Agency: Wisconsin Dept. of Revenue
Contact Person: Michael Hinnendael
Tel. No.: (608) 267-5022
Fax No.: (608) 261-6240
Public Schools (K-12) - Exempt (See Note 1)
Private Schools (K-12) - Exempt (See Note 1)
School Groups (e.g., clubs, bands, teams) - Exempt (See Note 2)
PTAs - Exempt (See Note 2)
PTOs - Exempt (See Note 2)
Other parent groups - Exempt (See Note 2)
Church Groups - Exempt (See Note 2)
Youth Sports League - Exempt (See Note 2)
501 (c)(3) organizations - Exempt (See Note 2)
501 (c)(6) organizations - Exempt (See Note 2)
1a Are local sales and use taxes in your State applied to these groups in the same manner as State sales and use taxes are applied to these groups?
1b Please set forth any comments including a list of groups not listed above whose fundraising activities are exempt from sales and use taxation in your State.
Candies and Confections
Cookies and Other Baked Goods- Exempt (See Note 3)
Cheese Products- Exempt (See Note 3)
Meat Products- Exempt (See Note 3)
Nuts, popcorn and other snack food - Popcorn not exempt, nuts & snack food generally exempt
Other edible items (please identify) - (See Note 4); in addition see the listing on pages 4 and 5 of Publication 220, available at http://www.dor.state.wi.us/pubs/pb220.pdf)
Magazine subscriptions - Exempt (See Note 5)
Paper products (e.g., calendars, cards stationery, books, gift wrap) - Not Exempt
Decorative tins, baskets, other containers - Not Exempt
Decorative novelties (mugs, ornaments) - Not Exempt
Sundry items (please specify item below)- Not Exempt (See Note 6; in addition, see listing on pages 7 and 8 of Publication 220, available at http://www.dor.state.wi.us/pubs/pb220.pdf)
Clothing and accessories - Not Exempt
Jewelry - Not Exempt
Plant and seeds - Not Exempt (See Note 7)
Other hard good items - Not Exempt (See Note 6)
2a Are local sales and use taxes in your State applied to these products in the same manner as State sales and use taxes are applied to these products?
2b Please set forth any comments including a list of products not listed above that are exempt from sales and use taxation for fundraising purposes in your State.
Limits on number of fundraiser events per year
Limits on total amounts raised per year
See Answer 1, Note 2. Also see Publication 206, available at http://www.dor.state.wi.us/pubs/pb206.pdf
A qualifying nonprofit organization is not required to register with the department for exemption on its sales. The organization must retain sufficient records to document that its sales qualified for exemption.
For sales of items which are exempt by their nature, such as exempt food, food products and beverages or exempt periodicals sold by subscription, the seller is not required to obtain an exemption certificate from its customers. The seller must retain sufficient records to document that its sales were sales of such exempt items.
Sales of other items are taxable, unless (1) the seller receives a valid properly completed exemption certificate from the buyer, (2) the buyer organization is exempt (e.g., Wisconsin public schools and municipalities, federal government, nonprofit organizations holding a Certificate of Exempt Status) and furnishes required documentation to seller, (3) the buyer holds a direct pay permit and furnishes required documentation to seller, or (4) seller is a nonprofit organization which meets the requirements explained in Answer 1, Note 2.
The fundraising group (e.g., school, PTA, church)
Above answer assumes the fundraising group makes the retail sales to the customers, and that the company distributing the goods to the fundraising group (1) receives a properly completed resale certificate from the fundraising group, or (2) records the fundraising group's Certificate of Exempt status number on its invoice.
Note: The taxes may be collected from the consumer or user.
Price paid by consumer to fundraising group
Note 1. Assumes (1) sales are of tangible personal property and school is an elementary or secondary school exempted from payment of income or franchise tax under Chapter 71, Wis. Stats., or (2) sales are of tickets or admissions to public and private elementary and secondary school activities, where the entire net proceeds therefrom are expended for educational, religious, or charitable purposes.
Note 2. Assumes (1) group is a nonprofit organization which does not hold and is not required to hold a Wisconsin seller's permit, (2) group's sales of tangible personal property and taxable services occur on 20 days or less during the year or are $25,000 or less during the year, and (3) sales do not involve entertainment for which payment in the aggregate exceeds $500 for performing or reimbursement of expenses, unless access to the event may be obtained without payment of a direct or indirect admission fee.
Note 3. Assumes sales are not for on-premise consumption.
Note 4. Assumes item is an exempt food, food product, or beverage item.
Note 5. Assumes magazine is periodical regularly issued at average intervals not exceeding 3 months.
Note 6. Assumes item is a taxable item.
Note 7. Assumes plants and seeds are not sold for use in farming.
Last Updated: September 2005