City of Pipestone Home Initiative
The purpose of the Pipestone Home Initiative (PHI) is to provide incentives to encourage the construction of new owner occupied housing units, and encourage replacement of dilapidated housing structures within the City of Pipestone between January 2017 and December 31, 2019.
Tax Abatement Availability
Minnesota Statute 469.1813 Subdivision 8 places limitations on tax abatement. In any given year, the total amount of taxes abated by municipality shall not exceed 10% of the net tax capacity (NTC) of the political subdivision for the taxes payable year to which the abatement applies, of (2) $200,000, whichever is greater.
Any person who constructs a new single family home or duplex, and who files application material and seeks formal approval from appropriate local jurisdiction between January 2017 and December 31, 2019 may be eligible to receive 100% tax abatement of the City’s share of increased real estate taxes as a result of building newly constructed housing or a home, for a period of three (3) years provided all the following are meet:
- Property is located within the City of Pipestone and zoned properly for the proposed development project.
- The applicant shall not have received other local financial assistance (tax increment financing/TIF, Workforce Housing, SCDP).
- Project is built to building codes adopted at the time of the building permit is obtained.
- Property taxes are current and paid on time and in full.
- Program approvals must be obtained prior to the start of construction of the new housing/home.
The real estate taxes to be abated shall be for up to the full amount of the City real estate taxes collected from added tax base on the newly constructed housing/home annually. Real estate taxes collected for the value of the land or any current additional structures value are not eligible for tax abatement, and will not be abated as part of this program.
This abatement will transfer with the sale of the property for the balance of the three (3) year abatement period.
The tax refund is the City portion only. This abatement will not include voter approved school referendums.
This abatement does not apply to, or include, existing and/or new assessments to the property.
The City shall provide the awarded abatement payment following payment of the total real estate taxes due annually.
One single payment shall be made to the owner of record at the time of the payment, December 30th for that calendar year.
Statute requires the City to approve each abatement application. Thus, all applications will be considered on a “first come-first serve” basis. The acceptance of new applications will be contingent upon board approval and abatement capacity as define above.
Application Review and Approval Process shall be followed as specified in Tax Abatement Policy as specified herein.
For further questions or answers please feel free to contact the City Administrator.
Jeffrey R. Jones
119 2nd Ave SW
Pipestone, MN 56164