Council Member Kimberly Pine introduced Bill 72 so that if a parcel of land 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 would apply only to the portion used for residential purpose and may not exceed a specific percentage of square feet of land and the buildings and improvements on that land. The property tax classification would remain in effect only so long as the property qualifies for a home exemption.
The bill offers a mixed-use option to the property owner, but as written, would not require a mixed-use zone change. For some small businesses struggling to balance home and work, the bill would provide some flexibility and likely long-term cost savings for owners who choose a more “live, work, play” lifestyle by allowing the lower property tax on the portion of the property used for residential purposes.
