Tax abatement is the temporary elimination of increased
real property taxes, generally offered as a stimulus for new development
or as an incentive for redevelopment.
Who administers the program?
The Department of Community Development's Division
of Neighborhood Development is responsible for administering
tax abatement for homeowners and residential developers in the
City of Cleveland. A Housing Officer is appointed by the Director
to verify investments and to notify the County Auditor's Office
of approved cases.
What type of residential developments qualify
for tax abatements?
New construction of single-family homes;
New construction of multifamily investor-owned
properties
Conversion of nonresidential buildings to residential
units
Rehabilitation of existing one- and two-family
homes that increases the market value;
Rehabilitation of multifamily (three or more units)
structures, including historic buildings;
Improvements of one- and two-family homes that
cost more than $2,500 and would result in an increase in assessed
value for real estate tax purposes.
*The tax savings realized by the developers is passed
on to the tenants in the form of lower rents.
What are the terms and rate of the abatement?
The terms and rate vary depending on the project.
Contact the Tax Abatement Office at 216-664-3442 to obtain
the terms and rate for the individual project.
How does a homeowner apply for tax abatement?
Contact the Division of Neighborhood Development's
Tax Abatement Office at 216-664-3442, after the building permit
has been issued to construct or remodel.
The Housing Officer will verify the facts contained
in the application and permit and then certify for tax abatement.
A copy of the certification is forwarded to
the County Auditor's Office that the property taxes are to be
abated. However, 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.
What kind of improvements on residential
properties DO NOT increase taxes?
Exterior Improvements
Install new roof
Install aluminum siding; repair siding
Install storm windows and doors
Add windows and doors
Repair, replace, add window shutters
Install awnings
Add/replace gutters and downspouts
Repoint, repair, replace masonry
Add window boxes
Repair, replace porches and steps
Install outdoor lighting
Install lawn sprinkling system
Plant lawns, shrubs, grass, plants
Scrape and paint house
Install, repair, replace sidewalks/ driveway
Normal repairs and maintenance will not
increase the real estate tax assessment of your home.
Interior Improvements
Remodel kitchen
Add closets
Paint, wallpaper, redecorate
Resurface ceilings and walls
Resurface floors
Replace or refinish woodwork
Repair plaster
Install window blinds
Add built-in bookcases, cabinets, vent tans
Replace furnace (with one of same type)
Replace hot water heater
Replace oil or gas burner
Replace plumbing
Rewire completely
Add electrical circuits or outlets
Install or replace light fixtures
What type of improvements DO increase the assessed value of residential
property?
Build new or enlarge garage
Add additional living area
Install additional bathroom or toilet
Add new porch
Install stall shower
Install indoor fireplace
Finish attic, second floor or bedroom with paneling,
plaster or plasterboard
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 Off
ice of the Cuyahoga County Auditor at 216-443-7100.
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