Section Tax 11.09 - Drugs(1) DEFINITION. For the exemption in s. 77.54(14), Stats., "drug" means a compound, substance, or preparation, or any component of them, other than food and food ingredients, dietary supplements, or alcoholic beverages, to which any of the following applies: (a) It is listed in the United States Pharmacopoeia, Homeopathic Pharmacopoeia of the United States, or National Formulary, or any supplement to any of them.(b) It is intended for use in diagnosing, curing, mitigating, treating, or preventing a disease.(c) It is intended to affect a function or structure of the body.(2) ITEMS WHICH ARE DRUGS. Drugs include the following items described in sub. (1): (c) Analgesics (aspirin, acetaminophen, ibuprofen, ketoprofen, naproxen, etc.).(e) Antibiotic creams and ointments.(f) Antifungal creams and sprays.(h) Antiseptics (betadyne, iodine).(i) Birth control (pills and patches and implants).(k) Contraceptives (creams, gels, foams, and medicated condoms). (l) Cold and cough medicines, drops, and lozenges.(m) Contact lens solutions.(o) Dermal fillers (injectable).(p) Dialysis dialysate solution.(t) Gases - medical grade (air, carbon dioxide, helium, nitrogen, oxygen).(z) Nutrition formulas (enteral and parenteral with a drug facts label).(zb) Prescription medicines.(zc) Radioactive isotopes.(zf) Smoking cessation products such as gums, lozenges, and patches that contain nicotine.(zg) Sterile water (for injections).(zh) Sterile normal saline .9% (IV or irrigation).(zj) Yeast infection medications. Note: A listing that contains numerous items and descriptions of items that have been categorized as drugs, durable medical equipment, mobility-enhancing equipment, and prosthetic devices can be found in the Rules and Procedures of the Streamlined Sales Tax Governing Board, Inc., available at http://www.streamlinedsalestax.org.
(3) ITEMS WHICH ARE NOT DRUGS. Items which are not described in sub. (1) and which are not drugs include: (a) Alcoholic beverages, soft drinks and distilled water.(b) Durable medical equipment.(d) Mobility-enhancing equipment.(4) EXEMPT SALES OR USE OF DRUGS. Drugs shall be exempt if: (a) Prescribed for the treatment of a human being by a person authorized to prescribe the drugs, and dispensed on prescription filled by a registered pharmacist in accordance with law. Insulin furnished by a pharmacist to a person for treatment of diabetes as directed by a physician shall be deemed dispensed on prescription.(b) Sold to a licensed physician, surgeon, podiatrist, dentist, or hospital for the treatment of a human being.(c) Furnished by a licensed physician, surgeon, podiatrist, or dentist to a patient who is a human being for treatment of the patient.(d) Furnished by a hospital for treatment of any person pursuant to the order of a licensed physician, surgeon, dentist, or podiatrist. For this exemption, "hospital" has the meaning described in s. 50.33(2), Stats., and does not include nursing homes.(e) Sold to this state or any political subdivision or municipal corporation of the state, for use in the treatment of a human being; or furnished for the treatment of a human being by a medical facility or clinic maintained by this state or any political subdivision or municipal corporation of the state.(f) Furnished without charge to a physician, surgeon, nurse anesthetist, advanced practice nurse, osteopath, dentist licensed under ch. 447, Stats., podiatrist licensed under ch. 448, Stats., or optometrist licensed under ch. 449, Stats., if the drug may not be dispensed without a prescription.(5) TAXABLE SALES OF DRUGS. Taxable sales of drugs include: (a) Retail sales for use in laboratories.(b) Retail sales of drugs for pets. Note: For exemption of drugs used on farm livestock or other animals, refer to ss. Tax 11.12 and 11.61.
Note: Section Tax 11.09 interprets ss. 77.51(3pj) and 77.54(14), (14m), (14r), and (33), Stats.
Wis. Admin. Code Department of Revenue Tax 11.09
Cr. Register, September, 1977, No. 261, eff. 10-1-77; r. (3) (g), Register, September, 1984, No. 345, eff. 10-1-84; am. (4) (d) and (6), Register, July, 1987, No. 379, eff. 8-1-87; am. (5) (b), Register, June, 1990, No. 414, eff. 7-1-90; am. (2) (c), (3) (c) and (4) (a), Register, March, 1991, No. 423, eff. 4-1-91; am. (1), (4) (e), cr. (4) (f), r. (6), Register, May, 1999, No. 521, eff. 6-1-99; EmR0924: emerg. r. and recr. (title), (1), (2) and (3), am. (4) (title), (intro), (a) to (d), (f), (5) (title), (intro.) and (b), eff. 10-1-09; CR 09-090: r. and recr. (title), (1), (2) and (3), am. (4) (title), (intro), (a) to (d), (f), (5) (title), (intro.) and (b) Register May 2010 No. 653, eff. 6-1-10; CR 10-094: am. (1) (b), renum. (2) to be (2) (intro.) and am., cr. (2) (a) to (zj) Register November 2010 No. 659, eff. 12-1-10.Amended by, CR 20-027: am. (4) (a) Register July 2021 No. 787, eff. 8/1/2021The interpretations in s. Tax 11.09 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The exemption for certain medicines furnished without charge became effective October 14, 1997, pursuant to 1997 Wis. Act 27; and (b). The definition of "drug" is effective October 1, 2009, pursuant to 2009 Wis. Act 2.