Tax Abatement

Company sends letter of request to the President of the Town Council, giving background information on the company, description of the “project” (construction, expansion, purchase of equipment), and numbers of additional jobs that will be a direct result of the project. Attached to the letter are a completed statement of benefits form (SB-1), an application for tax abatement and/or economic revitalization area designation, and an agreement of cooperation (regarding reporting requirements).

Copies of the above package are sent to Director of Development and to the Town Attorney.

Director of Development reviews the documents and contacts the company representative to discuss timing of Council action, clarification of items, etc. The Council President approves council scheduling.

The Department of Development Office prepares the ERA map with proposed area highlighted.

The Town prepares resolution. Resolution, statement of benefits form, equipment list, and letter to the Council President are sent to Council members one week prior to the Council meeting at which action on the request will be taken.

Certified letter is sent to the company representative (usually its president) information of the date and time of IRC and Council meetings. A company representative is requested to attend both meetings.

The company makes a presentation to the Town Council during a public hearing. If request is approved, SB-1 form is executed and abatement is effective immediately.

For ERA designations, following Council approval, notice of public hearing is published, and the Clerk Treasurer sends a copy of public hearing notice, resolution, and SB-1 form to “each taxing unit that has authority to levy property taxes in the geographic area where the economic revitalization area or allocation area is located”. Public hearing is held at a subsequent Council meeting, and resolution is ratified. ERA designation is then effective. Tax Abatement is not effective until after the public hearing and ratification of resolution. “Project” should not proceed until this process is completed.

Following first Council meeting, maps showing proposed designation are distributed to the Auditor’s office, Assessor’s offices, Clerk-Treasurer, and Town Attorney. One copy is posted in Council Chamber the evening of Council meeting. This copy is ultimately filed in the Department of Development Office. Master copies of ERA maps are also kept in the Department of Development office.

Executed resolution and SB-1 forms are distributed to County Auditor, County and Township Assessors, City Attorney, and to the company. The Clerk-Treasurer retains originals, and a copy is filed in the Department of Development Office.
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  • Sample Letter of Inducement
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  • Sample letter of ERD and Tax Abatement of Real and Personal Property
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  • Sample Letter for Real Property Only
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  • Sample Letter for Tax Abatement Request for Expansion
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  • Application for Tax Abatement
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  • Application for Designation of Economic Revitalization Area
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  • Environmental Land Use and Permitting Compliance Affidavit
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  • Agreement of Cooperation
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  • Job and Wage Description for Tax Abatement Application
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