Beaver Creek council approves tax abatement program for housing

New homes built in Beaver Creek are eligible to abate property taxes for five years, according to action at the Sept. 18 city council meeting.
Beaver Creek Mayor Josh Teune has been keeping pace with Rock County officials who approved a county-wide housing tax abatement on Sept. 3. Beaver Creek followed suit on Sept. 18.
“It’s for economic growth,” Teune said. “We’re hoping to bring more people to town and to the school district.”
The new housing tax abatement program, effective for new construction started after Sept. 1, is for anyone building a new house in Rock County and it lasts five years, commencing with occupancy.
Abatement applications will be accepted until 2024.
The amount of tax savings will vary, depending on the value of construction and the taxing entities involved.
Superintendent Todd Holthaus said Monday that the Hills-Beaver Creek School Board is also considering the tax abatement program for new housing construction in the district.
 
Program creates opportunity for community investment
A Beaver Creek resident was the first in the county to submit an application for abatement on a new home to be built near the golf course.
According to the Rock County Auditor Treasurer’s Office, the current assessed value of the Beaver Creek lot is $35,300.
The assessed value of the property after $498,000 construction is estimated to be $385,800.
With the abatement process, the homeowner’s property taxes for five years will be based on the original $35,300 assessment before improvements. The abated amount is $350,500.
According to current 2019 tax rates, the savings this case are estimated at $640 per year for five years through the county’s portion of tax abatement.
The savings on Beaver Creek property taxes are estimated at $2,822 per year for five years through the program.
The combined savings through city and county tax abatements could amount to $3,462 per year, a total of $17,310 over five years.
 
New construction to ease tight housing market
Teune said the council is excited about the tax abatement program and grateful for new investments by families.
“I really hope this gives people another incentive to build here, and to do so in the next few years in order to save some money,” he said.
Teune said the construction investment will free up a current home for sale in a notably tight housing market in Beaver Creek.
“The last four houses listed for sale were sold in two days,” Teune said.
“We have more room for expansion, and the more people we have in Beaver Creek the better.”
Rock County will consider the Beaver Creek application at an Oct. 22 public hearing, which is a necessary step in the process.
Beaver Creek council will need to set a public hearing as part of its abatement process.
Teune also said that two other parties are considering new construction in Beaver Creek, and those, too, could qualify for the tax abatement.
 
Program offered through Sept. 1, 2024
Applications are available on a first-come, first-served basis and are limited to $200,000 or 10 percent of the net tax capacity, whichever is greater.
To be eligible, homeowners must pay current property taxes on time and in full and their applications must be approved prior to the start of new housing construction.
Applications are available online at www.co.rock.mn.us or at the Rock County Land Records Office.
Signed applications are returned to the auditor’s office at the Rock County Courthouse and to Beaver Creek City Hall.
Abatements transfer with properties if they’re sold during the five-year abatement period.
The initiative is available now through Sept. 1, 2024.