City Commission hears proposal to have homeowners benefit from tax breaks

Lawrence city commissioners on Wednesday were asked to consider using some tax breaks to help ordinary homeowners rather than the large developers who have typically benefitted from them.

Douglas County commissioners asked city commissioners to consider how the city uses the Neighborhood Revitalization Act, a popular tax rebate program. That program has been mostly used for larger projects, such as the development of new apartment buildings and the pending expansion of The Eldridge Hotel.

But at a joint study session with city, county and school board officials, Douglas County Commissioner Nancy Thellman noted the state law would allow the city to use the program for more ordinary cases, such as when homeowners make property improvements.

“I’m wondering if there is a way for us to be as creative and generous for regular folks as we are for large developments,” Thellman said.

City and county staff members confirmed the state law creating the Neighborhood Revitalization Act allows it to be used differently than the way city officials have typically used it. For example, the city could designate an entire neighborhood as eligible for a property tax rebate under the NRA, if certain conditions are met. The city, for instance, could limit the rebate to single-family, owner-occupied homes. The rebates could be applied to certain types of improvements, such as new siding, new roofs, home additions, or other types of construction that improve the property.

The tax rebate would work by reducing the increased taxes that would come as the result of the new improvements. For example, if a new addition to a home added $10,000 in value to a home, the new property taxes on that $10,000 addition could be rebated at a 30 percent, 50 percent or some other level.

Some city commissioners said they were interested in exploring the possibilities.

“I love what you are saying,” Mayor Jeremy Farmer said. “We already have some low-to-moderate income neighborhoods identified in the city. Those might be a good place to start.”

Commissioner Leslie Soden, though, said she had some concerns about whether such a tax policy would lead to widespread increases in property values in a neighborhood.

“I’m concerned about creating a tool that is going to drive gentrification,” Soden said. “That is a topic in my neighborhood. How do you keep this from driving other people out of their homes.”

Other commissioners said they wanted to hear from communities that have used the NRA program to boost neighborhoods, and determine whether that has created gentrification in those communities.

In other business at the joint study session:

• City commissioners agreed to have City Hall staff work closely with the school board and administrators on issues regarding school zones and school crossing zones. City engineers clarified to the group that the city does have school zones around all elementary schools in the city currently. But not all of those school zones include reduced speed limits.

City engineers said they have not reduced speed limits in all school zones because there are some elementary schools that have traffic signals and stop signs nearby that provide for safe crossing areas.