(a) Generally. State legislation now permits municipal corporations to create community reinvestment areas. Within such areas, property owners who are willing to improve their property, by either remodeling or by new construction, may receive partial tax set-aside, or abatement, for a limited number of years. Such abatement applies only to that part of their total real property value which is the increase brought about by the improvement. Personal property taxes cannot be abated under the community reinvestment program.
(b) Taxes Continuing in Force. Taxes which are in force on real property, such as land and the buildings thereon, and which exist before any improvement is made under such program, remain in effect for that portion of the property for the life of any tax abatement program that may be established. All personal property taxes levied on tools, equipment, machinery, fixtures, inventory, etc., before the start of an abatement program, and such taxes on all new personal property added during the life of an abatement period, will continue to be collected in the same manner as taxes collected from a like establishment which is not in a community reinvestment area.
(c) Improvements Eligible for Tax Abatement. The following are the upper time limits for tax abatement on real property improvements in a community reinvestment area, which may be granted by Council:
(1) Up to ten years for existing one and two-family dwellings, with remodeling of two thousand five hundred dollars ($2,500) or more;
(2) Up to twelve years for existing dwellings of more than two units and existing commercial and industrial structures, with remodeling of five thousand dollars ($5,000) or more; and
(3) Up to fifteen years for any newly constructed dwelling or commercial or industrial building.
The time limits enumerated in this subsection are the maximum number of years of tax abatement that may be granted or negotiated by the approving authority at the time each reinvestment area is established. When the number of years of abatement is set for each of three improvement categories above, they remain fixed and may be granted to owners making such improvements within the reinvestment area. The approving authority, however, at the start of each program, may also establish, if it wishes, a lesser time period during which applications may be filed to become eligible for the abatement. Such periods for application eligibility may later be extended or renewed by the approving authority, subject to the conditions of the law at that time.
(d) Program Study. As the result of the establishment of community reinvestment areas, current tax yields are never lost, reduced or abated. Only that portion of a potentially increased tax yield which, by encouragement of such program, would be brought about by major remodeling, or new construction, and only to the extent that it increases the value of the real property, and only for a limited number of years, may be so abated. All previously existing taxes, including all personal property taxes, continue to flow, in full, as before.
(Ord. 915. Passed 12-4-80; Ord. 00-22. Passed 4-6-00.)