Wisconsin Department of Revenue v. Johnson

The Department of Revenue appeals from an order affirming a decision of the Tax Appeals Commission. The commission concluded that purchases of raw materials by the respondent Asphalt Products Company (APC) were exempt from the sales tax under secs. 77.52(13) and (14) and 77.51(18), Stats. The sole issue is whether APC is a real property construction contractor within the meaning of sec. 77.51(18). We answer the question in the affirmative and therefore reverse.

APC purchases raw materials from suppliers for use in the manufacture of emulsified asphalt products. The end product is sold to local…