Real Property
Valuation of Real Property Exempted by Tax
Abatements, by Class of Abatement and County, Calendar
Year 2009
The value of real property exempt from taxation amounted to
$43.8 billion (see PE-2) for tax year 2009. Of this amount,
approximately $9.4 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 $3.6 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:
- 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;
- 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;
-
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;
-
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;
- 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.