At their most recent meeting, the Washington City Council voted in favor of a Tax Abatement Program extension. Originally in place for a period of 10-years, without an extension, the abatement would have ended December 31st. The program, part of the Washington Urban Revitalization Plan, was initially enacted in 2012. It allows for 100% exemption from taxation for qualified residential properties, on the first $75,000 of actual value added by improvements done for a period of three years, so long as those improvements increased the assessed value of the qualified property by at least 10%. Qualified commercial and industrial real estate can receive a partial exemption for a five-year period, as long as improvements increased the assessed qualified property value by at least 10%. Those exemptions begin at 75% for the first year, with the amount decreasing by 15% annually.
For a space to be eligible, the property must be located within the Washington Revitalization Area. The diagram of this area is available to view with this story at KCIIradio.com. An application must also be filed with the City of Washington by February 1st of the assessment year for which the exemption is first claimed, but not later than two years after February 1st of the following year that improvements are first assessed. Washington Mayor Jaron Rosien, Washington City Finance Director Kelsey Brown and Washington City Clerk Sally Hart gave background information regarding the program and the reason for an extension conversation. Rosien stated, “I gather it’s (the extension) is because several of the projects that began in this 10-year span are ongoing or just started so this includes them in what was the original intent of the program.”
Brown gave context that, “Several communities have contacted us in the last two or three years to get their program back going and see what other communities are doing. So it’s definitely something that communities are looking into or keeping going.”
Hart added, “Looking back to when this was put in place, there had previously been a program in the 1990s that had expired, and they brought it back 10 years ago. So it’s not new to Washington.”
Council voted unanimously to approve a three year extension through December 31st, 2025.