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When you build a new home or invest in renovations, your property taxes can increase. The City of Cincinnati’s Residential Property Tax Abatement allows owners to pay taxes on the pre-improvement value of their property for 10-15 years. Property tax abatement is available for any increased valuation that results from improvements to the property for new construction and renovation.
Tax abatement benefits stay with the property the entire length of the abatement and transfer to any new property owner within the approved time period.
Abatement terms commence as soon as the new improvements have been assessed by the Hamilton County Auditor, either partially or fully.
For agents as well as consumers areas to check:
Hamilton County Auditor:
– Check the Hamilton County Auditor site first. Click here: https://www.hamiltoncountyauditor.org/
– Look up property and if there is one listed on the land, condo or the house. This would be listed on the bottom of the page. It will state the length of the abatement, when it expires and when it goes back taxable.
– Do not rely on the MLS, check this first. Most agents note to check the auditor site.
– There several types but most common are 10 yr vs 15 yr. 10 year is renovations and 15 year is new construction.
– For a break down of costs click the tax distribution tab and if not abated you can run numbers on that page.
– There is always tax on the land. So even is something is the max abatement there may be a small tax fee based on land.
City Site to Visit/Apply:
– For Information
– For Application
– Please note that applications should be submitted with a $250 application fee.
New vs Old program:
– There are some changes in the works
– Anything completed in 2022 (even if still in the construction phase could be approved in the former program). The new changes may reflect in lower amounts and shorter terms.
– For More info click here to see document
Leed Tax Abatements:
-There are many tiers on these. LEED Platinum is going away
Notes For Agents on Contracts:
-Agents should write in a contract that “Sellers needs to apply for tax abatement with documentation provided and pay the fee to the city”.
-A step further is to make this contract contingent on acceptance of tax abatement. Consider some type of addendum with credit back if not accepted.
-There have been less developments in the city so we are seeing less for now. However, homeowners can apply too.
For questions about Residential Tax Abatements, please email ResTaxAbatement@cincinnati-oh.gov.