New home buyers in McPherson will get some new perks for choosing McPherson as their home.
Starting on July 1 of this year, those who buy a new home within McPherson will be eligible to get a rebate on their city property taxes, as well as a $2,000 cash payment.
Mayor Tom Brown said the rebate will only apply to the city’s portion of real estate property taxes. Special taxes, such as county or state property taxes, will not be rebated.
Nick Gregory, city administrator, said that special property taxes which go to fund bonds for the city will not be affected by this resolution.
The rebate will begin at 80 percent in the first year, declining by 20 percent for each following year, during a total of four years. The rebate will be up to a maximum of $200,000. If a home has a greater value than $200,000, only $200,000 will be eligible for the rebate.
In order to qualify for the rebate, the home must be a newly built single-family home that hasn’t been occupied or rented for more than 24 months by the original builder or developer. The home must also be in a platted development within city limits, and the home buyer must ensure that all taxes are paid and up to date.
If the home is sold within the four-year period of the rebate, the rebate will not pass onto the new buyer.
Brown said a problem McPherson has suffered is, despite better job growth than compared to other parts of the state, most new workers in McPherson live outside of the city.
“Last year, there were several hundred jobs created, and we only got a handful of those people,” he said. “We need to bring those people here.”
Brown said he hopes the program will help improve the tax base within the city by encouraging those living outside the city to move to McPherson.
“McPherson offers many people employment,” he said, “but many of the people that are gaining employment here end up living in another community. It is essential that we bring those people to McPherson.”
Brown also said he hopes by providing incentives to new home buyers, more contractors will be encouraged to build more new homes in McPherson.
“By incentivising home buyers, we indirectly incentivise contractors,” he said. “If they buy, they’ll build. This is a program that we hope will be a win-win.”
Gregory said new homes bought before the effective date of June 1 will not qualify for the rebate program.
City commissioners unanimously passed the resolution during a city commission meeting Monday.
Page 2 of 2 - For more information, contact city offices at 245-2535.
Joseph Tuszynski can be reached at email@example.com, or follow him on Twitter @JoeTSentinel.