A recent Jefferson City Council meeting, the Council approved extending its Urban Revitalization Plan for a 100% tax abatement for three years for any property improvements.

City Administrator Mike Palmer says many residential and commercial properties have taken advantage of the program because it allows for property owners to make additions without having to pay taxes on it for three years.

He points out that another way property owners can receive money back on developments are through Tax Increment Financing (TIF).  Palmer explains TIF as a property owner pays their taxes, they will receive a percentage of their taxes back.

He notes that Hy-Vee Incorporated took advantage of this program which they will receive 80% of their taxes back while the City gets to keep 20% for the next five years.  Palmer tells why tax abatement is usually the route that most people take to make improvements.

“Tax abatements are generally the simplest and easiest form and gets the most money back to the property owner.  However, there are times like a big project like Hy-Vee, they need more than just three years, they may need five or six years that kind of an investment pay.”

Either way, both programs are used for economic growth for the City which Jefferson is trying to build for the future.

If anyone has questions or would like to learn more about either the 100% tax abatement or TIF programs, call City Hall at 386-3111.