News & Resources
Development Impact Tax Effective January 1
The development impact tax on residential new construction and improvement projects eligible for real estate tax abatement goes into effect on January 1, 2022. The Department of Revenue published a regulation detailing the calculation and collection of the tax. The regulation proposes that the tax be collected using:
The tax will apply to all relevant building permit applications received by L&I on or after January 1, 2022. For more information on the law, review Bill No. 200556, passed by Council in late 2020 and signed by the Mayor on January 27, 2021.