Revitalization should promote development
A countywide neighborhood revitalization program was tentatively approved Monday by Marion County Commission.
The plan would allow a rebate of the increased tax amount for improvements to and new developments of a property. It would not rebate the entire taxed amount.
The commission reviewed the plan with a task force headed by former commissioner Howard Collett.
The task force had representation from the county and some communities and drafted a proposal based on plans from other counties.
Jeannine Bateman, county treasurer and a member of the task force, reported letters were sent to the 12 cities within the county, asking for support of the program.
Marion, Tampa, Lincolnville, Lost Springs, and Ramona have agreed to support the program. Durham declined, Goessel, Peabody, and Burns were to decide in the coming days, and Hillsboro remains undecided.
Lehigh and Florence have not responded.
Following the adoption of the resolution, the plan will be published in the county's official newspaper and a public hearing will be held.
After the public hearing, interlocal agreements will be drawn between the county and participating cities, school districts, and hospital district.
Commissioner Randy Dallke asked if the plan required a commercial building owner to hire additional employees to qualify for the rebate. The committee responded there were no employment requirements.
Dallke also asked why utilities were not included in the program. Bateman responded taxes for utilities are assessed by the state, not the county.
Commissioner Dan Holub asked if the rebate was transferable. Collett responded it was.
When asked about the length being 10 years instead of five, Jim Baker of Hillsboro responded it was a better marketing approach to rebate for 10 years.
Dianna Carter, county appraiser, said she was a member of the task force only as a county representative, not a supporter.
She also said she had concerns regarding agricultural buildings being included because of rapid depreciation.
Baker said the positive economic impact on local businesses, laborers, and tax revenue offsets the negative impact of depreciation.
He also suggested a marketing plan that could include information being distributed at class reunions.
"If a community could get two new houses a year, it would be fantastic," Baker said.
A resolution will be presented to the commission at the next meeting Monday.
The plan
All property in rural Marion County and within those cities that choose to participate in the program is eligible except those currently participating in other tax rebate programs.
Minimum investments of $5,000 for residential and $15,000 for agricultural, industrial, or commercial for new construction or rehabilitation of existing structures are required.
The property owner will be required to pay all property taxes in full at or before the tax due date. The county treasurer will issue a tax rebate within 30 days after the regular distribution date following full payment of taxes.
The rebate will be incremental, providing a 90 percent rebate of improvements for years one and two, 80 percent for year three, 70 percent for year four, allowing a 10 percent decrease of rebate through year 10 which would be a 10 percent rebate.
A five percent administrative fee will be imposed for all participants and remain in a special fund for the program.
How it works
Residential property owners may be eligible for a rebate for rehabilitation, alterations, and additions to any existing residence, including a single-family home into a multi-family dwelling.
Construction of a new residence, including the conversion of all or part of a non-residence into a residence and new residential structures such as garages or out buildings may be eligible.
Agricultural property includes new additions to existing structures and new construction of a structure may be eligible.
Rehabilitation, alterations, and additions to any existing commercial or industrial structure and new construction of structures used for retail, office, manufacturing, warehousing, institutional or other commercial or industrial purposes may be eligible.
Construction of any improvement must commence on or after the date of enactment by the commission.
A minimum increase of appraised value by the county of five percent for residential and 15 percent for agricultural, industrial, or commercial properties must be realized.
Construction must be completed and reported to the county no later than the second January 1 following the date the county appraiser conditionally approves an application.
The county appraiser approves and denies all applications.
