1. When are dealer plates for motor vehicle dealers subject to use tax?
   
   

   Motor vehicle dealers are subject to use tax on the use of motor vehicles held for sale and assigned to specific dealer employees subject to withholding from federal income tax on wages or assigned to owners actively involved in day-to-day operations. The amount of use tax is a fixed dollar amount per plate per month.

   See Part 8.D. in Publication 202, Sales and Use Tax Information for Motor Vehicle Sales, Leases, and Repairs for additional information on dealer's use tax requirements for other scenarios.

2. What amount is subject to use tax?

   The current amount, effective January 1, 2023, subject to use tax per dealer plate per month is $191.

   Effective January 1, 2024, the amount subject to use tax increases to $197 per dealer plate per month.

   The amount subject to use tax per dealer plate per month in prior periods are as follows:

   1/1/22 – 12/31/22: $175
   1/1/21 – 12/31/21: $166
   1/1/20 – 12/31/20: $165
   1/1/19 – 12/31/19: $162

3. Why do dealer registration plate tax amounts increase over time?

   The amounts subject to Wisconsin dealer plate use tax increase regularly to account for inflation. Wisconsin law (sec. 77.53(1m), Wis. Stats.) requires the Department of Revenue to annually adjust the amount subject to use tax based on the annual percentage change in the U.S. Consumer Price Index for All Urban Consumers, U.S. City Average, as determined by the U.S. Department of Labor for the 12-month period ending June 30.

Applicable Laws and Rules

This document provides statements or interpretations of the following laws and regulations enacted as of October 25, 2023: ch. 77, Wis. Stats., and ch. Tax 11, Wis. Adm. Code.

Laws enacted and in effect after this date, new administrative rules, and court decisions may change the interpretations in this document. Guidance issued prior to this date, that is contrary to the information in this document is superseded by this document, according to sec. 73.16(2)(a), Wis. Stats.

The department welcomes your input on our guidance. Submit comments on this guidance document.

Guidance Document Number: 100310

October 26, 2023