ISSAQUAH, Wash. — Washington’s Department of Revenue is investigating The City Church for possibly owing back property taxes on its Issaquah campus, which is now slated for a new housing development.
Department spokesperson Kim Schmanke said the inquiry is “not unheard of”, but added “the church did not notify us when they should have” regarding the end of tax-exempt activity.
Churches and schools do not have to pay property taxes. Schmanke said Department of Revenue staff have determined a school on the Providence Heights campus ceased to exist in late 2014 and “we’d have expected to hear by now” of the change.
The 40-acre Providence Heights site opened in 1961 as a school for nuns. After a series of different owners, City Church bought the land in 2004.
The land is now planned for a 140-home development, which has drawn criticism from local historic preservation advocates. They are eager to save elements of the land’s history and are petitioning city leaders to help.
Attempts to speak with City Church and the site developer, Brixton Homes, were unreturned.
Schmanke said a final determination from the Department of Revenue could come in the next few weeks. County records show the land is worth around $30 million.
Copyright 2016 KING