City council likes the idea of a property-tax abatement for flood victims for the time in 2008 they were out of homes and businesses

The City Council said it wanted those whose property was damaged in the June 2008 flood to receive a property-tax abatement for the time in 2008 in which they were out of their homes or businesses.

In practical terms, the council said this would be a 50-percent break for 2008 since the flood, which crested on June 13, came almost at midyear.

In Iowa's quirky property-tax system, property owners have property-tax bills coming due in September based on the value of property in the first half of calendar year 2008. It wasn't entirely clear last night, but it appeared the council wanted flood victims to be liable for 100 percent of the September tax bill and then get a 100-percent abatement for the bill that comes due in March for the second half of the 2008 calendar year.

However, Casey Drew, the city's finance director, said the abatement would be only on the loss in value in a property, so, for instance, some might still face taxes on the value of their lot even if the value of the home dropped to nothing.

By state law, the Linn County Board of Supervisors makes decisions about tax abatements, and Supervisors Brent Oleson and Ben Rogers were at last night's council meeting to listen. The city, county and Cedar Rapids school district, all of which would lose tax revenue in an abatement, have set up a committee to study the matter.

The city's Drew estimated that the city might lose $1.9 million in tax revenue this fiscal year with a 50-percent abatement. The council said it would seek state and federal assistance to cover the loss, and short of that, the council said it would use the 10-percent part the city's local-option sales tax revenue earmarked for property-tax relief to cover the cost.