With tax abatement, the City rebates its portion of property taxes back to the property owner who then uses it to help offset development or redevelopment costs. Tax abatement is simpler and less restrictive than tax increment financing and is quite useful for ineligible TIF projects.
However, the availability of tax abatement is limited. In any given year, for all economic development projects taking place, the City can abate an amount equaling no more than 10% of its current net tax capacity, or $200,000, whichever is greater.
The Lake City City Council must approve all tax abatements after a public hearing.
Tax abatements can be provided for any type of property as long as it meets a public benefit test.
The project must provide one or more of the following public benefits:
- Increase or preserve tax base
- Result in job creation or retention
- Redevelop blighted areas
- Provide services not currently available to the residents of Lake City.
Taxes can be abated for up to 15 years (in some instances 20 years). Download the Lake City Tax Abatement Policy and Application.
Contact the Lake City EDA at 651-345-6808, or e-mail email@example.com for an application or additional information.