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Pleasant Hill pauses new tax‑abatement applications after Iowa law change
Summary
The Pleasant Hill City Council unanimously approved an amendment to pause new applications to the city’s Urban Revitalization (tax‑abatement) program effective June 12, 2026, citing Iowa Senate File 2472 and its treatment of valuation for municipal budgets; current abatements remain in force.
The Pleasant Hill City Council voted 5‑0 on June 9 to amend the city’s Urban Revitalization Plan and stop accepting new tax‑abatement applications effective June 12, 2026, in response to recent changes in state law.
City Manager Ben Champ told the council the city’s existing Urban Revitalization Plan — which defers property taxes on the incremental value of new residential and commercial construction and qualifying remodels — has been relied on as a local economic development tool for years. Champ said Senate File 2472 makes fundamental changes to how tax‑increment and abatement valuations are counted, and that the new law “will now prevent the valuation generated by both programs from counting as new construction valuation for the City’s general fund in future budget years,” a change he described as creating an untenable situation for municipal operations and levies.
Champ said the amendment to the plan is an urgent, temporary measure: the plan would remain in place but the city will cease accepting new applications starting June 12. He told the council the city worked with bond counsel on the amendment and that existing tax‑abatement schedules already in place would not be affected. Resident George Salnave asked whether current abatements would be changed; Champ replied they would not, and that the pause applies only to new applications after the effective date.
Mayor Sara Kurovski urged state legislators to clarify the statute, saying they “do not have a model and they need to fix this problem,” and Councilmember Len Murray acknowledged media coverage of the issue. After no further public comment, the council closed the hearing and adopted Resolution #060926‑01 approving the amendment by unanimous roll call.
The amendment is a procedural pause: Champ said the city could amend the plan again to resume accepting applications if the Legislature or a future measure restores the prior valuation treatment. The council’s action does not alter existing abatements already granted or any other active contract terms.
