“We are trying to find ways to make it easier and more financially workable for people to buy and or fix our houses in the city of Springfield,” Copeland said.
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Those designated areas are scattered throughout Springfield. To find out if a property is in one of the reinvestment areas, contact the residential housing officer at 937-328-3480 or go to the Clark County GIS site at gis.clarkcountyauditor.org.
“We are hopeful that with the expanded incentives in place and a renewed promotional effort, that new and existing residents will take advantage of the incentives and invest in our neighborhoods,” said Springfield City Commissioner David Estrop in a statement. “This is just one of many steps in our pursuit to fulfill the city commission’s goal of strengthening and growing our residential neighborhoods.”
There are many benefits to offering the tax abatement, the city said in a release.
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“New construction and renovation help to increase the value of existing properties,” the release said. “Improved neighborhoods attract more families to Springfield, increasing the demand for schools, businesses, and services.”
New development also allows state agencies, like schools, to worry less about taking in enough money and in the long run will result in increased funding, the release says.
Copeland said the city relies mostly on income taxes to operate, and only a small portion of the budget uses property tax money. The local school system is the agency that uses property taxes, Copeland said, so it was important to the commission to ensure the schools were on the same page.
“We talked to the schools and they were willing to go along because in their point of view these areas are not likely to have an increase in property value unless there is an incentive,” he said.
The community reinvestment areas were already labeled as such, Copeland said, but now the city is allowed under state law to offer 100 percent tax abatement on renovations and additions.
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Housing is a top priority for this Springfield commission, Copeland said.
“We are willing to look at other areas where we can do similar things,” he said.
The city commission was able to work quickly to get the increase of relief approved because the areas were already designated. Designating an area a community reinvestment area can be time-consuming so the city needs to target areas in the city that need it most, he said.
“There are other guidelines we must follow,” he said. “It’s not a simple process.”
The city would also need to work with the schools to ensure they are on board with the changes, he said.
The tax-relief is only for new and renovated structures, Copeland said, and people who own property in the areas are still expected to pay their current property taxes.
For more information, contact the residential housing officer.
By the numbers:
100 percent: The amount of property tax that will not be charged to a resident on new or improved properties.
15: Years that new property value won’t be taxed.
3: Community Reinvestment Areas that got increased
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