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King County has implemented a generous program of incentives to assist landmark property owners in preserving their buildings and sites. The incentive programs currently available are described below. These programs have changed over time and will continue to change as tax and zoning laws evolve or new sources of grant funds become available. Individuals owning King County landmark properties or considering designation are encouraged to contact the Historic Preservation Program at 206-296-8636 for updated information on particular incentive programs.
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Special Valuation: A Local Tax Incentive Program for Rehabilitating Historic Buildings
Special Valuation subtracts eligible costs associated with the rehabilitation of historic properties for up to ten years. The primary benefit of the program is that during the ten-year special valuation period, property taxes do not reflect the substantial improvements made to the historic property. Prior to the passage of this law, owners rehabilitating historic buildings were subject to increased property taxes once the improvements were made. To be eligible, the property must have undergone an approved rehabilitation within two years prior to applying for special valuation, and the rehabilitation must be equal in cost to at least 25% of the assessed value of the improvement (excluding land value).
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Public Benefit Rating System: Current Use Taxation for Open Space
King County offers an incentive program to preserve open space on private property. Property owners are eligible to apply for some tax relief if their land contains one or more open space resources such as recreation areas, watersheds, scenic view corridors or historic landmark/archaeological sites.
The incentive program functions by establishing a "current use taxation" property tax assessment for the open space that is lower than the "highest and best use" assessment level that usually applies on most land in the county. The reduction in taxable value ranges from 50% to 90% for the portion of the property in "current use." Designated landmarks qualify for a 50% reduction in taxable value for the land portion of their assessment.
For property to be approved as open space under this program, either the potential for additional development or use must be present, or the owner might provide public access or agree to other restrictions in return for tax reduction. Public access is encouraged on open space preserved under this program. However, access is not required, particularly if visitation could damage or endanger the resource (as with an archaeological site).
Additional information on this program is available from the King County Natural Resources and Parks Department's Public Benefit Rating System web page (external link).
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Landmark Loan Program
Low-interest loans are available through two programs administered jointly between the Historic Preservation Program and Washington Mutual Bank, Frontier Bank in Duvall, and Issaquah Bank. The Landmarks Commission reviews proposed loan-funded projects for compliance with restoration and rehabilitation standards, while the banks focus on the financial eligibility of the borrower. Loans are available for the restoration or rehabilitation of privately owned residential properties through Washington Mutual Bank. Loans for restoration and rehabilitation of commercial properties are available through Frontier Bank and Issaquah Bank. By providing loans at a reduced interest rate, the Landmarks Commission assists landmark owners with projects that ensure a longer life for their historic property.
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Technical Assistance
Owners of King County landmarks are eligible to receive a range of technical assistance services. Primary among these are discussions with the members of the Design Review Committee who review and approve all changes to designated features of significance of landmark properties. Included on this committee are architects and preservation specialists who can share their technical and practical knowledge. In addition, the office maintains information files on both preservation and local history.
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Investment Tax Credits
The Tax Reform Act of 1986 permits owners of buildings listed in the National Register of Historic Places to take a 20% income tax credit on the cost of rehabilitating such buildings for industrial, commercial, or rental residential purposes. Many King County Landmarks are already listed in the National Register or eligible for listing in the National Register. An owner investing in rehabilitation of a registered historic property will have credit against federal taxes. The program is administered by the State Office of Archaeology and Historic Preservation (external link). For more information contact Steve Mathison by e-mail at Stephen.Mathison@dahp.wa.gov at 360-586-3079.
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Landmark Rehabilitation Funding Programs
The following programs are administered by 4Culture, the Cultural Development Authority of King County. For more information, visit the 4Culture web site at http://www.4culture.org (external link).
Cultural Facilities Program (King County Lodging Tax)
A cultural organization (either arts or heritage) that owns or uses a King County Landmark is eligible to apply to the Cultural Facilities Program for the purchase, restoration or rehabilitation of the facility.
Landmark Rehabilitation Program (King County Lodging Tax)
In 2002, King County established an annual grant-in-aid program for the stabilization and rehabilitation of King County landmarks. Grant awards are made on a competitive basis. Applications are reviewed based on the criteria and priorities outlined in the program guidelines.
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