Under current law, school districts, counties, municipalities, and nonprofit organizations are exempt from paying the sales tax and the use tax on purchases of tangible personal property. However, a construction contractor hired by those entities currently may not receive the exemption for property purchased by the contractor to be used for a construction project.
Senate Bill 227 changes state law so school districts, other local governments, and nonprofit organizations don’t have to buy the building materials themselves in order to get the sales tax exemption. Under the bill, they can let the contractor purchase those same materials and still get the sales tax exemption. WASB registered in support of the bill at the hearing. No one testified in opposition to the bill at the hearing and, as of this writing, no organization or individual has registered in opposition.
Under this bill, the purchase of building materials by a contractor that are used in a school, local government, or non-profit facility in this state is exempt from the sales tax and the use tax.
Along with the WASB the bill was also supported by:
- League of Wisconsin Municipalities
- School Administrators Alliance
- Wisconsin Association of Independent Colleges and Universities
- Wisconsin Counties Association