Sioux City, Iowa Economic DevelopmentDo BusinessIncentives & FinancingProperty Tax Abatement

Property Tax Abatement

Summary

The City may abate the new property taxes on new developments for a period of years within Urban Revitalization Zones. In these zones, the program has spurred the growth of new housing developments and renovations of existing homes. For industrial projects, the State of Iowa has granted the City the authority to abate new industrial value based on a five-year schedule.

Industrial Property Tax Abatement

New construction of industrial real estate (manufacturing), research-service facilities, warehouses and distribution centers are eligible for a partial tax abatement anywhere in Sioux City.   Qualifying projects are required to submit an application to the Woodbury County Assessor’s office by February 1 to qualify for five-year sliding scale abatement.  Abatement is awarded as outlined below.

Year 1: 75%

Year 2: 60%

Year 3: 45%

Year 4: 30%

Year 5: 15%

Residential Property Tax Abatement

Residential development projects in Sioux City are eligible to receive an abatement of taxes on new value created by a project on one of two schedules. This residential abatement is available city-wide. Applications must be filed no later than December 31st in the year your project was completed to receive the full value of the selected schedule. Projects awarded abatement through this program are not eligible to receive Tax Increment Financing for the same project.

Schedule 1: All qualified real estate assessed as residential is eligible to receive a partial exemption from taxation on the actual value added by the improvements. The exemption is for a period of ten (10) years. The amount of the partial exemption is equal to a percent of the actual value added by the improvements, determined as follows:

  • 1st year 80%

  • 2nd year 70%

  • 3rd year 60%

  • 4th year 50%

  • 5th year 40%

  • 6th year 40%

  • 7th year 30%

  • 8th year 30%

  • 9th year 20%

  • 10th year 20%

Schedule 2: All qualified real estate assessed as residential is eligible to receive a one hundred percent (100%) exemption from taxation on the actual value added by the improvements. The exemption is for a period of three (3) years.

Please contact the City of Sioux City's Economic Development Department or the Woodbury County Assessor's Office to discuss project eligibility, approval process and for an application for abatement.

View All Incentives