Tax Abatement

Urban revitalization or tax abatement is a tool to encourage economic development by providing incentives for new construction or for the expansion of existing facilities. An Urban Revitalization Area may include the entire city or designated areas of the city. Essentially, tax abatement is the temporary reduction of property taxes on the improvements made to an existing property. The owner would still have to pay the amount owed for taxes pre-improvement, but may qualify for decreased taxes on the improvements.

Qualified improvements may include new construction, remodeling, rehabilitation and additions to the existing property. 

Muscatine Industrial and Housing Tax Abatement



In 2013, City Council approved a plan to place designated areas in a program identified as the “2013 Muscatine Housing Urban Revitalization Area.” Property owners within the Area will be able to receive an abatement of taxes on eligible improvements to their property that increases the assessed value of the property by meeting one of several thresholds.

2013 Urban Revitalization Plan / Tax Abatement Program

Tax Abatement Application

Area Maps - Updated March 25, 2013

Industrial Property Tax Abatement on industrial real estate (Iowa Code 427B)

  • Year 1 – 75% abated
  • Year 2 – 60% abated
  • Year 3 – 45% abated
  • Year 4 – 30% abated
  • Year 5 – 15% abated

Housing Tax Abatement

  • New Construction: Minimum assessed value of $175,000, Exemption is on first $75,000 of actual value added, 100% for 5 years
  • Blighted District*: 
    • New homes: Minimum assessed value of $175,000, 5 years, 100%
    • Improvements/Additions: 3 years, 100%
  • Historic District*:
    • Historically Sensitive: 5 years, 100%
    • Historic Area Improvements/Additions: 3 years, 100%
*Improvement must increase the assessed value of the property by more than 10%

Muscatine Commercial Tax Abatement 

As of 2016, the City has a new commercial tax abatement program in two key areas - one along Grandview Avenue and a second along Park Avenue. To quality for tax abatement, the improvement must increase the assessed valuation of the property by at least 15% of the valuation before the improvement. 

You can see the maps and more information about each of these areas here: 

Commercial Tax Abatement Application

Park Avenue Plan

Park Avenue Resolution 

Grandview Avenue Plan

Grandview Avenue Resolution

Commercial Tax Abatement Schedules on Qualifying Property:

10 Year Declining Schedule

  • Year 1 - 80% abated
  • Year 2 - 70% abated
  • Year 3 - 60% abated
  • Year 4 - 50% abated
  • Year 5 & 6 - 40% abated
  • Year 7 & 8 - 30% abated
  • Year 9 & 10 - 20% abated

3 Year 100% Schedule

  • Year 1 - 100% abated
  • Year 2 - 100% abated
  • Year 3  - 100% abated