MuskogeePhoenix.com, Muskogee, OK

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February 21, 2012

Tax abatement sounds like a win-win

Muskogee needs to take advantage of any program that could help improve our city’s image.

One such program — The Oklahoma Housing Reinvestment Program Act — encourages residential development in the form of tax abatements.

The act authorizes local governments to abate property taxes after redevelopment projects are completed within a designated reinvestment district.

The City Council has voted to establish the entire city as a reinvestment district.

Property owners could make improvements or build new houses and receive a tax abatement for up to five years.

In the past, owners would owe taxes on new construction or improvements on existing properties the year after the work was completed.

The improved properties will raise more in taxes later because the value of the property will have increased.

Property owners will have only about seven months to begin, complete and apply for the abatements.

It will take until around June 1 to get all entities that share in ad valorem tax revenue — such as school districts and county offices —  to agree to the program.

Our local state legislators should take a good look at this program, too. The program expires Jan. 1.

State legislators should consider extending the program.

Property owners get a tax break.  Properties are improved. The city looks better. Tax collections go up.

All for just the price of delaying tax increases.

That sounds like a win-win.

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