(A) There is established within the city a program to provide residential tax abatement.
(B) Deductions relating to the construction of residential real property and renovation of residences leading to increased assessed value shall be granted by the Common Council only when the Common Council finds that the facility to be constructed or renovated is located within the economic revitalization area (ERA) to economic development area (EDA) and finds further all other findings required by statute or this chapter.
(C) Residential tax abatement should be offered for no more than five years. Special consideration should be given to new subdivision development, due to the private infrastructure development for the city, and to urban in-fill projects, for making a more efficient use of existing municipal services.
(D) Rehabilitation and repair of existing structures may be eligible for up to five years of tax abatement if it qualifies under Indiana law by substantially increasing the assessed valuation. Routine maintenance such as painting, re-shingling, and the like shall not qualify for tax abatement unless it results in a substantial increase in the assessed valuation.
(E) Before the Common Council determines that an abatement is appropriate for real property within the ERA or EDA, the Common Council must follow the appropriate procedures in I.C. 6-1.1-12.1-1 et seq., and shall make the following additional findings:
(1) The facility to be constructed or renovated consists of new and/or renovations of residences leading to increased assessed value intended for the habitation by a single family or multi-family units;
(2) The construction or renovation of the facility is intended to commence no later than one year from the date of application; and
(3) The total project for which the applicant seeks abatement consists of construction or renovation on not less than one separate freestanding structure, which shall be for residential usage by an owner occupied single-family or multi-family units.
(F) The Board of Works shall administer this program which shall:
(1) Meet as needed to review each application and make a recommendation to the Common Council for the city.
(2) Prepare a residential tax abatement application.
(3) Partially complete the state required SB forms leaving blank for the applicant to complete the specific details of the project.
(G) A property owner desiring to participate in the program shall:
(1) Complete the application form provided by the city.
(2) Complete the appropriate remaining portions of the state required SB forms providing the following information:
(a) The current assessed value of the subject real estate;
(b) An estimated completion date for the work to be undertaken; and
(c) The estimated cost of the work to be undertaken.
(3) File the application and SB form in the office of the Clerk-Treasurer at City Hall no later than 30 days after the issuance of the building permit and before beginning construction. Filing the application in the office of the Building Commissioner shall constitute submission of the request for residential tax abatement to the Common Council of the city.
(H) Tax abatement may be granted for a maximum term of five years with the following graduated increments:
(1) One hundred percent (100%) for the first 12 months;
(2) Eighty percent (80%) for the second 12 months;
(3) Sixty percent (60%) for the third 12 months;
(4) Forty percent (40%) for the fourth 12 months;
(5) Twenty percent (20%) for the fifth 12 months; and
(6) Taxes shall be paid at 100% of the newly assessed rate each year thereafter.
(I) The Common Council for the city shall make a final decision upon making those findings required by statute on each application at the next scheduled Council meeting to which the application is referred.
(J) If, prior to the expiration of the term of a tax abatement granted pursuant to this section, a property owner transfers property subject to such tax abatement, the tax abatement shall be transferable to the new property owner so long as the new property owner meets the eligibility requirements of this section and follows the procedures set forth in I.C. 6-1.1-12.1-5 as modified, amended, or replaced by subsequent state legislation.
(Ord. 2013-6, passed 8-19-13)