By: Dan Shaw, email@example.com
Gov. Scott Walker signs the tax-exemption bill, Wednesday, December 16th while surrounded by construction industry representatives at the state Capitol in Madison.
Come Jan. 1, contractors will no longer have to pay sales and use taxes on materials bought for various sorts of tax-exempt owners.
Representatives of the construction industry gathered around Gov. Scott Walker in Madison on Wednesday to watch him sign Senate Bill 227 into law. Starting next year, the new law will prevent sales and use taxes from being owed on materials bought for school, local government and other sorts of nonprofit projects.
The exemptions have been sought by industry representatives for years, not so much because they will let contractors keep more money but because they will simplify existing procedures already used to legally avoid paying the taxes.
Current law lets schools, local governments and nonprofit groups avoid sales and use taxes if they directly purchase the construction materials needed for a particular nonprofit project. But if a contractor buys the materials instead, sales and use taxes apply.
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