Miami Township can grant tax abatement for improvements placed on land; taxes on unimproved land cannot, under Ohio law, be abated. This means that the township can eliminate the real estate taxes due on a building for a number of years, not to exceed ten.
This is a significant savings: as an example, assume that your company erects a 30,000 square foot factory or office building at a cost of $1,000,000. For normal tax purposes, this new building would be assessed at 35% of the actual value, resulting in an annual tax of $22,750 ($350,000 at a hypothetical tax rate of $65 per $1,000 equates to annual tax of $22,750). Ten years x $22,750 equates to a savings of $227,500! New personal tangible property can also be abated.
Tax Increment Financing (TIF) Programs TIF Districts or Programs may be approved by the township trustees by resolution declaring the infrastructure improvements to a parcel of real property to be a public purpose. The business uses its real property tax to finance public infrastructure improvements that directly benefit their place of operations and thereby extend the public infrastructure. The Ohio Revised Code Section 5709 provides that up to 75% of the value of real property taxes can be exempted for up to 10 years, which requires an annual service payment in lieu of taxes. Payment in lieu of taxes cannot exceed the annual debt service of the notes or bonds used to finance the public infrastructure improvements. The rate and terms can extend up to 100% for up to 30 years with School Board approval.