The state Assembly plans to take up a bill Monday that would prevent contractors from having to pay sales and use taxes on materials bought for school, local governments and various nonprofit projects.
In April 2013, this newspaper accused the state Legislature of being “thick as thieves” for not moving sooner to mend an out-of-whack policy that can now cause supposedly tax-exempt entities to bear tax costs.
A bill that would prevent contractors from having to pay sales and use taxes on materials bought for certain otherwise tax-exempt projects has cleared another legislative hurdle. Still, it remained uncertain whether the proposal would make it to Gov. Scott Walker’s desk in time this year to take effect Jan. 1.
The state's Joint Finance Committee voted unanimously Wednesday in favor of a bill that would prevent contractors from having to pay sales and use taxes on materials bought for certain school, local government and nonprofit projects.
Ryan Gartman, a certified public accountant in Sheboygan, got a prime example two years ago of the sorts of quandaries contactors regularly struggle with when it comes to deciding if they themselves should be paying sales taxes on certain building materials or if they should instead be collecting the taxes from project owners.
An industry advocate says he remains hopeful that lawmakers will pass a long-sought tax break for contractors later this year, even though Gov. Scott Walker vetoed the provision from the state’s budget.
Saying he supports in principle a long-sought tax break for construction materials bought for tax-exempt projects, Gov. Scott Walker vetoed it after finding that it was worded far more broadly than intended.
After years of trying, construction groups have managed to get a long-sought tax exemption for certain construction materials to the goal line. Now they are just hoping that Gov. Scott Walker will help them carry it over.