After your renovation is complete, your property may be reassessed at a higher value. Instead of immediately paying the increased taxes, the City will:
- Calculate the difference between your pre-renovation and post-renovation municipal taxes
-
Apply a tax abatement on that increase for three years.
The calculation for the abatement will be as follows:
- (Post-renovations general municipal levy – Pre-renovations general municipal levy) = $XXX
- $XXX will be applied as an abatement on the property taxes in Year 1, Year 2, and Year 3
- Year 1 will occur in the calendar year following the completion of the project.
The increase in pre-renovation and post-renovation taxes on the general municipal levy will be granted an abatement. Year 1 of the general municipal levy increase will determine the three-year abatement percentage as follows:
- Year 1 – 33.34%
- Year 2 – 33.33%
- Year 3 – 33.33%
For example, a commercial business has an assessment increase which equates to a general municipal levy increase of $10,000. The abatement will total $10,000 by Year 3, by being applied accordingly:
|
Year 1 Abatement
|
33.34%
|
$3,334.00
|
|
Year 2 Abatement
|
33.33%
|
$3,333.00
|
|
Year 3 Abatement
|
33.33%
|
$3,333.00
|
|
Total
|
100.00%
|
$10,000.00
|
