SB 791

This bill creates a sales and use tax exemption for the sale of building materials,

supplies, and equipment and landscaping and lawn maintenance services if the

property or service is acquired solely for, or used solely in, the construction or

development of a workforce housing development. The bill defines “workforce

housing development” to mean a housing development in Wisconsin that meets all

of the following conditions:

1. It consists of land proposed for newly platted residential use.

2. The housing costs for households occupying the development's residential

units do not exceed, or are not expected to exceed, 30 percent of the median household

income for the county in which the development is located.

3. The residential units are intended for initial occupancy by households whose

income is at least 60 percent, but not more than 120 percent, of the county's median

household income.

Under the bill, the tax exemption may only be claimed by a person holding an

exemption certificate issued by the Wisconsin Housing and Economic Development

Authority. In order to receive an exemption certificate, a person must submit an

application to WHEDA that includes a description of the housing development,

certification that the development is a workforce housing development, and

documentation of the housing costs for the development's initial occupants.

The bill requires WHEDA to issue an exemption certificate to a person who

submits a completed application if WHEDA determines that the person is

constructing or developing a workforce housing development. WHEDA must notify

the person of its determination no later than 15 days after receiving the person's

application. If WHEDA does not notify the applicant within the 15 days, the

application is automatically approved and WHEDA must issue an exemption

certificate to the person.

Under the bill, the sales and use tax exemption may not be claimed for property

and services acquired for or used in the construction or development of property for

public use within the development. The bill defines “property for public use” to

include sidewalks, wastewater collection and treatment systems, drinking water

systems, storm sewers, utility extensions, telecommunications infrastructure,

streets, roads, bridges, and parking ramps.

Because this bill relates to an exemption from state or local taxes, it may be

referred to the Joint Survey Committee on Tax Exemptions for a report to be printed

as an appendix to the bill.