Snohomish weighs tax breaks for affordable homes, though results vary
SNOHOMISH — When Snohomish was drawing up a plan for its new Midtown district, Craig Skotdal of Everett-based Skotdal Real Estate pitched an idea to the city to “encourage residential development.”
“As part of your planning efforts, you may wish to investigate the feasibility of providing a multi-family property tax exemption,” he wrote in an August 2020 letter.
The tax break, created by the state Legislature in 1995, exempts developers from property taxes on housing projects for eight years. If at least 20% of the homes are set aside for low- to moderate-income tenants, the break can last 12 years. It has two main goals: create more multi-family housing and add some affordable housing. But many cities have found developers either don’t bite on it or pass on the affordable housing piece.
Cities can adopt the tax breaks as defined in state law, or they can amend the rules to require more affordable housing. Snohomish is now considering whether to require low- and medium-income units to qualify for any tax break.
https://www.heraldnet.com/news/snohomish-weighs-tax-breaks-for-affordable-homes-though-results-vary/
I have mixed feelings on this one. We need more affordable housing. On the other hand the Skotdal family is rather wealthy and owns a large part of downtown Everett. They probably don't need a tax break.
