The Neighborhood Revitalization Plan (NRP) program is intended to spur economic growth by providing a property tax rebate to property owners who make improvements to either their commercial or residential properties within the city limits of Lincoln or Sylvan Grove. The basic description of the program is listed below; however, please see the attachments for more detailed information on all the requirements that are specific to each community.
For residential properties, eligible projects include: 1) the rehabilitation, renovations and additions to living area only of any existing residential structure, including alteration of a single-family home into a multiple-family dwelling, and 2) construction of new living areas of residential structures, including the conversion of all or part of a non-residential structure into a living area. Projects NOT eligible for the rebate include improvements to existing or construction of new residential detached accessory structures, including garages, storage buildings, workshops, swimming pools, etc.
For commercial/industrial properties, eligible projects include: 1) the rehabilitation, alterations and additions to any existing commercial or industrial or institutional property, and 2) construction of new commercial, industrial or institutional structures. Projects NOT eligible for the rebate include improvements to existing or construction of new structures used for public utility or railroad purposes.
Requirements of the Program
The basic requirements of the NRP program are listed below; however, please see the attachments for more detailed information on all of the requirements:
- The property must be located within the city limits of Lincoln or Sylvan Grove;
- Construction of an improvement must have commenced on or after January 1, 2013;
- An application for a property tax rebate must be filed with the City Clerk sixty within (60) days of the commencement of the improvement;
- All work must be completed within twenty-four (24) months from the start date as stated in the application;
- The minimum investment in an improvement shall be $20,000 (for Lincoln) and $15,000 (for Sylvan Grove) for any property;
- The minimum increase in assessed valuation upon completion of the subject improvement shall be twenty (20) percent for any property, as determined by the Lincoln County Appraiser;
- Property eligible for property tax exemptions, refunds, rebates or other property tax incentives under any other program pursuant to statutory or constitutional authority shall NOT be eligible for participation in the NRP;
- Property for which any existing taxes or assessments are delinquent shall not be eligible;
- The construction of any qualifying new structure or addition shall be upon a permanent masonry foundation; and all utilities serving the structure shall be permanent connections meeting city standards. Qualifying manufactured residential units shall have a conventional shingle roof with a minimum 3/12 pitch, and an eave overhang of at least ten inches.
The property tax rebate is based on the increase in the value of the property after the improvements have been completed (not the original value of the property pre-improvements). Rebates are for the taxes levied by the city, county and school district(s). As a very simple example, if your property is valued at $100,000 before improvements and it’s valued at $150,000 after improvements have been completed, your property tax rebate will be based on the increased $50,000 in value. You will still be required to pay the full taxes on the original $100,000 value.
Or to look at it from a tax bill perspective (and as general examples), if you own a residential property and the taxes are $5000 before improvements and $7500 after improvements, the property tax rebate will be on the $2500 increase. If you own a vacant piece of property and the taxes are $200 before improvements and the taxes jump to $5000 after improvements, the property tax rebate will be on the $4800 increase.
The rebate is stepped down over a ten year period. For years 1-3, the rebate is 100% of the increased value. For years 4-5, the rebate is 75%. For years 6-8, the rebate is 50%. And for years 9-10, the rebate is 25%. After that time, there will be no rebate. Property taxes due will be on the full value of the property.