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Council members say multifamily tax exemption favors county incomes; call for review
Summary
Council members and the public raised concerns that Bremerton’s multifamily tax exemption (MFTE) uses countywide income definitions that make units unaffordable to many city residents; a council member cited $2.3 million in tax exemptions this year and noted staff will present the program in a future study session.
Council members at the May 21 meeting renewed calls to review Bremerton’s multifamily tax exemption, saying current MFTE rules use countywide income measures that can make 'affordable' units unaffordable for city residents.
"Right now, the way the ordinance is written, the affordability is based on countywide incomes," Council member Rebalowski said, citing county average incomes "right around $100,000" compared with the city average of about $72,000. Rebalowski said the ordinance grants an eight‑year tax exemption if no affordable units are offered and a 12‑year exemption if the developer provides the program’s affordable units, but that county-based income levels shift benefits away from local taxpayers.
Rebalowski said that this year the tax exemptions for multifamily-exempted properties totaled more than $2,300,000 and that for at least two properties the average household income in units is above $100,000. He urged residents to review the ordinance and provide input; Council member Frey encouraged the public to attend an upcoming study session on the MFTE program.
Council members and staff said they plan further review: the council noted the item will be covered in an upcoming study session so members and the public can examine possible changes to definitions of affordability and the length of exemptions. No ordinance change or formal vote occurred at the May 21 meeting.
