1. Wisconsin Funeral Directors Association (WFDA) Sales and Use Taxes New Publication 246
June 14, 2016
Dave Steines and Janet Abrams
Wisconsin Department of Revenue

2. Publication 246, Funeral Homes
How Do Wisconsin Sales and Use Taxes Affect Your Operations?
New publication published in March 2016!

3. Publication 246 Introduction Nature of Sales and Use Tax
Sales by Funeral Homes
Occasional Sales
Purchases by Funeral Homes
Keeping Aware of New Sales and Use Tax Developments
Do You Have Questions or Need Assistance

4. Introduction
This publication explains how Wisconsin sales and use taxes affect funeral homes. It includes examples of taxable and nontaxable sales and purchases.
The information relates to the state’s 5% sales and use tax. The following may also apply:
0.5% county tax
0.1% baseball stadium tax
Note: Prior to October 1, 2015, certain sales and purchases were subject to the 0.5% football stadium tax

5. II. Nature of Sales and Use Tax
The Wisconsin sales tax is a 5% tax imposed on the sales price of retailers making taxable retail sales in Wisconsin.
Sales tax does not apply to sales for resale

6. II. Nature of Sales and Use Tax, cont.
Sales tax is imposed on the retailer
Retailer is liable to the State for sales tax
Retailer may pass the tax along to the consumer or user (customer)
Retailer holds tax that it collected in trust for the State
Retailer is responsible for reporting and remitting the tax

7. II. Nature of Sales and Use Tax
What sales are subject to sales tax?
Tangible personal property
Certain coins or stamps
Certain leased tangible personal property affixed to real property
Certain digital goods
These are referred to collectively as taxable products.
Specified services (e.g., photographic services)

8. II. Nature of Sales and Use Tax, cont.
What is use tax?
Counterpart of sales tax
Wisconsin use tax is a tax imposed on the purchase price of taxable products or taxable services that are stored, used, or consumed within Wisconsin, and upon which a Wisconsin sales or use tax has not previously been paid

9. II. Nature of Sales and Use Tax, cont.
If Wisconsin did not have a use tax, persons could buy items in another state to avoid paying Wisconsin sales tax on such purchases
Every other state with a sales tax has as use tax

10. II. Nature of Sales and Use Tax, cont.
Examples of when use tax is due:
Mail order or Internet purchases
Property purchased outside of Wisconsin to be used in Wisconsin
Purchases for resale that were used in business

11. III. Sales by Funeral Homes
Charges for funeral services are not taxable
Sales of caskets and burial vaults are exempt, including:
Caskets and casket rental, even if not used for burial
Burial vaults
Cremation caskets
Cremation boxes and containers used for burial
Cremation urns
Appliques or medallions sold as part of cremation urn (e.g., permanently glued or screwed to the urn)
Cremation urn vaults
Outdoor memorials (e.g., sundials, wind chimes, bird baths) used to hold cremated remains
Memento chests used to hold cremated remains
Casket corner pieces that are as part of the casket (i.e. permanently screwed into the casket)

12. III. Sales by Funeral Homes
Sales of containers that are not caskets or burial vaults are taxable and include:
Cremation containers and boxes that are not caskets, unless used for burial
Casket inserts used with casket rental and later cremated with the body
Scattering memorials used for transportation and scattering remains (i.e., not buried in ground or in water)
Miniature urns, jewelry, or other keepsake pieces that hold a small amount of cremated remains
Urn bases that hold a small portion of the cremated remains

13. III. Sales by Funeral Homes
Charges for property and services used by the funeral home in providing funeral services are not taxable
Items are not transferred to purchaser but used by funeral home
Property and services are listed separately on the invoice or statement of funeral services
Funeral home is liable for sales or use tax on its purchases of property and services
Examples Include:
Biers
Chemicals for embalming
Church trucks
Folding chairs
Lowering machinery
Surgical instruments
Exception – Charges for items that are separate and optional from the sale of funeral services are taxable

14. III. Sales by Funeral Homes
Charges for property transferred incidentally with funeral services are not taxable
Even if charge for property is listed separately on the invoice or statement of funeral services
Property is transferred incidentally if the customer does not have the option to:
Receive property for a separate and optional fee, or
Obtain the property from another party (or not receive the property) and pay the funeral home a lesser amount
Funeral home is liable for sales or use tax on its purchase of property transferred incidentally with funeral services

15. III. Sales by Funeral Homes
Charges for property NOT transferred incidentally with funeral services are taxable
Funeral home allows purchaser to choose property for an additional charge
Purchaser has the option to purchase the property from the funeral home or someone else (or to not purchase the property at all) and not be charged
Funeral home may purchase the optional property without tax by providing its vendor a fully completed exemption certificate, claiming resale

16. Important Note
Sales and purchases by funeral homes of caskets and burial vaults are exempt
This is the case regardless of whether the charge by the funeral home for the casket or burial vault is optional to the customer

17. III. Sales by Funeral Homes
Sales of property without funeral services are taxable, unless an exemption applies (e.g., casket for human remains)
Sales of cremation diamonds from human remains are taxable
Sales of videos and photographs are taxable
Exception: Charges for diamonds made from human remains and videos and photographs transferred incidentally with funeral services are not taxable

18. IV. Occasional Sales
A funeral home's sales are exempt occasional sales if certain conditions are met
Funeral home does not hold and is not required to hold a Wisconsin seller's permit
Either of the following:
Taxable sales are less than $1,000 during the calendar year, or
Taxable sales are $1,000 or more during the calendar year, but sales are isolated and sporadic and the funeral home is not pursuing a business as a vendor of taxable products and services
Different standards apply if the funeral home is a nonprofit organization (Publication 206)

19. V. Purchases By Funeral Homes
Taxable purchases:
Property used or transferred incidentally with funeral services
Office equipment and supplies
Services
Internet access services
Landscaping services
Telephone services

20. V. Purchases By Funeral Homes
Nontaxable purchases:
Caskets, cremation urns, and burial vaults
Livery Services, unless funeral home is renting or leasing a hearse or coach without a driver
Property that is resold to customers

21. V. Purchases By Funeral Homes
Nontaxable purchases:
Property that is not transferred incidentally with funeral services (i.e., resold to customers)
Nonprofit funeral home holding a Certificate of Exempt Status (CES) number
Real property improvements

22. Part VI. Keeping Aware of New Sales and Use Tax Developments
The Department of Revenue's website at
Subscribe to one or more electronic mailing lists at

23. Part VII. Do You Have Questions or Need Assistance?
If you are unable to find an answer to your question about sales and use taxes, , write, or call the department.
Visit our website at
Write Wisconsin Department of Revenue
P.O. Box 8949, Mail Stop 5-77
Madison, WI
Telephone (608)

24. Questions?