Wis. Admin. Code § Tax 11.33 — Occasional sales

Tax 11.33(1) (1) Scope. This section describes the general rules for exempt occasional sales.

Tax 11.33(2) (2) General. Sales of tangible personal property, items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , Stats., and taxable services are not taxable if they are exempt “occasional sales.” However, if the number, scope and character of the sales are such that they exceed the standards in the statutes and this section, a taxable sale occurs.

Tax 11.33(3) (3) Statutes.

Tax 11.33(3)(a) (a) “Occasional sale” is defined in s. 77.51 (9) , Stats.

Tax 11.33(3)(b) (b) Section 77.54 (7) , Stats., exempts most occasional sales from the sales and use taxes.

Tax 11.33(4) (4) Sales which are exempt occasional sales. Sales which are exempt occasional sales include:

Tax 11.33(4)(a) (a) The sale of a motor vehicle, snowmobile, recreational vehicle as defined in s. 340.01 (48r) , Stats., trailer, semitrailer, all-terrain vehicle, utility terrain vehicle, off-highway motorcycle, or aircraft that is registered or titled in Wisconsin or required to be registered or titled in Wisconsin is an exempt occasional sale only if one of the following applies:

Tax 11.33(4)(a)1. 1. The sale is to a spouse, parent, stepparent, father-in-law, mother-in-law, child, stepchild, son-in-law, or daughter-in-law, of the transferor provided the property has been previously registered or titled in Wisconsin in the name of the transferor, if required to be registered or titled, and the transferor is not engaged in the business of selling this type of property.

Tax 11.33(4)(a)2. 2. The item is a motor vehicle and the transferor sells the motor vehicle to a corporation owned solely by the transferor or the transferor’s spouse, provided the motor vehicle has been previously registered or titled in Wisconsin in the name of the transferor, if required to be registered or titled, and the transferor is not engaged in the business of selling motor vehicles. Transferor for purposes of this subdivision means a natural person.

Tax 11.33(4)(a)3. 3. The motor vehicle, snowmobile, recreational vehicle as defined in s. 340.01 (48r) , Stats., trailer, semitrailer, all-terrain vehicle, utility terrain vehicle, off-highway motorcycle, or aircraft is sold by a nonprofit organization meeting the requirements in s. Tax 11.35 (4) .

Tax 11.33(4)(b) (b) Any sale of a boat that is registered or titled in Wisconsin or required to be registered or titled in Wisconsin or under the laws of the United States, is an exempt occasional sale only if one of the following applies:

Tax 11.33(4)(b)1. 1. The sale is to a spouse, parent, stepparent, father-in-law, mother-in-law, child, stepchild, son-in-law, or daughter-in-law, of the transferor provided the property has been previously registered or titled in Wisconsin in the name of the transferor, if required to be registered or titled, and the transferor is not engaged in the business of selling boats.

Tax 11.33(4)(b)2. 2. The boat is sold by a nonprofit organization meeting the requirements in s. Tax 11.35 (4) .

Tax 11.33(4)(c) (c) Except as provided in pars. (a) and (b) , five or fewer auctions that are the sale of personal farm property or household goods and that are held by the same auctioneer at the same location during the year. For indoor locations, “location” means a building, except that in the case of a shopping center or shopping mall, “location” means a store.

Tax 11.33(4)(d) (d) Except as provided in pars. (a) and (b) , sales of tangible personal property or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , Stats., by an individual who operates a sole proprietorship and who holds or is required to hold a seller’s permit, which have not been used in the course of the person’s business and the sales are not the type of property, items, or goods sold in the course of the person’s business. However, all tangible personal property or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , Stats., sold by a corporation or partnership which holds or is required to hold a seller’s permit shall be considered to be used or sold in the course of the organization’s business activities and are taxable.

Tax 11.33(4)(e) (e) Except as provided in pars. (a) and (b) , the sale of a business or business assets, not including inventory held for sale, previously used by a seller to conduct its trade or business at a location after that person has ceased actively operating in the regular course of business as a seller of tangible personal property, items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , Stats., or taxable services at that location.

Tax 11.33(4)(f) (f) Except as provided in pars. (a) and (b) , sale of tangible personal property, items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , Stats., or taxable services by a person who does not hold and is not required to hold a seller’s permit, if the total taxable sales price from sales of tangible personal property, items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , Stats., and taxable services are less than $2,000 during the calendar year. However, purchases of tangible personal property, items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , Stats., or taxable services which when resold are exempt under this paragraph, are taxable purchases by that person. This paragraph does not apply to nonprofit organizations.

Tax 11.33(4)(g) (g) Sales by nonprofit organizations meeting the requirements in s. 77.54 (7m) , Stats.

Tax 11.33(5) (5) Sales which are not exempt occasional sales. Sales which are not exempt occasional sales, except as provided in sub. (4) , include:

Tax 11.33(5)(a) (a) Sales by a person who holds or is required to hold a seller’s permit.

Tax 11.33(5)(b) (b) Sales of a business or the assets of a business when the seller holds or is required to hold a seller’s permit. The tax applies to the portion of the sales price reasonably attributable to the taxable personal property such as equipment, furniture and fixtures.

Tax 11.33(5)(c) (c) Sales of motor vehicles, aircraft, boats, recreational vehicles as defined in s. 340.01 (48r) , Stats., snowmobiles, trailers, semitrailers, all-terrain vehicles, utility terrain vehicles, and off-highway motorcycles. Unless exempt, a use tax or sales tax pursuant to s. Tax 11.14 (2) (c) shall be paid by the purchaser at the time the motor vehicle, aircraft, boat, recreational vehicle as defined in s. 340.01 (48r) , Stats., snowmobile, trailer, semitrailer, all-terrain vehicle, utility terrain vehicle, or off-highway motorcycle is registered or titled within Wisconsin.

Tax 11.33(5)(d) (d) Sales made by persons who hold themselves out to the public as engaged in business, even though their sales may be few and infrequent. This includes the sales of works of art, handmade articles, antiques or used property by artists or others who are pursuing a vocation or part-time business as a seller of this property.

Tax 11.33(5)(e) (e) Sales of bingo supplies to players or the sale, rental or use of regular bingo cards, extra regular cards and special bingo cards.

Tax 11.33(5)(f) (f) Sales by persons engaged primarily in the business of making nontaxable sales of tangible personal property or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , Stats., such as manufacturers and wholesalers. Since these persons are in the business of selling tangible personal property or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , Stats., the mere fact that only a small fraction of their total sales are taxable retail sales does not make these sales exempt occasional sales.