Low-income housing

From the 2024 DOR Tax Exemption Study

82.45.010(3)(s) - Low-income housing Description Transfers of real property by an organization that was allocated federal low-income housing tax credits are not subject to state or local real estate excise tax. Purpose To support the development of affordable housing projects. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $5.400 $6.300 $7.000 $8.300 Local Taxes $1.100 $1.300 $1.500 $1.800 Repeal of Repealing this credit would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $5.700 $7.000 $8.300 Local Taxes $0.000 $1.200 $1.500 $1.800 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the REET growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - The department electronically receives transaction-level REET data from 36 counties. For the three counties not reporting REET data electronically, this estimate assumes transactions similar to the urban or rural counties that report electronically. - Property sales price growth mirrors the five-year com