Local Exposition Taxes

What are local exposition taxes?
Who is subject to local exposition taxes?
Where does a sale take place?
How do I register?
How do I file returns and pay the tax?
How often must I file?
When are my returns due?
How do I obtain an extension of time to file?
How have tax rate and law changes affected local exposition tax?

What are the local exposition taxes?
The City of Milwaukee created a Local Exposition District called the "Wisconsin Center Tax District" for the purpose of acquiring and managing exposition center facilities. To fund these facilities, the District imposes the taxes listed below. The Wisconsin Department of Revenue is responsible for administering the taxes.
- 2.5% basic room tax (2% prior to on January 1, 2011)
- 7% additional room tax (City of Milwaukee only)
- 0.5% food and beverage tax (.025% prior to July 1, 2010)
- 3% rental car tax
For more information, see Publication 410, Local Exposition Taxes.
Who is subject to local exposition taxes?
Persons selling lodging, food or beverages, or renting automobiles in municipalities located wholly or partially within Milwaukee County.

Important: In these Common Questions, "Milwaukee County" means a city or village wholly or partially in Milwaukee County. For example:

Since the Village of Bayside and the City of Milwaukee are located partially within Milwaukee County, they are in "Milwaukee County" for purposes of the local exposition taxes. All sales that take place in the Village of Bayside or the City of Milwaukee are considered to be in "Milwaukee County."

Exception: Persons selling food and beverages subject to the food and beverage tax are exempt from the tax if their liability for the tax on sales of such food and beverages is less than $5 for the taxable year.
Where does a sale take place?
- Lodging
  
  A sale of lodging takes place at the location where the lodging is furnished to a customer. If the lodging is furnished in Milwaukee County, it is subject to the 2.5% basic room tax. If the lodging is furnished in the City of Milwaukee, it is subject to the 2.5% basic room tax and the 7% additional room tax.
- Food and beverages
  If the purchaser receives the food or beverages at the seller's business location, the sale takes place at that business location.
  
  If the purchaser does not receive the food or beverages at the seller's business location, the sale takes place at the location where the purchaser, or the purchaser's designated donee, receives the food or beverages, including the location indicated by the instructions known to the seller for delivery to the purchaser or the purchaser's designated donee.
  
  If a sale of candy, soft drinks, or prepared food takes place in Milwaukee County, it is subject to the 0.5% food and beverage tax. If a sale of alcoholic beverages is for consumption on the seller's premises in Milwaukee County, it is subject to the 0.5% food and beverage tax.
  
  Example: A restaurant in Waukesha County receives an order for prepared food. The prepared food is delivered by the restaurant to the customer at her Milwaukee County address. The sale of the prepared food is subject to the 0.5% food and beverage tax because the sale took place in Milwaukee County (where the restaurant delivered the prepared food to the buyer).
- Rental cars
  Effective October 1, 2009, the location of an automobile rental is as follows:
  
  A rental that requires only one payment
  
  The rental of an automobile that requires only one payment takes place at the lessor's (seller's) business location if the lessee (customer) receives the automobile at the lessor's business location. If the lessee does not receive the automobile at the lessor's business location, the sale takes place at the location where the lessee or the lessee's designated donee receives the automobile, including the location indicated by the instructions known to the lessor for delivery to the lessee or the lessee's designated donee.
  
  A rental that requires more than one payment
  
  The rental of an automobile that requires more than one payment takes place at the automobile's primary location as indicated by an address for the automobile that is provided by the lessee and that is available to the lessor in the records that the lessor maintains in the ordinary course of the lessor's business, if the use of such an address does not constitute bad faith. The location of the rental is not altered by any intermittent use of the automobile at different locations.
  
  Prior to October 1, 2009, the location of an automobile rental was as follows:
  1. Rentals of Less Than One Month
    
    The rental took place at the location where the automobile came into the lessee's possession.
    
    If a lessee took possession of the automobile in Milwaukee County, the rental was subject to the 3% rental car tax.
  2. Rentals of One Month or More (but not more than 30 days; for example, rental for the month of February)
    
    The rental took place at the location where the automobile was customarily kept by the lessee.
    
    If a lessee customarily kept the automobile in Milwaukee County, the rental was subject to the 3% rental car tax.
How do I register?
Complete the Business Tax Online Registration or Form BTR-101. The department will immediately acknowledge receipt of registrations filed electronically.

