Some homeowners avoid property improvements due to the potential increase in their property tax. The city of Cincinnati enacted the LEED tax abatement program to encourage Cincinnati home builders and homeowners to boost the value and appeal of their neighborhoods without worrying over their future tax bill. An abatement ensures the bill stays at its current rate for a specified time.
Benefits of Abatement
The tax abatement program assesses the taxes on the property at the pre-renovation value of the home for 10-15 years. The benefit to homeowners and builders is that they do not receive a higher tax bill while still paying for the construction of a home or the improvement of an existing structure. The benefit for the city is the encouragement it provides to home buyers looking for property in the area as well as the revitalization potential it offers the community.
Requirements to Qualify
Owners of single-family homes and multi-unit properties can apply for the abatement program if they have undergone program-approved repairs with the required minimum allowed investment. The amounts are $2,500 – $5,000 depending on the number of units per building. Annual inspection of the exterior by the city ensures there is proper maintenance of all improvements.
Additional Abatement Qualifications
Meeting LEED standards enable the applicant to receive a longer term of tax abatement or a higher maximum amount of their abatement. To qualify for the leed tax abatement cincinnati residents must perform work that meets LEED standards. Homes that qualify for this abatement must be sustainable designs, built with environmentally safe practices or have green or other energy-saving improvements. For example, the improvements may have included the installation of solar panels, use of sustainable materials, or include ways to reduce potable water usage.
Reasons for Revocation
Successful applicants can lose their tax abatement if they do not maintain the property during the term. Code violations will lead to a denial of the application. Any code violations after acceptance to the program will also cause a revocation of the abatement unless the owner corrects the violation at once.
Taxpayers using the abatement program in Cincinnati have saved themselves a total of $841 million over the last few years. Approximately 285 commercial properties and 1,342 residential homes already use the abatement program to reduce their property tax bill.