Tax abatements set for Canfield renovations
CANFIELD — City council has approved a measure allowing tax abatements on improvements to property within a Community Reinvestment Area.
A CRA is an incentive tax exemption program that benefits property owners who renovate or build new structures. Last year, the CRA was amended by council to encompass the entire city.
But during last year’s discussions and legislation, parameters were not set regarding the actual abatements, explained city Manager Wade Calhoun.
He explained an individual must spend these minimums outlined by the legislation to be eligible for the abatement:
l Tax exemptions for a single-family dwelling containing not more than two family units will have $20,000 for 10 years at 100 percent.
l Dwellings containing more than two units will be exempted at $30,000 for 10 years for 100 percent.
Commercial or industrial buildings were also outlined by the legislation.
l A full reimbursement for 12 years will occur for remodeling of at least $20,000, while construction of new commercial or industrial structures will receive 100 percent abatements for 15 years.
Once the housing council agrees to consider the abatement, the individual moves forward with the remodeling, sending in necessary documents to Mahoning County.
The county then certifies the tax growth, and certifies the new taxable value as a result of the remodel.
The increased value, which would be a result of the remodel, would be abated, Calhoun said.
If a homeowner has a home that is valued at $100,000, Calhoun said as an example, and performs $20,000 worth of remodeling work, the new value could be appraised at $150,000.
The homeowner will not pay taxes for 10 years on that $50,000.
The measures established by legislation approved by council last week are comparable to the state guidelines, Calhoun said.
“What we’ve done is propose… Some increased minimum expenditures above the Ohio Revised Code,” Calhoun said, with the term and percentage of the abatement “very close” to what state law sets as a minimum.
Joint work sessions with council members and Canfield Local Schools officials were held, Calhoun said.
The CRA Housing Council, formed earlier this year, would like to have a joint work session with council and school board, Calhoun said, “so everybody can have a 360-degree conversation on abatements.”