SB 645 — Relating to: a sales and use tax exemption for building materials that become a part of a facility for the University of Wisconsin Hospital and Clinics Authority. (FE)

- 2020 LEGISLATURE LRBa0997/1LRB-5170/1 EKL:skwJK:cdc SENATE AMENDMENT 1, TO SENATE BILL 645 January 28,8, 2020 - OfferedIntroduced by SenatorSenators LSEN.O LSEN , M ARKLEIN and M ILLER, cosponsored by Representatives B ORN , KULP, BALLWEG , DITTRICH, JAGLER , M URPHY, NOVAK , KOWRONSKI , STUBBS and SUBECK .

AtReferred theto locationsCommittee indicated,on amendAgriculture, theRevenue billand asFinancial follows:Institutions.

1.A N A CT to amend 77.54 (9m) of the statutes;

Pagerelating 2,to: line 18:

deletea linessales 18and touse 20.tax exemption for building materials that become a part of a facility for the University of Wisconsin Hospital and Clinics Authority.

Analysis by the Legislative Reference Bureau This bill provides a sales and use tax exemption for tangible personal property sold to a construction contractor who transfers the property to the University of Wisconsin Hospitals and Clinics Authority as part of constructing a facility for the authority in this state.

A similar exemption applies under current law to property sold to a contractor who transfers the property to a local unit of government, technical college district, or institution or campus of the University of Wisconsin System.

Under current law, a sale of tangible personal property directly to the University of Wisconsin Hospitals and Clinics Authority is exempt from the sales and use tax, but the exemption does not apply to a contractor who purchases tangible personal property on the authority's behalf.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

- 2020 Legislature - 2 - LRB-5170/1 JK:cdc SENATE BILL 645 SECTION 1 SECTION 1.

77.54 (9m) of the statutes is amended to read:

77.54 (9m) The sales price from the sale of and the storage, use, or other consumption of tangible personal property, or items or property under s.

77.52 (1) (b) or (c), sold to a construction contractor that, in fulfillment of a real property construction activity, transfers the tangible personal property, or items or property under s.

77.52 (1) (b) or (c), to an entity described under sub.

(9a) (b), (c), (d), (em), (f), or (fc) or (9g), a technical college district, the University of Wisconsin Hospital and Clinics Authority, the Board of Regents of the University of Wisconsin System, an institution, as defined in s.

36.05 (9), a college campus, as defined in s.

36.05 (6m), or the University of Wisconsin-Extension, if such tangible personal property, or items or property, becomes a component of a facility in this state that is owned by the entity.

In this subsection, “facility" means any building, shelter, parking lot, parking garage, athletic field, athletic park, storm sewer, water supply system, or sewerage and waste water treatment facility, but does not include a highway, street, or road.

SECTION 2.0Initial applicability.

(1) This act first applies to contracts entered into on the effective date of this subsection.

SECTION 3.0Effective date.

(1) This act takes effect on the first day of the 3rd month beginning after publication.