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1. What is the Neighborhood Revitalization Plan?

During the 1994 legislative session, lawmakers passed Senate Bill 732, which provides tax rebates for new construction and the rehabilitation of existing structures. Each municipality must adopt a plan and designate an area in which they want to promote revitalization and development or redevelopment within the county.

2. What is a “tax rebate”?

It is a refund of the property taxes which would otherwise be payable on the actual value added to a property due to a qualified improvement.  The rebate only applies to the additional taxes resulting from the increase in assessed value of the property due to the improvement.  Under the Neighborhood Revitalization Plan, the taxes relating to the assessed value on the property prior to the improvement may not be reduced and will continue to be payable.

3. What is a “qualified improvement”?

Qualified improvement to a structure includes new construction, rehabilitation, and additions.

4. How is “structure” defined?

“Structure” means any building, wall or other structure, including the building and improvements to existing structures and fixtures assimilated to the real estate.

5. What kind of “improvements” will increase the assessed value?

New construction, additions and major rehabilitations will increase the assessed value.  Repairs generally will not increase the assessed value unless there are several major repairs completed at the same time.

6. How long does the tax rebate run under the Neighborhood Revitalization Plan?

The plan will remain in effect through December 31, 2025, and will be re-evaluated at any time.  A property owner may apply for tax rebate as appropriate any time during the program.  The length of the tax rebate will be for seven (7) years for Agricultural, Commercial and Industrial Properties and seven (7) years for residential property.  Any application approved by December 31, 2025, will receive the tax rebate.

7. Can property taxes be eliminated using the tax rebate?

There will always be some taxes on property.  Under Neighborhood Revitalization, the existing assessed value of the property and the resulting taxes prior to the improvements will continue.  Also the rebate begins at 95% of the new assessed value.

8. How do the terms Assessed Valuation and Appraised Value differ?

Assessed valuation is the value of the property for taxing purposes, not the appraised value.  For example, if the appraised value on a residential building is $100,000, the assessed value is $11,500.

9. How can I determine if I am eligible for a tax rebate?

There must be a minimum increase of $1,150 in Assessed Valuation for residential property (which equates to about $10,000 in appraised value) and $2,500 in Assessed Valuation (which equates to about $10,000 in appraised value depending on the type of business) for commercial, industrial or agricultural property.  New, as well as existing improvements must conform with all codes, rules and regulations in effect.  You should secure a building permit for most improvements, where applicable.  Call the County or City Zoning Board to find out if you need a building permit.  If building in the 3-mile zone surrounding the City of Larned or the City of Larned, contact the Larned City Zoning Administrator.

10. If qualified improvements have been made, how does one obtain a tax rebate?

A property owner must file, and have an approved application with the County Appraiser before construction begins.  There will be no exceptions!!

11. Who applies?

The property owner.  Even if, as a lessee, you are doing the improvements and your lease agreement has you paying the taxes, the property owner must apply.  The tax rebate will be included as part of the property’s tax record for the term of the rebate regardless of who owns or occupies the property.

12. How often do I need to apply?

Apply each year that you make a qualifying improvement to the property, even though the improvements may not actually be completed during the year.  If no further improvements are made, the initial application will be sufficient without the property owner having to file an additional application for succeeding years in which a tax rebate is received.

13. Will the schedule of tax rebates as determined by the increase in assessed value in the first year ever change?

Yes, the total taxes rebated to you over the seven year period may decrease only if the assessed value of the property decreases. 

14. Is the rebate transferable?

Yes, if the property should sell during the first seven years of the rebate program, the program’s rebate will continue with the new owner.