Chapter 353 Tax Incentive Program

PROGRAM SUMMARY / APPLICATION PROCESS

Chapter 353 tax abatement is an incentive allowed by Missouri law to encourage the redevelopment of blighted areas through the abatement of real property taxes. The city formed the Harrisonville Square Neighborhood Redevelopment Corporation (HSNRC) to administer the 353 incentive program.

Click here to view a brochure for the program.

The Board of Aldermen authorized the program under Chapter 353 RSMO, a state statute that permits cities to abate real estate taxes for specific improvements in a designated geographic area. The Harrisonville program focuses on the Square Historic District and surrounding neighborhoods. This area includes approximately 2,200 residents and 957 parcels of real estate.

The Harrisonville Square Neighborhood Redevelopment Corporation has scheduled a public meeting to explain the program to property owners, developers, real estate and financial professionals, appraisers, attorneys and other interested residents. The meeting will take place at 6:30 p.m. Thursday, April 11, at the Harrisonville Community Center.

The Harrisonville Square Neighborhood Redevelopment Corporation consists of a five-member board that will review applications and issue tax-abatement certificates after approved projects are completed in accordance with program guidelines.

Members	Appointed
Larry Pfautsch, Board President	2023
Dr. Josh Chastain, Vice President	2023
Amanda Stites, Treasurer	2023
Carol Looney, Secretary	2023
Obie Carl	2023

The Tax Abatement Program requires a minimum investment of $10,000 for residential projects, at least half of which must be for exterior improvements, and $100,000 for commercial properties, which must include a mix of exterior and interior improvements. The tax abatement period is 5 years for residential projects and 10 years for commercial projects.

Tax abatement will occur only after the project is completed and approved by the HSNRC Board of Directors. For approved projects, the real property taxes assessed on the structure portion of the property (the home or building) will be abated completely during the abatement period. Real property taxes will be assessed on the land portion of the property during the abatement period, but will be “frozen” during the abatement period, meaning that the amount of taxes assessed against the land will not increase from the amount of taxes that are assessed against the land in the year before the project is completed.

EXAMPLES

As an example, a home appraised at $122,000 and assessed for tax purposes at $23,000 could realize tax savings of approximately $1,300 a year, or more than $6,000 over the 5-year abatement period, on a qualifying $10,000 improvement project.

On a commercial project, a building appraised at $104,000 and assessed for tax purposes at $33,000 could realize tax savings of approximately $2,100 a year, or $21,000 over the 10-year abatement period, on a qualifying $100,000 improvement project.

Click here to read a full press release about the Chapter 353 Tax Abatement Program.

APPLICATIONS

Applications for the program will be accepted by the city staff on behalf of Harrisonville Square Neighborhood Redevelopment Corporation.

The application will then be considered by the HSNRC Board of Directors. The Board may ask property owners for more information on their project if it is needed to consider the application. Property owners should review the HSNRC materials to ensure all required information is included in the application.

Download the HSNRC Program Application (PDF).

MEETINGS

The Harrisonville Square Neighborhood Redevelopment Corporation meets on an as-needed basis, based upon the complete submission of applications.

Application materials and the Program Guidelines are now available at City Hall, 300 E. Pearl St., and can be downloaded below. Questions may be directed to the City of Harrisonville Community Development Department, 816-380-8900.