Section 11.63. Radio and television stations.

 

(1)   Nontaxable services. Sales of the following services are not subject to the sales and use tax:

(a) Air time.

(b) Advertising space.

(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) If a radio or television station advertises on behalf of out-of-state persons to sell merchandise, such as records or books, the station is the retailer of the merchandise and shall pay sales tax on the sales if:

1. The advertising message does not clearly identify the out-of-state source of the merchandise; or

2. The merchandise orders are sent directly to the station which accounts for the receipts.

(3)   Nontaxable purchases. The sale, license, lease, or rental of motion picture films or tape, and motion pictures or radio or television programs for listening, viewing, or broadcast, and the advertising materials related to the motion picture films or tape, and motion pictures or radio or television programs, to a motion picture theater or radio or television station are exempt from the sales and use tax under s. 77.54 (23m) , Stats. Sales of blank or raw video or audio tapes to television or radio stations are included in this exemption.

(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.

History: 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.

Note

Section Tax 11.63 interprets ss. 77.51 (14) , 77.52 (2) (a) 11. and 77.54 (23m) , Stats. Microsoft Windows NT 6.1.7601 Service Pack 1 The interpretations in s. Tax 11.63 are effective under the general sales and use tax law on and after September 1, 1969, except that 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 . Microsoft Windows NT 6.1.7601 Service Pack 1