Tax Data Series

Real Property

Real Property Valuations
Valuation of Real Property Exempted by Tax Abatements, by Class of Abatement and County, Calendar Year 1987

The value of real property in Ohio that was exempt from taxation amounted to $13,623,922,582 (see PE-2) for tax year 1987. Of this amount, $595,156,832 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 $261,408,952 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:

* Community redevelopment corporation abatement - exempts value of improvements to real property by designated corporations in certain blighted areas. The areas are designated by municipal authorities;

* Community reinvestment area abatements - exempts certain real property improvements. Municipalities collect the equivalent of the taxes exempted as service fees. These are used to fund other projects through municipal redevelopment tax increment financing abatement programs and municipal urban renewal programs.;

* Municipal redevelopment tax increment financing - exempts improvements to real property to which a municipality or a township holds title. They may require the "lessee" to pay service fees equivalent to the tax that would have been collected had exemptions not been granted;

* Municipal urban renewal abatements - exempts improvements to real property in designated "urban renewal areas". A municipality may then require service fees to be paid by the owner to service outstanding urban renewal bonds issued by the municipality;

* Other abatements - comprised mainly of enterprise zone tax abatements. Enterprise zones are designated by municipalities or by counties with the municipalities' consent. The purpose of an enterprise zone is to promote job creation and economic development in depressed areas by granting tax abatements to new or expanding enterprises within the boundaries of the designated zones.

Figures shown are compiled from Exempted Real Property Abstracts filed by county auditors.