Washington Legislature Authorizes Sales Tax Exemption for Affordable Housing Conversion Projects

Davis Wright Tremaine LLP
Contact

Davis Wright Tremaine LLP

Developers can benefit from the new law, which allows cities in Washington state to defer sales and use taxes

Among the raft of recent legislation to encourage the production of affordable housing, SB 6175 authorizes Washington cities to provide a sales and use tax deferral for projects that would convert existing buildings on underutilized commercial land to multi-family projects with at least 10 percent affordable housing units. The legislation permits cities to adopt such programs through a formal resolution, including requirements for application, review, and grant of tax deferrals through city and State Department of Revenue processes which will include appeal rights. Granted sales and use tax deferrals generally become permanent exemptions if the project is used for qualifying purposes for 10 years.

Given the significant benefit that this program could bring to housing conversion projects, members of the development community are already advocating at the local level to ensure that this tax deferral is promptly adopted by Washington cities. The full text of this recent legislation should be consulted for its specific requirements.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Davis Wright Tremaine LLP | Attorney Advertising

Written by:

Davis Wright Tremaine LLP
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Davis Wright Tremaine LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide