County approves first abatements for new home initiatives

A little over a month after Rock County commissioners adopted the “Rock County Home Initiative,” the first tax abatement public hearing took place Oct. 24.
The commission approved abatements totaling $1,361.
Of that amount, $721 is for a new home in Magnolia Township and $640 is for a new home in the city of Beaver Creek.
Greg and Marilyn Uithoven plan a new home on 35 acres in Section 10 of Magnolia Township.
An abatement of $721 was approved for the home, which has an estimated market value of $340,800.
The new house raises the county portion of property taxes on that parcel from $339 paid in 2019 to $1,060.
Chad and Tami Rauk are building a home on two residential lots in Beaver Creek.
The estimated market value is $350,500, and with the Rock County Home Initiative, taxes of $640 will be abated.
The new house raises the county’s portion of property taxes from $83.23 paid in 2019 to $723.
The Rauks are also eligible for abatements through the city of Beaver Creek and the Hills-Beaver Creek School District, which are joining the home initiative program.
Eligible county residents can apply for a five-year tax abatement on the county portion of their property taxes.
Public hearings are also required for tax abatement applications to the city and to the school district.
Homeowners pay both the first and the second half of property taxes due each year. However, for the next five years, the homeowners will receive the payment of the county’s portion back at the end of the year.
The home initiative is similar to programs in Pipestone and Nobles counties.
Rock County commissioners began discussions in 2016 about incentives for Rock County residents to build new homes locally instead of moving across state lines.
On Sept. 3, commissioners adopted the Rock County Home Initiative.
Commissioner Jody Reisch, who was an advocate for the tax abatement program, said, “I am glad we are now able to do something to encourage people to build in Rock County.”
Rock County’s program is available to residents until Sept. 1, 2024.
All applications are on a first-come, first-served basis. The program limits an annual abatement of $200,000 or not to exceed 10 percent of the county’s net tax capacity, whichever is greater.
Home initiative forms are available at the county’s website, www.rock.mn.us or at the Land Management Office at 311 W. Gabrielson Road in Luverne.
Each application undergoes a public hearing before commissioners vote whether or not to approve the proposed abatement.