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Alert for Remote Sellers Shipping into Wisconsin

April 22, 2019 by Colleen Netzell
State and Local Taxation

Remote Sellers shipping into Wisconsin resort areas may be subject to an unexpected tax in 2019.

Background: Wisconsin began to collect a Premier Resort Area Tax in 1998 for the localities around the Wisconsin Dells (City of Wisconsin Dells and Village of Lake Delton).  It expanded it to the Apostle Islands (City of Bayfield) in 2003, Eagle River in 2006, Stockholm in 2014, Rhinelander in 2017, and Sister Bay on July 1, 2018.

The Resort Area Tax applies to remote sellers on goods shipped to retailers located in these areas.  The retailers then sell directly to consumers (i.e. tourists).  These retailers may be department stores, grocery stores, clothing goods stores, eating and drinking places, amusements, sporting goods, camps, and even public golf courses.

Remote sellers were not subject to the tax until February 1, 2019.  This is an example of a change that was the result of the Wayfair US Supreme Court Decision.

The rate of tax varies from 1.25% in Wisconsin Dells and Lake Delton to .5% in the remaining areas.

Items to note  

  • As the tax is limited to certain industries, the Resort Area Tax does not appear in the sales tax rate calculations on the Wisconsin Department of Revenue website and may not be shown in other sales and use tax software.
  • The Wisconsin Department of Revenue requires a separate registration and return to be filed on its website.
  • A sale exempt from Wisconsin sales tax is exempt from the Premier Resort Area Tax, accordingly sales for resale are exempt.

 

Copeland Buhl is available to help you determine if this tax applies to your business, how to properly get reimbursement for the tax from your customers, and how to report and pay the tax to the State of Wisconsin.  Please contact us at (952) 476-7100.