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Date
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December 7,
2009
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Agenda
Item No. 15 Roll
Call No. 09- Communication No.
09-860 Submitted
by: Larry Hulse, Community Development
Director |
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AGENDA
HEADING:
Resolution
approving application for tax abatement for improvements made during 2007, and
denying request to have the tax abatement applied retroactively to 5449 SE 26th
Court.
SYNOPSIS:
Napoleon
Alonzo is the owner of a new home constructed in calendar year 2007 at 5449 SE
26th Court. On November 18,
2009, Napoleon Alonzo applied for tax abatement on the home, and requests that
the tax abatement be applied retroactively to the taxes due in the current
fiscal year, as if the application had been timely filed. See the attached letter from the applicant.
The
application was not timely filed. The
Iowa Urban Revitalization Law does not empower the City to approve retroactive
application of tax abatement for a late filed application. Therefore, they are not eligible for
abatement for taxes due in FY2009/10 and 2010/11.
The
application was filed within the two year grace period allowed by Iowa Code
§404.4, and the property can therefore receive the full amount of abatement,
but the abatement will commence with taxes due in FY2011/12.
FISCAL
IMPACT:
Amount:
Tax abatement upon property with a claimed value of $206,000.
Funding
Source: The improvement value of tax abated property
will be forthcoming when the property comes on the tax rolls after abatement
ends.
ADDITIONAL
INFORMATION:
The
applicant indicates that the builder, Tom Connolly Homes, would submit the
abatement application to the City for approval.
The builder did not file the application with the City and there is no
record of an abatement application for the above address being filed with City
staff, until the applicant filed the application on November 18, 2009. All procedures for accepting, receiving and
processing abatement applications by City staff were followed.
The
applicant is requesting that the application be approved, as if the application
were timely filed by February 1, 2008, and that abatement be granted
retroactively to the property. The
attached letter indicates the wishes of the applicant. State law does not allow for tax abatement to
be retroactive.
The
dwelling at 5449 SE 26th Court qualifies for tax abatement. The dwelling is located in an area eligible
for abatement and the dwelling was built during the time abatement has been in effect. Permits have been issued for the building of
the structure, a final inspection has been done and a Certificate of Occupancy
was issued on August 9, 2007.
The
applicant chose Schedule 4B. Schedule
4B is for qualified real estate for the remainder of the City for a
period of five years. Qualified real estate assessed as residential
or commercial, and consisting of three or more living quarters with at
least 75% of the space used residentially, is eligible to receive an exemption
from taxation on the actual value added by improvements. The
exemption amount is 100% of the actual value added by the improvements.
PREVIOUS
COUNCIL ACTION(S): NONE
BOARD/COMMISSION
ACTION(S): NONE
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS:
The tax
abatement program on new improvements currently ends on December 31, 2011,
unless the City Council extends the program beyond that date. Any
application received by February 1, 2012 and approved by the City Council, will
receive abatement for the number of years eligible and for which an application
was submitted. It is anticipated that there will be numerous submittals
of tax abatement applications on a yearly basis until the program ends.
For more information on this and other agenda items,
please call the City Clerk’s Office at 515-283-4209 or visit the Clerk’s Office
on the second floor of City Hall,