Wichita approves new home tax rebate program

February 14, 2012|By Susan Gager | KWCH 12 Eyewitness News

(WICHITA, Kan.) — “I'm all for it. Let's do it so we can keep busy,” said a construction manager from K & L Foundations.

Homebuilders hope it’s the answer. An incentive program to get new home construction, that basically fell flat during the recession, going again.

“We're grateful for their willingness to kickstart this new housing industry and basically build a bridge to when things are better and sustainable,” said Home Builders Association President Wess Galyon.

On Tuesday the Wichita City Council approved the tax rebate program intended to provide incentive for people to buy now.

“People who build a new home or buying a standing spec home that's never been occupied will qualify for a five year general tax rebate,” said Galyon.

Galyon estimates the program will create about 2,100 jobs initially and 900 jobs on an ongoing basis. A person would save about $750 a year on a $200,000 home. In addition, the builder or developer would kick in $150 a year for special assessments over five years.

“I've got about 5 to start and 5 more in the works.”

And with this new incentive?

“With that who knows? We'll keep on rollin'.”

1,000 homes could benefit from the rebate program. The vote passed 6-1 with some concerned about the effect it could have on existing home sales and lost revenue to the city. Galyon says it’s an investment

"What the city is really doing is making an investment through the rebate to capture these new homes earlier than they might otherwise and essentially grow it's tax base. And after five years all the revenue that they have not received will start flowing into the city and continue," says Galyon.

If finalized by the city, the program would go to the first 1,000 people who build a new home by the end of December 2013.

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