Wis. Admin. Code § Tax 11.57 — Utilities

Tax 11.57(1) (1) Taxable sales. Sales of the following tangible personal property, items, property, and goods under s. 77.52 (1) (b) , (c) , and (d) , Stats., and services provided by utilities are taxable:

Tax 11.57(1)(a) (a) Utility services billed to household, industrial, or commercial customers, with any adjustments for discounts taken by customers in the utility’s next reporting period.

Tax 11.57(1)(b) (b) Excess use charges and minimum or idle service charges.

Tax 11.57(1)(c) (c) The gross amounts received for contacts on poles and excess pole height contributions.

Tax 11.57(1)(d) (d) Parking space rentals.

Tax 11.57(1)(e) (e) Rentals of transformers located on a customer’s property.

Tax 11.57(1)(f) (f) Labor and materials to install or repair conversion burners.

Tax 11.57(1)(g) (g) The rental of water heaters.

Tax 11.57(1)(h) (h) Sales of scrap, gravel, or timber sold for removal.

Tax 11.57(1)(i) (i) Sales of tools, used equipment, and other tangible personal property and items, property, and goods under s. 77.52 (1) (b) , (c) , and (d) , Stats., to employees or other purchasers.

Tax 11.57(1)(j) (j) Pilot relights for furnaces, such as “no heat” calls, or replacing appliance fuses.

Tax 11.57(1)(k) (k) Sale of a utility overhead transmission or distribution line in place, if installed under easement or license on land owned by others.

Tax 11.57(1)(L) (L) Charges to builders to put in “temporary services.”

Tax 11.57(2) (2) Nontaxable sales. The following sales to customers are not subject to the tax:

Tax 11.57(2)(a) (a) Connection or reconnection charges for natural gas, electricity, and water.

Tax 11.57(2)(b) (b) Utility services delivered to Indians living on an Indian reservation, or services delivered on the reservation to an Indian tribal governing board.

Tax 11.57(2)(c) (c) Billings for repairs to persons who damaged utility property.

Tax 11.57(2)(d) (d) Services coincidental with house moving.

Tax 11.57(2)(e) (e) Pilot relight of yard gas lamp.

Tax 11.57(2)(f) (f) Contributions in aid of construction, such as payments by a customer to have a line extended to the customer’s property.

Tax 11.57(2)(g) (g) The installation charge for a pole sold to a customer, which is installed on land owned by the customer.

Tax 11.57(2)(h) (h) “Wheeling” energy for another utility.

Tax 11.57(2)(i) (i) Sales of fuel and electricity for use in farming, including agriculture, dairy farming, horticulture, floriculture, silviculture, beekeeping, and custom farming services.

Tax 11.57(2)(im) (im) Sales of fuel and electricity consumed in manufacturing tangible personal property, or items or property under s. 77.52 (1) (b) or (c) , Stats., in Wisconsin.

Tax 11.57(2)(j) (j) Labor charged a customer for the installation of a complete furnace or built-in appliance.

Tax 11.57(2)(k) (k) Water delivered to customers through mains.

Tax 11.57(2)(L) (L) Coal, fuel oil, propane, steam, peat, fuel cubes produced from solid waste and wood used for fuel, sold for residential use.

Tax 11.57(2)(m) (m) Biomass, as defined in s. 196.378 (1) (ar) , Stats., that is used for fuel sold for residential use.

Tax 11.57(2)(n) (n) Electricity and natural gas sold during the months of November, December, January, February, March, and April for residential use. For purposes of this exemption, s. 77.54 (30) (b) , Stats., provides that electricity or natural gas is considered sold at the time of billing. If the billing is by mail, the time of billing is the day on which the billing is mailed. In any event, a qualifying customer shall receive only 6 months of service exempt from taxation during the November through April period.

Tax 11.57(2)(o) (o) Low-income assistance fees that are charged under s. 16.957 (4) (a) or (5) (a) , Stats.

Tax 11.57(2)(p) (p) If fuel or electricity is sold to a person partly for an exempt use and partly for a use that is not exempt, no tax shall be collected by the seller on the portion of the sales price of the fuel or electricity that is used for an exempt purpose, as specified on an exemption certificate provided by the purchaser to the seller, as described in par. (q) .

