Wis. Admin. Code § Tax 11.38 — Fabricating, processing, and printing

Tax 11.38(1) (1) Sales of fabricating, processing, and printing services. The producing, fabricating, processing, printing, or imprinting of tangible personal property or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , Stats., for a consideration for consumers who furnish directly or indirectly the materials used in the producing, fabricating, processing, printing or imprinting is subject to Wisconsin sales or use tax unless:

Tax 11.38(1)(a) (a) The printing or imprinting is done on tangible personal property or items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , Stats., that results in printed materials that are exempt under s. 77.54 (25) , Stats., or catalogs and their mailing envelopes that are exempt under s. 77.54 (25m) , Stats.

Tax 11.38(1)(b) (b) An exemption under s. 77.54 or 77.55 , Stats., applies.

Tax 11.38(1)(c) (c) The producing, fabricating or processing is for resale.

Tax 11.38(2) (2) Examples of fabricating and processing services. Fabricating and processing services, where materials are furnished directly or indirectly by the customer, that are subject to Wisconsin sales or use tax include, except as provided in sub. (1) (a) to (c) :

Tax 11.38(2)(a) (a) Application of coating to pipe.

Tax 11.38(2)(b) (b) Assembling kits to produce a completed product.

Tax 11.38(2)(c) (c) Bending glass tubing into neon signs.

Tax 11.38(2)(d) (d) Bookbinding.

Tax 11.38(2)(e) (e) Caterer’s preparation of food.

Tax 11.38(2)(f) (f) Cleaning used oil.

Tax 11.38(2)(g) (g) Cutting lumber to specifications and producing cabinets, counter tops or other items from lumber for customers, often called “millending.”

Tax 11.38(2)(h) (h) Cutting or crushing stones, gravel or other construction materials.

Tax 11.38(2)(i) (i) Drying, planing or ripping lumber.

Tax 11.38(2)(j) (j) Dyeing or fireproofing fabric.

Tax 11.38(2)(k) (k) Fabricating steel which may involve cutting the steel to length and size, bending and drilling holes in the steel to specifications of a particular construction job.

Tax 11.38(2)(L) (L) Firing of ceramics or china.

Tax 11.38(2)(m) (m) Heat treating or plating.

Tax 11.38(2)(n) (n) Laminating identification cards.

Tax 11.38(2)(o) (o) Making a fur coat from pelts, gloves or a jacket from a hide.

Tax 11.38(2)(p) (p) Making curtains, drapes, slip covers or other household furnishings.

Tax 11.38(2)(q) (q) Production of a sound recording or motion picture.

Tax 11.38(2)(r) (r) Retreading tires.

Tax 11.38(2)(s) (s) Tailoring a suit.

Tax 11.38(2)(t) (t) Threading pipe or welding pipe.

Tax 11.38(3) (3) Purchases by fabricators or processors. Persons providing fabricating, processing and printing services, including those services listed in sub. (2) , may qualify as manufacturers. If the service provider qualifies as a manufacturer as provided in s. 77.51 (7h) (a) , Stats., the following items may be purchased by the service provider without Wisconsin sales or use tax:

Tax 11.38(3)(a) (a) Machinery and equipment used exclusively and directly in manufacturing.

Tax 11.38(3)(b) (b) Tangible personal property or items under s. 77.52 (1) (b) , Stats., that are used exclusively and directly by a manufacturer in manufacturing an article of tangible personal property or item or property under s. 77.52 (1) (b) or (c) , Stats., destined for sale and which becomes an ingredient or component part of the property or item destined for sale or is consumed or destroyed or loses its identity in the manufacture of tangible personal property or item or property under s. 77.52 (1) (b) or (c) , Stats., in any form destined for sale, except for fuel and electricity as provided in s. 77.54 (30) (a) 6. , Stats.