WSR 14-23-052

INTERPRETIVE STATEMENT

[Filed November 17, 2014, 8:09 a.m.]

The department of revenue has issued the following property tax advisory (PTA):

This PTA addresses the valuation of community land trust (CLT) properties. CLT properties are residential single family homes that provide affordable owner-occupied housing to qualifying owners. In order to provide owner-occupied home ownership possibilities to qualifying purchasers, CLTs purchase the land and then lease the land underlying the home at a minimal cost and restrict the deed upon resale, thus limiting the equity to the original owner when the home is resold to another qualifying purchaser. CLT properties are not available to anyone on the open market due to the deed restrictions that impact their market value. Because the physical characteristics of these properties are indistinguishable from conventional residential properties, assessors may be tempted to assess them similarly. County assessors should recognize the impact on assessed values of CLT properties resulting from the deed restrictions.

A copy of this document is available via the internet at Recent Rule and Interpretive Statements, Adoptions, and Repeals.

Kevin Dixon

Tax Policy Manager

ETAs and Special Projects