The construction of new residential facilities and the rehabilitation of and construction of additions to existing residential facilities are eligible for the residential tax abatement (single family), if the increase in actual value of the property is at least 10%.
All qualified real estate assessed as residential property, excluding property classified as residential property under Section 441.21, subsection 14, paragraph “a”, subparagraph (6) of the Code of Iowa, is eligible to receive an exemption from taxation on the first $75,000 of actual value added by the improvements for a period of four years, as follows:
For the first year, an exemption from taxation on 100% of the first $75,000 of actual value added.
For the second year, an exemption from taxation on 75% of the first $75,000 of actual value added.
For the third year, an exemption from taxation on 50% of the first $75,000 of actual value added.
For the fourth year, an exemption from taxation on 25% of the first $75,000 of actual value added.
Multi-Family:
The construction of new residential facilities and the rehabilitation of and construction of additions to existing residential facilities that contain three or more separate dwelling units are eligible for the residential tax abatement (multi-family), if the increase in actual value of the property is at least 10%.
All qualified real estate assessed as residential property under Section 441.21, subsection 14, paragraph “a”, subparagraph (6) of the Code of Iowa, is eligible to receive an exemption from taxation for a period of seven years as follows:
For the first through fifth years, an exemption from taxation on 100% of the actual value added.
For the sixth and seventh years, an exemption from taxation on 75% of the actual value added.
The City welcomes any inquiries about how residential tax abatement may apply to potential residential construction projects. Please call 515-645-6808 to speak with the City Administrator.