Tax Abatement

Tax Abatement at a glance

The City of Carroll offers tax abatement to properties for construction that occurred after February 25, 2019 in the original area (maps) or after November 22, 2021 in the revised expanded area that was NOT in the original area (maps). The objectives of the City’s Revitalization Plan are as follows:

• To encourage new construction of residential properties through abatement of taxes on the value of the improvements.
• To encourage the remodeling, renovation, rehabilitation or addition to residential properties through abatement of taxes on the value of improvements.
• To improve economic conditions and housing opportunities in the area and take steps to enhance the general attractiveness and marketability of the Urban Revitalization Area.

For properties within the Urban Revitalization Area, the City offers the following tax exemption schedules:

Option 1

• All Qualified Real Estate assessed as multiresidential property prior to January 1, 2022, if the multiresidential property consists of three (3) or more separate living quarters with at least seventy-five percent (75%) of the space used for residential purposes, shall receive an exemption from taxation on the first seventy-five thousand dollars ($75,000) of actual value added per living quarter by the Improvements for a period of five (5) years.
• All Qualified Real Estate assessed as residential property under Iowa Code Section 441.21(14)(a)(6) (three or more separate dwelling units) on or after January 1, 2022 shall receive an exemption from taxation on the first seventy-five thousand dollars ($75,000) of actual value added per living quarter by the Improvements for a period of five (5) years. This exemption is available for this particular subset of residential property in lieu of the general residential property exemption set forth below, and is made available to further the City’s planning objectives with respect to ensuring the availability of a variety of housing options and promoting the development of multi-family residential properties.

[Section 404.3 (4), Code of Iowa, 2021]

Option 2

• All Qualified Real Estate assessed as residential which is not classified under Iowa Code Section 441.21(14)(a)(6) shall receive an exemption from taxation on the first seventy-five thousand dollars ($75,000) of actual value added by the Improvements for a period of five (5) years.

[Section 404.3A, Code of Iowa, 2021]

What does this mean to me?

If a residential construction project results in increasing the assessed value of your property by at least 10%, up to $75,000 of increased value will receive full tax abatement for five (5) years.  While the value of the abatement will vary based on tax rates and rollback percentages, based on the FY 2023 rollback of 54.1302% and the FY 2022 consolidated tax rate of $26.40 a property owner would save $5,358.89 over 5 years in property taxes.

Documents

City of Carroll Urban Revitalization Plan – Revised November 22, 2021

Map of Expanded City of Carroll Revitalization Area – Approved November 22, 2021

Map of Original City of Carroll Revitalization Area – Approved February 25, 2019

Application for Tax Abatement