Tax Data Series

Real Property

Real Property Valuations: Valuation of Real Property Exempted by Tax Abatements, by Class of Abatement and County,  Calendar Year 2001

The value of real property exempt from taxation amounted to $28.4 billion (see PE-2) for tax year 2001. Of this amount, approximately $4.4 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 $2.1 billion in exempt value. County, township and municipal governments grant tax abatements 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 listed below 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.

Figures shown are compiled from Exempted Real Property Abstracts filed by county auditors. Total $4.4 Billion