The City of Indianola offers Tax Abatement for new construction, and rehabilitations/additions to existing structures where the assessed value of the improvements is at least 10% of the prior assessed value. To receive tax abatement, the property owner of record must submit an application to the City.
Final applications must be submitted between January 1st and February 1st of the calendar year in which completed improvements are first assessed or between January 1st and February 1st of the following two years.
Final applications will not be considered by the City Council unless improvements included in project have been completed and have received a Certificate of Occupancy (CO) and/or have passed final inspection (to the extent applicable).
Property owners may submit an application seeking prior approval for a tax exemption on a proposed improvement project from the City, prior to completion of the improvements.
To submit an application for prior approval, the property owner must select the option to apply for prior approval on the City’s form of application.
If a property owner selects to apply for prior approval before completion of the improvements, then the property owner will be required to submit a second application for the improvements between January 1 and February 1 of the year in which all value added for the improvement project is first assessed.
The current tax exemption schedules are as follows:
The exemption is for a period of five (5) years. The amount of the partial exemption is equal to a percent of the Actual Value Added by Eligible Improvements, determined as follows:
- First Year – 100%
- Second Year – 80%
- Third Year – 60%
- Fourth Year – 40%
- Fifth Year – 20%
The exemption is for a period of four (4) years. The amount of the partial exemption is equal to a percent of the Actual Value Added by Eligible Improvements, determined as follows:
- First Year – 80%
- Second Year – 60%
- Third Year – 40%
- Fourth Year – 20%
Exemptions for industrial property are subject to Chapter 7 of the Code of Ordinances of Indianola, Iowa. The exemption is for a period of five (5) years. The amount of actual value added, which is eligible to be exempt from taxation, shall be as follows:
- First Year – 75%
- Second Year – 60%
- Third Year – 45%
- Fourth Year – 30%
- Fifth Year – 15%
Attached is a FAQ document that provides answers to frequently asked questions which can be accessed here: Abatement Program FAQ