As a tool for encouraging economic and community development, the Village of East Palestine has the ability to incentivize property owners to build new buildings and homes, expand buildings and homes or significantly renovate buildings and homes through the Community Reinvestment Area (CRA) program.
Through the CRA program, property owners can receive a property tax exemption on the value of the “new” improvements (new construction or renovation value, not the existing taxable value).
Commercial and industrial properties need to apply for and receive approval for the CRA exemption before starting construction. Please note that the commercial/industrial CRA process will require fully completing an application with details of the project, notification or approval of the school board (depending upon the exemption level), approval by Village Council and executing an agreement. The approval process will take time and applications should plan accordingly. CRA exemption requests for commercial and industrial property improvements will be considered on a case by-case basis with the term and percent negotiated between the property owner and village with upper limits being:
- Up to 12 years for the renovation of existing commercial and industrial facilities;
- Up to 15 years for new commercial or industrial facilities.
The village will consider economic impacts (new jobs, payroll, capital investment and other economic benefits to the community) when negotiating incentives. Financial impacts to schools, which rely on property taxes, will also be considered. Application fees will be required for commercial and industrial properties.
Residential properties will be granted a 100% tax exemption on the increased assessed valuation resulting from improvements upon proper application by the property owner and certification by the village. Terms will be:
- 10 years for remodeling existing dwellings containing not more than two housing units, where the investment is a least $5,000;
- 5 years for new dwellings containing not more than two housing units.
Residential applicants can apply after construction has started but must submit an application to the village within six months after construction is complete. The entire corporate limits of the village are encompassed by the CRA, so any property in the village could potentially qualify.
For more information on the CRA, please review the online application form.