Section Tax 11.63 - Radio and television stations(1) NONTAXABLE PRODUCTS AND SERVICES. Sales of the following products and services are not subject to the sales and use tax:(c) Motion picture film or tape, and motion pictures or radio or television programs for listening, viewing, or broadcast, and advertising material related to such film or tape or programs, which are sold, leased, or rented to a motion picture theater or to a radio or television station.(d) The lease of space on a broadcast tower if the radio or television station owns both the broadcast tower and the land on which the tower is located.(2) TAXABLE SALES. (a) Charges by a radio or television station for art work, slides, films, tapes, or other tangible personal property or items, property, or goods under s. 77.52(1) (b), (c), and (d), Stats., which the station prepares or produces for its advertisers or sponsors are subject to the sales and use tax. The charges are taxable even though a station may retain possession of the tangible personal property or item, property, or good under s. 77.52(1) (b), (c), or (d), Stats., because "sale" is defined to include the transfer of not only title to and possession of tangible personal property and items, property, and goods under s. 77.52(1) (b), (c), and (d), Stats., but also the transfer of enjoyment of tangible personal property and items, property, and goods under s. 77.52(1) (b), (c), and (d), Stats. If an advertiser maintains any control over the tangible personal property or item, property, or good under s. 77.52(1) (b), (c), or (d), Stats., prepared or produced, such as the right to determine when the property, item, or good will be used for advertising purposes, the advertiser is deemed to have received the enjoyment of the property, item, or good.(b) Sales from a radio or television auction are subject to the sales and use tax. Example: A radio station has a program where the announcer places items of merchandise of local retailers or sponsors up for bid to the station's listeners. The successful bidder, chosen by the radio station, delivers the purchase price of the merchandise to the radio station and receives a purchase certificate that allows him to redeem the merchandise from the retailer or sponsor. The purchase money is retained by the radio station, although the retailer is compensated by the station for its participation in the form of radio advertising. The radio station is subject to sales tax on the receipts from the program.
(c) When a radio or television station advertises on behalf of persons to sell merchandise or taxable services, the station is a marketplace provider and shall collect and remit tax on the sales if the station directly or indirectly, through agreements or arrangements with third parties, processes the payment from the purchaser for the retail sale, regardless of whether the station receives compensation or other consideration in exchange for the services provided by the station.(d) Charges by a radio or television station for access to a website that provides news or other information products. This is the sale of an additional digital good, regardless of whether sold for a one-time use or sold on a subscription.(e) Sales of program material, except as provided in sub. (1) (c).(f) The lease of space on a broadcast tower if the radio or television station owns the broadcast tower, but does not own the land on which the broadcast tower is located.(3) NONTAXABLE PURCHASES. (a) Purchases of the following products and services are not subject to the sales and use tax: 1. Products exempt from the sales and use tax under s. 77.54(23m), Stats., including sales of blank or raw video or audio tapes to television or radio stations.2. Tangible personal property and property exempt from the sales and use tax under s. 77.54(23n), Stats., including: a. Computers, software, and monitors used to draft the program material.b. Printers used to print scripts.c. Graphics generators used to prepare weather forecasts and other on-screen graphics for a newscast.d. Traffic monitors to monitor traffic on a highway.f. Audio monitoring speakers.g. Servers used solely to store current program material.h. Alarms that go off if there is a problem with the signal.i. Radio modulation monitoring equipment to ensure that the signal is compliant with the legal requirements.j. Decoders in a satellite control room.l. Equipment used at mobile news sites by camera persons and reporters, such as cameras, data cards to store video images, microphones, headsets, and two-way radios.m. Motor vehicles, including microwave and satellite trucks and other vehicles used solely to bring reporters, camera persons, and other personnel to a location where live or recorded material is filmed or transmitted back to the radio or television station.(b) Purchases of the following products and services are not included in the exemption in s. 77.54(23n), Stats.:1. Real property improvements.2. Property that is not used directly in the manner described in par. (b), such as desks and chairs where program material is drafted, surge protectors and external power supplies for equipment, backup servers, and general lighting.3. Property that is not used exclusively in the manner described in par. (b), such as servers used to store current and archived program material, computer software used to draft program material and to create station advertising materials, and an intercom system to communicate with the studio and others in the building.4. Property that is used in the transmission of finished program material, such as transmitters and antennas used to transmit signals.5. Fuel and electricity used in providing building heating, cooling, air conditioning, communications, general lighting, safety and fire prevention, storage, sales, advertising or administrative department activities, or used in transmitting the final program material.(4) TAXABLE PURCHASES. Radio and television stations are consumers of equipment, materials, and supplies used to conduct their businesses and shall pay sales or use tax on purchases of this tangible personal property and items, property, and goods under s. 77.52(1) (b), (c), and (d), Stats., except as provided in sub. (3).(5) BROADCASTING TOWERS. Commercial broadcasting towers constituting the transmission antenna system of a radio or television station are deemed, for sales and use tax purposes, either real estate improvements if installed on land owned by the station or tangible personal property if installed on land owned by others. Contractors engaged in construction of broadcasting towers that are real estate improvements are the consumers of building materials used by them in constructing, altering, or repairing those towers and shall pay tax on the cost of the materials. Contractors engaged in construction of broadcasting towers that are tangible personal property may purchase materials used by them in constructing, altering, or repairing those towers without tax for resale. The charge by the contractor to the purchaser is subject to tax. Note: Section Tax 11.63 interprets ss. 77.51(14), 77.52(2) (a) 11., and 77.54 (23m) and (23n), Stats.
Wis. Admin. Code Department of Revenue Tax 11.63
Cr. Register, December, 1977, No. 264, eff. 1-1-78; am. (2) (a) and (c) (intro.), (3), (4) and (5), Register, June, 1991, No. 426, eff. 7-1-91; EmR0924: emerg. am. (1) (intro.), (b), (2) (a), (b), (c) 2., (3), (4) and (5), eff. 10-1-09; CR 09-090: am. (1) (intro.), (b), (2) (a), (b), (c) 2., (3), (4) and (5) Register May 2010 No. 653, eff. 6-1-10.Amended by, CR 16-053: am. (1) (intro), cr. (1) (c), (d), (2) (d), (e), r. (3), cr. (3) Register June 2018 No. 750, eff. 7-1-18; correcion in (3) (a) 1. made under s. 35.17, Stats., Register June 2018 No. 750, eff. 7/1/2018Amended by, CR 22-044: renum. (2) (c) (intro.) to (2) (c) and am., r. (2) (c) 1., 2. Register June 2023 No. 810, eff. 7/1/2023The interpretations in s. Tax 11.63 are effective under the general sales and use tax law on and after September 1, 1969, except (a) the separate impositions of tax on coins and stamps sold above face value under s. 77.52(1) (b), Stats., certain leased property affixed to real property under s. 77.52(1) (c), Stats., and digital goods under s. 77.52(1) (d), Stats., became effective October 1, 2009, pursuant to 2009 Wis. Act 2 and (b) the exemption for tangible personal property and property under s. 77.52(1) (c), Stats., used in the origination and integration of certain program material became effective July 1, 2014, pursuant to 2013 Wis. Act 346.