The bill seeks to enhance the limited sales and use tax incentive program aimed at revitalizing underutilized properties in urban areas, with the goal of increasing affordable housing and job opportunities. Key changes include the replacement of the term "land" with "property," an increase in the population cap for eligible cities from 250,000 to 275,000, and a broader definition of "multifamily housing" to include buildings with four or more units. New definitions for "partially used land," "residential target area," and "underdeveloped property" are introduced, allowing for the inclusion of vacant or underutilized land suitable for affordable housing development. The bill also sets criteria for designating residential targeted areas and requires local governing authorities to adopt resolutions for tax deferral programs, ensuring public engagement through hearings and notifications.

Additionally, the legislation modifies the process for conditional recipients of sales and use tax deferrals related to investment projects. It allows cities to create ordinances for appealing tax deferral denials in superior court and mandates notification to the department upon denial. The bill specifies that applications for tax deferral certificates must be submitted before construction begins and outlines the necessary documentation and timelines for approval. It also introduces a requirement for detailed project information in applications, clarifies the validity of tax deferral certificates during construction, and establishes a repayment schedule for deferred taxes if a project is deemed ineligible. Overall, the bill emphasizes the intent to expand affordable housing options while ensuring compliance with local regulations.

Statutes affected:
Original bill: 82.92.007, 82.92.010, 82.92.020, 82.92.040, 82.92.070, 82.92.090, 82.32.100, 82.92.110, 82.92.120