New Sales and Use Tax Form: Contractor Statement of Building Materials Purchased

A construction contractor may purchase building materials exempt from sales and use tax if the building materials:

  1. are used in fulfillment of real property construction activity,
  2. are transferred to a qualifying entity, and
  3. become part of a qualifying facility located in Wisconsin that is owned by the entity.

Form S-227, Contractor Statement of Building Materials Purchased, was developed to help contractors document these purchases.

A qualifying entity is a Wisconsin county, city, village, town, school district, county-city hospital, sewerage commission, metropolitan sewerage district, joint local water authority, or qualifying nonprofit organization.

A qualifying facility is an athletic park, athletic field, building, parking garage, parking lot, shelter, storm sewer, water supply system, sewerage and waste water treatment facility. Highways, streets and roads are not qualifying facilities, even if located within a facility.

This exemption went into effect for contracts entered into on or after January 1, 2016. For more information, see Wisconsin Tax Bulletin 192 (January 2016), page 19-21.