Note: Even if you are registered for Wisconsin sales and use tax, you are still required to register for the local exposition tax. Upon registering you will be issued a 15-digit local exposition account number for reporting the tax.
How do I file returns and pay the tax?
Use My Tax Account, the department's online filing system, to report the local exposition tax on the Local Exposition Return. To use My Tax Account, you will need a logon ID and password. Additional information is available at: Getting Started.

You must file a return for each "reporting period," even if no tax is due for that period. You may download form instructions.
How often must I file?
Your filing frequency will be noted on your Business Tax Registration greeting letter. If the department changes your filing frequency, you will be notified in writing prior to the change. You must file a return for each "reporting period," even if no tax is due for that period.
When are my returns due?
The due date for annual, quarterly and monthly filers is the end of the month following the reporting period. Example: A quarterly filer's Q1 return (Jan, Feb, Mar) is due to the department by April 30. The due date for early monthly filers is the 20th day of the month following the reporting period.

Returns filed via My Tax Account using an ACH debit method of payment, must be filed and paid prior to 4:00 p.m. (CST) on the due date.

Note: If the due date falls on a weekend or legal holiday, the due date is extended to the business day immediately following the weekend or holiday.
Is an extension available if I can't file on time?
You may request an extension of time to file through My Tax Account, or by writing or faxing the department by the due date of your return. Wisconsin Department of Revenue, Registration Unit, Mail Stop 3-80, PO Box 8946, Madison WI 53708-8946. Fax number: (608) 264-6884.
How have tax rate and law changes affected local exposition taxes?
The local exposition basic room tax rate is 2.5%.

Effective January 1, 2011, the local exposition basic room tax rate increased from 2.0% to 2.5%.

Lodging furnished on or after January 1, 2011 is subject to the basic room tax rate of 2.5%.

Example: Hotel A in Milwaukee County provides lodging for Customer B from December 30, 2010 through January 2, 2011. The lodging provided on December 30 and 31, 2010 is subject to the 2.0% local exposition basic room tax. The lodging provided on January 1 and 2, 2011 is subject to the 2.5% local exposition basic room tax.

The local exposition food and beverage tax rate if 0.5%.

Effective July 1, 2010, the local food and beverage rate increased from 0.25% to 0.5%.
Effective October 1, 2009, the following changes were made to the local exposition taxes.
- Retailers no longer must be "engaged in business" in Milwaukee County to be subject to the local exposition taxes. For example, a retailer located in Dane County sends candy to a customer in Milwaukee County, using the U.S. Post Service or a common carrier to deliver the candy. The retailer is subject to the local exposition food and beverage tax on its sale of the candy.
- Change in location where car rentals take place (applies to rentals that require more than one payment).
- Change in items subject to local food and beverage tax.
Effective October 1, 2009, the local food and beverage tax applies to sales of candy,* soft drinks,* and prepared foods* that take place in Milwaukee County. The local food and beverage tax is also imposed on sales of alcoholic beverages if the alcoholic beverage is for consumption on the seller's premises in Milwaukee County.

Prior to October 1, 2009, the local food and beverage tax applied to the following sales that took place in Milwaukee County:
1. The sale of meals, food, food products, and beverages sold for direct consumption on the seller's premises, and
2. The sale of the following items for off-premises consumption (including sales from vending machines):
  1. Meals and sandwiches, whether heated or not;
  2. Heated food or heated beverages;
  3. Soda fountain items such as sundaes, milk shakes, malts, ice cream cones, and sodas; and
  4. Candy, chewing gum, lozenges, popcorn, and confections.
*The definitions of "candy," "soft drinks," and "prepared food" are provided in sec. Tax 11.51(3)(a), (3)(d), and (4), Wis. Adm. Code (November 2010 Register), respectively.

The following examples illustrate some of the changes that were effective on October 1, 2009 (this list is not all-inclusive). For purposes of the following examples, the retailers' sales of certain "prepared foods" at the establishment are not greater than 75% of its total sales of all food and food ingredients at the establishment and, unless indicated, the retailer does not physically give or hand utensils to its customers.
- Prior to October 1, 2009, sales of soft drinks in cans or bottles for off-premises consumption were not subject to the local food and beverage tax. Effective October 1, 2009, sales of soft drinks are subject to the local food and beverage tax, regardless of whether the soft drinks are sold from a dispenser, or sold in cans or bottles, and regardless of whether sold for consumption on or off the seller's premises.
  
