Residential, Multi-family & Commercial/Industrial (Inside the Enterprise Zone)
The following is an example of how the tax abatement program can reduce property tax amount.
| Example of Abatement |
| Base Value |
Final Value |
Rehab Abatement |
| Land Value |
$15,000 |
Land Value |
$15,000 |
|
|
| Building Value |
$10,000 |
Improved Value |
$133,000 |
|
|
| Total Value |
$25,000 |
Total Value |
$148,000 |
Rehab Abatement |
$123,000 |
| Ye 1 (Tax Rate 1.20 per $100) |
| Annual Assessment |
$179,000 |
| Rehab abatement |
$123,000 |
| Amount to be taxed |
$56,000 |
| Taxes without the abatement |
$179,000/100 * 1.20 = $2148.00 |
| Taxes with the abatement |
$56,000/100 * 1.20 = $672.00 |
| Credit amount |
$2148.00-$672.00= $1476.00 |
| YEAR 2 (Tax Rate 1.20 per $100) |
| Annual Assessment |
$192,000 |
| Rehab abatement |
$123,000 |
| Amount to be taxed |
$69,000 |
| Taxes without the abatement |
$192,000/100*1.20 = $2304.00 |
| Taxes with the abatement |
$69,000/100*1.20 = $828.00 |
| Credit amount |
$2304.00-$828.00=$1476.00 |
After the final inspection is completed, the final value is determined by the Assessor's office.
| Type | Amount |
|---|
| Building |
$133,000.00 |
| Land |
$15,000.00 |
| Total |
$148,000.00 |
The tax credit is based on the abated value, determined as follows.
| Type | Amount |
|---|
| Value of building after rehabilitation |
$133,000.00 |
| Value of building before rehabilitation |
$10,000.00 |
| Abatement Value |
$123,000.00 |
The credit will begin in year 1 and will expire at the end of year 10.
Example of rehab credit and how it is applied.
|
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
| Year |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
| Tax Rate |
1.20 |
1.20 |
1.20 |
1.20 |
1.20 |
1.20 |
1.20 |
1.20 |
1.20 |
1.20 |
| Aba. |
$1476.00 |
$1476.00 |
$1476.00 |
$1476.00 |
$1476.00 |
$1476.00 |
$1476.00 |
$1107.00 |
$738.00 |
$369.00 |
| % |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
75% |
50% |
25% |
How an Abatement is Calculated
Commercial/Industrial (Outside the Enterprise Zone)
The following is an example of how the tax abatement program can reduce property tax dollars.
| Example of Abatement |
| Base |
Final |
Rehab Abatement |
| Land Value |
$15,000 |
Land Value |
$15,000 |
|
|
| Building Value |
$10,000 |
Improved Value |
$133,000 |
|
|
| Total Value |
$25,000 |
Total Value |
$148,000 |
Rehab Abatement |
$123,000 |
| YEAR 1 (Tax Rate 1.20 per $100) |
| Annual Assessment |
$179,000 |
| Rehab Abatement |
$123,000 |
| Amount to be taxed |
$56,000 |
| Taxes without the abatement |
$179,000/100*1.20 = $2148.00 |
| Taxes with the abatement |
$56,000/100*1.20= $672.00 |
| Amount Saved |
$2148.00-$672.00= $1476.00 |
| YEAR 2 (Tax Rate 1.20 per $100) |
| Annual Assessment |
$192,000 |
| Rehab Abatement |
$123,000 |
| Amount to be taxed |
$69,000 |
| Taxes without the abatement |
$192,000/100*1.20 = $2304.00 |
| Taxes with the abatement |
$69,000/100*1.20 = $828.00 |
| Amount Saved |
$2304.00-$828.00=$1476.00 |
After the final inspection is completed, the final value is determined by the Assessor's office.
| Type | Amount |
|---|
| Land |
$15,000.00 |
| Building |
$133,000.00 |
| Total |
$148,000.00 |
The tax credit will be based on the abatement value, determined as follows.
| Type | Amount |
|---|
| Value of building after rehabilitation |
$133,000.00 |
| Value of building before rehabilitation |
$10,000.00 |
| Abatement Value |
$123,000.00 |
The credit will begin in year 1 and will expire at the end of year 7.
Example of rehab abatement and how it is applied
|
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
| Year |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
| Tax Rate |
1.20 |
1.20 |
1.20 |
1.20 |
1.20 |
1.20 |
1.20 |
| Credit |
$1476.00 |
$1476.00 |
$1476.00 |
$1476.00 |
$1476.00 |
$974.16 |
$487.08 |
| % |
100% |
100% |
100% |
100% |
100% |
66% |
33% |
