SPOKANE, Wash. – Local leaders in Spokane are working on reforming property taxes to encourage housing development, as the city anticipates a growing population. According to a recent report, Spokane expects to welcome 23,000 new residents over the next two decades, needing just over 22,000 new permanent housing units.
Senator Marcus Riccelli is introducing a bill to encourage the redevelopment of underutilized property. The bill would give governing authorities more control over local property taxes, making it easier for developers to buy property in the city.
Clayton McFarland with Spokane’s Building Owners and Managers Association expressed his thoughts on the matter. He supports the push for more housing but voiced concerns about the potential impact of taxing parking lots more than other properties.
“It gives the impression that doing business, say in downtown Spokane is more expensive and more costburdensome,” McFarland said. “So even if parking lots in downtown are taxed heavier than others, that impression leads to people not wanting to do business in downtown.”
Riccelli emphasized the importance of balancing affordability and developer incentives. “Well because if you build units and you say 50% of them have to be for a certain level of affordability and you can’t make back what you’re putting in and there’s no profit there, then there’s no incentive to build,” Riccelli said.
The initiative aims to address the city’s future housing needs while considering the economic implications for local businesses.
