AB688: Bill Text

LRB-1886/1

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2001 - 2002 LEGISLATURE

2001 Assembly BILL 688

December 21, 2001 - Introduced by Representatives Grothman, Vrakas, Friske, Gunderson, J. Fitzgerald, Hahn, Hines, Hoven, Huber, Jensen, Jeskewitz, Kestell, Krawczyk, Lassa, M. Lehman, McCormick, Miller, Montgomery, Musser, Olsen, Owens, Petrowski, Plouff, Powers, Seratti, Skindrud, Starzyk, Sykora, Townsend, Urban and Walker, cosponsored by Senators Darling, Huelsman, Kanavas, Plache, Roessler and Wirch. Referred to Committee on Ways and Means. Referred to Joint Committee on Tax Exemptions.

AB688,1,3 An Act to amend 77.54 (41) of the statutes; relating to: a sales tax and a use tax exemption for building materials sold to a builder for a local government construction project.

Analysis by the Legislative Reference Bureau

Under current law, municipalities and school districts 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 or school district must purchase the tangible personal property. A builder hired by the municipality or school district may not receive the exemption for property purchased by the builder to be used for a municipality or school district construction project.

Under this bill, the sale of building materials to builders is exempt from the sales tax and the use tax, if the materials are used for the construction, renovation, or development of property pursuant to a contract with a municipality or school district.

This bill will be referred to the joint survey committee on tax exemptions for a detailed analysis, which will be printed as an appendix to this 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:

AB688, s. 1 Section 1. 77.54 (41) of the statutes is amended to read:

AB688,2,8 77.54 (41) The gross receipts from the sale of building materials, supplies and equipment to; and the storage, use or other consumption of those kinds of property by; owners, contractors, subcontractors or builders if that property is acquired solely for or used solely in, the construction, renovation or development of property that would be exempt under s. 70.11 (36); or if that property is acquired solely for or used solely in the construction, renovation, or development of property pursuant to a contract with a municipality, as defined under s. 70.375 (1) (c).

AB688, s. 2 Section 2. Effective date.

AB688,2,11 (1) This act takes effect on the first day of the 2nd month beginning after publication.

AB688,2,12 (End)