A public hearing was held on Senate Bill 227, a bill that to allow contractors to directly purchase construction materials on behalf of their tax-exempt clients without paying the sales tax. The proposal, was originally included in the tax reform package of the budget by the Joint Finance Committee. However, the governor vetoed the language included in the budget that would allow the exemption, saying the language was “too broad” but he was supportive of the intention. In his veto message, Governor Walker encouraged legislation to be introduced with amended language.
The bill would allow a sales and use tax exemption for materials sold to a construction contractor who will use the purchase materials for a facility being contracted to be built by the county, municipality, school district, or nonprofit organization.