SB120: Bill Text

LRB-2267/1

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2017 - 2018 LEGISLATURE

2017 Senate BILL 120

March 23, 2017 - Introduced by Senators Marklein, Feyen, Olsen, Harsdorf, Testin and L. Taylor, cosponsored by Representatives Kulp, Novak, R. Brooks, Tittl, Skowronski, Murphy, Petryk, Ripp, Thiesfeldt, Kremer, Macco, Rohrkaste, Bowen, Tusler and Jacque. Referred to Committee on Revenue, Financial Institutions and Rural Issues.

SB120,1,3 An Act to amend 77.54 (9m) of the statutes; relating to: a sales and use tax exemption for building materials that become a part of a facility for a technical college 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:

SB120,1 Section 1. 77.54 (9m) of the statutes is amended to read:

SB120,2,14 77.54 (9m) The sales price from the sale of and the storage, use, or other consumption of tangible personal property, or items or property under s. 77.52 (1) (b) or (c), sold to a construction contractor who, in fulfillment of a real property construction activity, transfers the tangible personal property, or items or property under s. 77.52 (1) (b) or (c), to an entity described under sub. (9a) (b), (c), (d), (em), or (f), a technical college district, the Board of Regents of the University of Wisconsin System, an institution, as defined in s. 36.05 (9), a college campus, as defined in 36.05 (6m), or the University of Wisconsin-Extension, if such tangible personal property, or items or property, becomes a component of a facility in this state that is owned by the entity. In this subsection, “facility" means any building, shelter, parking lot, parking garage, athletic field, athletic park, storm sewer, water supply system, or sewerage and waste water treatment facility, but does not include a highway, street, or road.

SB120,2 Section 2. Initial applicability.

SB120,2,17 (1) This act first applies to contracts entered into on the effective date of this subsection.

SB120,3 Section 3. Effective date.

SB120,2,20 (1) This act takes effect on the first day of the 3rd month beginning after publication.

SB120,2,21 (End)