Archive for Thursday, October 22, 2009

Tonganoxie leaders look to Basehor for tax rebate plan

October 22, 2009

Tonganoxie city leaders and area developers want to stay competitive when it comes to attracting new homeowners into the city, but for now, they are awaiting word from the Kansas Attorney General’s office before offering any tax incentives.

During a work session Monday night, city leaders continued their discussion on a plan that would rebate a percentage of its portion of property taxes on new home construction.

The idea for a tax rebate program comes on the heels of a rebate program recently approved for Basehor. Council member Jason Ward said he wanted the city to be competitive with surrounding cities and their programs.

In the Basehor plan, new residential structures would have 100 percent of property taxes rebated for three years. The amount would drop to 50 percent for three years after that. For new commercial structures, 85 percent of the property taxes would be rebated for the first three years. That percentage would drop to 25 percent for the following three years. Additionally, the structures must be assessed at a minimum of $140,000.

The Basehor Community Library, Fairmount Township Fire District and Basehor-Linwood School District have agreed to rebate their portion of property taxes with this program. Leavenworth County Commissioners also agreed to rebate their portion of property tax, but will retain 5 percent for administrative costs.

The Tonganoxie City Council is awaiting an opinion from Kansas Attorney General Steve Six on what kind of areas the city would be able to define as a revitalization district.

Once the city has the opinion, it will determine what areas of town to choose as a revitalization district that would benefit from a tax incentive program.

Mike Kelly, the city’s attorney, said a previous opinion from the Attorney General’s Office stated that cities could not encompass the entire city limits as a revitalization district.

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