Vacant Commercial Building Tax Abatement Program

Got an empty storefront or office space?

The Vacant Commercial Building Tax Abatement Program helps turn vacant commercial space into a place for business again.

The Vacant Commercial Building Tax Abatement Program supports owners who re-invest in vacant commercial buildings. To qualify, the space must be vacant for at least 18 months and meet program requirements.

If approved, the program will reduce municipal taxes to help offset the cost of improvements needed to get the space ready for a new business.

Got an empty storefront or office space?

The Vacant Commercial Building Tax Abatement Program helps turn vacant commercial space into a place for business again.

The Vacant Commercial Building Tax Abatement Program supports owners who re-invest in vacant commercial buildings. To qualify, the space must be vacant for at least 18 months and meet program requirements.

If approved, the program will reduce municipal taxes to help offset the cost of improvements needed to get the space ready for a new business.

  • Program Steps

    Step 1: Complete a Code Analysis

    Have a Code Analysis completed to confirm the space can be renovated to meet applicable requirements.


    Step 2: Apply Online

    Complete the online application and attach a description and/or drawings for your proposed improvements.


    Step 3: City Approval

    The City reviews your application and sends a conditional approval letter.


    Step 4: Apply for Permits

    Apply for (and receive) the required Development Permit and/or Building Permit before starting work.


    Step 5: Complete the Project

    After approval and permits are in place, begin construction and complete the approved improvements. (Improvements must not start until the application is approved.)


    Step 6: Occupancy confirmed and added to the Tax Abatement Program

    The Building Inspector grants occupancy. The property is entered into the Tax Abatement Program and the applicant receives a letter confirming the abatement years.

  • Tax Abatement Informaiton

    A tax abatement means the City reduces the property taxes you have to pay for a set time.
    It is like a temporary tax break.

    When the abatement starts

    The abatement starts when the Building Inspector approves the Occupancy Permit.

    • If the Occupancy Permit is issued on or before September 30, the abatement starts January 1 of the next year.
    • If the Occupancy Permit is issued on or after October 1, the abatement starts January 1 of the year after next.

    Examples

    • Occupancy Permit on September 25, 2026 → abatement starts January 1, 2027
    • Occupancy Permit on October 5, 2026 → abatement starts January 1, 2028

    How much the abatement covers

    • The abatement only applies up to $500,000 of the assessed value.
    • If the eligible assessed value is more than $500,000, only up to $500,000 is abated.

    Abatement Schedule

    • Year 1: 100% abatement
    • Year 2: 75% abatement
    • Year 3: 50% abatement
    • Year 4: No abatement (back to full taxes)

    Examples

    Example 1 — Property with an assessed value under the $500,000 cap

    Assessed value: $400,000
    Cap check: $400,000 is under $500,000 → all $400,000 is eligible.

    Abatement schedule (eligible part only):

    • Year 1: 100% abatement
    • Year 2: 75% abatement
    • Year 3: 50% abatement
    • Year 4: no abatement

    What the tax notice shows:

    • Year 1: No taxes on the eligible part (100% abated)
    • Years 2 and 3: You pay the part not abated (25% in Year 2, and 50% in Year 3)
    • Year 4: Back to full taxes

    Example 2 — Property with an assessed value over the $500,000 cap

    Assessed value of the vacant space: $700,000
    Cap check: Only $500,000 is eligible → $200,000 is not eligible.

    Abatement schedule (eligible part only):

    • Year 1: 100% abatement on $500,000
    • Year 2: 75% abatement on $500,000
    • Year 3: 50% abatement on $500,000
    • Year 4: no abatement

    What the tax notice shows:

    • You still receive a tax notice for the taxes applied to the $200,000 not covered by the abatement (because it is above the cap).

    Example 3 — 3-unit plaza (1 unit vacant)

    Situation: The plaza has 3 equal units. Only 1 unit is vacant and approved.
    Total assessed value: $600,000
    Assessed value per unit: $600,000 ÷ 3 = $200,000
    Eligible assessed value: $200,000 (only the vacant unit)

    Abatement schedule (eligible part only):

    • Year 1: 100% abatement on $200,000
    • Year 2: 75% abatement on $200,000
    • Year 3: 50% abatement on $200,000
    • Year 4: no abatement

    What the tax notice shows (Year 1):

    • You still pay taxes on $400,000