Urban Revitalization Program

The City of Primghar Urban Revitalization Program, based on Chapter 404 of the Code of Iowa, encourages the new construction and the revitalization of buildings in the community’s neighborhoods by offering a property tax exemption for new improvements made to qualified residential, industrial, and commercially assessed properties.

In 2020, the City Council has designated the Revitalization Area as both appropriate for blight remediation and economic development. The primary objectives of the City Council were:

• Encourage new construction of residential, commercial, or industrial properties, as well as rehabilitation and additions to the existing homes and building s on such properties, through abatement of taxes of the value of the improvements constructed.

• Improve economic conditions in the Area of by stabilizing and increasing the tax base and enhancing the general attractiveness and overall aesthetics of the revitalization area.

• Revitalize the Area and remediate blight through the promotion of new residential, commercial, or industrial construction on vacant land, and the promotion of rehabilitation of existing structures on residential, commercial, or industrial property.

Contact City Hall to view the entire Urban Revitalization Plan.

How to Qualify for Urban Revitalization Property Tax Exemptions

o Property must be within Primghar’s Urban Revitalization Area.

o For the Primghar Urban Revitalization Area, the building’s assessed valuation must increase by at least 10% for residential or by 15% for industrial or commercial property to be eligible for tax exemptions. Note, this required increase in assessed valuation is based on the existing building valuation, not the total property valuation which includes the land value. The increase in assessed valuation is determined by the O’Brien County Assessor at the Courthouse.

How to Apply: The application form for improvements is due by February 1st.

o Submit a completed and signed application form by February 1 for improvements made during the previous calendar year. Remember to include the building permit number.

o After an application form is submitted, a City Administrator may contact the applicant to review the improvements or the application.

o After review by City staff, conforming applications are presented to the City Council which forwards them to the O’Brien County Assessor for final review and certification of the new assessed valuation. Conforming applications that meet the required
percentage increase in assessed valuation are then forwarded from the County Assessor to the County Auditor for the appropriate tax exemption to be applied to the property’s tax assessment. The County Assessor will notify the applicant of the determination of assessed valuation of the improvements and if property tax exemption is approved. This decision may be appealed to the board of review.

Property Tax Exemption Benefits

o For the Primghar Urban Revitalization Area, the following table shows the percentage increase in assessed valuation needed to qualify for Urban Revitalization, and the number of years of property tax exemption on the increased valuation, broken down by property classification.