Overview

Under the State of Ohio guidelines established in accordance with Ohio Revised Code Sections 3735.65 through 3735.70 established by the State in July of 1994, a Community Reinvestment Area (CRA) provides real property tax exemptions for property owners who renovate or construct new buildings based on eligibility established in the Ordinance. The CRA benefits property owners who take advantage of the program by reducing their property taxes for ten to fifteen years depending on the program specifics. As an investment in a community the program also has greater and more wide-ranging benefits for the whole Community by helping to create healthy housing stock, provide for the Village’s future, and improve property values.

 

Following State guidelines stated above, Brewster Village Ordinance 10-2000 was approved to establish a Community Reinvestment Area (CRA) encompassing the entire Village.   In 2013 the specifics of the Community Reinvestment Area (CRA) were updated by Brewster Village Council with the passage of Ordinance 13-2013 which is now in effect.

 

How will this help the Community?

The CRA program helps the Brewster Community in a variety of positive ways.

 

1.          Creates Healthy Housing Stock.

By encouraging the improvement of structures within the CRA would help to revitalize Village housing stock.

 

2.          Encourages Business

Access to tax incentives encourages current businesses to expand or improve their local facilities as well as encourages new businesses to come into the community. The presence of jobs then exponentially improves the surrounding community by boosting incomes, providing new customers, and attracting new residents.

 

3.         Provides for the Community’s Future

Constructing new modern housing stock and updating current housing enhances the Village’s and the local School districts’ property tax base and secures both short- and long-term future revenues. These added revenues will then be reinvested by Brewster into our community and by the school into our children.

 

4.         Improves Property Values

As homes are improved, property values will increase, not just for the improved homes but also for surrounding parcels. The increase in value will lead to higher sale prices and enable the Village and Fairless and R. G. Drage Schools to utilize lower property tax rates benefiting residents and local businesses.

 

Who Qualifies for a CRA Abatement?

The CRA covers three different groups: residential housing, commercial housing, and commercial/industrial structures. In all cases qualifying property owners must apply and would still be responsible for all existing property taxes on the value of the land.

 

Residential Housing

1. In the Village’s Community Reinvestment Area (CRA) for residential property, a tax exemption of 100% of the increased assessed valuation resulting in improvements as described on Ohio Revised Code Section (O.R.C.) 3735.67 and shall be granted upon proper application by the property owner and certification thereof by the Village’s designated Housing Officer.

 2. Residential applications must be filed with the Housing Officer no later than one year after completion of               construction in accordance with O.R.C. Section 3735.67(F).

 3. The following periods and minimum amounts by which the remodeling or new construction increases the               assessed value of the structure shall be exempt from real property taxation for the terms as follows:

      (a.) 10 years for the remodeling of dwelling containing not more than two units, and upon which the cost of                 remodeling is at least $ 10,000, as described in O.R.C. Section 3735.67D(1)

      (b.) 12 years for the remodeling of dwelling containing more than two units, and upon which the cost of                       remodeling is at least $ 10,000, as described in O.R.C. Section 3735.67D(2)

      (c.) Construction of new single, or multiple, unit residential structures are not eligible for tax exemption                      under this ordinance.

Commercial or Industrial Structures

Within the CRA, new construction or remodeling of existing commercial or industrial structures are eligible for exemption from real property taxation. The percentage of the tax exemption on the increase in the assessed valuation resulting from improvements to commercial and industrial real property and the period of those exemptions shall be negotiated on a case-by-case basis, in advance of the commencement of the construction or remodeling consistent with O.R.C. Section 3735.67. In addition, the following shall apply in accordance with O.R.C. Sections 3735.65 through 3735.70 and O.R.C Sections 5709.82 through 5709.85:

1. The percentage of the tax exemption on the increase on the assessed valuation resulting from improvements to commercial and industrial real property and the period of those exemptions shall be negotiated between the applicant and Village Council and shall be according to the following guideline:

            (a.) Remodeling – Up to twelve years and up to 100% for existing commercial and industrial facilities, to                       be negotiated on a case-by-case basis in advance of construction starting.

            (b.) New Construction – Up to fifteen years and up to 100% for new commercial and industrial facilities                     industrial facilities, to be negotiated on a case-by-case basis in advance of construction starting.

            (c.) If remodeling qualifies for an exemption, during the period of the exemption, the dollar amount of the                     increase in market value shall be exempt from real property taxation at the percentage of the                                 abatement negotiated. If new construction qualifies for an exemption, during the period of the                               exemption the structure shall not be considered to be an improvement on the land on which it is                           located for the purpose of real property taxation at the percentage of abatement negotiated.

The Process

 

For additional information, please contact Village Administrator Mike Miller at 330-767-3931 or at BXAdmin@brewsterohio.com