Urban revitalization or tax abatement is a tool to encourage economic development by providing incentives for new construction or for the expansion of existing facilities. An Urban Revitalization Area may include the entire city or designated areas of the city. Essentially, tax abatement is the temporary reduction of property taxes on the improvements made to an existing property. The owner would still have to pay the amount owed for taxes pre-improvement, but may qualify for decreased taxes on the improvements.
Qualified improvements may include new construction, remodeling, rehabilitation and additions to the existing property.
Tax abatement is great tool for Muscatine because it works to help businesses thrive! It cuts down barriers to entry or expansion for business owners as they either start or grow their business. In addition to commercial tax abatement, the City has industrial and housing incentives as well (see below). The City of Muscatine has several economic development initiatives designed to…
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