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### Publication 220

Example - Deposits on Containers: The following example shows what amounts a grocer should report on his or her sales and use tax return relating to the sales of taxable property, items, or goods and deposits on containers.

# Assume the following facts apply:

• Customer purchases 2 barrels of beer (1 from Grocer A and 1 from Gro- cer B). Grocer A and Grocer B each charge Customer \$50 for the barrel of beer and a deposit of \$10 on each of the barrels. The deposits are re- funded to Customer when the barrel is returned.

• Tax Charged on Deposit: Grocer A charges Customer the following: \$50 for the beer, \$10 for the deposit on the barrel and \$3.00 sales tax (\$60 x .05 = \$3.00). Grocer A gives Cus- tomer \$10.50 (\$10 plus tax) when he returns the barrel for his deposit.

• No Tax Charged on Deposit: Gro- cer B charges Customer the following: \$50 for the beer, \$10 for the deposit on the barrel and \$2.50 sales tax (\$50 x .05 = \$2.50). Gro- cer B gives Customer \$10 when he returns the barrel for his deposit.

# The

following

tables

indicate

the

amounts Grocer A and Grocer B should report on their Wisconsin sales and use tax returns to report the sale (Table 3) and refund of the deposit (Table 4) to Customer. The amounts in the center and

right

columns

of

and

4

are

the

amounts

and

# B,

respectively,

should report on their and use tax return.

Wisconsin

sales

50

Grocer A - Tax Charged on

Grocer B - Tax Not Charged on

Total Sales Price

Deposit \$63.00

Deposit \$62.50

Deductions Allowed

\$3.00

\$12.50

Taxable Re- ceipts Reported

\$60.00

\$50.00

## Table 3 – Amounts to Report at Time of Sale

Grocer A - Tax Charged on

Grocer B - Tax Not Charged on

Deposit

Deposit

Total Sales Price

\$0

Deductions Allowed

\$10

Taxable Re- ceipts

(\$10)

## Table 4 – Amounts to Report When Deposit Refunded

\$0

\$0

\$0

• E.

Equipment and Business Asset Sales and Purchases

• 1.

Sales of Equipment and Business Assets

Sales of equipment and business assets that are any of the items described in Part I.D.1. through 4. on page 7, (e.g., equipment, fur- niture, and fixtures) are subject to Wisconsin sales tax if a grocer holds or is required to hold a seller’s permit at the time of sale. However, sales of equipment and business assets are not subject to Wisconsin sales and use tax if both of the following conditions are met:

(a) The sale is of an item described in Part I.D.1. through 4. on page 7, (other than inventory held for sale) which was previously used by the seller to conduct

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