Tuesday, April 10, 2007

Tax Abatement Changes Proposed By Mayor Jackson and the City of Cleveland

Apparently the Cleveland Community and Economic Development department has made a recommendation to Mayor Jackson that some changes be made to the tax abatement policy.

Instead of a 100% across the board abatement, it would be more like this:

  • 100 % Abatement for 7 Years on new construction
  • Increased Abatement Policies on Rehabbed Homes
  • Homes Meeting Certain Energy/Green Standards Could Receive an Additional 5 Yrs of Abatement

I'm personally in favor of the increased abatement on rehabbed homes. And a 7 year abatement sounds like a reasonable compromise. I may be in the minority on this, I'm not sure. There are arguments about how suburban 15 year abatement might now win residents over Cleveland. But we certainly can't afford to keep giving blanket abatement. Just my opinion. For example, taxes are lower in Cleveland anyway, so 7 years at 100% and then a lower tax than some of the suburban communities....that has to still be enticing.

I would have liked to see longer abatement for some of the still 'needy' neighborhoods...identified in the Mayor's CIP Plan as fragile. Maybe there is more news on this as the plans - proposal becomes available to the public.

Joe Cimperman, whose district has benefited greatly from abatement, has lent a disapproving comment or two about this. To read more about it, check out the story by Jay Miller in Crains Cleveland.

It would be nice to see the economic figures to back this proposal up....can they show that the tax monies received will outweigh a potential loss of new residents due to the lower abatement period? Inquiring minds want to know. At least I do! I know the CSU study was very bullish on abatement. Peace Out - 3C

April 17th Update: Local WKYC news showed a reporter ( I could not catch the name) taking a straw poll of sorts, asking Cleveland's Councilmembers if they wanted to continue the current abatement program or support Mayor Jackson's plan and there seemed to be no hands up in support of his plan.

No comments: