 |
|
|
|
|
URBAN REVITE / TAX EXEMPTION
City-Wide Residential Urban Revitalization
If you have made improvements to your property during calendar year 2010, December 31, 2010 is the deadline to file for tax exemption.
Please note: The property tax statement that you will receive in the fall of 2010 / spring of 2011 reflects improvements made to your property during calendar year 2008. Property taxes for improvements made to your property during calendar year 2009 are due in 2011-12. Property taxes for improvements made to your property during calendar year 2010 are due in 2012-13.
The Sioux City Council approved City-Wide Residential Urban Revitalization at the October 1, 2007, Council meeting.
What is City-Wide Residential Urban Revitalization?
City-wide urban revitalization allows anyone who improves their existing home or constructs a new home to apply for relief from increased property taxes for up to ten years.
Every person in Sioux City that owns a single-family, two-family, or multi-family residence could qualify for a tax break if they make improvements to their home that increases the assessed value by at least 5% (10% for multi-family). Additionally, anyone that would choose to construct a new home within the city limits of the City of Sioux City could qualify for a property tax break as well. Improvements would need to begin between 2007-2010 and be completed by December 31, 2010.
EXAMPLE 1:
Your home has an assessed value of $50,000 (excluding land)
You build an addition onto your home.
The construction of the addition raises your assessed value to $60,000.
You may request exemption from taxation on the additional value of $10,000 ($60,000 - $50,000 = $10,000)
EXAMPLE 2:
You own land with an assessed value of $35,000.
You construct a new home that has an assessed value of $165,000.
You may request exemption from taxation on the value of the home ($165,000).
Note: You will still pay taxes on the land.
Keep in mind that not all “improvements” add value to a home. Adding a new roof or painting a home, for example, rarely increases the taxable value of a home. This program requires that you add value to your property. For residentially assessed property you must add at least 5%, for commercially assessed property you must add at least 10% to the base value. If you have questions about what adds taxable value to real estate for urban revitalization purposes, please call the City Assessor’s office at 712-279-6535.
Application Procedures
At the conclusion of your project or no later than December 31st in the year your project was completed, you must file an application with the City’s Community Development Department, Neighborhood Services Division.
You can obtain an application at the Neighborhood Services Office, Room 305, City Hall or by printing the document located at the following link:
Application for Tax Exemption
You will need to determine which tax abatement schedule you would like to receive. The program offers three schedules. Please note: your project will not be eligible for all three schedules:
Schedule 1: All qualified real estate assessed as residential property is eligible to receive an exemption from taxation based on the actual value added by the improvements. The exemption is for a period of ten (10) years. The amount of the exemption is equal to a percent of the actual value added by the improvements, determined as follows: one hundred fifteen percent (115%) of the value added by the improvements. However, the amount of the actual value added by the improvements which shall be used to compute the exemption shall not exceed twenty thousand dollars ($20,000) and the granting of the exemption shall not result in the actual value of the qualified real estate being reduced below the actual value on which the homestead credit is computed.
Schedule 2: All qualified real estate assessed as residential and all qualified real estate assessed as commercial property consisting of three (3) or more separate living quarters with at least seventy-five percent (75%) of the space used for residential purposes is eligible to receive a partial exemption from taxation on the actual value added by the improvements. The exemption is for a period of ten (10) years. The amount of the partial exemption is equal to a percent of the actual value added by the improvements, determined as follows:
1st year 80%
2nd year 70%
3rd year 60%
4th year 50%
5th year 40%
6th year 40%
7th year 30%
8th year 30%
9th year 20%
10th year 20%
Schedule 3: All qualified real estate assessed as residential and all qualified real estate assessed as commercial property consisting of three (3) or more separate living quarters with at least seventy-five percent (75%) of the space used for residential purposes is eligible to receive a one hundred percent (100%) exemption from taxation on the actual value added by the improvements. The exemption is for a period of three (3) years.
Once you choose a schedule and applications have been approved by City Council, you may not change your selection.
Application for Tax Exemption
Tax Exemption Brochure
If your property is located on the following link, contact 712-279-6255 to obtain an application for tax exemption. Non City Wide Urban Revitalization Areas. Note: Use this list as a guide. There is always the possibility of human error when creating lists. When in doubt, please call 279-6255 to verify that your address is, in fact, located within a non city-wide urban revitalization area, or refer to the appropriate map below.)
Maps of Non City-Wide Urban Revitalization Areas
|
|
 |
Neighborhood Services Division
|
|
