Residential Tax Abatement Change

CHANGE TO BONDURANT RESIDENTIAL TAX ABATEMENT

FEBRUARY 19, 2016

The City of Bondurant residential tax abatement plan will change for building permits issued after June 30, 2016.  The current plan and the new plan are shown below.  The new plan will apply to residential building permits issued between July 1, 2016 and July 30, 2021.  The new plan calls for eliminating residential tax abatement for residential building permits issued after July 30, 2021.

Residential building permits issued through June 30, 2016 will receive the current 5 year plan.  The new 3 year plan will apply to residential permits issued between July 1, 2016 and July 30, 2021.

 The City's two commercial tax abatement plans will remain in effect and are not affected by the change to the residential abatement plan.  These are also shown below.

The City Council will review the City's tax abatement plans in 2019 or 2020 and will consider whether additional changes to the tax abatement plans are warranted.

                                Residential Abatement Plan                                        Residential Abatement Plan                        Building Permits Through June 30, 2016                   Building Permits July 1, 2016 - July 30, 2021

                                75%                        Year 1                                                    75%                        Year 1

                                60%                        Year 2                                                    60%                        Year 2

                                45%                        Year 3                                                    45%                        Year 3

                                30%                        Year 4                                                    -0-                          Year 4

                                15%                        Year 5                                                    -0-                          Year 5

                                                                Commercial Tax Abatement Plans

                                Option 1                                                                                               Option 2

                                80%                        Year 1                                                    100%                     Year 1

                                70%                        Year 2                                                    100%                     Year 2

                                60%                        Year 3                                                    100%                     Year 3

                                50%                        Year 4                                                    -0-                          Year 4

                                40%                        Year 5                                                    -0-                          Year 5

                                30%                        Year 6                                                    -0-                          Year 6