Wichita Tax Credit
New Home Ownership Made Easy (New HOME Program)
Staff are proposing a program in which the City of Wichita will join efforts with other communities in the area to attract buyers for newly built homes. Home ownership builds stronger communities, creates jobs and provides a more stable tax base. The New HOME program is simple and designed to help individual new home buyers. For eligible properties the home buyer will receive a rebate of City of Wichita property taxes for five years.
To participate in the New HOME program, special assessments and general tax obligations on all buildable lots in a new home development must be current through 2010. In addition, the special assessment and general tax obligations owed on any lot sold under this program must be paid current on the sale and closing of a lot.
For eligible home buyers, the City will rebate 100% of City property taxes for the first five years. On a home valued at $200,000 appreciating at 2% annually, this would total an estimated $3,873 over five years.
The program also includes a rule change to increase available development lots. Currently City rule AR 6.2 requires developers to be current on special assessments in existing developments before they would be considered for further new development. This limits exposure for the City of Wichita. However, it also could preclude the use of special assessment financing to complete a development (financing streets for example, if water and sewer has already been extended) and allow new homes to be marketed and sold. For that reason, the program includes a one year moratorium on this section of AR 6.2.
City Property Tax Rebate
- For eligible property, a 5 year rebate of City property taxes will be provided. On a $200,000 home, this rebate is valued at an estimated $3,873.
Eligibile Propery
- Property must be in a participating development: all buildable lots must be current through 2010 on all special assessments and all general taxes.
- Special assessments and general taxes must be paid current at the date of sale and closing of a property.
Potential New HOME Program Refunds
| Year | Home value | City levy | Refund portion | Refund amount | Cumulative |
|---|---|---|---|---|---|
| 1 | 200,000 | 0.0324 | 100% | 744.26 | 744.26 |
| 2 | 204,000 | 0.0324 | 100% | 759.14 | 1,503.40 |
| 3 | 208,080 | 0.0324 | 100% | 774.32 | 2,277.72 |
| 4 | 212,240 | 0.0324 | 100% | 789.81 | 3,067.53 |
| 5 | 216,490 | 0.0324 | 100% | 805.62 | 3,873.15 |
Download the PDF Document here