Tax 11.57(2)(q) (q)

Tax 11.57(2)(q)1. 1. Where a building, that contains residential quarters and commercial operations, is heated by one central heating plant, it is necessary to determine the portion of the fuel purchased which qualifies for the “residential use” exemption. The percentage of residential use may be computed by dividing the number of square feet used for residential purposes, excluding common areas, by the total area heated, excluding common areas. If this does not produce a reasonable result, any other reasonable method of estimating may be used. The resulting percentage should be rounded to the nearest 10%.

Tax 11.57(2)(q)2. 2. In this subsection, “residential use” means use in a structure or portion of a structure that is a person’s permanent principal residence. Use in a residence includes heating or cooling the premises, heating water, operating fans or other motors, providing lighting, and other ordinary uses by the purchaser in a residence. Residential use includes use in single-family homes, duplexes, townhouses, condominiums, mobile homes, rooming houses, apartment houses, nursing homes, and farm houses, if the structure is used as a person’s permanent principal residence. Residential use includes use in apartment houses, nursing homes, and farm houses even though they are on a commercial or rural meter.

Tax 11.57(2)(q)3. 3. “Non-residential use” is use other than “residential use” as defined in subd. 2. , and includes any use in the conduct of a trade, business or profession, whether the trade, business or profession is carried on by the owner of the premises or some other person. It includes use in secondary residences, motor homes not used as a permanent principal residence, travel trailers, other recreational vehicles, and transient accommodations. “Transient accommodations” include hotels, motels, inns, travel homes, tourist houses, summer cottages, apartment hotels, or resort lodges or cabins, and any accommodation which is rented for a continuous period of less than one month.

Tax 11.57(2)(q)4. 4. A “continuous” certification designation is provided on the exemption certificate, form S-211, and, if claimed, the form remains in effect until replaced or revoked. A new certificate shall be filed if there is a change in the percentage of exempt use.

Tax 11.57(2)(r) (r)

Tax 11.57(2)(r)1. 1. Service provided by an electric cooperative to another electric cooperative, or by a telecommunications utility to another telecommunications utility, for disaster relief work performed during a disaster period.

Tax 11.57(2)(r)2. 2. In this paragraph:

Tax 11.57(2)(r)2.a. a. “Disaster period” has the meaning given in s. 77.54 (68) (b) 2. , Stats.

Tax 11.57(2)(r)2.b. b. “Disaster relief work” has the meaning given in s. 77.54 (68) (b) 3. , Stats.

Tax 11.57(2)(r)2.c. c. “Electric cooperative” has the meaning given in s. 76.48 (1g) (c) , Stats.

Tax 11.57(2)(r)2.d. d. “State of emergency” has the meaning given in s. 77.54 (68) (b) 4m. , Stats.

Tax 11.57(2)(r)2.e. e. “Telecommunications utility” has the meaning given in s. 196.01 (10) , Stats.

Tax 11.57(2)(r)3. 3. The exemption in this paragraph does not apply to materials and supplies used in performing exempt disaster relief services.

Tax 11.57(3) (3) Taxable purchases.

Tax 11.57(3)(a) (a) Persons engaged in the business of providing electrical or gas utility service are consumers of the tangible personal property, items, property, and goods under s. 77.52 (1) (b) , (c) , and (d) , Stats., and taxable services used in providing the utility services. The tax applies to the sales of the property, items, goods, or services to them, except where a specific exemption applies, such as the exemptions shown in sub. (4) .

Tax 11.57(3)(b) (b) The purchase, license, lease, or rental of the following property, items, goods, and services by a utility are subject to the tax:

Tax 11.57(3)(b)1. 1. Transformers, substation equipment, and other tangible personal property and items and property under s. 77.52 (1) (b) and (c) , Stats., used to construct, improve, or repair a transmission or distribution line.

Tax 11.57(3)(b)2. 2. A contractor’s charges for the construction, improvement, or repair of an overhead utility transmission or distribution line installed under easement or license on land owned by others.

Tax 11.57(3)(b)3. 3. Charges for coating pipe or creosoting poles.

Tax 11.57(3)(b)4. 4. Charges for X-ray testing of welding joints in the construction of overhead utility facilities.

Tax 11.57(3)(b)5. 5. Gas or electricity purchased for resale but used by a utility, but not gas used as a fuel in producing electricity or steam.

Tax 11.57(3)(b)6. 6. Charges for aerial photographs and maps.