Current through August 26, 2024
(1) DEFINITIONS. For purposes of this
section:
(a)
1. "Manufactured home," as defined in s.
101.91(2),
Stats., means either of the following:
a. A
structure that is designed to be used as a dwelling with or without a permanent
foundation and that is certified by the federal department of housing and urban
development as complying with the standards established under
42 USC
5401 to
5425.
b. A mobile home, unless a mobile home is
specifically excluded under the applicable statute.
2. As provided in
42 USC
5402(6), "manufactured home"
means a structure, transportable in one or more sections, which, in the
traveling mode, is eight body feet or more in width or forty body feet or more
in length, or, when erected on site, is three hundred twenty or more square
feet, and which is built on a permanent chassis and designed to be used as a
dwelling with or without a permanent foundation when connected to the required
utilities, and includes the plumbing, heating, air-conditioning, and electrical
systems contained therein; except that such term shall include any structure
which meets all the requirements of this paragraph except the size requirements
and with respect to which the manufacturer voluntarily files a certification
required by the Secretary of Housing and Urban Development and complies with
the standards established under this chapter; and except that such term shall
not include any self-propelled recreational vehicle.
(b) "Mobile home," as defined in s.
101.91(10),
Stats., means a vehicle manufactured or assembled before June 15, 1976,
designed to be towed as a single unit or in sections upon a highway by a motor
vehicle and equipped and used, or intended to be used, primarily for human
habitation, with walls of rigid uncollapsible construction, which has an
overall length in excess of 45 feet. "Mobile home" includes the mobile home
structure, its plumbing, heating, air conditioning and electrical systems, and
all appliances and all other equipment carrying a manufacturer's
warranty.
(bm)
1. "Modular home," as defined in s.
101.71(6),
Stats., means any structure or component thereof which is intended for use as a
dwelling and satisfies either of the following conditions:
a. The structure or component is of closed
construction and fabricated or assembled on-site or off-site in manufacturing
facilities for installation, connection, or assembly and installation, at the
building site. In this subd. 1. a., "closed construction" has the meaning given
in s. 101.71(1),
Stats.
b. The structure or
component is a building of open construction which is made or assembled in
manufacturing facilities away from the building site for installation,
connection, or assembly and installation, on the building site and for which
certification is sought by the manufacturer. In this subd. 1.
b. and subd. 2., "open construction" has the
meaning given in s. 101.71(7),
Stats.
2. "Modular home"
does not mean any manufactured home under s.
101.91, Stats., or any building
of open construction which is not subject to subd. 1. b.
(c) "New manufactured home," as defined in s.
101.91(11),
Stats., means a manufactured home that has never been occupied, used or sold
for personal or business use.
(d)
"New recreational vehicle," as defined in s.
218.10(7),
Stats., means a recreational vehicle which has never been occupied, used or
sold for personal or business use.
(e) "Recreational vehicle," as defined in s.
340.01(48r),
Stats., means a vehicle that is designed to be towed upon a highway by a motor
vehicle, that is equipped and used, or intended to be used, primarily for
temporary or recreational human habitation, that has walls of rigid
construction, and that does not exceed 45 feet in length.
(f) "Recreational vehicle dealer" has the
meaning given in s. 218.10(1g),
Stats.
(g) "Retailer" is a person
who has or is required to have a certificate under s.
77.52(7),
Stats., or s. 77.53(9),
Stats., and who holds or is required to hold a permit issued under s.
77.52(9),
Stats., or s. 77.53(9m),
Stats.
(h) "Used manufactured
home," as defined in s.
101.91(12),
Stats., means a manufactured home that has previously been occupied, used or
sold for personal or business use.
(i) "Used recreational vehicle" has the
meaning given in s. 218.10(9),
Stats.
(2) MANUFACTURED
AND MOBILE HOMES AS PERSONAL PROPERTY VS. REALTY IMPROVEMENT. A manufactured or
mobile home is personal property if it is located in a manufactured home
community, a mobile home park, or other place where the land on which the
manufactured or mobile home is located is not owned by the manufactured or
mobile home owner. A manufactured or mobile home is a realty improvement if it
is permanently affixed to land owned by the owner of the manufactured or mobile
home. It is permanently affixed to the land for sales tax purposes if the
manufactured or mobile home sits on a foundation and is connected to utilities.
"On a foundation" means it is off the wheels and sitting on some other
support.
(3) SALES OF MANUFACTURED
AND MOBILE HOMES WHICH ARE REALTY IMPROVEMENTS.
(a) The sale of a manufactured or mobile home
and the land to which it is permanently affixed is the sale of a realty
improvement not subject to the tax. The sale of a manufactured or mobile home
which is a realty improvement on the land of the seller, and which is acquired
by the purchaser for removal from the seller's land for permanent attachment to
the purchaser's land, is the sale of realty.
(b) If the seller of a manufactured or mobile
home as part of the sales transaction agrees to permanently affix the home on a
foundation on land owned by the purchaser, the seller is a contractor-consumer
engaged in improving realty. Except as provided in par. (c), sales of
manufactured or mobile homes to the contractor-consumer are subject to the tax,
but the sales price from the subsequent sale by the contractor-consumer to the
purchaser of the home are not taxable.
(c) Sales of manufactured homes to the
contractor-consumer for use in real property construction activities outside
Wisconsin are exempt from Wisconsin sales and use tax.
(4) SALES AND RENTALS OF MANUFACTURED AND
MOBILE HOMES WHICH ARE PERSONAL PROPERTY.
(a)
Under s. 77.54(31),
Stats., the total sales price from the sale of a used mobile home or a used
manufactured home is exempt from the sales and use tax.
(b) Under s.
