Unalaska explores tax breaks for housing renovations

Unalaska's City Hall building. (Photo courtesy of KUCB)
Unalaska’s City Hall building. (Photo courtesy of KUCB)

Unalaska’s City Council wants to look into expanding tax breaks to encourage renovations that create new housing.

Currently, the city only provides a sales tax exemption to newly constructed residential housing and that does not apply to renovated, former commercial or industrial buildings.

“You know you see this all the time in the big cities where some of the turn of the century brick buildings (in) New York City or Seattle have been turned into nice lofts or fancy living accommodations,” said councilor Frank Kelty. “And I know a lot of those places give tax breaks. So I think this is something to be looked at. I don’t think it is something that will be an overwhelming hurt on our sales tax revenues.”

He says he would be in favor of this.

City Manager David Martinson calls the real impacts of the exemption minimal, if new residential homes can be created.

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