Market Stats According to Bill 72, introduced by Councilmember Kimberly Pine, when a parcel of land that has been classified as commercial is improved with a single-family dwelling and has been granted a home exemption for the tax year, that portion of the parcel that is used for residential purposes is classified as residential.
The classification applies only to that portion used for residential purposes and will have a maximum amount of land dedicated for the buildings and improvements on that land. The exemption would remain in effect only so long as the property qualifies for a home exemption.
The administration expressed concern, noting specifically that recent zoning proposals and changes advanced by City Council, including those planned for transit-oriented development areas, involve mixed-use zoning, which allows for multiple uses to benefit the property owner and the surrounding community.
Bill 72 mirrors existing provisions that allow single-family dwellings on agricultural- and preservation- zoned parcels with multiple classifications and tax rates. However, the administration testified that treating business-zoned parcels similar to agricultural- and preservation- zoned parcels is not appropriate, as single-family dwellings and condominium projects are not permitted under the Land Use Ordinance. Councilmembers are also concerned that allowing multiple classifications on a single tax map key can affect many existing uses and that such a major shift in the tax policy requires a broader review. They recommend that rather than a piecemeal approach to mixed-use zoning, a comprehensive plan should be implemented to address the future of TOD and the inevitable increase of uses on a dwindling resource of developable land. The bill is before City Council for second reading.
