1. (1) Landlords.

   1. (a) Landlords are the consumers of household furniture, furnishings, equipment, appliances, or other items of tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., purchased by them for use by their tenants in leased or rented living quarters. The sales and use tax applies to a landlord’s purchases of all these items. The sales price from a landlord’s charges to the tenant for use of these items are not subject to the tax even though there may be a separate charge for them.
   2. (b) The sales price from providing parking space for motor vehicles and aircraft and from providing docking and storage space for boats are taxable. If a separate charge is made for the parking, docking, or storage space, the charge is taxable. However, if a separate charge is not made and the price of a rental unit includes a charge for a parking, docking, or storage space, and if similar units are rented at a reduced price if the parking, docking, or storage space is not utilized, the difference between the rental price of the 2 similar units is taxable as a charge for parking, docking, or storage.

   3. (c)

      1. 1. The furnishing of rooms or lodging through the sale of any kind of time-share property is not taxable.

      2. 2. The sale, furnishing or use of recreational facilities on a periodic basis and of other recreational rights, including membership rights, vacation services and club memberships, with respect to time-share property, is not taxable, if the facilities are not available to persons who have not purchased the time-share property, other than guests.

         Example: If a golf course is available to the general public for a fee, charges for access to the golf course are taxable, even if the charges are made in connection with the sale or use of time-share property.

   4. (d) The rental for a continuous period of one month or more of a mobile home, as defined in s. 101.91 (10), Stats., or a manufactured home, as defined in s. 101.91 (2), Stats., used as a residence is exempt from the sales and use tax, whether the mobile home or manufactured home is classified as real or personal property.

2. (2) Hotels and motels. The furnishing of rooms or lodging to transients by hotelkeepers, motel operators, and other persons furnishing accommodations to the public, regardless of whether membership is required for use of the accommodations, is a taxable service.

   1. (a) “Transient” means any person residing at one location for a continuous period of less than one month. A continuing monthly rental of a particular room or rooms by a business, including a trucking company, railway, or airline, to be used by its employees for layover is not taxable.

   2. (b) The rental of space for meetings, conventions, and similar activities that are not amusement, athletic, entertainment, or recreational in nature, is not taxable. However, the rental of hotel or motel rooms generally used as sleeping accommodations is taxable, regardless of the type of use.

      Example: The rental of a motel sleeping room by a salesperson from 8:00 a.m. to 4:00 p.m. for use as a display room is taxable.

   3. (c) Sales of lodging by hotels, motels, and inns to governmental agencies and nonprofit organizations described in s. 77.54 (9a), Stats., and the federal government or to their employees are exempt from sales and use tax if the following 3 conditions are met, regardless of whether the agency or the employee pays for the lodging:

      1. 1. The hotel, motel, or inn issues the invoice or billing document for the lodging in the name of the governmental agency or nonprofit organization.

      2. 2. The hotel, motel, or inn receives any of the following:

         1. a. A purchase order or similar written document from the governmental agency.
         2. b. The certificate of exempt status, CES, number of the nonprofit organization. The hotel, motel, or inn shall enter the CES number on its copy of the invoice or billing document.
      3. 3. The hotel, motel, or inn keeps a copy of the documents in subds. 1. and 2. to substantiate that the sale was exempt.
   4. (d) Separately stated charges by hotels, motels, and inns for the rental of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., including televisions and refrigerators, are taxable.
   5. (e) Hotels, motels, and inns are the consumers of all the property, items, and goods used to conduct their business, such as beds, bedding, equipment, advertising materials, supplies, items, and property consumed by the occupants of a room as part of the lodging service. The tax applies to their purchases of all these items.

   6. (f)

      1. 1. Hotels, motels, and other lodging providers are deemed the consumers of telecommunications, ancillary, internet access, and cable TV services used in providing lodging services, even if the service provider charges its customer separately for such services.

      2. 2. The tax treatment of telecommunications, ancillary, internet access, and cable TV services is as follows:

         1. a. Charges by a lodging provider for these services are not taxable.
         2. b. The lodging provider’s purchases of these services are subject to tax, except internet access services are not taxable beginning July 1, 2020.

3. (3) Motels leased to operators.

   1. (a) The owner of a motel often leases the complete unit, including real and personal property, to a second party who operates the motel. If the lease does not indicate the amount of the lease receipts derived from the tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., as opposed to the realty and intangible property, the taxable receipts shall be determined by multiplying the total lease receipts of each reporting period by the ratio of the lessor’s purchase price of the tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., to the lessor’s total gross investment in all real and personal property being leased to that operator, except as provided in par. (c). This ratio shall apply as long as the lease agreement between the lessor and lessee remains unchanged. However, the original ratio and any change in the ratio resulting from changes in the lease, due to additions to or removal of real or personal property leased, are subject to review by the department for reasonableness.

   2. (b) The numerator of the ratio in par. (a) is the purchase price of the tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., purchased by the lessor, except as provided in par. (c). This includes furniture, furnishings, equipment, or trade fixtures in an office, kitchen, restaurant, lounge, rooms, patio, and other indoor and outdoor areas; beds, bedding, linen, and towels; vending machines; and maintenance equipment.

      Example: If the lessor’s purchase price of the tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), Stats., is $100,000, and the lessor’s gross investment is $500,000 for all real and personal property, items, and goods, taxable lease receipts shall be determined by applying a ratio of 20% ($100,000 ÷ $500,000) to the gross lease receipts for each sales tax reporting period.

   3. (c) For purposes of par. (a), if the lessor of the property under s. 77.52 (1) (c), Stats., is also the lessor of the real property to which the property under s. 77.52 (1) (c), Stats., is affixed, the numerator of the ratio described in par. (a), does not include the lessor’s gross investment in such property, but the lessor is liable for the sales or use tax on its purchases of such property.

      Note: Section Tax 11.48 interprets ss. 77.51 (13) (fm) and (n), 77.52 (1), (2) (a) 1., 2., 5., and 9., (2m), and (21), and 77.54 (36), Stats.

      Note: The interpretations in s. Tax 11.48 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The provisions of sub. (1) (c) 1. are effective on or after August 9, 1989, pursuant to 1989 Wis. Act 31; (b) 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; (c) The clarification that a service provider who transfers tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., incidentally with a taxable service is the consumer of such property, items, or goods became effective July 2, 2013, pursuant to 2013 Wis. Act 20; (d) Clarification that a lodging provider is the consumer of telecommunication, internet, and cable TV services became effective June 23, 2017, pursuant to 2017 Wis. Act 17; and (e) Internet access services became nontaxable effective July 1, 2020, pursuant to 2017 Wis. Act 59.

History

History: Cr. Register, November, 1977, No. 263, eff. 12-1-77; am. (1) (a) and (b), (2) (a) and (b) and (3) (b), cr. (1) (c) and (d), (2) (c) and (d), renum. (2) (c) to be (2) (e) and am., Register, March, 1991, No. 423, eff. 4-1-91; correction in (1) (d) made under s. 13.93 (2m) (b) 7., Stats., Register July 2002 No. 559; EmR0924: emerg. am. (1), (2) (intro.) to (b), (c) (intro.), 2. (intro.), b., 3., (d), (e) and (3), cr. (3) (c), eff. 10-1-09; CR 09-090: am. (1), (2) (intro.) to (b), (c) (intro.), 2. (intro.), b., 3., (d), (e) and (3), cr. (3) (c) Register May 2010 No. 653, eff. 6-1-10; CR 20-018: cr. (2) (f) Register July 2021 No. 787, eff. 8-1-21.