Urban Revitalization Plan

What is Tax Abatement?

A temporary reduction in property taxes over a specified period of time on the portion of assessed value added by new construction, or improvements to an existing structure. The City of Windsor Heights tax abatement program encourages new construction and rehabilitation of existing structures through property tax incentives.

The City Council has adopted the tax abatement program to stimulate community revitalization, improve existing housing stock, retain and attract City residents and homeowners to the City of Windsor Heights.

Tax abatement is available to both homeowners and developers. Most work must be completed under a permit(s) issued by the City of Windsor Heights Building And Zoning Department and have all necessary inspections conducted.  The property must be used as a residential dwelling and be located in the Urban Revitalization District on the Urban Revitalization Map. Contact the Building and Zoning Department at 515-279-3662 if you wish to inquire about the type of work that requires permits.

New construction, additions, major rehabilitation, conversion from multifamily to single family and remodeling improvements generally increase the assessed value. Repairs generally do not increase the assessed value unless several major repairs are completed at the same time.

The Polk County Assessor’s Office determines the actual abatement amount based on the type of improvements. There may be an increase or decrease in taxes during the abatement period when voted changes in tax rates, special assessments, or reassessments reflecting neighborhood trends take effect.

A schedule of tax abatement terms and rates for projects is included in each application found at the links below.

The abatement schedule:

For the first year, an exemption from taxation on 100% of the first $75,000 of actual value added.

For the second year, an exemption from taxation on 75% of the first $75,000 of actual value added.

For the third year, an exemption from taxation on 50% of the first $75,000 of actual value added.

For the fourth year, an exemption from taxation on 25% of the first $75,000 of actual value added.