Tax Abatement

WHAT IS TAX ABATEMENT?

Tax abatement (tax phase-in) was first authorized by the State in 1977. This gave local government the option of allowing certain businesses to phase-in those new taxes that would otherwise be assessed to their property because of new building construction or the purchase of equipment used for manufacturing, research and development, logistical distribution and information technology.  

Tax abatement is a valuable incentive to attract new businesses into the Fort Wayne area. Its major impact, however, is to stimulate reinvestment by existing businesses -- by not penalizing them with a major tax bill when they can least afford it - after having just spent their money for a building and/or manufacturing equipment, or research and development equipment. Because new taxes are phased-in, each year new tax money goes into the community coffers while the businesses retain employees and create new job opportunities for our citizens.   Without this incentive, businesses might not make these capital improvements at all! To be eligible for tax abatement, the business must apply for designation as an Economic Revitalization area (ERA) before beginning the capital improvement.

Companies that purchase new manufacturing and/or research & development and/or logistical distribution and/or information technology equipment to be used at their Fort Wayne facility may be eligible for a property tax phase-in of up to ten years.  To qualify, the equipment must be new to the applicant seeking designation.

Real property projects are generally expansions of existing business buildings or new building construction.  Projects of this type in Fort Wayne may be eligible for a property tax phase-in period of up to ten years.

The types of businesses targeted are those in the manufacturing, warehousing, distribution, commercial and/or service arenas.

Retail and residential facilities are not eligible for tax abatement unless located in specially designated areas called Residential Investment Zones (RIZs) or Economic Development Target Areas (EDTAs). For maps of these special areas, please click    RIZ  or     EDTA  

Residential Facilities

An owner of a residential facility larger than four units (multi-family) may qualify for tax abatement if at least twenty percent of its units are available for use by lower income individuals (those whose incomes are sixty percent or less than the area median income) and it is in an EDTA or RIZ.  Owners of these multi-family structures may request that the real property improvements be designated for tax abatement (phased-in) by Fort Wayne Common Council.

An owner of a smaller residential property (one to four units) in a RIZ may apply for a five-year tax abatement on real property improvements.  No approval is needed from Fort Wayne Common Council.  The amount of the deduction that the property owner is entitled to receive or tax abatement for a particular year equals the lesser of the assessed value of the improvements to the property after the rehabilitation or redevelopment has occurred; or the following amount:

Retail

A retail facility may qualify for tax abatement if it is located in an EDTA.  The owner or tenant of a retail facility must apply to have the property designated for tax abatements from Fort Wayne Common Council.

HOW DOES A TAX PHASE-IN WORK?

Tax abatement is a two-step process.

1. First, City Council must approve an application to designate property as an Economic Revitalization Area (ERA).
2. Second, the business must make application to the Allen County Auditor and/or Allen County  Assessor for a deduction from taxes authorized by the Fort Wayne Common Council

In addition to requirements of the State of Indiana Code, Fort Wayne Common Council has set policies regarding the designation of ERAs.

WHAT IS AN ECONOMIC REVITALIZATION AREA?

According to Indiana Law, an Economic Revitalization Area (ERA) is an area within the corporate limits of a city, town, or county which has become "undesirable for, or impossible of, normal development and occupancy because of lack of development, cessation of growth, deterioration of improvements, or character of occupancy, age, obsolescence, substandard buildings, or other factors which have impaired values or prevented a normal development of property".

APPLICATION AND PROCESS 

To begin the process, applicants must correctly complete and submit an approved application form and all required attachments.  Applicants are also required to complete a State of Indiana form called a Statement of Benefits.  There is a Statement of Benefits form for both real and personal property improvements.  In the case of a public utility, there is a separate Statement of Benefits form for utility distributable property.  If a project involves both real and personal property investment, then forms for both real and personal property are to be completed.  The City of Fort Wayne also requires a complete legal description, as well as the appropriate application fee, to be attached to the completed application.  Applications received after the issuance of an improvement location permit (ILP), or after any filings toward a building permit, will not be processed.

Upon receipt of an application, Community Development Division staff will review the application for completeness and accuracy.  If the application is complete, staff will proceed in preparing the application for Fort Wayne Common Council's consideration.

Community Development Division staff prepare two resolutions, a declaratory and comfirmatory resolution, to be approved by Fort Wayne Common Council.  Preparation of the documents will take at least one week.  Division staff will "introduce" the resolutions to Fort Wayne Common Council.  The Common Council's Committee on Finance will recommend passage or non-passage of the confirmatory resolution to the full Council.  Applicants receive a letter notifying them of the dates of introduction, public hearing and estimated final approval.

A public hearing will also be held regarding the application for designation as an Economic Revitalization Area (ERA).  A representative of the applicant may wish, but is not required, to attend the public hearing to discuss the merits of the project.  Approval of the two resolutions and the public hearing are required by Indiana law.  Following the conclusion of the public hearing, Common Council will vote to confirm the designation or deny the designation.  Staff will notify applicants the results of their action by letter.

The Economic Revitalization Area Designation process as outlined takes approximately one month from time of application to final approval.

APPLICATION FEES

Application fees for designation as an Economic Revitalization Area for tax abatement (phase-in) help offset administrative costs.  The fee is due at the time of application.  It is non-refundable.  Fort Wayne Common Council has established the following fee schedule:

Forms are available from:

Fort Wayne Communiy Development Division, 
200 East Berry Street, Room 320 
Fort Wayne, Indiana 46802-1804.
(260) 427-1127

ADDITIONAL SOURCES

For more information on Economic Revitalization Area designations and tax deductions, contact the Community Development Division.  Additional information can be found in the Indiana Code (IC 6-1.1-12.1 et. al.) as well as by requesting a copy of the City of Fort Wayne "Procedures for Designation of Economic Revitalization Areas". 

CONTACT NAMES FOR TAX ABATEMENT PROCEDURES

City of Fort Wayne Community Development Division (Non Residential Projects)
Elissa McGauley, Economic Development Specialist
Fort Wayne Community Development Division
200 East Berry Street, Room 320
Fort Wayne, Indiana 46802
(260) 427-1127

City of Fort Wayne Community Development Division (Residential Projects)
PJ Thuringer, Neighborhood Revitalization Manager
Housing and Neighborhood Services
Fort Wayne Community Development Division
200 East Berry Street, Room 320
Fort Wayne, Indiana 46802
(260) 427-1127

Allen County Auditor's Office (Real Estate Tax Abatement)
Renata Renniger, Property Tax Administrator
Allen County Auditor's Office
One Main Street, City-county Building, Room 102
Fort Wayne, Indiana 46802
(260) 449-7241

Allen County Assessor's Office (Personal Property Tax Abatement)
Tracey Maraviov, Property Tax Administrator
Allen County Assessor's Office
One Main Street, City-County Building, Room 104
Fort Wayne, Indiana 46802
(260) 449-7123

Township Assessor's Offices

Wayne Township
Beverly Zuber, Assessor
One Main Street, City-County Building, Room 242
Fort Wayne, Indiana 46802
(260) 449-7173

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