Batavia Council gets behind tax exemption for home improvements

With unanimous conscent Monday night, the Batavia City Council agreed to move forward with a plan to provide some tax relief to homeowners who undertake renovations.

In September there will likely be a public hearing on the plan, which will provide a tax credit over an eight-year period on the increased assessed value caused by improvements.

"This is important because, even if you do improvements, the value doesn’t necessarily change, but if the value does change because of that improvement, you can get an exemption on the increase of the assessment," City Manager Jason Molino said.

The exemption is possible by state law, which allows for a municipal government to institute the tax credit. The credit can be spread over eight years, with no tax on the increased assessed value, and 12.5 percent of tax on the increase being added each year.

The homeowner must make at least a $3,000 improvement, and the assessor must find that the improvement, not some other factor, caused the increased assessment. 

"I think this is long over due," Councilman Bill Cox said. "I think it will encourage people to improve their homes and it’s a sign that the City Council wants to encourage people to improve their neighborhoods."

Councilman Frank Ferrando also spoke in favor of the tax exemption.

"I like the idea that it’s the community investing in itself," Ferrando said.