PERRY, Iowa — City officials in the Dallas County city of Perry are considering a growth incentive: No property taxes for 10 years on new homes.
City leaders hope the plan will lure builders and potential residents to Perry, which sits within commuting distance of the Des Moines metropolitan area, The Des Moines Register reports (http://dmreg.co/2coOQjD ).
City Administrator Sven Peterson said Perry hasn’t fully recovered from the recession and is losing residents to Adel, Waukee and other cities. He said a homeowner would save about $33,500 in property taxes over 10 years for a $200,000 house built on a $10,000 lot.
“There’s been a lot of interest so far,” Peterson said. “We’re really hoping this takes off.”
According to a survey by the city last year, nearly half of Perry’s housing stock is more than 60 years old, and of the 2,232 residential units inspected, 32 percent were either blighted or deteriorated.
“We don’t have the new housing stock to attract that new family to town,” Peterson said. “If somebody gets a job at one of our companies in town and they want a new home, we don’t have anything to offer right off the bat.”
Perry will also offer rebates for significant remodels of existing homes. Under the proposal, property owners would be eligible for 100 percent abatement for five years if they invest at least 20,000.
City leaders are expected to approve the plan Tuesday.
Another Dallas County town, Adel, implemented its tax abatement program in 2011. The city waives 100 percent of property taxes for seven years on new home construction. City Administrator Anthony Brown said the program has been extended through 2025 due to its success.
It has seen 327 new homes built since then, compared with 82 homes in the six years prior to the program.
Information from: The Des Moines Register, http://www.desmoinesregister.com