Property Tax Abatement
Property Tax Abatement And You
The question of property tax abatement is one that crops up in many localities. Property tax abatement is the temporary relief of property taxes in the hopes of creating new opportunities for economic development or for investment in redeveloping properties. Getting such a relief on taxes has been considered a vital cog in the wheel of economic growth and success in many locations. Many businesses feel that they can build and expand to greater heights with this sort of stay on their tax payments. So abatement is important to industry – but really, it is important in many ways to everyone. Deciding to get property tax abatement in California is something that has been more available to people over the past generation thanks to the Mills Act. Enacted in 1972, the Mills Act is designed to give local governments the authority to enter into contracts with those people who own certain historic properties so long as the owner is an active participant in maintaining and restoring the property. In turn, the owner will receive property tax relief. The act has been vital in the restoration and rebirth of historic districts and residential neighborhoods in the state of California, not to mention commercial districts in the heart of towns and cities. Some of the types of residences which qualify for abatement under the Mills Act include bed-and-breakfast properties, and single-family dwellings. It is helpful if the property you’re seeking the tax holiday on can be seen as a potential revenue producer. Still, it’s very possible to get a home dwelling designated under the act if it meets certain qualifications. Remember that if you do not meet the obligations to properly maintain the property, then you could be subject to penalties and possible breach of contract. You might even see a lien put on the property in order to force your hand in meeting the tax burden. Some major California cities – LA, San Francisco, San Diego, and San Jose – are participants in the Mills Act, along with over 75 county and city governments. Amazingly, even after over 35 years, there are a host of people unaware of the property tax savings they can receive by qualifying under the Mills Act. In getting tax relief, it’s possible to shave as much as 60% off the property tax of newly purchased properties. In some cases, getting property tax abatement can be a positive in increasing the return on their investment. When businesses seek these abatements, they are looking for an edge in being able to put down stakes in a particular area. Businesses hope to get value from these abatements. In Arizona, the ability of localities to get tax abatements has helped lead to economic growth. The state has secured a biotech business, a recycling plant, and a new Nestle-Purina plant expansion. The biotech center – located in Phoenix, AZ – should put the state on the genetic research map. Property tax abatement can be a tool for those people who want to see an improvement to their neighborhoods, their communities, and economic interests.
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