Tax Abatement Information

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Tax Abatement Information

What is Tax Abatement?

A temporary reduction in property taxes on the portion of assessed value added by new construction or improvements to an existing structure.

The City Council has adopted the tax abatement program to stimulate community revitalization, improve existing housing stock, retain and attract residents and homeowners to the City of Des Moines, and reduce development costs for high quality commercial and industrial projects.

Tax abatement is available to both homeowners and developers. To be eligible for tax abatement, properties must be located in the City of Des Moines, and have obtained all necessary permits. Contact the Permit and Development Center at permits@dmgov.org if you wish to inquire about the type of work that requires permits.

New construction, additions, major rehabilitation and remodeling improvements generally increase the assessed value. The County Assessor’s Office determines the actual increase in value.

Polk County Assessor
Warren County Assessor

Urban Revitalization Plans:

Fourth Restated Plan (effective 1/1/2022)
Third Restated Plan (remains available for some projects)

What Projects are Eligible for Tax Abatement?

LOW-DENSITY RESIDENTIAL (single-family)

Improvements to properties with structures that contain one household or dwelling unit are eligible for tax abatement schedules in this category.
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MISSING MIDDLE RESIDENTIAL (2 to 12 unit structures)

Improvements to properties with structures containing two to twelve households/dwelling units are eligible for tax abatement schedules in this category. This category includes duplexes, townhouses, and apartments/condos with two (2) to twelve (12) units per structure.
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HIGH-DENISTY RESIDENTIAL (13+ unit structures)

Improvements to properties with structures containing thirteen (13) or more households/dwelling units are eligible for tax abatement schedules in this category. This category includes condo and apartment buildings with thirteen (13) or more units per structure.
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COMMERCIAL/ INDUSTRIAL

Improvements to properties with structures that do not meet the definition of low-density, high-density, or missing middle residential, assessed as commercial or industrial and located in commercial/industrial zoning districts are eligible for tax abatement schedules in this category.
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