LRB-5345/1
EKL:cjs
2019 - 2020 LEGISLATURE
February 6, 2020 - Introduced by Senators Testin, Feyen, Bernier and Olsen,
cosponsored by Representatives Kulp, Quinn, Plumer, Petryk, VanderMeer,
Skowronski, Spiros and Tusler. Referred to Committee on Agriculture,
Revenue and Financial Institutions.
SB791,1,3 1An Act to create 77.54 (69) and 234.47 of the statutes; relating to: creating a
2sales tax exemption for materials used to construct workforce housing
3developments.
Analysis by the Legislative Reference Bureau
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.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB791,1 1Section 1 . 77.54 (69) of the statutes is created to read:
SB791,2,92 77.54 (69) The sales price from the sale of building materials, supplies, and
3equipment and the sale of services described in s. 77.52 (2) (a) 20., and the storage,
4use, or other consumption of the same property and services, to a person holding an
5exemption certificate issued under s. 234.47 if the property or service is acquired
6solely for, or used solely in, the construction or development of a workforce housing
7development, as defined in s. 234.47 (1) (d). This subsection does not apply to
8property and services acquired for or used in the construction or development of
9property for public use, as defined in s. 234.47 (1) (c), within the development.
SB791,2 10Section 2 . 234.47 of the statutes is created to read:
SB791,2,12 11234.47 Workforce housing sales tax exemption. (1) Definitions. In this
12section:
SB791,3,3
1(a) “Exemption certificate” means a certificate issued by the authority that
2authorizes the person holding the certificate to claim the tax exemption under s.
377.54 (69).
SB791,3,44 (b) “Housing costs” has the meaning given in s. 16.301 (3) (a) and (b).
SB791,3,75 (c) “Property for public use” includes sidewalks, wastewater collection and
6treatment systems, drinking water systems, storm sewers, utility extensions,
7telecommunications infrastructure, streets, roads, bridges, and parking ramps.
SB791,3,98 (d) “Workforce housing development” means a housing development in this
9state that meets all of the following conditions:
SB791,3,1010 1. It consists of land proposed for newly platted residential use.
SB791,3,1511 2. The housing costs for each household occupying a residential unit in the
12development do not exceed, or are not expected to exceed, 30 percent of the median
13household income in the county in which the development is located, based on the
14American community survey 5-year estimates produced by the U.S. bureau of the
15census.
SB791,3,2016 3. The residential units in the development are intended for initial occupancy
17by individuals whose household income is at least 60 percent, but not more than 120
18percent, of the median household income in the county in which the development is
19located, based on the American community survey 5-year estimates produced by the
20U.S. bureau of the census.
SB791,3,25 21(2) Certification to claim tax exemption. The authority shall establish and
22administer a program to issue exemption certificates for purposes of claiming the tax
23exemption under s. 77.54 (69). A person who wishes to be issued an exemption
24certificate shall apply to the authority on a form prescribed by the authority. The
25application shall contain all of the following:
SB791,4,1
1(a) A description of the project, including its location.
SB791,4,32 (b) A certification by the person that the project is a workforce housing
3development.
SB791,4,54 (c) Documentation showing the housing costs, or expected housing costs, of the
5initial occupant of each residential unit in the development.
SB791,4,14 6(3) Approval. The authority shall issue an exemption certificate to a person
7who submits a completed application under sub. (2) if the authority determines that
8the person is constructing or developing a workforce housing development. No later
9than 15 days after receipt of an application under sub. (2), the authority shall
10determine whether to approve the application, notify the applicant of the authority's
11determination, and, if the application is approved, issue an exemption certificate to
12the applicant. If the authority does not notify the applicant within 15 days of receipt
13of the application, the application shall be approved and the authority shall issue the
14person an exemption certificate.
SB791,4,18 15(4) Public use property. A person may not use the exemption certificate issued
16under sub. (3) to claim an exemption under s. 77.54 (69) for property and services
17acquired for or used in the construction or development of property for public use
18within the workforce housing development.
SB791,4,21 19(5) Information sharing. The authority shall provide to the department of
20revenue a copy of each exemption certificate issued under sub. (3) and, upon request
21by the department, a copy of any application submitted under sub. (2).
SB791,4,24 22(6) Policies and procedures. The authority, in consultation with the
23department of revenue, shall establish policies and procedures to administer this
24section.
SB791,4,2525 (End)
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