LRB-2772/1
JK:jld
2015 - 2016 LEGISLATURE
August 21, 2015 - Introduced by Representatives Kulp, Jacque, Tranel, Bernier,
Kooyenga, E. Brooks, Novak and Ballweg, cosponsored by Senators
Marklein, Gudex, Harsdorf and Petrowski. Referred to Committee on Ways
and Means.
AB313,1,3
1An Act to create 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 local unit
3of government or nonprofit organization.
Analysis by the Legislative Reference Bureau
Under this bill, 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.
Under current law, counties, municipalities, school districts, and nonprofit
organizations are exempt from paying the sales tax and the use tax on purchases of
tangible personal property. Currently, a construction contractor hired by the county,
municipality, school district, or nonprofit organization may not receive the
exemption for property purchased by the contractor to be used for a county,
municipality, school district, or nonprofit organization construction project.
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:
AB313,1
1Section
1. 77.54 (9m) of the statutes is created to read:
AB313,2,112
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) or (f), if such
7tangible personal property, or items or property, becomes a component of a facility
8in this state that is owned by the entity. In this subsection, "facility" means any
9building, shelter, parking lot, parking garage, athletic field, athletic park, storm
10sewer, water supply system, or sewerage and waste water treatment facility, but does
11not include a highway, street, or road.
AB313,2
12Section
2.
Initial applicability.
AB313,2,1313
(1) This act first applies to contracts entered into on January 1, 2016.
AB313,3
14Section
3.
Effective date.
AB313,2,1515
(1)
This act takes effect on January 1, 2016.
