December 3, 2014 – Ottumwa, Iowa – The City of Ottumwa Planning and Development Department is accepting applications for property tax abatement under two different programs. Both programs were designed to encourage improvements and new development by reducing the additional taxes assessed on the improvement. The City provides an incentive for new construction and property improvements by reducing the additional new taxes on the improvements through these programs.
The residential tax abatement program is available citywide and reduces property taxes paid on qualifying improvements to residential properties. Property owners who have completed improvements to residential properties or apartment buildings in 2014 can file an application for residential tax abatement. New construction, additions, and remodeling are eligible activities. Taxes on the improvements are abated for a specific number of years for qualifying residential projects. The homeowner can select a 3, 5 or 10 year abatement plan. Residential tax abatement is based on the value that the new improvements add to the property. All other property taxes remain payable.
Applications are also being accepted for commercial property tax abatement in the Rochester North Urban Revitalization Area and the Downtown North Urban Revitalization Area. Improvements to new or existing commercial property in those areas that increase the assessed value of the property by at least 15% are eligible for tax abatement. Applicants may choose from a 3-year or a 5-year abatement plan. The City hopes to encourage new commercial development and improvements in the Rochester North and Downtown North Area by reducing the additional taxes for a specified number of years. Improvements made to commercial properties in these areas in 2014 qualify for the tax abatement program.
The Rochester North Urban Revitalization Area is bounded on the south by Rochester Road, on the west and north by the railroad tracks and on the east by the Ottumwa City Limits.
The Downtown North Urban Revitalization Area is bounded on the south by bank of the Des Moines River and Fourth Street on the north, west to Wapello Street and east to Jefferson Street. The area extends from Wapello Street to Packard Street (between West Second and the railroad tracks) and an area east of Jefferson Street that extends to Vine Street.
A map of the Revitalization Areas and applications are available at the Planning and Development Department. The deadline for tax abatement applications is Monday, December 22, 2014. For additional information, or to receive applications for the residential or commercial tax abatement program, contact the Planning and Development Department at City Hall or call 683-0606. Application forms are also available online at www.cityofottumwa.com.