nexus to a U.S. state then you are subject to that state's sales and use tax rules and must collect and remit sales tax to the state. This is known as a "filing obligation."

Each state has a different definition of nexus. However, if the answer to any of the following questions is yes, it is likely that a company has nexus as legally defined in most U.S. States.

Does the company own property in the state? Does the company have employees living in the state? Does the company regularly send employees in the state to perform services? Does the company have an agent acting on behalf of the company in the state?

Wisconsin imposes nexus on the provision of warranty repairs as a regular and systematic business activity directed to the establishment and maintenance of a business relationship. Effective Oct. 1, 2009, nexus standards are revised to include other activities that result in nexus, such as regularly selling products or services to customers; regularly soliciting business from potential customers; regularly performing services outside of Wisconsin for which the benefits are received inside Wisconsin; regularly engaging in transactions involving intangible property; and holding loans secured by property located in Wisconsin.

WI Local Tax - Do Localities Impose Tax?

Yes, Wisconsin imposes local sales tax.

WI Resale Certificate Renewal Agreements:

Sales for resale are not taxable and are excluded from the taxable definition of "retail sale." An exemption certificate is required.

WI Resale Certificate Renewal Periods

An exemption certificate is necessary to document the validity of a resale exemption. Certificates are valid indefinitely. Wisconsin recommends that resale certificates are renewed periodically to ensure accuracy of information.

WI Statute of Limitations

Four years from the date the return was filed or from the dissolution of a corporation.