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SB 536

Relating to: the sales tax exemption for memberships sold to real estate brokers. (FE)

2025-2026 Regular Session Introduced by Julian Bradley

Senate Bill 536 exempts sales tax on memberships for Wisconsin real estate brokers, promoting collaboration and reducing costs in property transactions.

Failed to pass pursuant to Senate Joint Resolution 1
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Bill Summary · SB 536

Summary of Senate Bill 536 (SB 536)

Bill Title: Relating to the sales tax exemption for memberships sold to real estate brokers.
Bill Number: SB 536
Introduced On: October 17, 2025
Status: Fiscal estimate received
Primary Sponsor: Senator Bradley
Cosponsors: Representative Steffen, Representative Penterman

Purpose and Intent

Senate Bill 536 aims to amend the current sales and use tax exemption for memberships sold to licensed real estate brokers in Wisconsin. The bill seeks to clarify and expand the existing exemption to ensure that memberships sold to brokers who cooperate with other brokers in property transactions are not subject to sales tax.

Key Provisions

  • Amendment to Statute: The bill amends section 77.54 (72) of the Wisconsin statutes, which pertains to sales tax exemptions.
  • Exemption Details: The proposed legislation specifies that the sales price from memberships sold to licensed real estate brokers is exempt from sales and use tax if the membership agreement includes provisions for compensating or cooperating with other brokers in brokering property sales.
  • Access to Information: The bill also stipulates that the exemption applies to brokers who gain access to real estate listings and compensation offers from other brokers as part of their membership agreement.

Impact

  • Who is Affected: This bill primarily affects licensed real estate brokers in Wisconsin who purchase memberships that facilitate cooperation and compensation among brokers.
  • Financial Implications: By exempting these memberships from sales tax, the bill may reduce operational costs for real estate brokers, potentially encouraging more collaboration in property transactions.
  • Fiscal Estimate: A fiscal estimate has been received, indicating that the bill may have implications for state and local tax revenues, which will be detailed in an appendix to the bill.

Procedural Aspects

  • Committee Review: The bill has been referred to the Committee on Insurance, Housing, Rural Issues, and Forestry for further consideration.
  • Public Hearing: A public hearing was held on November 5, 2025, to gather input on the bill.
  • Effective Date: If passed, the act will take effect on the first day of the third month following its publication.

Conclusion

Senate Bill 536 seeks to enhance the operational framework for real estate brokers in Wisconsin by providing a sales tax exemption for specific memberships. This legislative change is intended to promote cooperation among brokers and streamline the financial aspects of their operations. The bill is currently under review and may have significant implications for the real estate industry in the state.

Compiled from official sources — confirm details with the bill’s official record.

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