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UNDERSTAND YOUR TAX ABATEMENT

COCLT properties that are located in one of the Community Reinvestment Areas designated by the City of Columbus are eligible for a tax abatement for the first 15 years after construction.
 

Tax abatements do not eliminate a property tax bill. Property taxes are due based on the value of the property before it was improved. This amount may increase over time if the property is re-evaluated and/or levies are passed by voters. Levies can be for schools, libraries, social services (e.g., ADAMH), and even the zoo. Regardless of these potential increases, the property will still have a substantially lower property tax amount, allowing for significant savings for the homeowner.

The COCLT prepares and submits tax abatement applications for COCLT properties to the City of Columbus for approval.  The approval time can vary, and the tax abatement application may not be approved prior to the time the home is sold to a homebuyer. Each homebuyer is advised on the status of their application by their lender.  There will either be an estimated tax abated amount escrowed in the mortgage payment loan or there will be a deduction in the monthly mortgage payment once the tax abatement application has been approved.

 

If you still own your home at the end of the abatement period, there will be an increase in your property taxes. Keeping track of the year your tax abatement expires will allow you to plan for this adjustment that will be escrowed into your monthly mortgage payment.

 

The City of Columbus states the core principle of their housing abatement policy is to foster private sector investment to build mixed income neighborhoods. More information on the City’s program can be found here.