Ingredients Used in Home-Brewing Kits May Qualify for Food Exemption in Wisconsin

Friday, April 6th, 2012

 
 
Share
Link
Wisconsin
General

The Wisconsin Department of Revenue (DOR) recently issued guidance explaining the taxability of items commonly found in home beer brewing kits. Wisc. News for Tax Practitioners: Home Beer Brewing Ingredients, Equipment, and Supplies (Dept. of Revenue Mar. 26, 2012). Wisconsin exempts "food and food ingredients" from sales and use tax. Wis. Stat. Ann. sec. 77.54(20n)(a). Examples of exempt food items commonly found in home beer brewing kits include the following: malts, grains, hops, priming sugars, lactose, brewing yeast, fruit juice that is more than 50% fruit juice by volume, and distilled water. Home beer brewing kits also may contain taxable equipment and supplies, such as brewing pots, thermometers, bottles and caps, beer labels and cleaners. The DOR explained that when a beer brewing kit contains a combination of taxable and exempt items sold for a single non-itemized price, whether the kit is taxable depends on the what makes up the majority of the kit. If more than 50% of the kit is made up of taxable items, the entire charge will be subject to tax, but if 50% or more of the kit is made up of exempt items, the entire charge will be exempt from tax. See Wis. Admin. Code Tax sec. 11.985.


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Washington Announces Imported Goods Will Now Be Taxed

Thursday, March 21st, 2019 -The Washington Department of Revenue recently announced that effective March 14, 2019, a retail sales exemptio...

Marketplace Facilitators of Software Products to be...

Friday, March 15th, 2019 -The Commissioner of Taxation and Finance in New York released an advisory opinion that determined third partie...

Arkansas Rules on Taxability of Repairs and Labor Related...

Wednesday, March 13th, 2019 -The Arkansas Department of Finance and Administration recently released an administrative decision addressing ...

Studio Room Rental for Photography Sessions is Subject to...

Wednesday, March 6th, 2019 -The Missouri Department of Revenue (DOR) has released a letter ruling addressing the taxability of studio room...

Unprocessed Sand Not Taxable in Texas

Monday, March 4th, 2019 -The Texas Comptroller recently released a private letter ruling that found the mining and selling of unprocess...

California to Require Additional Registration and...

Friday, March 1st, 2019 -California recently released a special notice for out-of-state retailers who are required to register with the...