Residential / Commercial Tax Abatement
The City of Panora primarily uses property tax-based financial assistance to support residential and business developers who build in the community. Incentive packages are considered on a case-by-case basis are designed to take into account job creation and investment within the city.
All qualified real estate improvements for residential properties that increase the actual value of the property, other than land, by at least 10% are eligible for tax abatement with the following scale:
| Year 1 | 100% exemption of increased value |
| Year 2 | 100% exemption of increased value |
| Year 3 | 100% exemption of increased value |
| Year 4 | 50% exemption of increased value |
| Year 5 | 25% exemption of increased value |
All qualified real estate improvements for Commercial properties that increase the actual value of the property, other than land, by at least 15% are eligible for tax abatement with the choice of 3 Years at 100% or the following scale,:
| Year 1 | 80% exemption of increased value |
| Year 2 | 70% exemption of increased value |
| Year 3 | 60% exemption of increased value |
| Year 4 | 50% exemption of increased value |
| Year 5 | 40% exemption of increased value |
A person will need to submit an application to the City Council for prior approval for eligibility for a tax exemption on a project. Approved applications are due to the County Assessor by February 1st for the assessment year in which the exemption is first claimed.
Industrial Property Tax Abatement
The City of Panora has adopted the State of Iowa's industrial property tax abatement program for qualifying new construction of industrial real estate, research-service facilities, warehouses and distribution centers. The Industrial Property Tax Abatement gives a partial exemption from taxation for a period of five (5) years on the following scale:
| Year 1 | 75% exemption of actual value added |
| Year 2 | 60% exemption of actual value added |
| Year 3 | 45% exemption of actual value added |
| Year 4 | 30% exemption of actual value added |
| Year 5 | 15% exemption of actual value added |
Applications for exemption shall be filed on forms prescribed by the Director of Revenue and Finance for approval of the City Council. Approved applications are due to the County Assessor by February 1st for the assessment year in which the exemption is first claimed.