(a) Within the Community Reinvestment Area, the percentage of the tax exemption on the increase in the assessed valuation resulting from improvements to commercial and industrial real property and the term of those exemptions shall be negotiated on a case-by-case basis in advance of construction or remodeling occurring according to the rules outlined in R.C. § 3765.67. All exemptions under this chapter for commercial and industrial real property shall require prior approval of City Council.
(b) (1) For residential property, a tax exemption on the increase in the assessed valuation resulting from the improvements as described in R.C. § 3735.67 shall only be granted to single family owner occupied properties upon application by the property owner and certification thereof by the designated Housing Officer for the following periods. This residential tax exemption remains valid during the five year residential exemption period even if the original or subsequent owner(s) sell(s) the property during this term to a new owner, provided that the new owner occupies the property during the residential exemption period. For all purposes, the residential tax exemption expires in the year following the year in which the property becomes a rental property. In the event the City determines that the property has become a rental property and the City notifies the owner that the property has lost its tax exemption, then the owner may appeal this determination to Council within twenty days of the date of the notice that the tax exemption has been lost. The owner shall then be entitled to have a hearing before Council on this issue. Council shall then determine if the tax exemption shall continue or be terminated. As set forth above in subsection (a), all commercial and industrial applications must be approved by Council.
A. Five years, for the remodeling of every owner occupied single family residential dwelling unit containing not more than one housing unit and upon which the cost of remodeling is at least two thousand five hundred dollars ($2,500), as described in R.C. § 3735.67, and with such exemption being forty-five percent for each of the five years so long as the single family residential dwelling unit remains owner occupied during the period of exemption.
B. The residential tax exemption is not available for the remodeling of a residential dwelling unit containing more than one housing unit or for new construction of a single family residential dwelling or for new construction of a residential dwelling unit containing more than one housing unit.
C. Up to, and including, ten years, and up to, and including, seventy- five percent for the remodeling of existing commercial or industrial buildings and upon which the cost of remodeling is at least five thousand dollars ($5,000), as described in R.C. § 3735.67, the term and percentage of which shall be negotiated on a case-by-case basis in advance of remodeling occurring.
D. Up to, and including, ten years, and up to, and including, seventy- five percent for the construction of new commercial or industrial facilities, the term and percentage of which shall be negotiated on a case-by-case basis in advance of construction occurring.
(2) For the purposes of this section, a condominium unit or a townhouse unit that is individually owned and owner-occupied shall be considered a single family residential unit provided that it meets the requirements of paragraph (b)(1)A. above.
(c) For the purposes of the above described Community Reinvestment Area, structures exclusively used for residential purposes and composed of one unit shall be classified as residential structures. Residential facilities that include three or more units shall be treated as commercial structures for the purpose of this CRA chapter. No exemption shall be granted for an apartment building that consists of two or more units.
(d) If remodeling qualifies for an exemption, during the period of the exemption, the exempted percentage of the dollar amount of the increase in market value of the structure shall be exempt from real property taxation. If new construction qualifies for an exemption, during the period of the exemption the exempted percentage of the structure shall not be considered to be an improvement on the land on which it is located for the purpose of real property taxation.
(e) All applications for residential exemptions for remodeling must be made after completion of the residential unit and/or remodeling and no later than six months after the date of completion. The date of completion shall be the date that the house has had its final inspection and approval issued by the Lake County Building Department or if a County Building Permit is not needed for the improvement for any reason, then the date of completion shall be the date that the City issues a certificate of occupancy, but in no event later than one year after the zoning permit was issued for improvement that does not require a County Building Permit. The applicant shall submit the final inspection and approval report from the Lake County Building Department or the certificate of occupancy to document that the application is timely filed. In the event that (1) the applicant has not received a final inspection and approval and/or certificate of occupancy and (2) the County Auditor and/or Treasurer have made a first tax assessment of the new construction or remodel, then that property shall not be eligible for a tax exemption.
(Ord. 2016-O-28. Passed 12-13-16; Ord. 2020-O-28. Passed 9-28-21; Ord. 2023-O-23. Passed 12-12-23.)