The Richardson City Council approved a new ordinance in February 2007 that is going to change many things about home improvement in the city, and for the better. With this new ordinance, when a home owner spends over $20k to better their home, they get back 10 times the tax difference in one lump sum amount.
The amount is based off what the appraised value for the property was verse what it is after the improvements. This amount of money is paid during the tax year one year after the first April it was completed.
For example, the Richardson Today paper says: "Assume that a home improvement project is competely in June 2007. Further assume that the 2008 property taxes increased $300 above the 2007 property taxes as a result of the increase in the taxable value of the improvements. The total incentive would be $3,000 and would be paid on April 1, 2009."
What this means is that people can go ahead and do some major improvements to their home without the worries about their tax values increasing. Yes, they'll increase, but to get 10 years' worth of the improvement back in one check, that's a WIN-WIN for everyone involved! And if you're not there for 10 years, it doesn't matter. You're going to even get another 10 fold when you go to resell it because it'll be updated to today's standards and you'll be able to sell it faster and for higher dollar.
Any other cities have a tax incentive like this?
Awesome.
Keep em coming....
This is good info
Donna,
I love it!! That's a great idea. I wish we could have something like that in Detroit. Our taxes go up and up. Our city offers some areas a tax brakes. They also give brakes to large jobs like in the millions. Your incentive is good for all. Good post.
-Matt
Lillianne, Here is a link for the information on the Richardson website:
http://www.cor.net/NeighborhoodServices/HomepageImprovement.html