Supervisors Discuss TIF District at Walnut City Council Meeting Oct 7, 5PM
From FriendsofWCS.com (Full Articles)
The Pottawattamie County Board of Supervisors is investigating establishing a tax increment financing district around the more than 100 existing wind generators in the eastern part of the county to capture money for road improvements.
According to a map provided by Pottawattamie County Planning Director Kay Mocha, 18 of the wind generators are located in the A-H-S-T Community School District and 93 in the Walnut Community School District.Under Iowa law, the county is not able to levy property taxes on the net acquisition cost for the wind turbines the first year. In the second year, the county can tax 5 percent of the acquisition cost, a figure that increases 5 percent per year up to 30 percent of the acquisition cost in year seven, at which point the taxable value is capped through the 20th year.
Currently, Houser said the land’s tax base value is as agriculture land. If a TIF were created the county would capture any value above the base value.
Houser said it was unclear how much money would be captured, but in May, the Supervisors said that if the 5 percent estimate were to be applied, it would increase the county’s property tax base by about $16 million. If a TIF area were established, the county would capture all of the tax money from the area, above the base value and less the school district’s debt service and physical plant and equipment levies.
Houser said a majority of the money, a maximum of 80 percent, that the school districts lose would be “backfilled” by the state.