Tax Increment Financing (TIF)
City councils or county boards of supervisors may use the property taxes resulting from the in-crease in taxable valuation caused by the construction of new industrial or commercial facilities to provide economic development incentives to a business or industry. Tax Increment Financing may be used to offset the cost of public improvements and utilities that will serve the new private development, to finance direct grants or loans to a company, or to provide the local match for federal or state economic development assistance programs.
Grimes uses TIF as a strategic investment to lure attractive developments and employers to the community, as well as to assist those already in the community to expand or improve their situation. Typically, these agreements are negotiated on a case by case basis. However, Grimes Chamber & Economic Development and the City of Grimes work hard to ensure that these discussions and decisions take place in a timely manner.
Industrial Tax Exemption
Industrial tax exemption is available throughout Grimes, Iowa subject to certain conditions required by state law. The County Assessor determines if the business is classified as "industrial" and is located on land zoned for industrial purposes (as per Chapter 427B, Code of Iowa).
Chapter 427B states the following is generally eligible for industrial tax abatement:
- New Construction Industrial Real Estate
- Research Facilities
- Distribution Centers
- Rehab / Retrofitting of existing building for improvements required due to economic obsolescence and necessary to meet current industrial standards for manufacturing / processing, subject to pre-approval.
The exemption is allowed for the value added to the property for a five-year period using the following schedule.
|Tax Year||Amount Abated|
An application for industrial tax abatement must be filed by the owner of the property with the Polk County Assessor by February 1 following the calendar year in which the improvement is made.
The Industrial Tax Abatement application and instructions are available on the Iowa Department of Revenue website.
The final determination is for eligibility for this particular incentive is made not by the City of Grimes, but by the Polk County Assessor’s office. Their decision is based upon the use of the building.