Tax abatement is the temporary elimination of real estate property tax, used to stimulate new development or redevelopment. These developments qualify:
- New construction of single-family homes or multifamily invester-owned properties
- Conversion of nonresidential buildings to residential units
- Rehabilitation of existing one and two-family homes which increases their market value
- Rehabilitation of multifamily (three or more units) structures
- Improvements of one and two-family homes that cost over $2,500 and increase the assessed value of the property
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. Those interested in tax abatement may obtain terns and rate from the Tax Abatement Office at 216.664.3442.
Tax Abatement Process for Homeowners
Homeowners apply for tax abatement after the building permit has been issued by contacting the Division of Neighborhood Development's Tax Abatement Office at 216.664.3442.
The Housing Officer then verifies facts contained in the application and permit and then certifies for tax abatement. A copy of the certification is forwarded to the County Auditor's Office, showing that the property taxes are to be abated. The owner must pay taxes on the increased value of the land itself. In the case of rehabilitation projects, the owner will remain responsible for the initial tax assessment of the property. Any increase in taxes as a result of rehabilitation or new construction will be abated.
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.
