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Council Advances Bill Letting Long-Term Rentals Keep Homeowner Tax Classification
Summary
Bill 174 passed first reading with two technical amendments, allowing properties rented for six months or longer to remain eligible for homeowner tax classification; Real Property Tax staff said administrative rules will be updated to handle conversions for existing parcels.
The council voted on Aug. 7 to advance Bill 174 at first reading, with two small amendments clarifying language about the six-month threshold and restoring consistent terminology. The bill would allow homeowners who rent part of their primary residence on a long-term basis (six months or more) to maintain the homeowner tax classification rather than losing the preferential rate.
Several residents testified in support. Noreen Louise said her household's exemptions "went from $210,000 to $184,300 dollars," which increased her taxable value and led to higher taxes, and she urged the council to pass the bill to relieve fixed-income homeowners who rent to local residents. Real Property Tax Administrator Lisa Meara told the council the office would update administrative rules and that existing parcels currently in an affordable-rental program (67 parcels identified) would convert automatically to the homeowner tax class where appropriate; other cases would require an application and current contract to qualify.
Council members amended language to replace "not longer than 6 months" with "less than 6 months" for clarity and restored "exclusively" where chapter consistency demanded it. The amended bill passed first reading 9–0.
