Tax break for residential conversions on the horizon in Seattle

A building owner with plans to convert the old Vance Building in downtown Seattle from office to housing last year said exempting the project from sales taxes would be really helpful.

City Hall is on the verge of providing the incentive, which city officials estimate would trim 7% from a project's total budget.

The mayor's office is promoting a sales and use tax deferral on conversions, which the Office of Planning and Community Development (OPCD) is crafting with the development industry. The City Council already has declared its intent to establish a deferral program. Next up is a Feb. 4 council public hearing.

The conversion trend has not gained much traction in Seattle despite 14% of the city's office stock being suitable, per an analysis by Moody's economists.

https://www.bizjournals.com/seattle/news/2025/01/15/seattle-tax-deferral-residential-conversion.html