Real Property Valuations
Valuation of Real Property Exempted by Tax Abatements, by
Class of Abatement and County, Calendar Year
The value of real property exempt from taxation amounted to
$32.6 billion (see PE-2) for tax year 2003. Of this amount,
approximately $5.5 billion was exempt from taxation due to
exemptions granted by local governments through tax
abatements. The largest type of tax abatement program is the
community reinvestment program with $2.5 billion in exempt
value. Tax abatements are granted by county, township and
municipal governments for the purposes of economic
development and urban renewal. Table PE-3 shows the value of
the real property exempted using tax abatements, by abatement
class, and by county.
Each abatement class shown in the table is a program
administered by county, township or municipal governments.
The five tax abatement classes are as follows:
1) Community urban redevelopment corporation abatements (ORC
1728.01 - 1728.13) - exempt the value of improvements to real
property by designated corporations in certain blighted
areas. The corporations make service payments in lieu of real
property taxes. Designated by municipal authorities;
2) Community reinvestment area abatements (ORC 3735.65 -
3735.70) - exempts certain real property improvements in
areas designated by municipal or county authorities;
3) Urban redevelopment tax increment financing abatements
(ORC 5709.41 - 5709.43) - exempts improvements to real
property to which a municipality or a township holds title.
Local officials may require the “lessee” to pay service fees
equivalent to the tax that would have been collected had
exemptions not been granted;
4) Municipal urban renewal abatements (ORC 725.01 - 725.11) -
exempts improvements to real property in designated “urban
renewal areas”. A municipality then requires service fees to
be paid by the owner to service outstanding urban renewal
bonds issued by the municipality;
5) Other abatements - comprised mainly of enterprise zone tax
abatements. Enterprise zones are designated by municipalities
or by counties.
Figures shown are compiled from Exempted Real Property
Abstracts filed by county auditors.