Real Property
Real Property Valuations
Valuation of Real Property Exempted by Tax
Abatements, by Class of Abatement and County, Calendar
Year 1998
The value of real property exempt from taxation amounted to
$23.3 billion (see PE-2) for tax year 1998. Of this amount,
approximately $2.9 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 $1.4 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:
1) Community urban redevelopment corporation abatement (ORC
1728.01 - 1728.13) - exempts 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 (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 with the municipalities'
consent.
Figures shown are compiled from Exempted Real Property
Abstracts filed by county auditors.