There have been several questions regarding the city tax abatement as it relates to the paying of school bonds. Those who are currently under a city abatement only pay on the percent they are at in their abatement. However, new owners will pay 100% of school taxes due to a change in Iowa law.
Specific information follows approved by the city attorney:
Iowa House File HF718 was enacted and amended portions of the Iowa Code related to property tax collections.
The changes pertained to Chapter 404 property tax abatement/exemption for single and multi-family residential development:
Effective July 1, 2024 – all new residential projects located on properties eligible for a tax abatement are prohibited to have the abatement applied to the school district portion of the property tax levy; All School District taxes will be impose and paid on the new valuation created by residential development.