3.78.140 Cancellation of tax exemption.
If at any time the planning director determines the owner has not complied with the terms of the contract or with the requirements of this chapter, or that the property no longer complies with the terms of the contract or with the requirements of this chapter, or for any reason no longer qualifies for the tax exemption, the tax exemption shall be canceled and additional taxes, interest and penalties imposed pursuant to state law. This cancellation may occur in conjunction with the annual review or at any other time when noncompliance has been determined. If the owner intends to convert the multifamily housing to another use, or, if applicable, the owner intends to discontinue compliance with the affordable housing requirements as required in this chapter, or any other condition to exemption, the owner must notify the planning director and the Snohomish County assessor within sixty days of the change in use or intended discontinuance. Upon such change in use or discontinuance, the tax exemption shall be canceled, and additional taxes, interest and penalties imposed pursuant to applicable state law.
A. Effect of Cancellation. If a tax exemption is canceled, the planning director shall notify the Snohomish County assessor of the cancellation within thirty days after the notification of the property owner or qualified nonprofit organization, or upon an unsuccessful appeal under subsection (B) of this section.
1. The Snohomish County assessor shall impose additional taxes, interest and penalties on the property, and a priority lien may be placed on the land, pursuant to state law and RCW 84.14.110(1)(a), (b) and (c);
2. The Snohomish County assessor must correct assessment and tax rolls in the manner provided for omitted property under RCW 84.40.080. The value of the new housing construction, conversion and rehabilitation improvements added to the rolls is considered as new construction for the purposes of Chapter 84.55 RCW. The owner may appeal the valuation to the Snohomish County Board of Equalization under Chapter 84.48 RCW and RCW 84.40.038.
B. Notice and Appeal. Upon determining that a tax exemption is to be canceled, the planning director shall notify the property owner, or qualified nonprofit organization if applicable, by certified mail, return receipt requested. The property owner, or qualified nonprofit organization if applicable, may appeal the determination by filing a notice of appeal with the hearing examiner within thirty days, specifying the factual and legal basis on which the determination of cancellation is alleged to be erroneous. The hearing examiner will conduct a hearing at which the applicant and the city will be heard, and all competent evidence received. The hearing examiner will affirm, modify, or repeal the decision to cancel the exemption based on the evidence received. (Ord. 3954-23 § 1 (Exh. 1), 2023; Ord. 3635-18 § 2, 2018. Formerly 3.78.110.)