City Council Repeals Multi Family Tax Exemption

July 28, 2020 - The Multi Family Property Tax Exemption (MFTE) is a state program first adopted by the City Council in 2011 to encourage the construction of additional units of affordable multifamily housing on Mercer Island by temporarily reducing property tax.

The MFTE program hasn’t ever been used on Mercer Island and the Council had been debating its utility for several months. After a lengthy discussion during its July 21 meeting, the City Council voted 5-2 to repeal the MFTE incentive.

Other City tools to encourage affordable housing remain in place, such as density bonuses and fee waivers. The City Council discussed a desire to engage in a more comprehensive discussion of the City’s affordable housing goals, policies, and programs at some time in the future.

Learn more about the MFTE from the Puget Sound Regional Council