Building materials for non-profits and governments now eligible for a Wisconsin sales tax exemption

December 22, 2015

Is your non-profit planning a construction project in 2016? Or, will your firm be constructing a facility for a non-profit organization next year?

Beginning January 1, sales of building materials for facilities in Wisconsin owned by one of the following will be exempt from sales and use tax:

  • County
  • Municipality
  • School district
  • Nonprofit organization

The exemption applies to the sales of tangible personal property and certain other property made by a construction contractor who, in fulfillment of a real property construction activity, transfers the property to one of the above entities as part of constructing the facility. The new rules apply to contracts entered into on or after January 1, 2016.

What is considered a facility?

“Facility” is defined as any building, shelter, parking lot, parking garage, athletic field, athletic park, storm sewer, water supply system or sewerage and waste water treatment facility. It does not include a highway, street or road. For more information, see the 2015 Wisconsin Act 126.

Guidance for pursuing this exemption is expected to be released in early 2016. If you have questions or need additional information, please contact Sarah Evans at 414-465-5561 or any member of the Schenck SALT Team at 800-236-2246.