TAX REBATE PROGRAM

PURPOSE

            This plan is intended to promote the revitalization and development of Pratt County by stimulating new construction and the rehabilitation, conservation, or redevelopment of the area in order to protect the public health, safety, or welfare of the County by offering certain incentives, which include tax rebates.

CRITERIA FOR DETERMINING ELIGIBILITY

A.        “Structure” means any building, wall, or other structure, including the building and improvements to existing structures and fixtures permanently assimilated to the real estate.  Exceptions will include, but not be limited to:

            Non real estate items – sprinkling systems, fences, landscaping, gazebos, garden type structures, patios, hot tubs, swimming pools, irrigation wells and equipment, both agricultural and residential.

B.         There was a three (3) year application period beginning April 1, 2005, and ending March 31, 2008.  At the end of the three (3) years, the taxing entities reviewed the plan and determined its continuation until March 31, 2011.  Those approved during the three-year periods will receive the tax rebate for the full ten (10) years following completion of the project.

            C.        There must be a minimum investment of $5,000.00 to receive a tax rebate for commercial or residential construction.

            D.        New as well as existing improvements on property must conform with all codes, rules, and regulations in effect at the time the improvements are made.  Tax rebates may be terminated if improvements or new construction do not conform to code during the ten-year period.
 
            E.         Any property that is accepted into the tax rebate program will forfeit any current and future rebates if during the rebate period the owner of the rebate property is delinquent in the payment of any real or personal property taxes owed to Pratt County for any real or personal property.  For purposes of this provision, the term “owner” means any owner of the rebate property during the time of any such tax delinquency and any successor in interest of an owner at such time if the successor in interest is an Affiliated Owner.  An Affiliated Owner is (1) the spouse or lineal descendant of the previous owner (Family Member), (2) a trust created by the previous owner, (3) a trust of which the previous owner is a trustee, (4) a trust of which the previous owner is a beneficiary, or (5) a separate legal business entity such as a corporation, limited liability company, limited partnership, a general partnership if such entity is owned at least 50% by the previous owner or by a Family Member of the previous owner.

            F.         Qualified improvements or new construction eligible for tax rebates under the Neighborhood Revitalization Plan may submit only one application per project.

            G.        Tax rebates are subject to approval of the Plan by each taxing unit.  See the County Clerk for taxing units that have adopted the Tax Rebate Program of the Neighborhood revitalization Plan.  A tax rebate will be based on the increase in assessed value following the first full year of completion.

            H.        Tax rebates transfer with ownership of the qualifying property, subject to the terms of the rebate program.

            I.          Tax rebate is made within thirty (30) days after the real estate tax is paid in full.  If property tax is paid in semiannual payments, the rebate is made following the last payment.

            J.          Except as hereinafter provided, in any given year (1 through 10) the rebate paid will be based upon the lesser of the increase in assessed value from the first year or the value as assessed in the current year.    For any property on which a new single family residence is to be built and on which a rebate application has been filed, the rebate will be based on the increase in assessed value from the first year or the value as assessed in the current year, provided the rebate will only be paid on the first $200,000.00 of increased value.  This limitation will not apply if construction of a new single family residence requires the demolition of an existing family residence of an appraised value of less than $15,000.00.  This limitation will not apply to construction projects involving duplexes, townhouses, or condominium residential properties.

            K.        Construction must be completed in one year with one year automatic extension.  Extensions beyond that period will be considered on a case by case basis upon written application prior to the end of the established period.

            L.         Upon completion of your project, an itemized statement of costs will need to be provided.  This will be necessary to receive your rebate.

Criteria for Commercial & Industrial Properties – New and Rehab Projects

                                                            Increase in Assessed Value of:

$0 - $500,000                                      $500,000 - $3,000,000                                    $3,000,000 +

1-3 Yr – 95%                                              1-6 Yr – 95%                                          1-6 Yr  –  95%
   4 Yr – 80%                                                  7 Yr – 70%                                          7-10 Yr –  75%
   5 Yr – 70%                                                  8 Yr – 60%      
   6 Yr – 60%                                                  9 Yr – 50%
   7 Yr – 50%                                                10 Yr – 20%
   8 Yr – 50%
   9 Yr – 30%
 10 Yr – 20%

Criteria for Residential Property – New & Rehab Projects

Increase in Assessed Value of                                                       Prior Appraised Value of
     Rehab & New Projects                                                            Dwellings less than $15,000

            1-3 Yr – 95%                                                                                      1-5 Yr – 95%
               4 Yr – 80%                                                                                          6 Yr – 80%
               5 Yr – 70%                                                                                          7 Yr – 70%
               6 Yr – 60%                                                                                          8 Yr – 50%
               7 Yr – 50%                                                                                          9 Yr – 20%
              8 Yr – 50%                                                                                        10 Yr – 10%
               9 Yr – 30%
             10 Yr – 20%

*A MINIMUM OF $5,000 MUST BE INVESTED.

