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