| Purpose
The Temporary Historic Property
Tax Exemption provides a local property tax incentive for the sensitive, "substantial
rehabilitation" of historic buildings. While all counties are required to
offer this exemption, not all counties have set priorities for the program.
Eligibility Requirements
Properties must be listed
on or eligible for listing on the National Register of Historic Places, contributing
to National Register Historic Districts or local historic districts, or designated
by a county or municipal landmark ordinance. Contact Elizabeth (Beth) Foster Hill,
Tax Incentive Programs Manager/National Register Coordinator, at (515) 281-4137
or Beth.Foster@iowa.gov
to find out your building’s National Register status or for information
about how to nominate a property to the National
Register of Historic Places.
The property must also
be eligible based on the specific county's priority list for that tax year. The
County Board of Supervisors will establish priorities for which an exemption may
be granted and will annually designate real property in the county for a historic
property tax exemption. A public meeting must be held, with notice given, at which
the proposed priority list will be presented.
By December 31
of the year in which the rehabilitation work takes place, a three-part substantial
rehabilitation application must be submitted to the State Historic Preservation
Office (SHPO) at the State Historical Society of Iowa. Part 1 of the application
evaluates the significance of the property; Part 2 focuses on the proposed rehabilitation
work to be undertaken; Part 3 is a request for certification that the rehabilitation
work has been completed in accordance with The Secretary of the Interior’s
Standards
for Rehabilitation and Guidelines for Rehabilitating Historic Buildings
and that the expenditure meets a "substantial rehabilitation" test.
It is best to submit Parts 1 and 2 of the application before the project begins
so that approval from the State Historical Society can be given. Part 3 must be
submitted after the rehabilitation work is complete.
There is a minimum amount
of rehabilitation investment needed to be eligible for this program. A "substantial
rehabilitation test" is required. Before completing the three forms it is
advisable to estimate the adjusted basis and the total rehabilitation investment
for the project to determine whether it will likely meet the "substantial
rehabilitation" test. There are two separate applications of the test—one
for income-producing and one for non-income producing properties.
Form
of Incentive
The program provides a combination of four years full exemption from any increased
valuation due to the rehabilitation, followed by four years of property tax increases
(25% per year) up to the new valuation. The actual assessor’s exemption
application with the SHPO’s approved application attached must be made to
the appropriate county assessor no later than February 1 of the assessment year.
Note that you must fill out two applications for this program.
Application to receive SHPO approval for the completed work must be made by
December 31 of the year that the work was completed in order for SHPO
to review and approve the application in time for it to accompany the county assessor’s
application by February 1.
 Download
the Tax Exemption Packet*
Contact
Elizabeth (Beth) Foster Hill
Tax Incentive Programs Manager/National Register Coordinator
Department of Cultural Affairs
600 E. Locust Street
Des Moines, IA 50319-0290
(515) 281-4137
Beth.Foster@iowa.gov
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