Limited equity cooperative housing

From the 2024 DOR Tax Exemption Study

84.36.675 - Limited equity cooperative housing Description Limited equity cooperatives (LEC) receive a property tax exemption for real property owned by LEC that provides owned housing for low-income households if the following is met: - The LEC and its members receive the benefit of the exemption. - At least 85% of units are occupied by members of the LEC by January 1 of the assessment year. - At least 95% of property for which the exemption is sought must be used for housing units or other noncommercial uses. - The housing was insured, financed, or assisted by certain federal or state housing programs. Purpose To provided permanent and affordable housing to low and middle-income residents. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing a property tax exemption would not increase state revenues. A repeal exemption shifts the state property tax to the currently exempt taxpayers and reduces the tax burden of other taxpayers. It may decrease the local rate and possibly result in local taxing districts at their statutory maximum rate experiencing a revenue increase. P