Tax Exemption

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Policy Number:
UW-3033
Old Policy Number:
500
Responsible Office:
Accounting Services, Division of Business Services

University Policy

Policy:

Policy Statement

Individuals conducting official UW–Madison business may be exempt from payment of tax depending on their location and the circumstances of the purchase. Any personal use of the university’s tax-exempt status is prohibited.

Note: Sponsored projects (e.g., fund 144 or 133) are subject to the terms and conditions of the specific award, as well as applicable program guidelines, which may restrict use of funds for certain types of expenses. Please contact the RSP accountant for your award with any questions.

Tax Exemption Within the State of Wisconsin

The Wisconsin sales and use tax law in s.77.54(9a) provides an exemption from payment of state, county and local tax. The Department of Revenue has issued a tax-exempt number for use by all UW System institutions. Individuals may be asked to provide proof of tax exemption when conducting university business.

  • The tax-exempt certificate should be used when making business-related purchases or advance travel reservations. For a copy of the tax-exempt certificate, visit the UW TravelWIse Portal and use the following navigation: Travel Policy > Wisconsin Sales Tax Exemption.
  • The Department of Revenue approved a tax-exempt wallet card, obtainable from the divisional business offices, which may be used in lieu of the tax-exempt certificate when employees are in travel status. Employees are required to surrender the exemption cards to their department office when they leave the university or no longer travel on university business.

Lodging

Lodging within the state of Wisconsin is tax-exempt when any of the following criteria are met:

For Employees

  • The university pays for the lodging with a Purchasing Card (P-Card) or purchase order and provides the tax-exempt certificate at the time of the reservation.
  • Reservations are made in the name of the university and the employee. All subsequent invoices or receipts must be in the name of both parties.
  • The employee pays for the lodging with personal funds (e.g., My Corporate Card, personal credit card, cash) and presents the tax exemption wallet card to the lodging establishment to verify business travel and tax-exempt status.

For Non-Employees

  • The university pays for the lodging with a Purchasing Card or a purchase order and provides the tax-exempt certificate at the time of reservation. Non-employees who pay for business lodging with personal funds and subsequently file for reimbursement are not eligible for tax exemption.

Note: Vendors are not required to refund tax if the tax exemption information was not provided at the time of reservation or check-in. Travelers and those who arrange travel for others should make every effort to receive tax exemption, but, if unable to do so, taxes will be paid/reimbursed by the university.

Tax Exemption Outside the State of Wisconsin

To obtain Sales Tax Exemption in other states, direct payment is required; the purchase must be billed directly to the University and paid for with entity funds (check or credit card). To meet this requirement for credit cards, the University must be solely liable for payment and its name must appear on the credit card. Purchases made with employee funds that are reimbursed do not qualify.

The items or services purchased must be used in conjunction with the University’s regular educational activities.

The required form or documentation for each state will likely need to be presented each time you make an eligible purchase in the state. It is recommended that you bring multiple copies of the fillable form or exemption certificate.

See UW TravelWIse for more information.

Contacts

Travelers and departmental staff should contact their respective divisional business offices for policy or procedural questions.

Divisional business offices may email jose.carus@wisc.edu with questions.

Related UW–Madison Documents, Web Pages, or Other Resources:

UW Tax Compliance and Reporting - Tax Types

External References:

Policy Administration

Approval Authority:
Assistant Vice Chancellor & Controller
Policy Manager:
Compliance Administrator (Inst)
Contact:
Compliance Administrator (Inst) -- Jose Carus Jr, jose.carus@wisc.edu, (608) 262-0582
Revised Dates:

10-28-2022

Retrieved:
01-26-2025 10:30:27