DECORAH — The city of Decorah’s residential tax abatement program continues to be successful, City Manager Chad Bird told the Decorah City Council last week.
He said 15 new single-family homes valued at $5.7 million have been constructed taking advantage of the program this year, while last year the new home construction was about $3 million.
There also have been more than $1 million in additions and improvement projects utilizing the program, Bird reported. Last year’s total was $408,000.
There are still about five homes under construction that could be completed by the end of the year, and several improvements are in the process of being completed, the city manager said.
The tax abatement program provides residents a five-year, 100-percent property tax abatement for new residential construction and remodeling and commercial residential properties (apartments) anywhere within city limits.
Under the program, taxes are abated on up to $400,000 for new, single-family homes, $40,000 per unit for multi-family homes/apartments and on renovations to existing homes that increase the home’s assessed value by 10 percent.
Decorah’s three-year tax abatement program expires Dec. 31, 2017.