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Grocers - How Do Wisconsin Sales and Use Taxes Affect Your Operations?

a trade or business at a particular loca- tion, and

the $1,000 is subject to Wisconsin sales tax.

(b) The sale occurs after the seller ceases operating as a seller of any of the items described in Part I.D.1. through 4. on page 7, or taxable services at that loca- tion.

A sale meeting the above two conditions is not subject to Wisconsin sales and use tax, even though the seller holds a seller’s permit for one or more other locations at the time of the sale. Exception: A grocer that holds or is required to hold a seller’s permit for one or more other locations at the time of the sale of a motor vehicle, boat, snowmobile, recre- ational vehicle as defined in sec. 340.01(48r), Wis. Stats., semitrailer, all- terrain vehicle, or aircraft is required to col- lect and remit the Wisconsin sales or use tax on its sales of these items. In addition, if the grocer does not collect the tax, the purchaser is still required to pay the applicable sales or use tax prior to registering or titling the item in Wisconsin.

2. Purchases of Equipment and Business As- sets

Purchases of equipment and business assets which are stored, used, or consumed in Wis- consin are subject to Wisconsin sales and use tax. See Part I.E. on page 8 for the dif- ference between Wisconsin sales and use tax.

Exception: If the seller of the equipment and business assets qualifies for the occa- sional sale exemption on its sale of such items, the purchaser does not owe Wisconsin sales or use tax on its purchase of the items. For information about the occasional sale exemption for sales of business assets, see

Publication 201,

isconsin

Sales

and

Use

Tax Information, Part XV.

Examples of purchases of equipment and business assets which are subject to Wiscon- sin sales and use tax include the following:

Example - Sale of Assets by a Business Which Has Ceased to Operate: Grocer ceases actively operating as a seller of any of the items listed in Part I.D.1. through 4. on page 7, or taxable services on June 1, 2012. Grocer sells its busi- ness assets (other than inventory) on July 1, 2012. Since the items Grocer is selling are personal property previously used in its business and Grocer has ceased operating at that location, the sale of the business assets by Grocer is ex- empt from Wisconsin sales and use tax as an occasional sale.

  • Refrigerated display cases, condensing units, and shelving systems

  • Check-out counters, cash registers, and computer scanning systems

  • Moveable display racks, office furniture, and material handling equipment

  • Walk-in cold storage units that are not a component part of a building

Example: Grocer purchases a rack which will be used to display various products offered for sale. The purchase of the rack by Grocer is sub- ject to Wisconsin sales and use tax.

Example - Sale of Assets by a Continu- ing Business: Grocer holds a Wisconsin seller’s permit and sells used shelving to Customer for $1,000. Since Grocer holds a seller’s permit at the time of the sale and is continuing to operate at the location where the shelving was located,

F. Purchases of Supplies and Repairs

A grocer’s purchases of supplies and repairs to any of the items listed in Part I.D.1. through 4. on page 7, used in conducting its business are subject to Wisconsin sales and use tax. If the grocer does not pay Wisconsin sales or use tax

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