SB 631

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 or is acquired solely for, or used

solely in, a workforce housing rehabilitation project. 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.

4. The price per residential unit in the development does not exceed a

maximum amount determined by the Wisconsin Housing and Economic

Development Authority.

The bill defines “workforce housing rehabilitation project” as a project

involving improvement to housing in this state to maintain the housing in a decent,

safe, and sanitary condition or to restore it to that condition if the estimated value

of each residential unit undergoing rehabilitation does not exceed a maximum

amount determined by WHEDA and if the project involves the removal of lead paint

or structural improvements.

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

exemption certificate issued by WHEDA. In order to receive an exemption

certificate, a person must submit an application to WHEDA that includes the

following:

1. A description of the project.

2. A certification that the project is a workforce housing development or

workforce housing rehabilitation project.

3. If the application relates to a workforce housing development,

documentation showing the housing costs, or expected housing costs, of the initial

occupant of each residential unit in the development and the anticipated price per

residential unit in the development.

4. If the application relates to a workforce housing rehabilitation project, the

estimated value of each house undergoing rehabilitation.

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 an eligible workforce housing development or is