Individuals who own property in an Urban Renewal Area may qualify for tax abatements on any improvements made to their property. Residents who own and occupy a house or business may apply for a property tax abatement if their construction or renovation costs are at least $5,000. If approved, their property tax bill would be frozen at current levels for 10 years. The property will be assessed by the county at its improved value. However, the tax bill itself will remain frozen until 10 years have elapsed. At that time, the property owner’s property tax bill will increase to a higher amount as determined by the county’s valuation.
In order to apply for a property tax abatement, a homeowner must:
• Live within an Urban Renewal Area
• Check that the project(s) are covered by visiting this site
• Begin the construction or renovation
• Once construction is underway, fill out a Tax Abatement Application
When turning in the application please include:
• A construction plan and/or rehabilitation/renovation plan with a description of the work to be done
• Copies of contractors’ invoices. If the homeowners are completing the work themselves, please submit
a cost breakdown and copies of any receipts
• At least one photograph of the property
• A check made payable to the “Land Clearance for Redevelopment Authority” (LCRA) for $35
if project costs are below $25,000 or $130 for projects costing more than $25,000
At least one copy of the following documents:
• Deed of conveyance
• Title insurance policy
As the project nears completion, LCRA will schedule a property inspection with the property owner to verify the construction or renovations. If LCRA staff approves the project, they will process all of the necessary paperwork and submit it to Jackson County for recording. The taxable assessed value of the property will then be frozen for 10 years. If an investor-owned or commercial redevelopment project is seeking a property tax abatement, the owners should contact the Economic Development Corporation.
If you have questions please contact the Economic Development Corporation of Kansas City, Missouri at 800-889-0636 or visit in-person at 1100 Walnut, Suite 1700, Kansas City MO 64106.