In 2013, the City of South Hutchinson adopted a Neighborhood Revitalization Program that includes portions of the community. The City, USD 309 and Hutchinson Community College are participate in the plan via an inter-local agreement. Businesses or residential homes that are improved by $15,000 or 15% of the taxable value of the property receive an annual tax rebate for those improvements. Rebates are for 100% of the value of the improvements for five (5) years less a 5% administration fee collected by Reno County.
Property to be improved is cross referenced with the coverage area to determine eligibility.
When a building permit is issued, an application for the NRP is also submitted.
Once the improvements are complete, the NRP application is sent to Reno County Appraisers Office for verification.
The value of the improvements are assessed by the Reno County Appraisers Office usually in the January after completion.
The City process the application based on the increase assessed valuation.
Taxes are paid normally
Rebate checks are sent directly to the property owner in the summer after the second tax payment is due.
The NRP is a great program for new construction in designated areas. With new builds the starting value of the property is often just the ground itself. The entire value of the improvement is therefore eligible for rebate. The City Council has also opted to waive building permit fees for single-family residential construction in the NRP.
A new $150,000 home constructed in NRP zone would be eligible for over $8,100 of tax rebates over the 5 year period.New commercial construction of $150,000 in the NRP would be eligible for over $17,600 in tax rebates over the 5 year period.