When a public construction contractor purchases supplies and materials to be used in a municipal public construction project, are those purchases exempt from the sales tax?
2015 Wisconsin Act 126, allows contractors to purchase construction materials directly on behalf of municipalities without paying the sales tax. The Act took effect on January 1, 2016. The League has received lots of questions about how municipalities and their contractors implement the new more efficient option for obtaining a sales tax exemption offered by Act 126.
The Department of Revenue's (DOR) January Tax Bulletin addressed many of the implementation and documentation questions that contractors, subcontractors, and suppliers may have about their purchases for tax exempt projects. Click here for a copy of the key pages in the DOR bulletin.
Associated General Contractors of Wisconsin (AGC) has worked with the Department of Revenue and the Wipfli CPAs and Consultants firm to develop two documents that answer many of the questions that are still frequently asked about the new law. The League thanks AGC for giving us permission to re-publish their FAQs and information provided in the links below.