2011 - 2012 LEGISLATURE
November 16, 2011 - Introduced by Representatives Jacque, Brooks, Rivard,
Spanbauer, Steineke, Strachota, Stroebel and Wynn, cosponsored by
Senators Grothman, Cowles and Holperin. Referred to Committee on Ways
and Means. Referred to Joint Survey Committee on Tax Exemptions.
1An Act to create
77.54 (58) of the statutes; relating to: a sales and use tax
2exemption for building materials that become a part of a facility for a local unit
3of government or nonprofit organization.
Analysis by the Legislative Reference Bureau
Under current law, municipalities, school districts, and certain nonprofit
organizations are exempt from paying the sales tax and the use tax on purchases of
tangible personal property. To receive the sales tax or use tax exemption, the
municipality, school district, or nonprofit organization must purchase the tangible
personal property. A construction contractor hired by the municipality, school
district, or nonprofit organization may not receive the exemption for property
purchased by the contractor to be used for a municipality, school district, or nonprofit
organization construction project.
Under this bill, the sale of tangible personal property that becomes a component
of a facility in this state that is owned by a municipality or nonprofit organization is
exempt from the sales tax and the use tax. The exemption applies to tangible
personal property purchased by a construction contractor who transfers the property
to the municipality or nonprofit organization as part of constructing the facility.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB380, s. 1
77.54 (58) of the statutes is created to read:
The sales price from the sale of and the storage, use, or other 3
consumption of tangible personal property or item or property under s. 77.52 (1) (b) 4
or (c) that becomes a component of a facility in this state that is owned by an entity 5
described under sub. (9a) (b) or (f). This subsection applies to tangible personal 6
property or item or property under s. 77.52 (1) (b) or (c) purchased by a construction 7
contractor who, in fulfillment of a real property construction activity, transfers the 8
property or item to the entity described under sub. (9a) (b) or (f). In this subsection, 9
"facility" includes any building, shelter, parking lot, parking garage, athletic field, 10
athletic park, storm sewer, or water supply system, but does not include a highway, 11
street, or road.
(1) This act takes effect on the first day of the 2nd month beginning after 14