Neighborhood revitalization program to begin
Applications for the neighborhood revitalization program in Marion will be available Thursday.
Property owners can pick up applications at the municipal building. The program grants rebates of increased property taxes for 10 years to qualifying owners.
Applications will be accepted through Aug. 1, 2005.
The area includes Marion's Main Street commercial district and a portion of the surrounding area. Specific locations can be identified on a map at the economic development office, said Susan Cooper, economic development director.
Properties must meet the definition of "historic" (most of the qualifying area) or "dilapidated" (needing repair or renovation).
The goal is to promote development and improvement to residential and commercial properties. It is most effective for properties in poor condition that can be improved.
For example, the owners of a vacant and decaying house could clear the property, which means they would be taxed for a vacant lot. If approved for the program, a new home could be built for use or sale, and the property would be taxed as a vacant lot for 10 years. The city determines if a property is eligible.
If eligible, plans for improvements are submitted to the city's building inspector for approval. Work begins after a building permit is issued, and is expected to be completed within 12 months.
Residential property must receive at least $5,000, and commercial property at least $15,000, in improvements.
When completed, information is given to the Marion County appraiser for tax processing. If the property tax increases due to these improvements, property owners will receive a 95 percent rebate of increased taxes. The remaining five percent goes to pay for the expense of tracking the rebate, officials said.
Improvements do not automatically increase taxes. Assessment is based on fair market value. A homeowner making $5,000 in improvements may not necessarily see an immediate savings of $5,000. Even in that case, homeowners likely would receive rebate, and the property would have improvements that would make it more attractive for use or sale.
Rebates are not retroactive but transfer with ownership. Property that is delinquent in taxes or special assessments is not eligible for rebate. If property tax becomes delinquent during the 10-year period, owners have until the first Tuesday in September to pay delinquent taxes before the program is revoked for that property.
At the end of 10 years, properties will be taxed at the current valuation.
