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Renville County approves first five-year residential tax abatements – West Central Tribune

OLIVIA – The Renville County Board of Commissioners has approved the first applicants for tax abatements for the construction of residential properties in the county.

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

The county has long had a discount policy to help businesses and economic development projects. Last year, the commissioners agreed to adopt a policy of using tax abatements as a means of encouraging residential development as well.

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

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

County Auditor/Treasurer Marc Iverson said homeowners will receive full tax returns and then submit a form to receive the abatement. The abatement only applies to departmental taxes. The owners will not benefit from any abatement on school, cantonal or municipal property taxes.

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

County Administrator Lisa Herges said a county housing study done 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 seek to relocate to Renville County.