Abatement is a tool used by local governments to exempt real estate from property taxes in order to encourage economic development within the community. State statutes define the types of abatement.
  1. Community Reinvestment Area (CRA) – In political jurisdictions that utilize the abatement process, owners of real estate renovating existing buildings or constructing new buildings may receive a property tax exemption for a set period of time on the new value added to the property. The construction work must be considered “value added”, not simply maintenance work. Construction permits are the best way to document work to be considered for abatement.

  2. Urban Renewal Abatement - Owners of a new development can enter into an agreement with a local government to make service payments in lieu of property taxes. The local governments can then use these service payment amounts to finance improvements to the infrastructure associated with the project.
Exempt Property is property used for governmental, charitable, educational, religious, and other non-profit purposes as determined by the Ohio Department of Taxation. If the State of Ohio determines a property qualifies for exemption, a final determination document is sent from the State of Ohio Tax Commissioner to the County Auditor. No taxes are applied; however some special assessments may be charged. The State of Ohio may also determine a partial exemption where only a portion of the property is exempt from taxation.
Tax Increment Financing (TIF) allows a local government (county, municipality, or township) to divert future property tax revenue increases from a defined area or district toward an economic development project or public improvement project in the community for a set period of time. The TIF designation does not, however, change the taxpayer's obligation, nor does it change the total valuation on the taxpayer's property. A taxpayer located within a TIF district continues to make payments in an amount equal to the real property tax liability; however those tax payments go directly to the local government instead of going into the county’s general fund. Local governments with TIF properties usually enter into agreements with the local school district(s) to offset the school's loss in tax revenue resulting from the TIF.

Jessica Miranda
Hamilton County Auditor
Exempt Abated TIF
138 East Court Street, Room 304 - Cincinnati, OH 45202
Telephone: 513-946-4012 - Fax: 513-946-4024
e-mail: County.Auditor@Auditor.Hamilton-Co.org