Wis. Admin. Code § Tax 11.52 — Coin-operated vending machines and amusement devices

Tax 11.52(1) (1) Scope. This section applies to all sales from coin-operated machines, except those located on army, air force, navy, or marine corps exchanges where the operator leases the machines to those exchanges which acquire title to and sell the merchandise through the machines to authorized purchasers from those exchanges.

Tax 11.52(2) (2) Definitions. In this section:

Tax 11.52(2)(a) (a) “Heated” means the food or beverages have been prepared for sale in a heated condition and which are sold at any temperature higher than the air temperature of the room or place where they are sold.

Tax 11.52(2)(b) (b) “Operator” has the meaning in s. 77.52 (1m) , Stats.

Tax 11.52(2)(c) (c) “Retailer” for purposes of this section means either of the following:

Tax 11.52(2)(c)1. 1. Any person who owns or possesses coin-operated vending machines or amusement devices, who controls the operations of the machines as by stocking or removing the receipts from the machines or devices, who has access to the machines or devices for any purpose connected with the sale of merchandise or services through the machines or devices, and whose compensation is based, in whole or in part, upon receipts from sales made through the machines or devices.

Tax 11.52(2)(c)2. 2. A person who is responsible for providing laundry, dry cleaning, photographic, photocopy, or other taxable services through vending machines.

Tax 11.52(3) (3) Seller’s permits.

Tax 11.52(3)(a) (a) Retailers of tangible personal property, items, property and goods under s. 77.52 (1) (b) , (c) , and (d) , Stats., and taxable services sold through coin-operated vending machines or devices dispensing taxable tangible personal property, items, property, or goods under s. 77.52 (1) (b) , (c) , or (d) , Stats., or services shall obtain a seller’s permit. One permit shall be sufficient for all the machines of each retailer.

Tax 11.52(3)(b) (b) A notice must be affixed to each coin-operated machine or device showing the retailer’s name, address and seller’s permit number.

Tax 11.52(4) (4) Taxable receipts. Taxable receipts include receipts from:

Tax 11.52(4)(a) (a) Coin-operated machines dispensing tangible personal property and items, property, and goods under s. 77.52 (1) (b) , (c) , and (d) , Stats., such as:

Tax 11.52(4)(a)1. 1. Candy.

Tax 11.52(4)(a)2. 2. Chewing gum.

Tax 11.52(4)(a)3. 3. Dietary supplements.

Tax 11.52(4)(a)4. 4. Heated foods and beverages.

Tax 11.52(4)(a)4m. 4m. Prepared foods, such as sandwiches prepared by the retailer.

Tax 11.52(4)(a)5. 5. Soft drinks.

Tax 11.52(4)(a)6. 6. Non-edible items such as:

Tax 11.52(4)(a)6.a. a. Beauty supplies, such as make-up, hair spray, nail polish, and combs.

Tax 11.52(4)(a)6.b. b. Cameras, film, and photography supplies.

Tax 11.52(4)(a)6.c. c. Cigars, cigarettes, other tobaccos products, and lighters.

Tax 11.52(4)(a)6.d. d. Drugs and other medical supplies, such as aspirin, bandages, and suntan lotion.

Tax 11.52(4)(a)6.e. e. Hygiene products, such as soap and shampoo.

Tax 11.52(4)(a)6.f. f. Photocopies.

Tax 11.52(4)(a)6.g. g. Photographs.

Tax 11.52(4)(a)6.h. h. Reading materials.

Tax 11.52(4)(a)6.i. i. Toys and games.

Tax 11.52(4)(a)6.j. j. Videos.

Tax 11.52(4)(a)6.k. k. Wearing apparel, such as gloves, hosiery, shoelaces, and sunglasses.

Tax 11.52(4)(b) (b) Coin-operated machines which provide a taxable service, such as telephones, car washes, televisions, vacuums, parking meters, shoe shine machines, bowling ball cleaning machines and coin-operated amusement devices such as juke boxes, pinball machines, shuffleboards, pool tables, slot racing, mechanical rides and games, and penny arcades.

