Real Property
Valuation of Real Property Exempted by Tax
Abatements, by Class of Abatement and County, Calendar
Year 2006
The value of real property exempt from taxation amounted to
$38.1 billion (see PE-2) for tax year 2006. Of this amount,
approximately $6.9 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 $3.0 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 value of improvements to real
property by designated corporations in blighted areas of
impacted cities. 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) - exempt certain real property improvements in areas
designated by municipal or county authorities in which
housing facilities are located and new construction is
discouraged. Owners of commercial and industrial property are
required to make annual service payments in lieu of taxes;
3) Urban redevelopment tax increment financing abatements
(ORC 5709.41 - 5709.43) - exempt real property improvements
which a municipality has declared, by ordinance, to be for a
public purpose. The municipality must have held fee
title prior to adoption of the ordinance and the parcel is
leased, or the fee conveyed, before or after adoption of the
ordinance. Municipal authorities may require owners of
structures on exempted property to make service payments in
lieu of taxes;
4) Municipal urban renewal abatements (ORC 725.01 - 725.11) -
exempt improvements to real property in designated “urban
renewal areas” to finance private or public projects for the
elimination or prevention of blight. 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.