Tax abatement is the temporary elimination of increased real estate property tax, used to stimulate new development or redevelopment. These developments qualify:
- New construction of single-family homes or multifamily investor-owned properties
- Conversion of nonresidential buildings to residential units
- Rehabilitation of existing one and two-family homes which increases market value
- Rehabilitation of multifamily (three or more units) structures
- Improvements (costing over $2500) of one and two-family homes that increase the assessed value of the property
Tax Abatement is available to both homeowners and developers. The property must be located in the City of Cleveland. The Cuyahoga County Auditor's Office determines the abatement amount based on the type of improvements. There may be an increase or decrease in taxes during the abatement period when voted changes in tax rates, state-mandated reappraisals, or updates reflecting neighborhood trends take effect.
The property owner will be responsible for paying property taxes based on the land value and the home’s value prior to improvements. Tax savings realized by developers is passed on to tenants in the form of lower rents. Abatement terms and rates vary depending on the project. The contact number for further information is 216.664.3442. Applications for tax abatement can be found here:
Tax Abatement and Green Building Standards
Residents and developers seeking tax abatement for residential projects must meet Cleveland Green Building Standards found in the Green Housing Handbook. A roster of professionals known as Green Raters can provide assistance and confirm that the project meets the standards.
NOTE: Removal of dilapidated sheds and garages will result in those items being removed from the tax duplicate. For clarification on all matters dealing with real estate taxes, contact the Office of the Cuyahoga County Auditor at 216-443-7100.
