Creating a sales tax exemption for materials used to construct workforce housing developments or to conduct workforce housing rehabilitation projects. (FE)

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 conducting an eligible workforce housing rehabilitation project. 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 a workforce housing 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.