Toledo Reporter

The City of Toledo Department of Economic Development is thrilled to announce the citywide launch of the Residential Tax Abatement (RTA) and Commercial and Industrial Tax Abatement (CITA) Programs, collectively known as the Community Reinvestment Area (CRA) program. This strategic initiative marks a significant step towards fostering community development and economic growth in Toledo.

The Community Reinvestment Area program, a 40-year-old economic development tool in the State of Ohio, provides real property tax exemptions on the increase in taxable real property value resulting from the renovation or new construction of buildings within a designated area. While portions of the city have enjoyed the benefits of tax abatement over the years, large sections of South and West Toledo were not eligible until now. In October 2023, Toledo City Council passed legislation authorizing the designation of these areas, and the State of Ohio recently approved the City's application, enabling the acceptance of applications from anywhere in the city.

“This initiative aligns with our commitment to our comprehensive 10-year housing strategy, addressing the pressing need for affordable housing and revitalizing our city for generations to come. We invite residents, businesses, and developers to join hands with us in building a stronger, more prosperous Toledo for all," Mayor Wade Kapszukiewicz said. The report highlighted that 82.5% of homes in the city are more than 50 years old, and there is a shortage of 12,705 affordable rentals in the city.

The Residential Tax Abatement Program is designed to stimulate housing development and rejuvenate existing housing stock within city limits. This program offers a 100% exemption on the increased property value resulting from new home construction or significant renovations valued at $2,500 or more. The abatement period extends up to 12 years for renovations and up to 15 years for new construction.

The Commercial and Industrial Tax Abatement Program is tailored to spur economic activity and job growth that might not have occurred without the incentive. This program offers up to a 100% exemption on the increased property value resulting from new construction or significant renovations valued at $5,000 or more. The abatement period extends up to 12 years for renovations and up to 15 years for new construction.

“As we launch the citywide expansion of the Community Reinvestment Area programs, we are taking a bold step towards improving Toledo’s vibrancy and quality of place. These programs will not only breathe new life into our neighborhoods but also stimulate job creation and economic vitality throughout the entire city,” Brandon Sehlhorst, Director of Economic Development, said.

To apply or learn more about the Residential Tax Abatement Program, visit toledo.oh.gov/RTA. 

To apply or learn more about the Commercial and Industrial Tax Abatement Program, visit toledo.oh.gov/CITA. 

Original source can be found here.