A labor lawyer is predicting no one will attend a hearing Tuesday on state rule changes that could cause construction companies and other employers to lose their business licenses.

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Even though the state’s new single-prime contracting system of managing construction projects has taken effect, industry officials say some fundamental questions still need answers.

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Contractors are the businesses most at risk of losing licenses or certifications under a law allowing the credentials to be yanked from those who are delinquent in their payments to the state’s unemployment benefits system.

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Construction industry lobbyists began raising questions Monday about a proposal to reduce unemployment benefit taxes after learning such a change could force companies they represent to pay even more.

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Another two years probably will be needed for legislation that would prevent contractors from paying sales tax on materials bought for schools, local governments and certain tax-exempt organizations, advocates of the proposal said Friday.

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The higher taxes that some lawmakers want to impose on construction companies to pay for the state’s unemployment insurance system could be a lot worse.

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A motion to change the state’s unemployment insurance system could cost the construction and manufacturing industries tens of millions of dollars in additional taxes, according to the nonpartisan Legislative Fiscal Bureau.

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A proposal that would prevent contractors from paying sales taxes on materials they buy for tax-exempt projects will become part of the state’s 2013-2015 budget bill if a state lawmaker has a way.

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The Associated General Contractors of Wisconsin has withdrawn its opposition to the system of single-prime project delivery contained in Gov. Scott Walker’s 2013-15 proposed budget.

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The fine print proves state government is not stealing millions of dollars from nonprofit organizations.

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