Multi-Family Tax Exemption

MFTE Boundary

Designated Infill Target Area MFTE Boundary

Before Construction

For Multi-Family Tax Exemption (MFTE), once a project has met all programmatic criteria, the owner/tax payer can expect to save approximately $1,600 on their tax bill for every $120,000 of Exempt Assessed Value. The exemption of assessed value is only applied to housing portions of the property. Download the calculator to help you estimate your possible property tax savings.

After Construction

Annually

MFTE Information

SMC 08.15

The City of Spokane's Multi-Family Tax Exemption (MFTE) program offers a partial property tax exemption for new improvements that create multi-family housing. The exemption period is 8 years for market rate projects, and 12 years for projects where at least 20% of the units are occupied and affordable to those with an income of no more than 115% of Area Median Income The program is based on state law (RCW 84.14) and described in the Spokane Municipal Code (SMC 08.15).

Here are a couple key things to remember about this program:

  • “Multi-family” is considered to be a minimum of 4 dwelling units in one building.
  • The MFTE program is available for properties in designated target areas all over the city, not just in the downtown. The target areas are selected based on criteria designed to support the revitalization of urban centers where density is encouraged.
  • For mixed use projects, at least 50% of the space must be dedicated to residential use.
  • The developer, builder or property owner must apply for this tax exemption BEFORE they apply for their building permit.
  • Before purchasing a specific piece of property, investors should either contact Planning & Development Services by phone at 509.625.6300 or email at incentives@spokanecity.org or come in to the 3rd floor Current Planning counter in City Hall to double-check that the parcel is actually in a MFTE target area.

Contact Information

Ali Brast
Development Services Center
808 W. Spokane Falls Blvd, 3rd floor
509.625.6638
Fax: 509.625-6013
abrast@spokanecity.org

Teri Stripes
Planning & Development Services
509.625.6597
incentives@spokanecity.org

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