Richards Street Supply, LLC Information

CORPORATE 11777 W. Lake Park Drive Milwaukee, WI 53224 (414) 577-1177 Fax: (414) 577-1155 MADISON 406 Science Drive, Suite 408 Madison, WI 53711 (608) 255-1177 Fax: (608) 251-2442

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Tax Exempt Purchasing of Construction Materials in Wisconsin

Owners with tax exempt status in the State of Wisconsin (typically not-for-profit entities) may purchase building materials, equipment and taxable services free of sales or use taxes in one of two ways:

(1) Through direct transactions with the vendors supplying the building materials, equipment or services that will be incorporated into the real property. A direct transaction may be presumed if the exempt entity issues a purchase order to the supplier and payment for the transaction is made directly from the exempt entity to the supplier.

(2) Through a re-sale entity that purchases building materials, equipment or services on behalf of (or for the benefit of) the tax exempt entity. In this situation, the re-sale entity issues purchase orders to the supplier and payment for the transaction is made directly from the re-sale entity to the supplier.

Richards Street Supply is a re-sale entity created in 2006 to transact and manage tax exempt purchases for CG Schmidt’s tax-exempt clients. It is a separate company from CG Schmidt, however, Richards Street Supply is owned by CG Schmidt.

Richards Street Supply (RSS) provides the following benefits for its tax exempt clients:

· The Owner has a single contract with RSS in lieu of multiple purchase orders with a variety of suppliers.

· RSS handles all of the paperwork associated with the purchase order transactions.

· The Owner only issues one or two checks per month to RSS. All payments to downstream suppliers are handled by RSS.

· RSS is responsible for detailed accounting of all tax exempt purchases, including invoice processing and collection of lien waivers.

· The close working relationship between RSS and CG Schmidt allows for better project control; improved coordination of material deliveries; and expedient resolution of issues associated with material procurement.

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For more information about tax exempt purchasing in the State of Wisconsin, please see Publication 207 “Sales and Use Tax Information for Contractors“, which is available for download from the Wisconsin Department of Revenue website at: http://www.revenue.wi.gov/pubs/pb207.pdf

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