Seattle holds public hearing on sales-tax deferral for office-to-housing conversions

Council President Sarah Nelson opened a public hearing Feb. 4 on council bill 120937, legislation that would create a new sales-and-use tax deferral to encourage conversion of underutilized commercial property into housing and add a new Chapter 5.75 to the Seattle Municipal Code.

The bill implements a program enabled by the state legislature last year (enrolled second substitute Senate Bill 6175). Councilmember Solomon, who will chair the Land Use Committee, described the bill’s purpose: “The intent of this bill is to implement a program in Seattle that would defer sales tax and use tax for projects being converted from commercial uses to residential ones with an affordable housing component.” Nelson said she introduced the bill to put a live text before the council after a committee vacancy delayed work on the topic, and said Solomon will be added…