Tax abatement budget gap so far: $3.8 million

With 2,611 tax abatement applications processed so far, there is a $3.8 million combined budget gap for the city of Cedar Rapids, Linn County and Cedar Rapids Community School District, Linn County Treasurer's Office officials said Monday.

Final numbers are not yet available for the budget impact of tax abatements for Linn County flood victims. But today's figure is an update from last week, when officials said 1,500 abatement applications would leave a budget gap of about $1.97 million.

The bulk of the burden will be borne by the city and school district. 70 more abatement applications could still be approved over the next two weeks.

Only 132 flood victims from Palo applied for tax abatements, officials said.

Linn County supervisors voted unanimously in September to offer abatements for the months owners lost the use of their homes or businesses as a result of last June's floods. The abatement applies only to the period in which the owner couldn't use the property, and only within the taxing period from July 2008 to June 2009.

The supervisors approved abatement for homeowners as well as industrial and commercial property owners, including landlords. Taxes levied on the land beneath flooded homes and businesses also will be forgiven.

Filling the resulting budget shortfall will be a challenge for the city, county and school district.