HB 1168, sponsored by Rep. Mari Leavitt (D–University Place), is the companion to SB 5025. These bills 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

HB 1168 is scheduled for a hearing in the House Finance Committee at 1:30 pm on Thursday, January 31.