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(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 shall require prior approval of City Council.
(b) 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 fifteen-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.
(1) Ten 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 100 percent for each of the ten years so long as the single family residential dwelling unit remains owner occupied during the period of exemption.
(2) Zero years, for the remodeling of every residential dwelling unit containing more than one housing unit and upon which the cost of remodeling is at least five thousand dollars ($5,000), as described in R.C. § 3735.67, and with such exemption being zero percent except as may be allowed in division (b)(5) of this section.
(3) Fifteen years, for the construction of single family dwellings by the first owner of the property or an individual who had the residential property constructed either by a builder or by the individual. In this situation, the exemption is for fifteen years for the construction of this single family house containing not more than one housing unit, as described in R.C. § 3735.67, with such exemption being 100 percent for each of the fifteen years. A builder or contractor who is building a single family house for resale to another person is eligible for this exemption.
(4) Up to, and including, twelve years, and up to, and including, 100 percent for the remodeling of existing commercial or industrial or residential facilities that contain three or more units 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.
(5) Up to, and including, fifteen years, and up to, and including, 100 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.
(Ord. 2020-O-28. Passed 9-28-21)
(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.
(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.
(Ord. 2016-O-28. Passed 12-13-16.)