There are three different types of tax abatement available.
An Enterprise Zone is a specific area established within a city or village meeting certain economic criteria. The process is usually initiated by a municipality and must be approved by the Ohio Department of Development.
With an Enterprise Zone (EZ), a business may enter into an Enterprise agreement with the municipality. This agreement will spell out what improvements will be made, what new jobs will be created, etc. The agreement may be with new businesses or with an existing business that is expanding.
The agreement will also specify the tax incentives to be granted:
- Real Property: a percentage (up to 100%) of improvement for up to 10 years.
- Personal Property: a percentage (up to 100%) of new equipment & inventory, for up to 10 years.
Community Reinvestment Area
The second type of abatement is a Community Reinvestment Area. These are categorized as specific areas designated by a municipality or county, completely administered by a designated Housing Officer that is responsible for particular duties.
This may involve the following types of improvements:
- One and two family dwellings - minimum of $2,500 expenditure on improvements; increase to value may be abated for up to 10 years.
- Residential buildings with three or more units and commercial and industrial property - minimum of $5,000 expenditure on improvements; value increase may be abated for up to 12 years.
- Land value is not abated in a Community Reinvestment Area.
Community Urban Redevelopment
The Community Urban Redevelopment type of abatement concerns "blighted" areas as defined by a municipality. The improvements constructed by a Community Urban Redevelopment Corporation, under agreement with municipality, may be exempted for up to 20 years. Taxes on land, including increases to land value as a result of improvements, are NOT abated.
For further information on tax abatement, please contact your local village or the Auditor's Office at 419.399.8205.