A newly built commercial property in Ohio is receiving a 15-year, 100% Community Reinvestment Area (CRA) tax abatement on improvements. The land value is $200,000 and the improvement value is $1,800,000. During the abatement period, what amount is subject to full property taxation?
Correct Answer
A) $200,000 — only the land value is taxable
Under Ohio's CRA program (ORC §3735.65-3735.70), tax abatements apply only to the improvement value. The land value remains fully taxable. With a 100% abatement on improvements, only the $200,000 land value is subject to property taxes during the abatement period.
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