Organizations that sell items, charge admission for entertainment events, or collect fees for other services that are considered taxable in the State of Wisconsin must collect and transmit sales tax to the State. The responsibility for payment of sales tax rests with the organization and not with the University. For more information, call the Wisconsin Department of Revenue 1-608-266-2776 or visit http://www.dor.state.wi.us/.
Organizations must be aware that they may be liable to pay sales tax on some of their fund-raising efforts. Even if your organization has a tax-exempt number, sales tax is to be collected on the following items and services:
1. Amusement Services in excess of $500 per year (e.g. live or recorded performances, movies or plays, exhibits or displays, and spectator sports).
2. Ready-to-eat food items.
3. Items for resale (T-shirts, posters, decals, etc.).
4. Rental of tangible personal property.
Student organizations should get a temporary sales permit from the Wisconsin Department of Revenue 1-608-266-2776 or visit http://www.dor.state.wi.us/. Most minor fund-raising projects will qualify as Occasional Sales. Organizations should read the Occasional Sales rules from the Wisconsin Department of Revenue, to determine if they qualify for exemption from paying state sales tax.
All groups that sponsor entertainment events, have revenues of $2,500 or more annually, or annually hold more than three fund raising activities, must obtain a Sellers Permit. Applications and assistance in completing permits are available from the Wisconsin Department of Revenue at 1-608-266-2776, or from the Technical Services for Sales Tax line at 1-608-266-3873. Holders of Sellers Permits are required to file tax reports quarterly, annually, or monthly as specified by the Wisconsin Department of Revenue. Failure to do so may result in fines and/or penalty fees.
Organizations that have been granted tax exempt status by the Internal Revenue Service are not assessed sales tax on goods they purchase. Such organizations are still required to collect tax from those who pay to attend their events or
buy goods or services from them.