City-Wide Urban Revitalization / Tax Exemption

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The City of Sioux City offers urban revitalization tax exemption for all property owners in Sioux City. This program is available until December 31, 2020.

If you have made improvements to your property during calendar year 2017, December 31, 2017 is the deadline to file for tax exemption. You will not see your exemption until 2019-2020.

Please note: The property tax statement that you will receive in the fall of 2017 / spring of 2018 reflects improvements made to your property during calendar year 2015. Property taxes for improvements made to your property during calendar year 2017 are due in 2019-20.

Questions? Call 712-279-6340.

What is City-Wide 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 be completed prior to December 31, 2020.

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.

Any other questions, call 712-279-6340.

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, Room 308. 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.
Questions? Call 712-279-6340.

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