City of Decorah to hold public hearing on residential tax abatement plan

The Decorah City Council has scheduled a public hearing for 5:45 p.m. Monday, September 2nd, on a proposal to offer tax incentives to home builders in the city.

The plan would give five-year tax abatements to developers and others who build houses or make substantial housing additions.  Any housing improvements above the existing value of a property would not be assessed higher property taxes for five years.  Since the city would be giving developers or homeowners credit on development that would not have happened if the tax abatements weren't offered, the city would have no out-of-pocket expense--compared to the investment in infrastructure it would need to make in a TIF District.

City officials call the plan a low risk way of encouraging housing construction.  Such a system would let the market determine what gets built and where it gets built, rather than having the city become an active partner in creating housing developments.