Sales and Use Tax Treatment of Parking for Common and Contract Carriers

This article explains the proper Wisconsin sales and use tax treatment of parking charges for common and contract carriers.

Parking or providing parking spaces for motor vehicles is subject to Wisconsin sales and use tax. Sales and use tax applies, even if the customer is a common or contract carrier that may claim an exemption on the vehicle being parked. There is no provision in the law which states that if the vehicle being parked is exempt from Wisconsin sales and use tax, then charges to park that vehicle are also exempt from tax.

Example 1: Company A is a contract carrier and may claim a sales and use tax exemption on its purchase of trucks because it uses the trucks exclusively as a contract carrier. Company A enters into a contract with Company B to pay $100 per month to park its trucks in Company B's lot in Wisconsin. The $100 charge by Company B is subject to Wisconsin sales or use tax.

Example 2: Company C is a common carrier and may claim a sales and use tax exemption on its purchase of trucks because it uses the trucks exclusively as a common carrier. Company C pays Company D $1,000 per year to park its trucks in Company D's parking lot. The $1,000 charge by Company D is subject to Wisconsin sales or use tax.

Example 3: Company Z is a common carrier and is located in Illinois. Company Z may claim a sales and use tax exemption on its purchase of trucks because it uses the trucks exclusively as a common carrier. Company Z has several jobs that require its trucks to be in Wisconsin for extended periods of time. Company Y charges Company Z $25 per day to park its trucks at Company Y's location in Wisconsin. The $25 per day charge from Company Y to Company Z is subject to Wisconsin sales or use tax.

Last updated March 23, 2012