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Oswego Mayor Billy Barlow announced today his proposal to make permanent the City of Oswego Residential Home Improvement Tax Exemption, a tax break to encourage home improvement projects.
The exemption, which is set to expire next month, was initiated by Barlow in 2015 as a member of the Common Council. Mayor Barlow is also proposing a new local law that provides a similar tax exemption for businesses within the City of Oswego that improve, expand or renovate their property.
The Residential Home Improvement Tax Exemption encourages homeowners to invest in their property by temporarily exempting the value of the improvement project from being fully taxed for eight years, including a 100% exemption in the first year. To qualify for the exemption, a home must be at least five years old and the value of the improvement project must exceed $3,000. Mayor Barlow's proposed Business Investment Tax Exemption requires a $10,000 improvement project and temporarily exempts the value of the improvement project from being fully taxed for ten years.
Residential Tax Exemption Business Tax Exemption
|
Year |
% Exempt from Taxation |
Year |
% Exempt from Taxation |
|
|
1 |
100% |
1 |
50% |
|
|
2 |
87.50% |
2 |
45% |
|
|
3 |
75% |
3 |
40% |
|
|
4 |
62.50% |
4 |
35% |
|
|
5 |
50% |
5 |
30% |
|
|
6 |
37.50% |
6 |
25% |
|
|
7 |
25% |
7 |
20% |
|
|
8 |
12.50% |
8 |
15% |
|
|
9 |
10% |
|||
|
10 |
5% |
|||
“One of the major concerns I hear repeatedly while talking with homeowners and business owners throughout the city, is the fear that any substantial property investment would result in an increase in property taxes as a result of an increased assessment directly related to the improvement project. The idea that improving your home or business results in an immediate increase to your property taxes is completely counterproductive and fundamentally contradicts our approach to neighborhood revitalization, encouraging investment in our homes and businesses, and growing our community,” said Mayor Barlow. “These proposed tax exemptions provide homeowners and business owners the opportunity to invest in their property without fear of skyrocketing property taxes, by exempting the value of the improvement project for an extended period of time, saving a substantial amount of money over the duration of the exemption. These laws are intended to encourage investment and act as an incentive for property owners in the city to invest with confidence and pride as we work together to increase the value of our neighborhoods and help our local, small business owners,” Barlow continued.
Mayor Barlow also called on the County of Oswego and the Oswego City School District to adopt and make permanent both the Residential Home Improvement Tax Exemption and Business Investment Tax Exemption in an effort to maximize the potential savings to those who wish to take advantage of the incentives.
"The County of Oswego and the Oswego City School District should join with City of Oswego by adopting both of these local laws so all three taxing entities in the City of Oswego will be consistent in providing these exemptions. With the County and School District following our lead, these exemptions will become more enticing to homeowners and business owners who are considering improvement projects, while drastically increasing the savings participants will see over the lifespan of the exemptions,” Barlow concluded.
Mayor Barlow will propose both local laws to the Common Council on March 5th at 6:30pm at Oswego City Hall, 13 West Oneida Street.
