Wis. Admin. Code § Tax 11.04 — Constructing buildings for exempt entities

Tax 11.04(1) (1) Definition. In this section, “exempt entity” means a person qualifying for an exemption under s. 77.54 (9a) or 77.55 (1) , Stats.

Tax 11.04(1m) (1m) Exemptions.

Tax 11.04(1m)(a) (a) Section 77.54 (9a) , Stats., provides an exemption for sales to all of the following:

Tax 11.04(1m)(a)1. 1. The state of Wisconsin or any agency of the state of Wisconsin, the University of Wisconsin Hospitals and Clinics Authority, Wisconsin Aerospace Authority, Wisconsin Economic Development Corporation, and Fox River Navigational System Authority.

Tax 11.04(1m)(a)2. 2. Any county, city, village, town or school district in Wisconsin.

Tax 11.04(1m)(a)3. 3. A county-city hospital established under s. 66.0927 , Stats.

Tax 11.04(1m)(a)4. 4. A sewerage commission organized under s. 281.43 (4) , Stats., or a metropolitan sewerage district organized under ss. 200.01 to 200.15 or 200.21 to 200.65 , Stats.

Tax 11.04(1m)(a)5. 5. Any other unit of government in this state or any agency or instrumentality of one or more units of government in Wisconsin.

Tax 11.04(1m)(a)6. 6. Any federally recognized American Indian tribe or band in Wisconsin.

Tax 11.04(1m)(a)7. 7. Any joint local water authority created under s. 66.0823 , Stats.

Tax 11.04(1m)(a)8. 8. Any corporation, community chest fund, foundation or association organized and operated exclusively for religious, charitable, scientific or educational purposes, or for the prevention of cruelty to children or animals, except hospital service insurance corporations under s. 613.80 (2) , Stats., no part of the net income of which inures to the benefit of any private stockholder, shareholder, member or corporation.

Tax 11.04(1m)(a)9. 9. An entity described under section 501 (c) (2) of the Internal Revenue Code that is exempt from federal income tax under section 501 (a) of the Internal Revenue Code and that is organized for the exclusive purpose of holding title to property, collecting income from that property, and turning over the entire amount of that income, less expenses, to an entity described in s. 77.54 (9a) (f) , Stats.

Tax 11.04(1m)(a)10. 10. A local exposition district under subch. II of ch. 229 , Stats.

Tax 11.04(1m)(a)11. 11. A local cultural arts district under subch. V of ch. 229 , Stats.

Tax 11.04(1m)(a)12. 12. A cemetery company or corporation described under section 501 (c) 13 of the Internal Revenue Code, if the tangible personal property or taxable services are used exclusively by the cemetery company or corporation for the purposes of the company or corporation.

Tax 11.04(1m)(b) (b) Section 77.55 (1) , Stats., provides an exemption for sales to all of the following:

Tax 11.04(1m)(b)1. 1. The United States, its unincorporated agencies and instrumentalities.

Tax 11.04(1m)(b)2. 2. Any incorporated agency or instrumentality of the United States wholly owned by the United States or by a corporation wholly owned by the United States.

Tax 11.04(2) (2) Taxable sales. Except as provided in s. 77.54 (9m) , (26) , (41) , (62m) and (65) , Stats., or if prohibited by federal law, sales of building materials to contractors or subcontractors used in the construction of buildings or structures, or the alteration, repair or improvement of real property for exempt entities, are subject to the tax.

Tax 11.04(3) (3) Purchases presumed taxable. When a contractor and an exempt entity enter into a construction contract to improve real property, and the contract provides that the contractor is to furnish the building materials, it is presumed until the contrary is established, that deliveries of building materials to the contractor are made pursuant to purchases made by the contractor.

Tax 11.04(4) (4) Supplier is contractor. A supplier, who is also the contractor who uses the building materials in the construction of buildings or structures, or the alteration, repair or improvement of real property for an exempt entity, is the consumer of such building materials, not the seller of personal property to the exempt entity. Except as provided in s. 77.54 (9m) , (26) , (41) , (62m) , and (65) , Stats., or if prohibited by federal law, the sale of building materials to the consumer is subject to the tax.

Tax 11.04(5) (5) Exempt sales. A supplier’s sales of building materials made directly to an exempt entity are not taxable, even though such tangible personal property or item, property, or good under s. 77.52 (1) (b) , (c) , or (d) , Stats., is used by the contractor in the erection of a building or structure, or in the alteration, repair or improvement of real property for the exempt entity. Suppliers of building materials may presume that a sale is made directly to an exempt entity if the supplier receives a purchase order from the exempt entity, and payment for such building materials is received directly from the exempt entity.