LRB-0132/1
JK:jld:jf&ph
2013 - 2014 LEGISLATURE
March 14, 2013 - Introduced by Representatives Jacque, Ballweg, Bernier, Bies,
Brooks, Kahl, Kaufert, Murtha, Ohnstad, Sanfelippo, Spiros, Stone,
Strachota and Thiesfeldt, cosponsored by Senators Grothman,
Gudex,
Leibham, Olsen and Schultz. Referred to Committee on Jobs, Economy and
Mining. Referred to Joint Survey Committee on Tax Exemptions.
AB76,1,3
1An Act to create 77.54 (9a) (j) 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:
AB76,1
1Section
1. 77.54 (9a) (j) of the statutes is created to read:
AB76,2,82
77.54
(9a) (j) A construction contractor who, in fulfillment of a real property
3construction activity, transfers the tangible personal property, or item, or property
4under s. 77.52 (1) (b) or (c), to an entity described under par. (b) or (f), if such tangible
5personal property, item, or property becomes a component of a facility in this state
6that is owned by the entity. In this subsection, "facility" means any building, shelter,
7parking lot, parking garage, athletic field, athletic park, storm sewer, or water
8supply system, but does not include a highway, street, or road.
AB76,2
9Section
2.
Initial applicability.
AB76,2,1110
(1) This act first applies to contracts entered into on the effective date of this
11subsection.
AB76,3
12Section
3.
Effective date.
AB76,2,1313
(1) This act takes effect on July 1, 2013.
