Sales tax Exemptions

July 23, 2018

We are happy to announce that the Wisconsin State Legislature has added Technical Colleges to the growing list of tax exempt entities that can take advantage on their tax-exempt status during construction projects.

As of July 1, 2018 Wisconsin technical colleges are now under Section 77.54(9m), Wis. Stats. (2015-16) which exempts materials sold to a construction contractor who, in fulfillment of a real property construction activity, transfers the materials to a Wisconsin technical college district if the materials becomes a component of a facility in Wisconsin that is owned by the technical college district. This exemption applies to contracts entered into on or after July 1, 2018.

For additional information about the new exemption, see the article titled “New Sales and Use Tax Exemption Effective January 1, 2016 – Building Materials That Become Part of a Local Government or Qualifying Nonprofit Facility,” that begins on page 19 of Wisconsin Tax Bulletin #192 (January 2016). The article titled “Exemption Expanded for Construction Contracts,” beginning on page 22 of Wisconsin Tax Bulletin #199 (October 2017), provides information about the expansion of the exemption to include facilities for Wisconsin technical colleges.