Tax Abatement Deadline

OTTUMWA – The City of Ottumwa is accepting applications for property tax abatement until January 14.  The residential and commercial property tax abatement programs are designed to encourage improvements and new development by reducing the additional taxes assessed on the improvement. The City provides an incentive for new construction and property improvements by reducing the additional new taxes on the improvements through these programs.

 

The residential tax abatement program is available citywide and reduces property taxes paid on qualifying improvements to residential properties.  Property owners who have completed improvements to residential properties or apartment buildings in 2018 can file an application for residential tax abatement.  New construction, additions, and remodeling are eligible activities.  Taxes on the improvements are abated for a specific number of years for qualifying residential projects. The homeowner can select a 3, 5 or 10 year abatement plan. Residential tax abatement is based on the value that the new improvements add to the property.  All other property taxes remain payable.

 

Applications are also being accepted for commercial property tax abatement in the City of Ottumwa. Improvements to new or existing commercial property that increase the assessed value of the property by at least 15% are eligible for tax abatement.  Applicants have a 5-year abatement plan.

 

The deadline for tax abatement applications is Monday, January 14, 2019.    For additional information, or to receive tax abatement applications, contact the Planning and Development Department, Room 301 at City Hall or call 683-0606.