The City of Oskaloosa offers financial assistance for new development and redevelopment through tax increment financing (TIF) or property tax abatement, depending on the project location and qualifications.
Financial Incentive Program
The city's urban renewal plan provides the use of tax increment financing for economic development. This is typically in the form of a development agreement which offers a rebate following completion of certain improvements. Tax increment financing establishes a baseline for property taxes. As improvements are made to a property its value increases. The difference between the increased value and the baseline is the increment. The increment is used by the local government to support public or private improvements to a development area.
To apply for financial assistance, please complete an application form and return to the city manager's office.
Tax Abatement Program
Tax abatement is a reduction in the property taxes which would otherwise be payable on the actual value added to a property due to qualified improvement. The reduction only applies to the additional taxes resulting from the increase in assessed value of the property due to the improvement. Under urban revitalization the taxes relating to the assessed value of the property prior to the improvement cannot be reduced and will continue unabated.
How do I apply for tax abatement?
Application forms can be obtained in the City Clerk's office at 220 South Market Street or online. It takes five to ten minutes to fill out. Information requested on the form includes:
- Owner's name
- Owner's address and phone number
- Legal description of the property (available at the Mahaska County Assessor's office)
- Description of the improvements, including cost and completion date
- Owner's signature and date signed
Applications must be completed by the homeowner. Applications are accepted only January 1st through February 1st each year.