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Renville County approves its first residential tax abatements, to take place over five years

New policy aims to encourage residential development by offering abatement on county portion of taxes for five years.

Renville County approved the first requests for tax abatements on county taxes as part of a program designed to encourage residential development in the county.
Renville County approved the first requests for tax abatements on county taxes as part of a program designed to encourage residential development in the county.
Associated Press file photo
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OLIVIA — The Renville County Board of Commissioners approved the first applicants for tax abatements for the construction of residential property in the county.

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In action on Tuesday, the commissioners approved five-year abatements on the county portion of taxes for two, separate single-family homes and for a two-unit townhouse. The single-family homes are located in Wellington Township and the City of Fairfax, and are owned by individuals. The townhouse is located in Fairfax and is being constructed by Northland Lumber and Supply.

The county has long had an abatement policy to aid business and economic development projects. Last year, the commissioners agreed to adopt a policy to use tax abatements as a way to encourage residential development as well.

The new policy was finalized last July. The newly-approved projects are the first to go before the commissioners. It allows for tax abatement for five years on up to $200,000 in value on a single-family home and $10,000 more per unit on structures with up to four units.

In their action on Tuesday, the commissioners approved abatements estimated to total $3,616 per single-family home and $4,200 for the townhouse.

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County Auditor/Treasurer Marc Iverson said the property owners will receive full tax statements, and then will submit a form to receive the abatement. The abatement applies only to the county taxes. The property owners will not receive an abatement on school, township or municipal property taxes.

The county takes into account the amount budgeted each year for economic development abatements and sets its levy to make up the amount. The commissioners will need to determine how much to allocate in the coming year for residential abatements when developing the next year’s budget.

County Administrator Lisa Herges said a county housing study completed a few years ago showed the need for more residential development. Herges told the West Central Tribune that housing availability is one of the most frequently cited concerns when job applicants look to relocate to Renville County.

Tom Cherveny is a regional and outdoors reporter for the West Central Tribune.
He has been a reporter with the West Central Tribune since 1993.

Cherveny can be reached via email at tcherveny@wctrib.com or by phone at 320-214-4335.
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