SB 5025, sponsored by Sen. Mona Das (D–Auburn), would exempt materials and services associated with “self-help housing” from sales tax, and the sale of the home from REET. “Self-help housing” is most commonly understood as the Habitat for Humanity model, where a low-income home buyer participates in the construction of their home with a nonprofit agency.

An official fiscal note has not been produced yet, but the advocates advise us that they expect a $400 – $500k annual hit to local tax revenues as a result of these exemptions being provided to the roughly 150 homes constructed under this model in a normal year.

AWC would appreciate feedback from our cities on this proposal. Please contact Shannon or Carl and share your thoughts.

Dates to remember

SB 5025 will be heard in the Senate Housing Stability & Affordability Committee at 1:30 pm on Monday, January 21.

The bill is scheduled for a committee vote on Wednesday, January 23.