On July 3, 2025, Wisconsin Governor Tony Evers signed Senate Bill 45, the state budget bill for 2025-2027, into law. The Act includes significant tax changes, including a new exemption for insurance information products used by insurance companies.
The Act creates Section 77.54(75) of the Wisconsin Statutes, providing a sales and use tax exemption for information products containing reports, statistics, records, or other data used exclusively by insurance companies and insurance intermediaries. The exemption applies to all information products, whether delivered physically, digitally, or through a license or subscription model. The information products must be used for purposes of quoting, underwriting, determining insurability, assessing risks, setting rates, or adjusting claims. Qualifying insurance companies must possess a certificate of authority issued by the commissioner of insurance, while insurance intermediaries must be licensed by or subject to the jurisdiction of the commissioner of insurance. Qualifying affiliates may also make eligible purchases tax free on behalf of insurance companies. The exemption is effective October 1, 2025.
This bill will benefit insurance companies and their affiliates that charge for information services used to place a policy. Insurance companies with such operations in Wisconsin should review their systems and policies around the charging of sales and use tax on these services as they are now exempt. Companies should also evaluate such operations in other states and whether it makes sense to relocate some of them to Wisconsin.
Ryan offers an unmatched breadth of expertise in different tax types and industries. If you have questions about how your business can take advantage of this new exemption, reach out to one of our experts today.
TECHNICAL INFORMATION CONTACTS:
Josie Lowman
Principal
Ryan
212.871.3901
josie.lowman@ryan.com
Garrett Blackwood
Director
Ryan
617.892.4893
garrett.blackwood@ryan.com
Tina Brooks
Senior Manager
Ryan
414.441.0316
tina.brooks@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.
- Topics
- Josie Lowman
- Transaction Tax
- Wisconsin