Tax 11.52(4)(c) (c) Coin-operated machines of non-governmental retailers located on army, navy, or air force installations, hospitals, or other facilities of the United States government.

Tax 11.52(5) (5) Nontaxable receipts. Receipts from the following are not taxable:

Tax 11.52(5)(a) (a) Laundry, dry cleaning and pressing machines when the service is performed by the customer through the use of self-service machines.

Tax 11.52(5)(b) (b) Coin-operated storage lockers, pay toilets, and scales.

Tax 11.52(5)(c) (c) Coin-operated hair drying machines.

Tax 11.52(5)(d) (d) Hospitals sales from vending machines of food and food ingredients, except soft drinks to patients, staff, or visitors.

Tax 11.52(5)(e) (e) Sales from a vending machine of food and food ingredients except, candy, soft drinks, dietary supplements, and prepared foods.

Tax 11.52(5m) (5m) Prizes awarded through amusement devices.

Tax 11.52(5m)(a) (a) Tangible personal property sold to a person who provides a taxable service through an amusement device, as defined in s. 77.54 (65m) (b) , Stats., is exempt from sales and use tax if the property is used exclusively as a prize awarded or transferred through the use of the amusement device.

Tax 11.52(5m)(b) (b) An amusement device operator shall pay sales or use tax on purchases of tangible personal property that is used to play an amusement device but not awarded as a prize. Examples include tokens used to play the amusement device and paper tickets dispensed from the amusement device and redeemed for prizes.

Tax 11.52(6) (6) Reporting and record keeping.

Tax 11.52(6)(a) (a) The receipts from the sale of taxable property, items, goods, or services from vending machines and amusement devices are subject to sales tax. Thus, taxable receipts include, for example, receipts from property, items, goods, and services selling for one, 5, and 10 cents and more. No deduction shall be permitted for the cost of the property, item, good, or service sold, materials used, labor or service cost, or any other expense, including commissions paid to place machines in an establishment.

Tax 11.52(6)(b) (b) Sales tax collected from customers may be deducted from the total receipts before computing the tax payable, if customers are notified the prices include sales tax. If customers are not notified that the prices include sales tax, no deduction shall be allowed. The notification of the customer may be made by either:

Tax 11.52(6)(b)1. 1. Conspicuously posting the bracket system charts issued by the department.

Tax 11.52(6)(b)2. 2. Conspicuously posting a sign that states “Prices Include Sales Tax.”

Tax 11.52(6)(c) (c) Each retailer shall maintain adequate and complete records including:

Tax 11.52(6)(c)1. 1. The location of each machine.

Tax 11.52(6)(c)2. 2. The serial number of each machine.

Tax 11.52(6)(c)3. 3. Purchases and inventories of all merchandise sold through machines.

Tax 11.52(6)(c)4. 4. Receipts from sales of exempt merchandise.

Tax 11.52(6)(c)5. 5. Purchase records of all machines and the cost of all supplies of which the retailer is deemed to be the user or consumer.

Tax 11.52(7) (7) Sale, license, lease, or rental of machines.

Tax 11.52(7)(a) (a) Except as provided in pars. (b) , (c) , (d) and (e) , receipts from the sale, lease, rental, or license to use coin-operated machines and attachments, parts and supplies for the machines are subject to the sales tax. Taxable receipts include sales to persons providing a service, such as laundry and dry cleaning service. If the machines, attachments, parts, or supplies are purchased for use in Wisconsin from an unregistered out-of-state supplier, the purchaser shall remit the use tax directly to the department.

Tax 11.52(7)(b) (b) Nontaxable receipts include the lease of coin-operated machines by non-governmental retailers to exchanges of the army, air force, navy, or marine corps which acquire title to and sell merchandise through the machines to authorized purchasers from such exchanges.

Tax 11.52(7)(c) (c) Machines purchased exclusively for license, lease, or rental to others may be purchased by the lessor without tax if the lessor gives an exemption certificate to the lessor’s supplier. If the lessor intends to make any use of the machines other than license, lease, or rental, an exemption certificate claiming resale may not be given. In either event, the lessor’s rental receipts are taxable.