AN ACT REDUCING THE SALES AND USE TAXES FOR CERTAIN GOODS USED IN NEW HOUSING CONSTRUCTION.

SB 1262 reduces the sales tax rate for construction materials used in new housing projects. It applies a 3% tax rate (instead of the standard 6.35%) to tangible personal property purchased for building new residential developments. To qualify, projects must include at least 20% affordable housing units (or 50 units total, whichever is lower), as defined by law. This tax reduction directly affects developers constructing new housing projects meeting these affordability requirements. The bill takes effect July 1, 2025, for sales occurring on or after that date.