Wis. Admin. Code § Tax 11.16 — Common or contract carriers

Tax 11.16(1) (1) Motor carriers.

Tax 11.16(1)(a) (a) Exemption. Section 77.54 (5) (b) , Stats., provides a sales and use tax exemption for motor trucks, truck tractors, road tractors, buses, trailers, and semitrailers, and accessories, attachments, parts, supplies, and materials therefor, sold to common or contract carriers who use such motor trucks, truck tractors, road tractors, buses, trailers, and semitrailers exclusively as common or contract carriers, including the urban mass transportation of passengers as defined in s. 71.38 , Stats.

Tax 11.16(1)(am) (am) Definitions. For purposes of the exemption in s. 77.54 (5) (b) , Stats., and this section:

Tax 11.16(1)(am)1. 1. “Common carrier” has the same meaning as “common motor carrier” in s. 194.01 (1) , Stats.

Tax 11.16(1)(am)2. 2. “Contract carrier” has the same meaning as “contract motor carrier” in s. 194.01 (2) , Stats.

Tax 11.16(1)(am)3. 3. “Exclusively” means that the motor trucks, truck tractors, road tractors, buses, trailers, and semitrailers are used solely as common or contract carriers to the exclusion of all other uses, except that the sales and use tax exemption for this tangible personal property will not be invalidated by an infrequent and sporadic use other than as a common or contract carrier.

Tax 11.16(1)(b) (b) Accessories and attachments. Accessories, attachments, parts, and supplies for exempt vehicles are exempt from the sales and use tax under s. 77.54 (5) (b) , Stats. This exemption includes the following items if they are assigned to and carried on vehicles used exclusively as common or contract carriers: dollies, pianoboards, ladders, walkboards, tire chains, fire extinguishers, flares, bug deflectors, engine block heaters, defroster fans, auxiliary heaters and cooling units and their fuel, radios, flag kits including flags and reflectors, cell phones, tracking devices, global positioning system or “GPS” units, on board recorders, and items designed to be used with a vehicle which protect or secure the vehicle’s load including tape, fitted tarpaulins, tarpaulin straps, furniture pads and covers, load holding chains, logistic straps, and shoring beams. This exemption does not include corrugated boxes, containers, and related materials that are transferred to customers in conjunction with the selling, performing, or furnishing of a moving service, as provided in par. (g) .

Tax 11.16(1)(c) (c) Repairs. The sale or furnishing of repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, and maintenance to exempt vehicles shall be exempt.

Tax 11.16(1)(d) (d) Exceptions. The exemption shall not apply to the following property used by common or contract carriers:

Tax 11.16(1)(d)1. 1. Automobiles as defined in s. 340.01 (4) , Stats., except an automobile registered as a truck.

Tax 11.16(1)(d)2. 2. Self-propelled vehicles for off-highway use, such as road machinery, fork lifts, and other industrial trucks.

Tax 11.16(1)(e) (e) Equipment and supplies. Equipment acquired by a carrier for the repair, service, or maintenance of its exempt vehicles is not exempt, including repair tools, welding torches, battery chargers, and grinding discs.

Tax 11.16(1)(f) (f) Conversion to private use. If a vehicle purchased without tax is converted to private use, a use tax or sales tax pursuant to s. Tax 11.14 (2) (c) is due. The tax is measured by the sales price of the vehicle to the purchaser.

Tax 11.16(1)(g) (g) Packaging materials. The transfer to a customer of corrugated boxes, containers, and related packing materials in conjunction with moving or transporting a customer’s goods is incidental to the selling, performing, or furnishing of the moving or transportation service. The service provider is the consumer of the property and shall pay tax on its purchase of the property to be transferred.

Tax 11.16(1)(h) (h) Occasional sales. Motor carriers are not required to register as retailers with the department if the sales price from their sales of tangible personal property, items, property, and goods under s. 77.52 (1) (b) , (c) , and (d) , Stats., and taxable services are less than $2,000 within a calendar year. Persons who are exempt from registration under this standard shall pay sales or use tax on all purchases of tangible personal property, items, property, and goods under s. 77.52 (1) (b) , (c) , and (d) , Stats., and taxable services not otherwise exempt, including items that may be resold to customers. Persons who exceed the standard shall register with the department and obtain a seller’s permit. Persons who register may purchase tangible personal property, items, property, and goods under s. 77.52 (1) (b) , (c) , and (d) , Stats., and taxable services for resale without paying tax by issuing to their supplier a properly completed exemption certificate claiming resale or they may pay the tax to their supplier and, if the property is resold, claim a credit for the tax paid against any sales tax due.

Tax 11.16(2) (2) Railway rolling stock.

Tax 11.16(2)(a) (a) Section 77.54 (12) , Stats., provides a sales and use tax exemption for the sales price from the sales of and the storage, use, or other consumption in this state of rail freight or passenger cars, locomotives, or other rolling stock used in railroad operations, or accessories, attachments, parts, lubricants, or fuel therefor.

Tax 11.16(2)(b) (b) The exemption for rolling stock includes:

Tax 11.16(2)(b)1. 1. The sale or furnishing of repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, and maintenance to exempt rolling stock.

Tax 11.16(2)(b)2. 2. Purchases of any equipment that is operated on railroad rails, including an industrial firm’s switching locomotives used to switch freight cars on its own property, except vehicles that may also be used on a highway.

Tax 11.16(2)(b)3. 3. Fuel used to heat a caboose or run a compressor that cools a railway car.

Tax 11.16(2)(b)4. 4. A utility’s coal cars used to haul coal from mines to the utility.

Tax 11.16(2)(c) (c) The exemption does not apply to:

Tax 11.16(2)(c)1. 1. Rails, crossties, and other road building and maintenance materials. However, sales of crossties to a common or contract carrier are exempt if they are shipped wholly or in part by way of the purchasing carrier under a bill of lading, whether the freight is paid in advance or the shipment is made freight charges collect, to a point outside Wisconsin if the property is transported outside Wisconsin for use by the carrier in the conduct of its business as a carrier. The exemption will not be invalidated because of interruption of the shipment for storage, drying, processing, or creosoting of the crossties in Wisconsin.

Tax 11.16(2)(c)2. 2. Bracing materials, rough lumber, and dunnage materials.

Tax 11.16(2)(c)3. 3. Ice to refrigerate a railway car.

Tax 11.16(3) (3) Commercial vessels.

Tax 11.16(3)(a) (a) Section 77.54 (13) , Stats., provides a sales and use tax exemption for the sales price from the sales of and the storage, use, or other consumption in this state of commercial vessels and barges of 50-ton burden or over primarily engaged in interstate or foreign commerce or commercial fishing, and the accessories, attachments, parts, and fuel therefor.

Tax 11.16(3)(b) (b) The exemption for commercial vessels applies to:

Tax 11.16(3)(b)1. 1. Vessels and barges primarily engaged in interstate or foreign commerce or commercial fishing that are documented under the laws of the United States showing a net volumetric tonnage of 50 tons or more.

Tax 11.16(3)(b)2. 2. Items that become a component part of the exempt commercial vessel.

Tax 11.16(3)(b)3. 3. The sale or furnishing of repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, and maintenance of exempt commercial vessels.

Tax 11.16(3)(c) (c) The exemption does not apply to consumable supplies or furnishings that are not attached to the vessel, such as bedding, linen, table and kitchenware, tables, chairs, lubricants, work clothes, acetylene gas, nets, fishing tackle, lumber for dry docking, bracing, blocking and dunnage materials and other materials not incorporated into the vessel.