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Have you ever thought about making improvements to your home or business, but were worried about what the property tax implications might be? The City of Parsons has a program in place that could help if you are thinking about renovating your home or business in certain areas of the community.
The Neighborhood Revitalization Program is intended to promote the revitalization and development of the neighborhoods within the City of Parsons. Essentially, the program provides a rebate for any increased taxes you might pay because of improvements to your property. By doing this, it is hoped the program will stimulate new construction, rehabilitation or redevelopment of the designated program areas. Here are some questions and answers about the program.
Q: How do you know if your property or project is eligible?
A: First, your project must lie in a Neighborhood Revitalization district. The City currently has three different districts, but hopes to add more districts in the near future. The largest districts are the Orchard Park neighborhood (Area 2) and the central and south-central area of Parsons (Area 1). Second, there must be a minimum investment of $5,000 for residential property and a minimum investment of $10,000 on commercial or industrial property, to receive tax rebates. Finally, any property that is delinquent in any tax payment or special assessment shall not be eligible for any rebate or future rebate.
Q: How much of a rebate will I receive?
A: Tax rebates will be based on the increased appraised value for the first full year of completion. The tax rebate is for a period of five years. Some areas are designated as a 95% tax rebate and some areas are designated as 75%. Here is an example of how this might work.:
Mr. Smith has a $50,000 home in a neighborhood revitalization area with a 95% rebate. He applies to the program and makes improvements to his home, including remodeling and a small addition which raise his total home value to $70,000. He receives his tax bill the next year of $1,370 for the taxes on his home at the new value. Once he pays his taxes in December, he receives a refund of $370 for 95% of the taxes he pays on the $20,000 of improvements to the home.
Q: Do tax rebates transfer with ownership of the property?
A: No they do not. To do so, would create problems in administering the program.
Q: How do I get my property in the program?
A: An application must be completed before starting your project. These are available from the City of Parsons or on our website at www.parsonsks.com. A map of the designated area is also available at our website. When you turn in your application, then you must pay a $25.00 non-refundable application fee which goes to the Labette County Appraiser's office.
Q: Do I still need a building permit for a project under this program?
A: Yes, even if you do the work yourself you will still need a City of Parsons building permit. In fact, we encourage you to come to the City before completing any paperwork for the Neighborhood Revitalization program or a building permit. Our staff will help walk you through the process to make sure your application process goes as smoothly as possible.
Q: When will I receive my rebate?
A: Once you have completed your project, you must supply the County Appraiser's office with receipts and other documentation within 30 days of completion. Once your taxes are paid in full, then the County will reimburse the property owner the appropriate amount rebate.
Q: How can I find out more about the Neighborhood Revitalization Program?
A: For more information, to schedule a time with staff to come discuss your project, or to get an application please call Jamie or Martha at (620) 421-7030.
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