Zone's Tax Hold Loosens Next Year

September 23, 2008
Print
Text Size:
A A

The Renaissance Zone created by the city Jan. 1, 1997, is coming to an end. Starting next year, property owners in the zone will begin paying 25 percent of their property-tax bills, and another 25 percent will be added to their tabs in each of the two years that follow until the zone officially ends on Jan. 1, 2012. Full payment of property taxes will be due from those owners that year, unless they get extensions.

The property taxes the city has exempted for the zone have helped to push the overall percent of taxes the city exempts and abates to more than 12 percent of the city’s total tax roll. That figure is 2 percent more than the limit the Kent County policy allows for county commissioners to approve a zone extension in the city.

But as the city points out, its percent of abated and exempted property taxes falls below the county’s 10 percent limit as the Ren Zone begins to expire. It drops below 9 percent in 2012, the first year full payments are due.

The city also says that the county will regain escalating portions of its property-tax revenue from the zone over the next three years, with full payment returning in 2012.

Here is a yearly projection of the city’s percent of exempted and abated property-tax revenue in relation to its total tax roll, the percent phase-in of property-tax payments for sites in the zone, and the estimated property-tax revenue that will go to the county.

Tax Year

Percentage of City Tax Roll

Tax Rate Phase-in

Estimated County Revenue Gain

2008

12.3%

0%

0%

2009

11.4%

25%

$209,000

2010

10.6%

50%

$418,000

2011

9.8%

75%

$627,000

2012

8.9%

100%

$836,000

Source: City of Grand Rapids, September 2008

Editor's Picks

Comments powered by Disqus