2017 - 2018 LEGISLATURE
March 20, 2017 - Introduced by Representatives Kulp, Novak, Jacque, R. Brooks,
Tittl, Skowronski, Murphy, Petryk, Ripp, Thiesfeldt, Kremer, Macco,
Rohrkaste, Bowen and Tusler, cosponsored by Senators Marklein, Feyen,
Olsen, Harsdorf, Testin and L. Taylor. Referred to Committee on Ways and
AB174,1,3 1An Act to amend 77.54 (9m) of the statutes; relating to: a sales and use tax
2exemption for building materials that become a part of a facility for a technical
3college district or for the University of Wisconsin.
Analysis by the Legislative Reference Bureau
Current law provides that the sale of tangible personal property that becomes
a component of a facility in this state that is owned by a county, municipality, school
district, 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 county, municipality, school district, or
nonprofit organization as part of constructing the facility. This bill expands the
exemption to apply to tangible personal property transferred to a technical college
district, to any institution or campus in the University of Wisconsin System, or to the
University of Wisconsin-Extension.
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:
1Section 1. 77.54 (9m) of the statutes is amended to read:
AB174,2,142 77.54 (9m) The sales price from the sale of and the storage, use, or other
3consumption of tangible personal property, or items or property under s. 77.52 (1) (b)
4or (c), sold to a construction contractor who, in fulfillment of a real property
5construction activity, transfers the tangible personal property, or items or property
6under s. 77.52 (1) (b) or (c), to an entity described under sub. (9a) (b), (c), (d), (em),
7or (f), a technical college district, the Board of Regents of the University of Wisconsin
8System, an institution, as defined in s. 36.05 (9), a college campus, as defined in 36.05
9(6m), or the University of Wisconsin-Extension,
if such tangible personal property,
10or items or property, becomes a component of a facility in this state that is owned by
11the entity. In this subsection, “facility" means any building, shelter, parking lot,
12parking garage, athletic field, athletic park, storm sewer, water supply system, or
13sewerage and waste water treatment facility, but does not include a highway, street,
14or road.
AB174,2 15Section 2. Initial applicability.
AB174,2,1716 (1) This act first applies to contracts entered into on the effective date of this
AB174,3 18Section 3. Effective date.
AB174,2,2019 (1) This act takes effect on the first day of the 3rd month beginning after
AB174,2,2121 (End)