What role should incentives for housing play in Bend? Two recent changes have reset the debate over the city of Bend’s tax incentives.

The first came in the wake of the city’s decision to approve a $10.6 million multi-unit property tax exemption for the Jackstraw apartment development. The Bend City Council and city staff began rethinking the city’s incentives.

The second was a January decision by the Bend-La Pine Schools Board that changed the approval process for multi-unit exemptions. The school board passed a resolution— at the city’s request — to adopt a general policy allowing all projects that are approved by the Bend City Council for the tax exemption in the city’s core to get automatic approval from the school district through June 30, 2025.

The bottom line: A property tax exemption of that type approved by the city would automatically be authorized.

Why does that matter?

Before the school board passed that policy, the school board would have to approve each application individually. And if the city approved an exemption and the school board did not, more taxing districts, such as the Bend Park & Recreation District and others, would need to approve the tax exemption to meet the threshold to approve it. The school board moving in lockstep with council decision means it doesn’t matter if every other taxing district decided to decline the exemption. It would go ahead anyway. Approval by the Bend City Council would mean approval of the tax exemption.

The school board’s decision arguably made sense. The board wants more housing in Bend. The district doesn’t lose any money, because the property taxes in the area are already being allocated away from the taxing districts to help develop the city’s core. It also means time at school board meetings is not eaten up by reviewing decisions that presumably the Bend City Council would already make with care.

The school board’s decision, though, can effectively render the opinion of other taxing districts moot. The board’s decision makes it more imperative that there is a critical look at the tax exemption to ensure it is only used when it is truly needed and is producing the desired result.