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Xenia is a diverse community which contains both growing and established areas. Some established neighborhoods and business districts have experienced increases in vacancy as well as a decline in property maintenance. These factors can discourage existing businesses and homeowners from expanding or continuing to invest in their properties. These factors can also discourage new businesses and homeowners from locating in or building in these areas. The CRA offers a tool to help existing and prospective property owners to overcome these obstacles to investment. The City will continue to monitor the progress of the program as well as conditions in other portions of the City and continuously evaluate whether the CRA should be expanded to include additional areas.
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A CRA is a program authorized by the State of Ohio that allows a local government (like the City of Xenia) to offer real property tax abatements to incentivize new construction, expansion and rehabilitation in areas where there is a demonstrated need for reinvestment.
Building a new home, store or office or investing in renovations can make real property taxes go up. This is because improvements to a property increase the property’s value, and real property taxes are a percentage of the taxable real property value. A real property tax abatement in a CRA makes it possible for property owners to avoid all or a portion of the tax increase caused by the improvements over a 10-15 year period.
If you are a business, homeowner or landlord who would like to build, expand or substantially rehabilitate a building, a CRA real property tax abatement can result in a significant annual savings to you over a period of 10-15 years. The tax savings keeps more money in your pocket that you can invest in your project, other expenses, or savings. If you are someone who does not have plans to improve your property, you will indirectly benefit from the CRA program because it will encourage improvement of other Xenia properties as well as business attraction and expansion, which can improve the value of your property as well as Xenia’s general quality of life.
You must own a residential or business property within the CRA and do one of the following: (1) Undertake new construction of a commercial/industrial building or one or more residential units, or (2) Expand or rehabilitate an existing residential, commercial or industrial building to an extent that it increases the taxable real property value.
Below are the types and levels of tax abatements available:
Term length is to be negotiated on a case-by-case basis. It is important to note that projects must add substantially to the taxable real property value in order to realize significant savings through an abatement. Projects involving new construction, significant expansions, and major rehabilitation (i.e. gutting/reconstructing the interior of a building) will generally add substantial taxable value. Smaller remodeling projects, such as replacing a roof, windows, siding, flooring, appliances, cabinets or furnishings may not result in any change in taxable value.
Upon COMPLETION of your new construction, expansion or renovation project, fill out the online application and follow the online instructions. When you click “submit” it will be sent to the Planning and Zoning Department for processing. You can access the online application by
The City Planner will review residential applications, and the Economic Development Coordinator will review commercial/industrial applications, to ensure proper documentation has been submitted and will inspect the property to ensure that the application information is consistent with actual work completed. Commercial/industrial applications will additionally be forwarded to City Council for approval.
Once approved, the application will be forwarded with a certification to the County Auditor. The County Auditor will then make a final determination on the actual increase in taxable value generated by the new construction, expansion or renovation project. The Auditor will then apply the approved abatement to future tax bills.
No. A CRA tax abatement only applies to increases in real property taxes caused by improvements to a property. Pre-improvement real property taxes must still be paid.
Perhaps. You will still be responsible for paying pre-improvement real property taxes on the property, which could go up or down due to periodic County Auditor re-assessments or tax levies.
After a tax abatement expires, you will begin paying the full amount of real property taxes on both the pre-improvement and post-improvement value of a property.