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AGENDA ITEM 3C <br />STAFF ORIGINATOR: Al Rolek <br />DATE: 5/29/01 <br />TOPIC: Consideration of Authorizing Staff to draft a Tax <br />Abatement Policy <br />Vote Required: Simple Majority <br />BACKGROUND: <br />Tax Abatement is the ability of individual local taxing authorities (county, city or <br />school district) to return their proportional share of property taxes on all or a <br />portion of the property taxes on a parcel of property. Abatements were designed <br />by the state legislature to give each jurisdiction a voice in economic development <br />and redevelopment efforts. <br />An abatement can be either a tax rebate or a tax deferment. The maximum an <br />entity can abate is the greater of $100,000 per year or 5 percent of its levy. <br />A Tax Abatement Policy is required before abatement is used to specify the <br />criteria that will be used to determine if an abatement meets a public purpose. <br />This council action directs staff to draft a Tax Abatement Policy for council <br />consideration at the July 23, 2001 city council meeting. <br />OPTIONS: <br />1. Direct staff to draft a Tax Abatement Policy <br />2. Return to staff for further consideration <br />RECOMMENDATION: <br />Option 1 <br />