Tax Abatement Information and Application

Existing homeowners and business property owners who wish to upgrade their properties or new homeowners or business owners looking to build in Pleasant Hill can take advantage of the City's tax abatement program. For home improvements, the abatement is limited to the increased value. This program applies to improvements to the main dwelling structure as well as to detached outbuildings, such as garages. 

Pleasant Hill offers the strongest suburban tax abatement program in Polk County for residential, commercial, and industrial properties. This includes new construction, additions, and remodels. The abatement program is on a graduated five-year schedule, based on the value of eligible improvements placed upon qualified real estate. 


 Year   Taxes Abated
 1st  75%
 2nd  60%
 3rd   45%
 4th  30%
 5th   15%
The Tax Abatement Application (PDF) for new construction and home improvement projects are to be submitted at the time of the Building Permit Application (PDF). Additions and remodeling projects qualify by increasing the actual value of the real property by at least 15%. The final determination about the increase in value is made by the Polk County Assessor. Click here for more information about the program.

The tax abatement stays with the property and if the ownership changes the new residents are not required to reapply.

Commercial/Industrial Example*

 $1,000,000 valuation  
 Tax Abatement  Year 1 
75%
Year 2 
60%
Year 3
45%
Year 4
30%
Year 5
15%
Total 
 Taxes Paid  $9,833 $15,732  $21,632  $23,598  $33,431 $104,225 
 Taxes Abated $29,498   $23,598 $17,699  $11,799  $5,900   $88,893
*Figures estimated using the 2015/2016 regular tax levy and assumes no changes to valuation, tax levy rate or rollback. 
Over five-years, the commercial or industrial project saves approximately $88,893. 

Residential Examples* 


 $300,000 Home Valuation
 Tax Abatement  Year 1
75%
 Year 2
60%
 Year 3
45%
 Year 4
30%
Year 5
15% 
Total 
 Taxes Paid  $1,823 $2,917 $4,010 $5,104 $6,198  $20,052
 Taxes Abated  $5,469 $4,375 $3,281 $2,187 $1,093 $16,405 
*Figures estimated using the 2015/2016 regular tax levy and assumes no changes to valuation, tax levy rate or rollback. 
Over five-years, this home would save approximately $16,405.
 $400,000 Home Valuation
 Tax Abatement
Year 1
75%
Year 2
60%
Year 3
45%
Year 4
30%
Year 5
15%
 Total
 Taxes Paid  $2,430  $3,889  $5,347  $6,806  $8,264  $26,736
 Taxes Abated  $7,292  $5,834  $4,375  $2,917  $1,458  $21,876
Over five-years, this home would save approximately $21,876.
Questions can be directed to the Community Development Department at 515-309-9461.