Wis. Admin. Code Department of Revenue Tax 11.39 - Manufacturing

(1) DEFINITIONS.

(a)

1. Manufacturing means the production by machinery of a new article of tangible personal property or item or property under s. 77.52(1) (b) or (c), Stats., with a different form, use, and name from existing materials, by a process popularly regarded as manufacturing.

2. Manufacturing does not include storing raw materials or finished units of tangible personal property or items or property under s. 77.52(1) (b) or (c), Stats., research or development, delivery to or from the plant, or repairing or maintaining plant facilities.

(b) "Plant" as defined in s. 77.51(10b), Stats., means a parcel of property or adjoining parcels of property, including parcels that are separated only by a public road, and the buildings, machinery, and equipment that are located on the parcel, that are owned by or leased to the manufacturer. Plant inventory does not include unsevered mineral deposits as provided in s. 77.51(10c), Stats.

(2) SCOPE OF MANUFACTURING.

(a) Manufacturing:

1. Begins with conveying of raw materials and supplies from plant inventory to the place where the work is performed in the same plant and ends with conveying finished units of tangible personal property or items or property under s. 77.52(1) (b) or (c), Stats., to the point of first storage in the same plant.

2. Includes conveying work in progress directly from one manufacturing operation to another in the same plant.

3. Includes testing or inspecting, throughout the manufacturing process, the new article of tangible personal property or item or property under s. 77.52(1) (b) or (c), Stats., that is being manufactured.

4. Includes storing work in progress in the same plant where the manufacturing occurs.

5. Includes assembling finished units of tangible personal property or items or property under s. 77.52(1) (b) or (c), Stats.

6. Includes packaging a new article of tangible personal property or item or property under s. 77.52(1) (b) or (c), Stats., if the manufacturer or another person on the manufacturer's behalf performs the packaging and if the packaging becomes part of the new article as it is customarily offered for sale by the manufacturer.

(b) Manufacturing does not include storing raw materials or finished units of tangible personal property or items or property under s. 77.52(1) (b) or (c), Stats., delivery to or from the plant, repairing or maintaining facilities, or research and development.

(3) MANUFACTURERS. Manufacturers ordinarily include the following:

(a) Asphalt plants.

(b) Bakeries.

(c) Battery makers.

(d) Breweries and soda water bottling plants.

(e) Candy factories.

(f) Cement and concrete plants.

(fr) Cheese cutting and repackaging plants.

(g) Chemical processing plants.

(h) Concrete block and tile producers.

(i) Creameries and instant milk producers.

(j) Dairies and cheese plants.

(jd) Dental labs.

(jr) Ductwork fabricators.

(k) Electric generating companies.

(L) Flour and feed mills, including mobile units.

(m) Food processing plants, canning and freezing.

(n) Foundries.

(o) Glass making plants.

(oc) Grain dryers.

(om) Heat treaters and metal platers performing these services on semi-finished products furnished by manufacturers.

(os) Hide curers.

(p) Limestone calcination plants.

(q) Machine and equipment producers.

(r) Malting plants.

(s) Meat packing and processing plants.

(t) Motor vehicle and aircraft factories.

(u) Oil refineries.

(v) Paint factories.

(w) Paper making plants.

(wd) Persons engaged in snowmaking for a ski hill.

(wr) Photofinishers.

(x) Printers.

(y) Sawmills.

(z) Scrap processors.

(za) Shoe and clothing factories.

(zb) Smelting and steel mills.

(zc) Tanneries.

(zd) Tool and die making plants.

(ze) Persons engaged in crushing, washing, grading and blending sand, rock, gravel and other minerals.

(zf) Persons engaged in ore dressing, including the mechanical preparation, by crushing and other processes, and the concentration, by flotation and other processes, of ore, and beneficiation, including but not limited to the preparation of ore for smelting.

(zg) Tire retreaders.

(4) NONMANUFACTURERS. Nonmanufacturers ordinarily include the following:

(a) Contractors, when engaged in real property construction activities and installing or repairing tangible personal property or items or property under s. 77.52(1) (b) or (c), Stats.

(c) Farmers.

(d) Fish hatcheries.

(e) Freezer and locker plants.

(f) Highway truckers.

(g) Hotels.

(h) Laundries and dry cleaners.

(i) Repairpersons.

(j) Restaurants.

(k) Television and radio stations.

(l) Persons engaged in:

1. Corn shelling.

2. Experimental and development activities.

3. Logging and forestry operations.

4. Mining.

5. Paper recycling.

6. Photography.

7. Popping corn.

8. The business of raising and breeding animals.

9. Real property construction activities.

10. Custom slaughtering of animals.

11. Vending machine operations.

Note: Section Tax 11.39 interprets ss. 77.51(7h), (10b), and (10c) and 77.54(2) and (6) (am) 1, Stats.

Notes

Wis. Admin. Code Department of Revenue Tax 11.39

Cr. Register, November, 1977, No. 263, eff. 12-1-77; am. (3) (j), (4) (c) and (r) 13., cr. (3) (om), Register, June, 1983, No. 330, eff. 7-1-83; am. (1), (3) (f), cr. (3) (ze), (zf) and (zg), r. (4) (p), (q) and (r) 10., Register, September, 1984, No. 345, eff. 10-1-84; am. (3) (f), Register, July, 1987, No. 379, eff. 8-1-87; correction in (4) (m) made under s. 13.93(2m) (b) 5, Register, April, 1994, No. 460; correction in (2) (a) made under s. 13.93(2m) (b) 5, Stats., Register, October, 1995, No. 478; am. (2) (a), (3) (m), (ze), (zf), (4) (intro.), cr. (3) (fr), (jd), (jr), (oc), (os), (wd), (wr), r. (4) (a), (d), (r), 2. and 4., renum. (4) (b), (c), (e), (f), (g), (h), (i), (j), (k), (L), (m), (n), (o) and (r) to be (4) (a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (L), (m) and (n) and am. (4) (a) and (k), Register, October, 1997, No. 502, eff. 11-1-97; EmR0924: emerg. r. and recr. (1) and (2), am. (4) (intro.) and (a), r. (4) (h) and (i), renum. (4) (j) to (n) to be (4) (h) to (L), eff. 10-1-09; CR 09-090: r. and recr. (1) and (2), am. (4) (intro.) and (a), r. (4) (h) and (i), renum. (4) (j) to (n) to be (4) (h) to (L) Register May 2010 No. 653, eff. 6-1-10; CR 14-006: am. (1) (b) Register August 2014 No. 704, eff. 9-1-14. Amended by, CR 20-018: r. (4) (b) Register July 2021 No. 787, eff. 8/1/2021

The interpretations in s. Tax 11.39 are effective under the general sales and use tax law on and after September 1, 1969 except that (a) The change of the term "gross receipts" to "sales price" and the separate impositions of tax on coins and stamps sold above face value under s. 77.52(1) (b), Stats., and certain leased property affixed to real property under s. 77.52(1) (c), Stats., became effective October 1, 2009, pursuant to 2009 Wis. Act 2.