Two Whatcom areas are nominated for a second round of federal Opportunity Zones, downtown Bellingham's tract and Lummi Nation's Salish Village
What happened: On Oct. 8 the Governor announced 99 Washington areas nominated as Opportunity Zones, out of 152 applications. The state's nomination data lists two in Whatcom County: Census Tract 6, which the application places at the intersection of Bellingham's Waterfront, Old Town and Downtown subareas, and Census Tract 2.01 on Lummi Nation land, tied to expanding Salish Village. The nominations go to the U.S. Treasury; if it certifies them, they run Jan. 1, 2027 through Dec. 31, 2036. The City's newsletter says "selected"; the Governor's office says "nominated," and we use that until Treasury acts.
Why it matters: It is a federal tax rule, not a grant. An investor who puts a capital gain into a qualified fund can delay the tax on it, have 10% of the gain (30% in rural zones) excluded after 5 years, and owe no federal tax on the investment's growth after 10, per the Governor's release and a law firm's summary of the IRS rules. Whatcom had zones in 2018 too: Tract 6, Tract 10 (Samish Way) and a Lummi tract, per the City. Tract 6 is nominated again; Tract 10 is not among the two. The old zones run through Dec. 31, 2028. The state data shows a 31.9% poverty rate in Tract 6 and 25.9% in Tract 2.01. None of the sources we read describes City or County money tied to the designation.
What's next: Treasury's decision. Under the IRS procedure it has 30 days after the nomination window, which can be extended another 30, so as late as Dec. 28. We'll update here when it acts.