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House extends vertical housing property tax exemption through 2031 to support mixed-use projects
Summary
House Bill 2074 passed to extend the sunset for the vertical housing development property tax exemption through the end of 2031, maintaining an incentive used by local governments to support mixed-use and affordable housing projects.
House Bill 2074 passed the House to extend the property tax exemption for vertical housing development projects by moving the sunset date by six years to the end of 2031.
Representative Hudson, carrying the bill, said the vertical housing exemption—first adopted in 2003—allows a partial property tax exemption of up to 80% for 10 years for new construction or rehabilitation of mixed-use projects with residential components, and that local taxing districts may opt out of participation.
Hudson described qualifying requirements: the partial exemption for property improvements must be positively related to the residential share and building floors (up to five floors), and land receives the same partial exemption if a multistory project includes low-income occupants on at least one floor. Supporters said the tool has helped local governments and partners advance affordable housing projects.
The House voted and the clerk declared House Bill 2074 passed after receiving the constitutional majority.
What the bill does: moves the vertical housing exemption sunset to the end of 2031 to continue an incentive for mixed-use vertical housing development that local governments use to support affordable housing.
Next steps: local governments that use the program and taxing districts will continue to decide whether to participate for qualifying projects.
