Multistate Tax Commission/Association of Fund-Raising Distributors & Suppliers   Wisconsin

Agency: Wisconsin Dept. of Revenue

Contact Person: Michael Hinnendael

Tel. No.: (608) 267-5022

Fax No.: (608) 261-6240

E-mail:mhinnen@dor.state.wi.us

  1. If your State exempts fundraising sales by certain groups from sales or use taxes, please indicate which of the following are exempt in your State.

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)

(please identify)

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)

Other (specify:__________________)

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?

Yes

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.

 

  1. If your State exempts fundraising sales of certain products from sales and use tax, please indicate which of the following products are exempt.

    Candies and Confections - Not Exempt

    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?

    Yes

    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.

  2.  

  3. If some or all fundraising groups or products qualify for exemption from sales and use tax in your State, please indicate any exceptions to or limitations on such exemptions. (Check all that apply and specify the limitation.)

    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

  4.  

  5. If some or all fundraising groups qualify for exemption from sales and use tax in your State, please set forth the procedure through which a group may establish its qualification for the exemption. Attach relevant statutes, regulations, procedures, etc.

    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.

  6.  

  7. If some or all fundraising products qualify for exemption from sales and use tax in your State, please set forth the procedure for establishing a product's qualification for the exemption. Attach relevant statutes, regulations, procedures, etc.

    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.

  8.  

  9. In instances where a fundraising product or group is not exempt from sales or use tax, please indicate who bears the responsibility for collecting and remitting the tax.

    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.

  10.  

  11. In instances where a fundraising product or group is not exempt from sales or use tax, what is the basis for calculating the sales/use tax?

    Price paid by consumer to fundraising group 

  12.  

  13. Provide any additional information regarding the sales and use tax treatment of fundraising transactions and/or groups in your State. Also set forth any statements, disclosures, disclaimers, etc.,to be provided as part of the clearinghouse regarding your state's practices and procedures. Attach additional sheets if necessary.        

 

Notes:

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