  Example: Grocery Store A in Milwaukee County sells individual cans and bottles of soda, as well as six-packs, 12-packs, and cases of soda for off-premises consumption. Customers select the soda they wish to purchase from shelves of refrigerated display cases. Grocery Store A's sales of the soda are subject to the local food and beverage tax. (Prior to October 1, 2009, sales of soda from a dispenser were subject to the local food and beverage tax, but sales of soda in cans and bottles were not subject to the local food and beverage tax.)
- Prior to October 1, 2009, sales of items such as ice cream bars, ice cream sandwiches, and popsicles were subject to the local food and beverage tax as candy or confections. Effective October 1, 2009, sales of items such as ice cream bars, ice cream sandwiches, and popsicles are not taxable, unless they meet the definition of "prepared food." The reason these types of items are not taxable as "candy" is because the definition of "candy" excludes items that require refrigeration.
  
  Example 1: Grocery Store B in Milwaukee County sells ice cream cones, ice cream bars, and sundaes in its frozen food section. Sales of these items are not subject to the local food and beverage tax. (Prior to October 1, 2009, sales of frozen confections were subject to the local food and beverage tax.)
  
  Example 2: Ice Cream Shop C in Milwaukee County sells ice cream sundaes for $5.75 each. When the customer orders a sundae, Ice Cream Shop C scoops the ice cream into a dish, adds topping (e.g., hot fudge) and whipped cream, and provides the customer with a spoon. Ice Cream Shop C's sales of the sundaes are subject to the local food and beverage tax, since the sundaes that Ice Cream Shop C is selling meet the definition of "prepared food" (i.e., each sundae consists of two or more items combined by the retailer for sale as a single item and the sundae is served with utensils). (Prior to October 1, 2009, the sales of the sundaes were also subject to the local food and beverage tax.)
- Prior to October 1, 2009, sales of meals and sandwiches were subject to the local food and beverage tax. Effective October 1, 2009, sales of meals and sandwiches that are not prepared by the retailer are not taxable, unless they meet the definition of "prepared food" (for example, sold in a heated condition or sold with utensils).
  
  Example 1: Deli D in Milwaukee County sells sandwiches that it purchases from Wholesaler E. Sales of these sandwiches are not subject to the local food and beverage tax, unless Deli D sells the sandwiches in a heated condition or Deli D's customary practice is to physically give or hand utensils, such as plates, knives, forks, spoons, glasses, cups, napkins, or straws, with the sandwiches (i.e., the sandwiches are only subject to the local food and beverage tax if they are "prepared food"). (Prior to October 1, 2009, sales of sandwiches were subject to the local food and beverage tax.)
  
  Example 2: Deli F in Milwaukee County makes and sells sandwiches for $5.00 each. Sales of the sandwiches that Deli F makes and sells are subject to the local food and beverage tax, since the sandwiches are "prepared foods." (Prior to October 1, 2009, sales of sandwiches were also subject to the local food and beverage tax.)
  
  Example 3: Deli F in Milwaukee County makes and sells unheated sandwiches for $5 per pound. Sales of the sandwiches that Deli F makes and sells are not subject to the local food and beverage tax, since the sandwiches are sold by volume or weight. Sales of unheated items that are sold by volume or weight are not "prepared foods." (Prior to October 1, 2009, sales of sandwiches were subject to the local food and beverage tax, regardless of whether sold by weight or volume or otherwise.)
- Prior to October 1, 2009, food and beverages that were sold for consumption on the seller's premises were subject to the local food and beverage tax. Effective October 1, 2009, candy, soft drinks, and prepared foods are subject to the local food and beverage tax, without regard to whether such items are for consumption on or off the seller's premises.
  
  Example 1: Bakery G in Milwaukee County sells bakery items and coffee and has a seating area where its customers may eat. Bakery G's sells Customer H a cup of hot coffee and two donuts that are not sold heated, which Customer H consumes at the seating area. Bakery G's customary practice when selling donuts to be eaten at its bakery is to sell the donuts to its customers without physically giving or handing napkins or other utensils along with the donuts purchased. Bakery G's sale of the coffee is subject to the local food and beverage tax (i.e., the coffee is served in a heated condition and is a "prepared food"). Bakery G's sale of the donuts is not subject to the local food and beverage tax (i.e., the donuts are not "prepared food"). (Prior to October 1, 2009, the sale of both the coffee and donuts was subject to the local food and beverage tax, since the coffee and donuts were consumed on the seller's premises.)

FOR MORE INFORMATION PLEASE CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Customer Service and Education Bureau
Mail Stop 5-77
P.O. Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2776
Fax: (608) 267-1030
Email Additional Questions

Last updated January 22, 2013