77.51(15b) (b) 7. and (12m) (b)7, Stats., 35% of the total sales price from
the sale of a new manufactured home is exempt from the tax. No credit is
allowed for trade-in allowances on the purchase of these new manufactured
homes.
(c) Under s.
77.54(36),
Stats., the rental of a mobile home or a manufactured home used for residence
for a continuous period of one month or more is exempt from the sales and use
tax, whether the manufactured or mobile home is classified as real or personal
property.
(d) Under s.
77.54(7),
Stats., recreational vehicles, as defined in s.
340.01(48r),
Stats., registered or titled or required to be registered or titled in this
state that are transferred to the child, spouse, parent, father-in-law,
mother-in-law, son-in-law, or daughter-in-law of the transferor are exempt
occasional sales if the recreational vehicle, as defined in s.
340.01(48r),
Stats., has been previously registered or titled in Wisconsin in the name of
the transferor and the transferor is not engaged in the business of selling
recreational vehicles, as defined in s.
340.01(48r),
Stats.
(e) Under s.
77.53(18),
Stats., the use tax does not apply to a manufactured home or mobile home
purchased by a nonresident outside Wisconsin 90 days or more before bringing
the manufactured or mobile home into Wisconsin in connection with a change of
domicile to Wisconsin.
(4m) MODULAR HOMES.
(a) The sale of a modular home and the land
to which it is permanently affixed is the sale of a realty improvement not
subject to the tax.
(b) If the
seller of a modular home as part of the sales transaction agrees to permanently
affix the home on a foundation, the seller is a contractor-consumer engaged in
improving realty. Except as provided in par. (e), the sale of the modular home
to the contractor-consumer is subject to the tax, but the sales price from the
subsequent sale by the contractor-consumer to the purchaser of the home is not
taxable.
(c) The sales or purchase
price from the sale of a modular home that is tangible personal property when
sold (i.e., the sale to the contractor-consumer), may be reduced by one of the
following:
1. 35% of the sales or purchase
price.
2. An amount equal to the
sales or purchase price of the home minus the cost of materials that become an
ingredient or component part of the home.
(d) Once the retailer chooses one of the
options provided in par. (c) 1. or 2., the retailer may not use the other
option without the written approval of the department.
(e) Sales of modular homes to the
contractor-consumer for use in real property construction activities outside
Wisconsin are exempt from Wisconsin sales and use tax.
(5) PAYMENT OF TAX.
(a) No recreational vehicle may be registered
in Wisconsin unless the registrant presents proof that the sales or use tax has
been paid or that the registrant's acquisition of the recreational vehicle was
exempt from the tax. If the recreational vehicle registrant does not present
proof that the tax has been paid, the registrant shall pay the tax at the time
the recreational vehicle is registered with the department of transportation
even though the recreational vehicle may also be used out-of-state.
(b) If a recreational vehicle purchased
outside Wisconsin is subject to the Wisconsin use tax, a credit is permitted
against the Wisconsin use tax for any sales or use tax paid to the state in
which the recreational vehicle was purchased.
(6) CONSIGNMENT SALES. When a recreational
vehicle dealer displays and sells a recreational vehicle on behalf of another
person, the dealer is a marketplace provider and responsible for collecting and
remitting tax on the transaction if the dealer directly or indirectly, through
agreements or arrangements with third parties, processes the payment from the
purchaser for the retail sale, regardless of whether the dealer receives
compensation or other consideration in exchange for the services provided by
the dealer.
Note: For information regarding marketplace
providers and sellers, see s. Tax 11.555.
Note: Section Tax 11.88 interprets ss.
77.51(2), (7i), (7j), (11d), (12m) (b) 7., (13), (14) (n) 7., and (15b) (b) 7., (17) (g),
77.52(2) (a) 1,
77.523,
77.53(17) and
(18),
77.54(7), (31), and
(36),
77.61(1) (a) and
(c),
101.91(2), (10), (11), and
(12),
218.10(1g), (7), and
(9), and
340.01(29) and
(48r), Stats.
The interpretations in s. Tax 11.88 are effective under the
general sales and use tax law on and after September 1, 1969, except: (a)
Nonretailer sales of mobile homes became taxable effective August 1, 1977,
pursuant to Chapter 29, Laws of 1977; (b) Nonretailer sales of mobile homes
exceeding 45 feet in length became exempt effective July 1, 1978, pursuant to
Chapter 418, Laws of 1977; (c) Rental of a mobile home that is personal
property for lodging for a continuous period of one month or more became exempt
effective July 1, 1984, pursuant to 1983 Wis. Act 341, clarified effective
April 1, 1986, pursuant to 1985 Wis. Act 149; (d) Gross receipts from a used
mobile home became exempt effective January 1, 1987, pursuant to 1985 Wis. Act
29; (e) Thirtyfive percent of the gross receipts from the sale of new mobile
homes became exempt January 1, 1987, pursuant to 1985 Wis. Act 29; (f) The
exemption from use tax of mobile homes purchased 90 or more days before moving
to Wisconsin became effective August 1, 1987, pursuant to 1987 Wis. Act 27; (g)
The exemption for transfers to in-laws became effective August 15, 1991,
pursuant to 1991 Wis. Act 39; (h) The exemption for certain new mobile homes
transported in two unattached sections became effective October 1, 1991,
pursuant to 1991 Wis. Act 39; (i) The changes in terminology related to "mobile
homes," "manufactured homes," and "recreational vehicles," became effective
January 1, 2008, pursuant to 2007 Wis. Act 11; (j) The change of the term
"gross receipts" to "sales price" became effective October 1, 2009, pursuant to
2009 Wis. Act 2; and (k) 2019 Wis. Act 10 relating to marketplace providers
became effective January 1, 2020.
