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How The Abatement Is Calculated
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Back
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Residential, Multi-family & Commercial/Industrial (Inside the Enterprise Zone)
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The following is an example of how the Tax Exemption for Rehabilitated Structures program can reduce property tax dollars:
| Base Imp Value |
$10,000 |
Final Imp Value |
$133,000 |
Rehab Exemption |
= $123,000 |
| Land Value |
$15,000 |
Land Value |
$15,000 |
|
| Total Value |
$25,000 |
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$148,000 |
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| Example: |
| YEAR 1 (Tax Rate 1.29 per $100) |
 |
|
|
$179,000 |
(2007 annual assessment) |
|
- |
$123,000 |
(rehab exemption) |
|
|
$56,000 |
(amount to be taxed) |
|
| $179,000/100*1.29 = |
$2309.10 |
Taxes without the abatement |
| $56,000/100*1.29 = |
$722.40 |
Taxes with the abatement |
| $2309.10-$722.40 = |
$1586.70 |
SAVINGS!!! |
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| YEAR 2 (Tax Rate 1.29 per $100) |
|
|
|
$192,000 |
(2008 annual assessment) |
|
- |
$123,000 |
(rehab exemption) |
|
|
$69,000 |
(amount to be taxed) |
|
| $192,000/100*1.29 = |
$2476.80 |
Taxes without the abatement |
| $69,000/100*1.29 = |
$890.10 |
Taxes with the abatement |
| $2534.40-$910.80 = |
1586.70 |
SAVINGS!!! |
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After the final inspection is completed, the final value is determined by the Assessor’s office.
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Your application for partial exemption from Real Property Taxes for the subject property has been approved. The
Final Value is assessed for the purposes of this tax exemption as $148,000.00 , with the effective date of value being the date of
the original "Base Value" application, allocated as follows:
|
| Land |
$15,000.00 |
| Building |
$133,000.00 |
| Total |
$148,000.00 |
| Your tax credit will be based on the exempt value, which has been determined as follows: |
| Value of building after rehabilitation |
$133,000.00 |
| Value of building before rehabilitation |
$10,000.00 |
| Exempt Value |
$123,000.00 |
The credit will begin in 2007 and will expire at the end of year 10 (2016)
Example of rehab credit and how it is applied:
|
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
| Year |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
| Tax Rate |
1.29 |
1.29 |
1.29 |
1.29 |
1.29 |
1.29 |
1.29 |
1.29 |
1.29 |
1.29 |
| Credit |
1586.70 |
1586.70 |
1586.70 |
1586.70 |
1586.70 |
1586.70 |
1586.70 |
1190.03 |
793.35 |
396.68 |
| % |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
75% |
50% |
25% |
Abatement begins after written notification is submitted to the Assessor’s Office. Start year is the following year after notification of
completion of the property.
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How Does the Abatement Work?
|
Back
|
|
Commercial/ Industrial (outside Enterprise Zone)
|
|
The following is an example of how the Tax Exemption for Rehabilitated Structures program can save property tax dollars:
| Base Imp Value |
$10,000 |
Final Imp Value |
$133,000 |
Rehab Exemption |
= $123,000 |
| Land Value |
$15,000 |
Land Value |
$15,000 |
|
| Total Value |
$25,000 |
|
$148,000 |
|
| Example: |
| YEAR 1 (Tax Rate 1.29 per $100) |
|
|
|
$179,000 |
(2007 annual assessment) |
|
- |
$123,000 |
(rehab exemption) |
|
|
$56,000 |
(amount to be taxed) |
|
| $179,000/100*1.29 = |
$2309.10 |
Taxes without the abatement |
| $56,000/100*1.29 = |
$722.40 |
Taxes with the abatement |
| $2309.10-$722.40 = |
$1586.70 |
SAVINGS!!! |
|
| YEAR 2 (Tax Rate 1.29 per $100) |
|
|
|
$192,000 |
(2008 annual assessment) |
|
- |
$123,000 |
(rehab exemption) |
|
|
$69,000 |
(amount to be taxed) |
|
| $192,000/100*1.29 = |
$2476.80 |
Taxes without the abatement |
| $69,000/100*1.29 = |
$890.10 |
Taxes with the abatement |
| $2534.40-$910.80 = |
1586.70 |
SAVINGS!!! |
|
After the final inspection is completed, the final value is determined by the Assessor’s office.
|
Your application for partial exemption from Real Property Taxes for the subject property has been approved. The
Final Value is assessed for the purposes of this tax exemption as $148,000.00 , with the effective date of value being the date of
the original "Base Value" application, allocated as follows:
|
| Land |
$15,000.00 |
| Building |
$133,000.00 |
| Total |
$148,000.00 |
| Your tax credit will be based on the exempt value, which has been determined as follows: |
| Value of building after rehabilitation |
$133,000.00 |
| Value of building before rehabilitation |
$10,000.00 |
| Exempt Value |
$123,000.00 |
The credit will begin in 2007 and will expire at the end of year 7 (2013)
Example of rehab credit and how it is applied:
|
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
| Year |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
| Tax Rate |
1.29 |
1.29 |
1.29 |
1.29 |
1.29 |
1.29 |
1.29 |
| Credit |
$1586.70 |
$1586.70 |
$1586.70 |
$1586.70 |
$1586.70 |
$1047.22 |
$523.61 |
| % |
100% |
100% |
100% |
100% |
100% |
66% |
33% |
Abatement begins after written notification is submitted to the Assessor’s Office. Start year is the following year after notification of
completion of the property.
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