Seems every day a news story appears about commercial businesses and developers  getting tax abatements or incentives to develop or improve property. But what about residential property owners? Why aren’t they eligible? In Columbia Township they are!

Several years ago Columbia Township officials developed a policy of assisting businesses and residential property owners make improvements if they supported the township’s comprehensive plan. Part of that plan was to improve the housing stock in the community. Unlike most incentive programs available in the State, the Community Reinvestment Area (CRA) incentive makes assistance available to both businesses AND homeowners. Officials pursued establishing the entire township as a CRA which would aid both commercial economic development and homeowners wanting to update or improve their property. Officials included in their legislation establishing the CRA the following incentive:

“For residential properties, tax exemptions on the increase in the assessed valuation resulting from improvements as described in O.R.C. Section 3735.67 shall be granted upon proper application by the property owner and certification thereof by the designated housing officer; the percentage and term of those exemptions shall be as follows:

(a)     Seventy five percent (75%) exemption for a period of ten (10) years for improvements to single family residential properties, and upon which the cost of remodeling is at least $2,500.  The term for Leadership in Energy and Environmental Design (LEED) certified construction shall be one hundred (100%) for ten (10) years.

(b)     Fifty percent (50%) exemption for a period of ten (10) years for construction of new single family residential properties.  The term for Leadership in Energy and Environmental Design (LEED) certified construction shall be one hundred (100%) for ten (10) years.

(c)      Fifty percent (50%) exemption

for a period of ten (10) years for improvements to existing multi-family residential properties, and upon which the cost of remodeling is at least $5,000.  The term for Leadership in Energy and Environmental Design (LEED) certified construction shall be one hundred percent (100%) for ten (10) years.

There shall be no exemptions for the construction of new multi-family residential properties.  Multi-family residential properties include any residential property, which contains two (2) to four (4) housing units. Any property containing in excess of four (4) housing units is to be classified as commercial.

Residential applications must be filed with the housing officer no later than six (6) months after construction completion.

If remodeling qualifies for an exemption, during the period of the exemption, a portion of the dollar amount of the increase in market value of the structure shall be exempt from real property taxation.  If new construction qualifies for an exemption, during the period of the exemption, the exempted percentage of the structure shall not be considered an improvement on the land on which it is located for the purpose of real property taxation.

Columbia Township officials point out that only the increased value of the property resulting from the improvements can be abated. And any abatement over 50% requires school board approval. However, for anyone wanting to undertake improvements to their home – an addition, modernization of utilities, or new “green” technology – there is a financial benefit available in the form of tax abatement for up 10 years!

If you are interested in learning more about this program or want to utilize the opportunity, contact Columbia Township at 513-561-6046.

A community announcement by Mike Lemon, who is on the featured image