*A $50.00 REMODELING OR $100.00 NEW CONSTRUCTION UP-FRONT, NON-REFUNDABLE APPLICATION FEE WILL BE CHARGED TO COVER THE APPRAISER’S OFFICE TIME AND ADMINISTRATION.

*SHALL INCLUDE THE REHABILITATION OF EXISTING STRUCTURES AND/OR ADDITIONS TO EXISTING STRUCTURES AND NEW CONSTRUCTION.

*THE INTENDED PURPOSE OR USE OF STRUCTURE WILL DETERMINE IF PROJECT IS COMMERCIAL OR RESIDENTIAL.

*MULTI-FAMILY STRUCTURES AND AGRICULTURAL WILL BE CONSIDERED AS COMMERCIAL.

APPLICATION PROCESS

            Prior to filing the Application for Tax Rebate, you will need to do the following:

1. Obtain an application from the County Appraiser’s office or online on the County Appraiser’s page.

1. Prior to the commencement of construction of any improvement or new construction for which a tax rebate will be requested, the applicant-owner will complete Part 1 of the application.  Requests must be received and approved before commencement of construction.  There will be no exceptions.  For purposes of the rebate program, commencement of construction shall not include preliminary project activity such as design, surveying, demolition, site preparation, or other activities needed to be completed before actual construction activities begin on the project.  To avoid conflicts over this issue, however, the owner is encouraged to file an application for the rebate program at the earliest possible time.  If construction is commenced before filing and approval, the property will be disqualified.  This result will not be altered by a transfer or sale of the property to another owner or an Affiliated Owner.  If a property is disqualified because construction was begun prior to application and approval the disqualification cannot be cured by attempts to reclassify or restructure the project unless the size and scope of the project is increased by a cost of at least $5,000.00 and a new application has been filed and approved in accordance with this plan.  In such event, the rebate shall be limited to the qualifying portion of the project.

1. Part 1 of the application must be filed with the County Appraiser’s office with a nonrefundable application fee ($50.00 remodeling and $100.00 for new reconstruction) prior to the commencement of construction.

1. The County Appraiser’s office will notify by letter to the applicant within fifteen (15) working days, indicating approval or denial of the project.  Any owner has the right to appeal a decision of the County Appraiser regarding denial of participation or forfeiture to the County Commission by filing a written request with the County Clerk for a review before the County Commission within fifteen (15) days of the County Appraiser’s decision denying or revoking all or any part of an application.  Upon receipt of such request, the owner will be given an opportunity to be heard by the County Commission at the next regularly scheduled meeting at least seven (7) days after the receipt of the appeal.  The Clerk will give notice of the time and date of the hearing to the owner, County Commission, County Appraiser and County Counselor at least five (5) days before the hearing.  The owner may be represented by counsel at the hearing.

1. The County Appraiser’s office will forward a copy of Part 1 to the County Clerk for notification and information purposed.  Copies of the application will also be forwarded to the Economic Development Corp. for monitoring purposes.

1. The applicant-owner will notify the County Appraiser of the commencement of construction by filing Part 2 of the application within ten (10) days after starting the project.

1. For any improvement that is only partially completed as of January 1, following commencement of construction, the owner-applicant will file Part 3 of the application with the County Appraiser indicating the status of construction as of January 1.  Part 3 will be filed on or before December 15, preceding the commencement of the tax rebate period.

1. For any improvement that is completed on or before January 1, following the commencement of construction the owner-applicant will file Part 3 of the application with the County Appraiser on or before December 1, preceding commencement of the tax rebate period, certifying the completion of construction along with an itemized statement of costs.  This is necessary to receive your rebate.

1. Soon after January 1, the County Appraiser will conduct an on-site inspection of the construction project (improvement rehabilitation, or new) and determine the new valuation of the real estate accordingly.  The valuation is then reported to the County Clerk by June 15.  The tax records will be revised.

1. Upon filing of Part 3, and the determination of the new valuation of the said real estate, the form will be filed with the County Clerk and the County Appraiser certifying the project is in compliance with the requirements for a tax rebate.

1. Upon payment in full of the real estate ax for the subject property for the initial and each succeeding year period extending through the specified rebate period, and within a thirty (30) day period following the date of tax distribution by Pratt County to the other taxing units, a tax rebate in the amount of the tax increment (less an administrative fee as specific in the Interlocal Agreement) will be made to the owner.  The tax rebate will be made by the County Treasurer of Pratt County through the Neighborhood Revitalization Fund established in conjunction with the other taxing units participating in an Interlocal Agreement.

BENEFITS OF THE TAX REBATE PROGRAM

It provides incentives for housing improvements through property tax refunds.

It does not interfere with current property tax revenues.

The program will create new long-term tax revenue, without creating a fiscal burden for the cities and county.

It will offer incentives for development where development might not otherwise occur.

It will help create jobs because, historically, jobs follow development.

It will help reverse the outward migration of residents and the resulting deterioration of neighborhoods within the county.

It will help stabilize land value.

It will strengthen the fiscal capacity of our city and county governments to grow and serve our area.

It provides a limited window of opportunity for participation, thereby, prompting immediate response.

It will encourage housing, commercial, and industrial development in the county.