Allen Community College trustees were up in arms Tuesday night at the idea of relaxing a property tax abatement program for those interested in either new construction or in substantial improvements to their properties. HUMBOLDT offers tax abatements for downtown businesses and the residential area in the west part of town. City Administrator Larry Tucker estimates only a handful of requests are made each year.
The logic was that if exceptions were given to one entity, then everyone would want the break.
The Neighborhood Revitalization Tax Rebate Program currently applies to certain areas of town designated in need of improvements. Iola council members have agreed to make the program apply to all of Iola with certain exceptions to government and school district properties. They have asked for the other three taxing units of the program — Allen County, ACC and USD 257 — to agree to its expansion.
It can be argued that all of Iola qualifies in need of an updo and if the abatement program spurs people to invest in their properties or build anew, so much the better.
Either new construction or a home improvement project requires goods purchased at area stores and new jobs — all making for a healthier economy.
The end result is higher property values for city and county coffers, not to mention enhanced sidewalk appeal.
The tax break applies only to improvements of at least $5,000 of said structure or property.
Since its inception in 2006, the program has provided full tax abatements to 38 properties. Six requests have been made this year, said Shonda Jefferis, Iola’s building code inspector. Of those, Sam & Louie’s new restaurant on North State Street was denied for the county’s portion.
Humboldt also offers a sales tax abatement for new businesses locating in Humboldt. Its Dollar General, for example, pays only half of its city sales tax up to a certain threshold for the first five years in business. It is almost four years into the program.
Humboldt’s new senior housing project also received the 10-year property tax abatement.
Neosho County is about to make its program available throughout the entire county, according to Jeffries.
The idea we are losing out somehow is misguided. You can’t lose something you never had. But it’s a sure success if someone takes advantage of the program.
The more support the program receives, the more effective it can be.
— Susan Lynn
Tax rebate program can spur new growth
