A number of Ottumwa residents took advantage of the city’s Tax Abatement Program.
During Tuesday evening’s meeting, the city council approved a resolution to accept 26 residential and one commercial tax abatement applications subject to review by the local assesor. As a result of the program four new homes were built in 2014. Other applicants made improvements to their existing property.
According to Iowa code, Ottumwa must approve all applications for abatement for improvements that are in conformance with the Urban Revitalization Plan. The residential property must also be in the designated area. The commercial property must be in a designated area.
The local assessor must review each application and each property to determine eligibility as it relates to the minimum percentage of actual value added. In order to receive the abatement improvements to residential property must increase the assessed value by ten percent. Commercial property must increase the assessed value by 15-percent.