Twenty plus years ago the city of Cleveland developed a residential tax
abatement program. The City of Cleveland’s Residential Tax Abatement
program is the temporary elimination of 100% of the increase in real estate
property tax of the real estate property tax on the home itself, that results
from certain eligible improvements on eligible residential/housing projects
(Remodeling or New Construction). It was created to stimulate investment in
new development or redevelopment of residential housing in the City of
Cleveland. The length or term of abatement is 15 years at 100% of the
dollar amount by which the eligible new construction or remodeling activities
increased the assessed market value of the property. The property owner is
responsible for paying property taxes on the assessed value of the land prior
to the new construction being built or the improvements made to an existing
home. Residents and developers seeking tax abatement for residential
projects must adhere to standards found in the Cleveland Green Building
Standards.
The benefit to buyers and sellers is more home for your money! Depending
on your mortgage pre-approval or your buying situation, looking at a tax
abated property as opposed to traditionally taxed property can increase your
buying power by a significant amount!
The tax abatement program will be going through some changes that will
affect any new builds permitted after January first of 2024. Contact me or
any of us at Ted & Co to discuss details of the changes!
Ted & Co has been involved in the tax abatement program since it’s
installment and instrumental in the dramatic growth of our Tremont, Duck
Island, Ohio City and Detroit Shoreway neighborhoods in the last two
decades! We are your city experts and here to guide you.
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