Current through August 26, 2024
(1) GENERAL.
Section
77.54(26),
Stats., provides a sales and use tax exemption for tangible personal property
and items and property under s.
77.52(1) (b) and (c), Stats., which becomes a component part
of certain waste treatment facilities.
(2) UTILITY WASTE TREATMENT EXEMPTION. If a
utility waste treatment facility that is taxed under ch. 76, Stats., qualifies
for property tax exemption under s.
76.025(1),
Stats., as approved by the department, it qualifies for the sales and use tax
exemption under s.
77.54(26),
Stats.
Note: Refer to s.
Tax 6.40 for information on how to request approvals for
property tax exemption for utility waste treatment facilities. For more
information regarding exemptions for waste treatment facilities owned by a
utility, including railroads, airlines, and pipelines, approved by the
department, write to Wisconsin Department of Revenue, Manufacturing and Utility
Bureau, PO Box 8971, Madison WI 53708-8971; telephone (608) 266-3845; send an
e-mail to mfgtelco@wisconsin.gov; or access the department's web site at
www.revenue.wi.gov and search "waste
treatment facilities".
(2m)
INDUSTRIAL WASTE TREATMENT EXEMPTION.
(a) An
industrial waste treatment facility is any property purchased or constructed as
a waste treatment facility used exclusively and directly to remove, store, or
cause a physical or chemical change in industrial waste or air contaminants for
the purpose of abating or eliminating pollution of surface waters, the air, or
waters of the state if that property is not used to grow agricultural products
for sale. In this paragraph, "used exclusively" means to the exclusion of all
other uses except:
1. For other use not
exceeding 5% of total use.
2. To
produce heat or steam for a manufacturing process, if the fuel consists of
either 95% or more industrial waste that would otherwise be considered
superfluous, discarded, or fugitive material or 50 percent or more of wood
chips, sawdust, or other wood residue from the paper and wood products
manufacturing process, if the wood chips, sawdust, or other wood residue would
otherwise be considered superfluous, discarded, or fugitive material.
(b) Tangible personal property and
items and property under s.
77.52(1) (b) and (c), Stats., becoming a component part of an
industrial waste treatment facility is exempt from the sales and use tax under
s.
77.54(26),
Stats., if the facility qualifies for property tax exemption under s.
70.11(21),
Stats.
Note: For information regarding the property tax
exemption for industrial waste treatment facilities of manufacturers write or
call the district office of the Wisconsin Department of Revenue, Bureau of
Manufacturing and Telco Assessments. To locate the district office, write or
call Wisconsin Department of Revenue, Bureau of Manufacturing and Telco
Assessment, PO Box 8971, Madison WI 53708-8971; telephone (608) 266-1147. The
web site is http://www.revenue.wi.gov/contact/slfbmta.html.
To ascertain whether a non-manufacturing property would be exempt under s.
70.11(21),
Stats., owners may refer to the Wisconsin Property Assessment Manual or contact
the local property tax assessor.
(3) MUNICIPAL WASTE TREATMENT EXEMPTION.
Tangible personal property and items and property under s.
77.52(1) (b) and (c), Stats., which become a component or
ingredient part of municipal facilities that treat waste qualifies for
exemption from Wisconsin sales and use tax under s.
77.54(26),
Stats. Municipal facilities that treat waste include:
(a)
Wastewater treatment
facility.1. Only the central waste
treatment plant which actually treats the sewage qualifies for the
exemption.
2. Storm sewers, water
supply systems and private domestic waste water facilities do not qualify for
the sales and use tax exemption.
3.
The collection system throughout the area served by the treatment facility, the
effluent pipeline carrying the treated sewage away from the central treatment
plant, earthen dikes, and chain link fences on the boundary of a treatment
plant, and dredge material disposal sites are not exempt. The collection
systems includes the lift stations, force mains, and associated pumping
equipment used to bring the raw sewage to the central treatment
plant.
(b)
Material recovery facility.
1. A facility constructed by a municipality
to meet mandates of ch. 287, Stats., regarding the reuse, recycling, and
recovery of waste material to reduce the need for waste disposal is exempt if
the activities include all of the following:
a. Sorting recyclable materials delivered
from municipalities.
b. Processing
recyclable materials which may include removing contaminants, baling paper,
shredding paper, pelletizing plastics, and crushing glass.
c. Storing processed recyclable materials for
sale to others.
2. The
exemption does not apply if the only activities performed are sorting and
storing and no processing of the materials takes place.
(c)
Sanitary landfill. A
sanitary landfill, including the treatment equipment, such as the collection
and burner system, laboratory equipment, maintenance buildings, garages, office
buildings, fences, and gates, qualifies for exemption.
