Building Materials That Become Part of a Local Government or Qualifying Nonprofit Facility

​NOTE: This article has been replaced by the article titled Exemption for Building Materials for Contracts with Qualifying Exempt Entities – Updated dated July 30, 2018.

Section 77.54(9m), Wis. Stats. (2013-14), as created by 2015 Wis. Act 126, provides an exemption from sales and use tax exemption for property sold to a construction contractor who, in fulfillment of a real property construction activity, transfers the property to a qualifying exempt entity, if the property becomes part of a facility in Wisconsin that is owned by the qualifying exempt entity. In order for the exemption to apply, the following criteria must be met:

  1. The construction must be for a qualifying exempt entity;
  2. The property must become part of a facility in Wisconsin that is owned by the exempt entity; and
  3. The property must be transferred to the qualifying exempt entity.

May 10, 2016