Commercial Tax Abatement Program

The City of Windsor Heights has approved a sliding scale commercial tax abatement program that applies to new commercial property construction or remodeling projects.  The basics of the program are as follows:

  1. To be eligible for commercial tax abatement, the value of the improvements must be at least 10% of the pre-construction property value.
  2. Construction must be on a parcel zoned for commercial development.
  3. A building permit must be obtained prior to the start of any work for which tax abatement is expected.
  4. A project Site Plan may be required.  If required, the Site Plan must be approved by the Planning & Zoning Commission and the City Council.
  5. The amount of new property valuation abated prior to application of the tax rate is as follows;
    1. Year 1, 75% of new valuation is abated.
    2. Year 2, 60% of new valuation is abated.
    3. Year 3, 45% of new valuation is abated.
    4. Year 4, 30% of new valuation is abated.
    5. Year 5, 15% of new valuation is abated.
    6. Multi-family residential projects are not considered commercial projects for the purposes of commercial tax abatement. 

The City welcomes any inquiries about how commercial tax abatement may apply to potential commercial construction projects. Please call 515-279-3662.