Sales of Used Motor Vehicles, Boats, Snowmobiles, Recreational Vehicles as defined in sec. 340.01 (48r), Wis. Stats., Trailers, Semitrailers, All-Terrain Vehicles, and Aircraft by Persons Who are Not Dealers

NOTE: This Article Replaces the Article Dated October 1, 2009. See the prior article...

Effective October 1, 2009, any retailer that is registered to collect and remit Wisconsin sales and use taxes must also collect and remit the applicable state, county, and/or stadium sales and use tax on it sales of motor vehicles, boats, snowmobiles, recreational vehicles as defined in sec. 340.01 (48r), Wis. Stats., trailers, semitrailers, all-terrain vehicles, and aircraft, even if they are not "dealers" or "registered dealers" of the item sold.

In addition, proof that the tax has been paid to the retailer must be presented by a person when registering or titling one of the above items. Therefore, a person who purchases one of the above items from a retailer should obtain a receipt from the retailer at the time of the purchase so they can provide the receipt at the time the item is registered or titled as proof that the tax has been paid. (Section 77.61 (1) (b), Wis. Stats. (2009-10))

Note: In order to determine the proper county and/or stadium sales or use taxes a retailer must collect on its sales of motor vehicles, boats, snowmobiles, recreational vehicles as defined in sec. 340.01 (48r), Wis. Stats., trailers, semitrailers, all-terrain vehicles, and aircraft, see the chart contained in Appendix I at the end of Publication 201.

Example 1: Company A is engaged in the business of selling computer equipment and is registered to collect and remit Wisconsin sales and use tax. Company A is not a licensed motor vehicle dealer. Company A sells a truck that it had used in its business operations to Company B. Company A is required to collect the applicable Wisconsin state, county, and/or stadium sales tax on its sale of the used truck. Company A should provide a receipt to Company B showing the Wisconsin state, county, and/or stadium sales or use tax that it collected from Company B. At the time Company B registers or titles the truck, Company B should provide a copy of the receipt as proof that they paid the applicable Wisconsin state, county, and/or stadium sales or use tax to Company A.

Under prior law, a person who was not a "dealer" or "licensed dealer" was not required to collect and remit the applicable Wisconsin state, county, and/or stadium sales and/or use tax on their sales of used motor vehicles, boats, snowmobiles, recreational vehicles as defined in sec. 340.01 (48r), Wis. Stats., trailers, semitrailers, all-terrain vehicles, and aircraft.

Example 2: Individual A operates a hardware store as a sole proprietor and is registered to collect and remit Wisconsin sales or use tax. Individual A sells his car to Individual B. Individual A did not use the car in his business. Since Individual A did not use the car in his business, Individual A is not required to collect Wisconsin state, county, and/or stadium sales or use tax on his sale of the motor vehicle. Individual B must report the applicable Wisconsin state, county, and/or stadium sales or use tax at the time Individual B registers or titles the motor vehicle.

Page last updated October 27, 2011