King County commercial landlords could soon get property tax relief
Jun 5, 2020, 6:55 AM | Updated: 11:11 am
Downtown Seattle. (AP Photo/Ted S. Warren)
(AP Photo/Ted S. Warren)
Some property tax relief could be on the way in King County for commercial landlords, as many have seen their values plummet with their tenant businesses closed.
King County looks for property tax relief during coronavirus crisis
Nearly 60% of commercial tenants across the country did not pay their rent in May. With hotels empty, and gyms, restaurants and other retailers closed, those businesses cannot pay their rent. King County assessor John Wilson said that has left many building owners hanging on the edge.
“They simply don’t have the cash to pay the rent, yet the landlord is still going to find themselves paying either the property taxes or their mortgage payment,” he said.
Wilson has asked the Legislature to make some changes to current law that would give those commercial tenants some relief. This would also include high-rise apartment owners whose tenants have not been paying rent.
He also pointed out that there is nothing in the law that covers an outbreak like we’re experiencing.
“When it comes to a pandemic, there are no readily available tools,” he noted.
Counties extend property tax due date to June
Wilson is hoping to get these commercial owners an adjustment on the real value of their properties or some tax relief on their second-half payments, which are due in October. Property owners who have seen a 20% drop or more in their rent collections since the start of the pandemic would be eligible.
“There is a cascading effect on this that we’ve been very concerned about for months,” he said. “We’re hoping that this property tax relief that we could offer or adjustment to a fair value would give those businesses some time to stabilize and survive.”
There is no relief in this package for homeowners who rent their homes or duplexes. Those people, who are in the same situation with some renters not paying, will not get any relief or help paying their mortgages. Wilson said that’s because home values have not dropped the way commercial properties have.
Those people will just have to eat their losses.
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