Tax Data Series


Table PE-3 provides details on tax abatements in tax year 2015; it shows the assessed value of the real property exempted using tax abatements, by abatement class, and by county.  Approximately $10.4 billion was exempt from taxation due to exemptions granted by local governments. The urban redevelopment tax increment financing program was the largest tax abatement program with $5.4 billion in exempt value. Tax abatements are granted by county, township and municipal governments for the purposes of economic development and urban renewal.

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.

The Ohio Department of Taxation reports these data as submitted by each county auditor via the exempt real property tax abstracts (form DTE94); not all data can be verified or confirmed as accurate.