Neighborhood revitalization plan begins
By JOANNA BRAZIL
PMSA director
Have you been putting off a project to fix up your home or business? Are you wanting to paint your home or building, but are delaying the work to avoid an increase in taxes? The Neighborhood Revitalization Plan may be just the incentive you need to start your project.
The plan recently was passed by the Peabody City Council and is intended to promote revitalization through the rehabilitation, conservation, or redevelopment of the area in order to protect the public health, safety, and/or welfare of Peabody residents. The incentive to clean up your property is a tax rebate.
Upon completion of the application process, your property improvements will earn you a tax rebate over a period of 10 years. Eligible properties may be located anywhere in the neighborhood revitalization area which includes all areas inside the corporate city limits of the City of Peabody. They only locations not applicable are the city park, the burn pit, and USD #398 school properties.
For a residential property to qualify, the improvements must be rehabilitation, alterations and additions to any existing residential structure, construction of new residential structures, and improvements to existing or construction of new residential accessory structures such as garages, gazebos, storage buildings, etc. The minimum investment for residential properties must be $5,000 and the minimum increase in appraised value must be at least 5%.
Commercial properties must have a minimum investment of $15,000 and the minimum increase in appraised value must be at least 15%. To qualify for the abatement, commercial properties must rehabilitate, alter, or add to any existing commercial structure used for retail, manufacturing, warehousing, institutional, or other commercial or industrial purposes. Construction of new commercial structures also qualifies, including the conversion of a non-commercial structure into a commercial property.
Applications for the tax abatement under the Neighborhood Revitalization Plan are available at the Peabody City Office. The application must be filed within 60 days of the issuance of a building permit.
The rebates apply to the increased value of the property. The rebate amount for residential properties decreases in increments over the 10-year period. From the first to second year, the rebate is 90% of the increased value of the property. The third to fourth year is 75%, fifth to sixth at 50%, and so on. The ninth and 10th year includes a 10% tax rebate.
Commercial properties, however, have a 90% tax rebate on the increased value of the property the entire 10-year period. The rebate is 100% for the 10-year period for buildings listed on the National or Kansas Register of Historic Places.
For more information or to pick up an application, contact the Peabody City Office.
