Tax Abatements

The Tama County Industrial and Commercial tax exemption program was specifically created for large scale projects occurring in un-incorporated areas of Tama County.  The program was established by the Tama County Board of Supervisors to help lower the financial risk and maximize the potential for financial success for stakeholders with new development that spurs responsible capital investment and job creation.

The communities of Gladbrook, Montour, Tama, Toledo, and Traer each have a tax abatement program for new development.

  • Gladbrook: All qualified real estate assessed as commercial property 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.
  • Montour: All qualified real estate located within the Revitalization Area No. 1 assessed as residential, commercial, or industrial is eligible to receive an exemption from taxation on the first One Hundred Twenty-Five Thousand Dollars ($125,000) actual value added by the improvements for a period of five (5) years.  This shall include all improvements added on or after August 1, 2004.  The exemption shall not apply until completion of the improvements.  In order to qualify for the tax exemptions, the improvements made to the qualified real estate must increase the actual value of said real estate by at least ten percent (10%).
  • Tama: Tax Abatement –    Any commercial business in the Tama city limits improving the tax value of their business by at least ten percent (10%) may apply for 100% tax abatement on the added property tax value for three (3) years.   Improvements to the property include:  rehabilitation, addition to buildings, or new construction to the property.  Tax Increment Financing – Includes the downtown business area of Tama; south of the downtown area; and west of John Street between 5th Street and 7th  For exact locations, contact the City Clerk’s Office.  The financing will provide funding to prepare infrastructure for improvements for housing, business, and industry.
  • Toledo: A 100% three-year tax abatement for new business construction.  If an existing business is making improvements, then the tax incentive would be for any new improvements that would increase the taxable valuation of the property.  For example, if have a $500,000 building and add on $300,000 addition, then would receive tax abatement on the $300,000 portion only.
  • Traer: Tax abatement for all new construction in the industrial park.  All qualified industrial businesses are eligible to receive a cash incentive according to the following schedule:  Year 1: $75,000; Year 2: $60,000; Year 3: $45,000; Year 4: $30,000; Year 5: $30,000

211 W. State Street, P.O. Box 22
Toledo, IA  52342
641-484-3108
641-484-8636 fax
info@tamacountyiowa.org
www.tamacountyiowa.org

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