Wis. Admin. Code § Tax 11.34 — Occasional sales exemption for sale of a business or business assets

Tax 11.34(1) (1) Scope. This section describes the exemption under s. 77.54 (7) (a) , Stats., for the occasional sale of a business or business assets as described in s. 77.51 (9) (a) and (am) , Stats.

Tax 11.34(2) (2) General.

Tax 11.34(2)(a) (a) The sale of business assets, consisting of tangible personal property or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , Stats., by a person who holds or is required to hold a seller’s permit at the time of the sale is subject to sales tax, except as provided in sub. (3) (c) .

Tax 11.34(2)(b) (b) Except as provided in sub. (3) (c) , the tax applies if the business assets are sold as:

Tax 11.34(2)(b)1. 1. A disposition of surplus assets of a continuing business.

Tax 11.34(2)(b)2. 2. A single transaction or series of transactions prior to termination of a business.

Tax 11.34(2)(b)3. 3. Piecemeal sales, whether part of a continuing business or prior to termination.

Tax 11.34(2)(c) (c) The tax does not apply to merchandise inventory sold to another retailer who purchases it for resale and sells it in the regular course of that retailer’s business.

Tax 11.34(3) (3) Effect of holding a seller’s permit.

Tax 11.34(3)(a) (a) Pursuant to s. 77.51 (9) (a) and (am) , Stats., a person holding or required to hold a seller’s permit at the time of disposition of business assets may not claim that a sale of a business asset is an occasional sale, except as provided in par. (b) .

Tax 11.34(3)(b) (b) A sale, other than a sale described in par. (bg) or (br) , is exempt from sales and use tax as an occasional sale if all of the following conditions are met:

Tax 11.34(3)(b)1. 1. The sale is of personal property or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , Stats., other than inventory held for sale, previously used by a person to conduct a trade or business at a location.

Tax 11.34(3)(b)2. 2. The sale occurs after the person 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 11.34(3)(bg) (bg) A 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 subject to tax unless s. Tax 11.33 (4) (a) 1. or 2. apply.

Tax 11.34(3)(br) (br) A sale of a boat that is registered or titled or required to be registered or titled in Wisconsin or under the laws of the United States is subject to tax unless s. Tax 11.33 (4) (b) 1. applies.

Tax 11.34(3)(c) (c) A sale meeting the conditions in par. (b) is exempt from sales or use tax even though the person holds a seller’s permit for one or more other locations.

Tax 11.34(3)(d) (d) The holder of a seller’s permit shall wait until ceasing business before requesting the inactivation of the permit because a person may not continue regular business operations without a permit.

Tax 11.34(4) (4) Inactivation of seller’s permit.

Tax 11.34(4)(a) (a) A permit holder may request that the department inactivate its seller’s permit by providing the department with the permit holder’s name, address, seller’s permit number, and the date the permit holder ceased business. The request may be made in any one of the following ways:

Tax 11.34(4)(a)1. 1. A permit holder may make a written request for seller’s permit inactivation. The department shall presume that the request was made at 12:01 a.m. on the postmark date of a postpaid properly addressed envelope, if the envelope and its contents are actually received by the department. If the retailer desires assurance that the department has received the request, the permit holder may use certified mail, return receipt requested.

Tax 11.34(4)(a)2. 2. A permit holder may make a request for seller’s permit inactivation by telephone. The department shall presume that the request was made at 12:01 a.m. on the day the department received the telephone call.

Tax 11.34(4)(a)3. 3. A permit holder may make a request for seller’s permit inactivation by electronic mail. The department shall presume that the request was made at 12:01 a.m. on the day the department received the electronic mail message.

Tax 11.34(4)(a)4. 4. A permit holder may make a request for seller’s permit inactivation in person at one of the department’s income, sales and excise tax division offices. The department shall presume that the request was made at 12:01 a.m. on the day the department received the request.

Tax 11.34(4)(b) (b) A person who has requested inactivation of its seller’s permit may not qualify for the occasional sale exemption if the person contemplates resumption of those activities which would require that the person hold a seller’s permit, unless the person qualifies for exemption under sub. (3) (b) .

Tax 11.34(4)(c) (c) The fact that a business ceases operating and no longer conducts its day-to-day sales of tangible personal property, items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , Stats., or taxable services does not result in the automatic inactivation of its seller’s permit.

Tax 11.34(5) (5) Cancellation of seller’s permit.

Tax 11.34(5)(a) (a) Although a seller’s permit may be deemed to have been delivered and canceled on a postmark date under sub. (4) , cancellation shall not be effective prior to the postmark date.

Tax 11.34(5)(b) (b) If a permit is delivered to the department for cancellation, the permittee shall immediately qualify for the occasional sales exemption, even though the person contemplates a subsequent sale of fixtures or equipment. The person shall not qualify for the occasional sale exemption if the person contemplates resumption of those activities which would require that person to hold a seller’s permit.

Tax 11.34(5)(c) (c) The fact that a business ceases operating and no longer conducts its day-to-day sales of tangible personal property, items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , Stats., or taxable services may not result in the automatic cancellation of a seller’s permit.