2021 Wisconsin Statutes & Annotations
Chapter 139 - Beverage and tobacco taxes.
139.04 - Exclusions.
139.04 Exclusions. No tax is levied by ss. 139.02 and 139.03 in respect to:
(1) Wine, as defined in s. 125.02 (22), or fermented malt beverages made in compliance with the limitations specified in s. 125.06 (3) (a), (3g), (3r), or (4).
(2) Furnishing by a brewer or brewpub of fermented malt beverages to workmen employed in the brewery or brewpub for consumption on the brewery premises or brewpub premises without charge.
(3) Manufacture or sale of any beverage containing less than one-half of one percent of alcohol by volume.
(4) Sale or shipment of fermented malt beverages by a brewer to a bottler or of intoxicating liquor in bulk between manufacturers, rectifiers and wineries.
(5) Sale, possession or removal of fermented malt beverages or intoxicating liquor for shipment in interstate or foreign commerce.
(6) Sale and use of wine for sacramental purposes.
(7) Sale of alcohol to industrial permittees to be used for industrial purposes.
(7m) Sale of fermented malt beverages to industrial permittees to be used for industrial purposes.
(8) Sale of alcohol to medicinal permittees to be used for hospital or medicinal purposes.
(9) Sale of wine to industrial wine permittees to be used for industrial purposes.
History: 1973 c. 90; 1985 a. 29; 2007 a. 20; 2009 a. 177; 2011 a. 179, 200.
The term “levied" in this section does not mean that tax liability arises but collection is delayed. This section by all appearances is a list of complete, and not delayed, exclusions. Arty's, LLC v. DOR, 2018 WI App 64, 384 Wis. 2d 320, 919 N.W.2d 590, 17-0886.
The plaintiff in this case bought various distilled spirits in bulk from a distillery and mixed the distilled spirits with soda, water, and various flavorings to produce bottles of premixed cocktails that the plaintiff sold to liquor wholesalers, who sold them to retailers. In this case, the first taxable sales of intoxicating liquors under s. 139.06 (1) (b) were sales by the plaintiff of its bottled mixtures to the plaintiff's wholesaler customers. Sub. (4) excludes from consideration all transactions between the plaintiff and its distiller. Arty's, LLC v. DOR, 2018 WI App 64, 384 Wis. 2d 320, 919 N.W.2d 590, 17-0886.