(d)
Groundwater facilities.
1. A municipal facility constructed to treat
hazardous or contaminated groundwater, including oil and water separators, air
strippers, aerators, blowers, filters, carbon units, controls, pumps, and
thermal oxidizers, qualifies for exemption.
2. The collection system used to bring the
hazardous or contaminated water to the facility and the distribution system
used to carry the treated water away from the facility are not exempt.
Note: For more information regarding the
exemption for municipal treatment facilities, write, email or call Wisconsin
Department of Revenue, Customer Service Bureau, Mail Stop 5-77, PO Box 8949,
Madison WI 53708-8949, email dorsalesanduse@wisconsin.gov, telephone (608)
266-2776. The web site is www.revenue.wi.gov.
(4) REPAIR, SERVICE AND
OPERATION.
(a) The repair, service,
alteration, cleaning, painting, and maintenance of a utility waste treatment
facility described in sub. (2), an industrial waste treatment facility
described in sub. (2m), and a municipal waste treatment facility described in
sub. (3) as well as the repair parts and replacement for those types of
facilities are exempt from the sales and use tax.
(b) Chemicals and supplies, including fuel
and electricity, used or consumed in operating a utility waste treatment
facility described in sub. (2), an industrial waste treatment facility
described in sub. (2m) and a municipal waste treatment facility described in
sub. (3) are exempt from the sales and use tax.
(5) CONTRACTORS AND SUBCONTRACTORS.
(a)
Exempt purchases. The
sales and use tax exemption extends to and includes the purchases of tangible
personal property and items and property under s.
77.52(1) (b) and (c), Stats., by a contractor-installer who
incorporates the property into an approved utility waste treatment facility or
who incorporates the property into an industrial waste treatment facility or a
municipal waste treatment facility. The contractor-installer shall certify the
intended exempt use of the item to each supplier in order to relieve the
supplier of the duty of collecting and reporting the tax on the sales.
Certification of exempt use shall be made on a Wisconsin sales and use tax
exemption certificate, form S-211.
Note: Form S-211 may be obtained by writing or
calling Wisconsin Department of Revenue, P.O. Box 8902, Madison, WI 53708-8902,
telephone (608) 266-2776.
(b)
Taxable purchases. A
contractor's purchases of items used or consumed in the performance of the
construction contract, and which do not become a component part of the waste
treatment facility, are subject to the tax. This includes industrial gases,
form lumber, tunnel shields, and supplies used by a contractor during
construction. Payments by a contractor for equipment purchased or leased to
perform a construction job are also taxable.
(c)
Determining exemptions.
1. `Utility property taxed under ch. 76,
Stats.' A contractor or subcontractor may be liable for sales and use tax on a
purchase of tangible personal property or items or property under s.
77.52(1) (b) or (c), Stats., that becomes a component part of
a utility waste treatment facility that has not been approved by the department
for a property tax exemption under s.
76.025(1),
Stats.
Note: Contractors may direct questions
concerning the property to the department as provided in sub.
(2).
2. `Industrial property
taxed under ch. 70, Stats.' Approvals are not required for industrial waste
treatment facilities. A contractor or subcontractor may be liable for sales and
use tax on a purchase of tangible personal property or items or property under
s.
77.52(1) (b) or (c), Stats., that becomes a component part of
a facility that is determined to not qualify for a waste treatment facility
property tax exemption under s.
70.11(21),
Stats.
Note: Contractors may direct questions
concerning the taxability of the waste treatment facility to the department as
provided in sub. (2m).
3.
`Municipal waste treatment facilities.' Approvals are not required for
municipal waste treatment facilities. A contractor or subcontractor may be
liable for sales and use tax on a purchase of tangible personal property or
items or property under s.
77.52(1) (b) or (c), Stats., that becomes a component part of
a facility that is determined not to be a municipal waste treatment facility as
provided in sub. (3).
Note: Contractors may direct questions
concerning the taxability of the waste treatment facility to the department as
provided in sub. (2m).
Note: Section Tax 11.11 interprets s.
77.54(26),
Stats.
The interpretations in s. Tax 11.11 are effective July 31,
1975 when ss.
70.11(21) and
77.54(26),
Stats., were revised, except: (a) The exemptions for chemicals and supplies
used or consumed in operating a waste treatment facility became effective
September 1, 1979, pursuant to Chapter 39, Laws of 1979; (b) The approval
process for property and sales tax exemptions for industrial waste treatment
facilities, except utilities, were eliminated effective January 1, 2002,
pursuant to 2001 Wis. Act 16; (c) The definition of an industrial waste
treatment facility was amended pursuant to 2007 Wis. Act 19 and applies on and
after October 1, 2007; and (d) 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.
