Note – this article replaces and expands our earlier 2014 article.
What it is – A Community Reinvestment Area (CRA) is an area of land in which local government has the authority to grant tax exemption on real property improvements. Land or existing real property does not qualify for an exemption. That is to say that if someone is considering renovating an existing building or doing new construction, they could be eligible to receive a tax break on the increased taxes for the “real property improvement.” More detailed information can be found here:
How taxes on real property work – Real estate taxes in Ohio are local. In Tiffin, for example, the true (also known as “effective”) real property tax rates for commercial and industrial property are 66.143 mills (or 6.6% or $6.61 per $100.) Only 35% of the appraised value of the property is subject to the tax, which means effectively that there is a 2.32% tax on the value of any property (land, building.) This means that if the County Auditor (the entity who determines the value of property for purposes of taxation) were to assess the value of a new building at $1,000,000, the owner who had it built would have to pay $23,000 a year in new property taxes. Over ten years, that could cost upwards of $230,000 or almost a quarter of a million dollars. (See all Seneca County property tax rates.)
How does it work and what will my benefit be? – The amount of the benefit depends on the particular CRA. First, identify the zone you are considering and then go to that page for more information:
- Tiffin CRA #1 is located in downtown Tiffin. (map)
- Tiffin CRA #2 is located at Eagle Rock Business Park. (map, map of CRA #2A)
- Tiffin CRA #3 is located in northeast Tiffin. (map)
- Tiffin CRA #4 is located in the area of Northstar Industrial Park. (map)
- Tiffin CRA #5 is located in the West Market St. district. (map)
- Hopewell Township CRA #2 is located on the west side of Tiffin, outside of the corporate limits. (map)
- Fostoria CRA 2 (in both Seneca and Hancock Counties) – (contact)
You can also refer to the Ohio Development Services Agency’s Seneca County CRA page on the areas and existing agreements for Seneca County.
For additional questions, contact:
- Tiffin CRA #1 – Amy Reinhart, Downtown Main Street Manager at TSEP, email@example.com or by cell at 419.619.5517.
- Tiffin CRAs #2-5, Hopewell Township #3 – Nick Dutro, Development Manager at TSEP, firstname.lastname@example.org or by cell at 419.767.0328
- Fostoria CRA #2 – Renee Smith, President at the Fostoria Economic Development Corporation (FEDC), at 419.435.7789.