Property Improvements May Qualify for Tax Exemption

Property Improvements May Qualify for Tax Exemption

November 18, 2010 – (RealEstateRama) — December 31 is the deadline to file for Urban Revitalization Tax Exemption on eligible properties which received property improvements during calendar year 2010. All residential property owners within the corporate limits of the City of Sioux City that made improvements to their property in 2010 are encouraged to apply for the tax exemption.

Urban Revitalization Tax Exemption provides partial tax exemption for up to 10 years on the increased value of property resulting from physical improvements. Improvements can include substantial remodeling, additions, or new construction of single-family residential or multi-family residential structures. Building permits must have been obtained (when required) with final inspection completed and / or Certificate of Occupancy issued. The work completed must be an improvement that adds lasting value to the structure. Routine maintenance, such as painting or re-roofing, generally does not add permanent value to the structure.

Three tax exemption schedules are available to home owners through this program. A home owner who has made qualifying improvements may select one of the following schedules:
• Schedule 1 provides a 10-year, 115% exemption on the increased value when the total value added is less than $20,000.
• Schedule 2 provides a graduated 10-year exemption on the increased value.
• Schedule 3 provides a three-year, 100% exemption on the increased value.

Multi family properties consisting of three or more units are eligible to select from one of the following schedules: (Note: Multi family properties located in select neighborhoods may be eligible for a different schedule. Contact 279-6255 for additional information on those areas.)
• Schedule 2 provides a graduated 10-year exemption on the increased value.
• Schedule 3 provides a three-year, 100% exemption on the increased value.

Applications can be picked up in Room 305 at City Hall, 3rd Floor, 405 6th Street, on the web at www.sioux-city.org and click on Urban Revitalization, e-mail akeairns (at) sioux-city (dot) org, or by calling Amy Keairns, Neighborhood Services Project Coordinator at 279-6255. The applications will be presented to the City Council for approval and then forwarded to the City Assessor’s Office in January. The City Assessor will make a final determination on the amount of actual value added by any improvements.

Property owners are also reminded to keep building! City Council has approved City-wide residential urban revitalization and property owners now have until December 31, 2015 to complete construction of a new home or to make improvements to their property and qualify for a tax exemption. Application must be made the year the improvements are completed.

Contact:
Amy Keairns
712-279-6255

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