Wisconsin Increases Retailer’s Discount for Sales and Use Tax Returns

Wisconsin allows retailers to deduct a portion of the paid sales tax reported on a timely filed sales and use tax return. This is referred to as the retailer’s discount. Effective for taxes payable on or after October 1, 2023, Wisconsin has increased the retailer’s discount for timely filed and paid sales and use tax returns from 0.5% to 0.75%. Additionally, the state has increased the limit of a retailer’s discount that may be deducted on a sales and use tax return from $1,000 to $8,000. The retailer’s discount is computed on the total sales tax following these guidelines:

• For $0 to $10, the discount is equal to the total sales tax.
• For $10 to $1,333, the discount is $10.
• For greater than $1,333, the discount is the total sales tax amount times .0075 but cannot exceed $8,000 per reporting period.

(Wisconsin Tax Bulletin, Number 222, July 2023, Wisconsin Department of Revenue)