Wisconsin Sales Tax

[MarvBear]

Information from NADA Title & Registration Textbook 2004

 

Wisconsin Sales or Use Tax Applicable to Registration

 

The state sale or use tax rate is 5% with additional 0.5% and/or 0.01% local taxes in certain counties, based on where the registered item is customarily kept. Tax computed on the full purchase price minus amount allowed for TRADE-IN, provided trade-in is tangible personal property. When trade-in results in an even trade, and no other consideration is given, no tax is due. Customer indicated “Even Trade” on application. If purchased out-or-state, a 5% state USE TAX plus 0.5% and/or 0.01% local taxes (if applicable) are due with CREDIT allowed for like taxes paid in another state (proof is required). EXCEPTIONS to sales or use tax include: (1) if previously registered in Wisconsin in the name of the transferor and the transferor is not a motor vehicle dealer, the transferor to a spouse, parent, stepparent, father-in-law, mother-in-law, child, stepchild, son-in-law, or daughter-in-law of the transferor or the transfer from an individual to a corporation which is solely owned by the individual. (2) purchaser is a common or contract carrier who will use the vehicle exclusively as such a carrier, the state of Wisconsin, or other Wisconsin or Federal Government unit or agency; or a nonprofit organization that is organized and operated exclusively for religious charitable or educational purposed. (3) NEW RESIDENT moving into Wisconsin is EXEMPT from use tax if vehicle was purchased and title in another state 90 days or more prior to change of residence to Wisconsin. (4) NON-RESIDENTS including non-resident military personnel who purchase motor vehicles in Wisconsin who will not use such motor vehicle in Wisconsin except for its removal are EXEMPT from SALES and USE TAX in Wisconsin. NOTE: There is no statutory exemption specifically for MILITARY PERSONNEL. Taxes on dealer sale, new or used, are paid directly to the in-state dealer, and out-of-state dealers who are registered to collect Wisconsin sale and use taxes. For other out-of-state and private sale, tax is remitted to DOT when the vehicle is registered. Obtaining and keeping a copy of the Bill of Sale for at least 5 years from the date of registration is highly recommended (even after the vehicle is sold). Under reporting gross receipts may result in a 50% penalty of the tax under-reported. Contact the Wisconsin Department of Revenue at (608) 266-2776 or (608) 261-7694 for taxes or exemptions not covered in this section.