City of
Des Moines Tax Abatement for Commercial and Industrial Development
Purpose:
To forgive
an increase in the real estate taxes for a specific period
of time. The abatement may result from a renovation, new construction,
or the purchase of qualifying machinery and equipment.
To
Apply:
While
a business may be eligible for tax abatement, tax abatement
can only be received if it is applied for at the correct time.
We strongly recommend working with the City's Permit and Development
Center when you receive your building permit.
Industrial
Tax Abatement
Industrial Tax Abatement is available throughout the City.
The City Assessor must determine whether the business is classified
as "industrial" under Chapter 427B, Code of Iowa,
and if the business occupies land zoned for industrial purposes.
The exemption or abatement is allowed for the value added
to the property and covers a five-year period utilizing the
following declining scale:
Year
1
Year 2
Year 3
Year 4
Year 5 |
75%
abatement
60% abatement
45% abatement
30% abatement
15% abatement |
Commercial
Tax Abatement:
Certain areas in Des Moines are designated to receive commercial
tax abatement. Properties can use either of the following
two schedules:
| One
hundred percent tax abatement on the value added for a
three-year period: |
Declining
property tax abatement on the improvement according the
following schedule: |
Year
1
Year 2
Year 3
|
100%
abatement
100% abatement
100% abatement |
|
Year
1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10 |
80%
abatement
70% abatement
60% abatement
50% abatement
40% abatement
40% abatement
30% abatement
30% abatement
20% abatement
20% abatement |
|
For
additional information, please e-mail OED@dmgov.org
or call (515) 283-4004.
|
