1. (1) Definitions.

   1. (a) In this section:

      1. 1. “Elementary school” means a school providing any of the first 8 grades of a 12 grade system and kindergarten where applicable.
      2. 2. “School district” has the same meaning as provided for in s. 115.01 (3), Stats.
      3. 3. “Secondary school” means a school providing grades 9 through 12 of a 12 grade system and includes the junior and senior trade schools described in s. 119.30, Stats.
   2. (b) Elementary and secondary schools include parochial and private schools not operated for profit which offer any academic levels comparable to those described in par. (a) 1. and 3. and which are educational institutions having a regular curriculum offering courses for at least 6 months in the year. Elementary and secondary schools also include school districts for purposes of exemption under s. 77.54 (4), Stats.
   3. (c) Elementary or secondary schools do not include flying schools, driving schools, art schools, music schools, dance schools, modeling schools, charm schools, or similar schools which do not offer systematic instruction of the scope and intensity common and comparable to elementary and secondary schools.

2. (2) Sales by elementary and secondary schools.

   1. (a) Exempt sales by elementary or secondary schools include:

      1. 1. The sale or rental of books, yearbooks, annuals, magazines, directories, bulletins, papers, or similar publications.

      2. 2. School lunches and library and book fines.

         Example: A school auditorium is rented to a religious group which conducts a religious revival. The sales price from the rental is exempt.

      3. 3. Rental of auditoriums or gymnasiums, including any charges for lights, heat, janitor fees, and equipment, when used for other than recreational, athletic, amusement, or entertainment purposes.

      4. 4. Rental of auditoriums or gymnasiums, including any charges for lights, heat, janitor fees, and equipment, when used by a promoter or professional group which will sell admissions to the public for recreational, athletic, amusement, or entertainment purposes.

         Examples: 1) A school gymnasium is rented to a professional basketball team which will sell tickets to the event. The sales price from the rental is exempt.

         2) A school auditorium is rented to a popular band for one night. The band will sell tickets to its performance. The sales price from the rental is exempt.

      5. 5. Admissions to school activities such as athletic events, art and science fairs, concerts, dances, films or other exhibits, lectures, and school plays, if the event is sponsored by the school, the school has control over purchases and expenditures and the net proceeds are used for educational, religious, or charitable purposes.
      6. 6. The transfer of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., to a contractor for performance of a real property construction activity in exchange for a reduction in the contract price, even though the contract provides that the contractor is to supply all materials.

   2. (b) Taxable sales by elementary or secondary schools include:

      1. 1. Admissions to recreational facilities, such as golf courses, swimming pools, ball fields, and gymnasiums which are open to the general public for recreational purposes.

      2. 2. Rental of auditoriums or gymnasiums, including any charges for lights, heat, janitor fees, and equipment, when used by persons for their own recreation, entertainment, or amusement where there is no charge for admission.

         Example: A local neighborhood group rents the school gymnasium for its residents to play volleyball. The neighborhood group does not charge its residents to play volleyball. The sales price from the rental is taxable. If the group charged an entry fee to play volleyball, the sales price from the rental of the gymnasium is not taxable because the rental is for resale.

      3. 3. Taxable services under s. 77.52 (2) (a), Stats., such as parking and repair services.

         Example: A school sponsors an athletic tournament and charges $1 for parking. The sales price from parking is taxable.

3. (3) Sales by school-related organizations and others. Taxable sales by school-related organizations and others, not including school districts, include:

   1. (a) The sale of class rings, photographs, or caps and gowns rented or sold to students by retailers or photographers where the school acts as a collection agent for the seller, whether or not the school receives a commission for the collection. The retailer, such as a photographer, is subject to the tax on these sales.
   2. (b) Sales made by school-related organizations, such as parent-teacher associations and student organizations, not subject to the control and supervision of school officials.
   3. (c) Sales of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., or taxable services by technical college districts.

4. (4) Sales to schools and school-related organizations. Under s. 77.54, Stats., sales to the following organizations are exempt:

   1. (a) Public schools, technical colleges, state colleges and universities, and public school districts, located in Wisconsin. An exemption certificate or a purchase order shall be acceptable evidence of a sale’s exempt status.
   2. (b) Private schools having certificates of exempt status.
   3. (c) Related organizations of private or public schools which have certificates of exempt status, such as parent-teacher associations and student organizations which are not subject to the control and supervision of school officials.

   4. (d) Related organizations of private or public schools, such as parent-teacher associations and student organizations which are subject to the control and supervision of school officials. An exemption certificate completed by the school or a school purchase order shall be acceptable evidence of a sale’s exempt status.

      Note: Section Tax 11.03 interprets ss. 77.52 (1) and (2) (a) and 77.54 (4), (9), and (9a), Stats.

      Note: The change of the term “gross receipts” to “sales price” and the separate impositions of tax on coins and stamps sold above face value under s. 77.52 (1) (b), Stats., certain leased property affixed to real property under s. 77.52 (1) (c), Stats., and digital goods under s. 77.52 (1) (d), Stats., became effective October 1, 2009, pursuant to 2009 Wis. Act 2.

History

History: Cr. Register, November, 1977, No. 263, eff. 12-1-77; am. (1) (a), (2) (a) 3., (3) (a) and (4) (c), renum. (2) (a) 4. to be 5., cr. (2) (a) 4., r. and recr. (2) (b), Register, September, 1991, No. 429, eff. 10-1-91; r. and recr. (1) (a), am. (1) (b), (3) (intro.) and (a), cr. (2) (a) 6., Register, April, 1993, No. 448, eff. 5-1-93; renum. (1) (a) 2. and 3. to be (1) (a) 3. and 2., am. (1) (b), (3) (c), (4) (a) and (c), cr. (4) (d), Register, October, 1999, No. 526, eff. 11-1-99; EmR0924: emerg. am. (2) (a) (intro.), 6., (b) (intro.), (3) (intro.), (c) and (4) (intro.), eff. 10-1-09; CR 09-090: am. (2) (a) (intro.), 6., (b) (intro.), (3) (intro.), (c) and (4) (intro.) Register May 2010 No. 653, eff. 6-1-10; CR 10-094: am. (2) (a) 1., 3., 4., 5., (b) 1., 2., (3) (a), (4) (a) Register November 2010 No. 659, eff. 12-1-10.