Reduced Property Tax Rate for Remodeling Buildings or Structures
Overview
A business with remodeled buildings is eligible for a reduced tax rate for the five years after construction.
Eligible Property
Any remodeled, reconstructed, or expanded building or structure, if the taxable value goes up by at least 2.5%
Benefit
- A reduced tax rate as low as 3% based on the number of new full-time employees.
- A reduced tax rate on the increased taxable value of the qualified improvements, phased out over time.
Property tax reduction schedule for qualifying remodeling, reconstruction, or expansion projects
| Period | Reduction on Increased Taxable Value |
|---|---|
| Construction | 100% reduction |
| First Year | 80% reduction |
| Second Year | 60% reduction |
| Third Year | 40% reduction |
| Fourth Year | 20% reduction |
| Fifth Year | 0% reduction |
Application Requirements
- The property owner or authorized representative must apply.
- The application must be submitted to the local governing body by March 1 to be considered for the current tax year.
- The Department of Revenue verifies that the project increases taxable value by the required percentage.
Application form: