EAST PALESTINE Council approves property tax breaks

The ordinance is designed to help lure people to the city.
By VIRGINIA ROSS
VINDICATOR CORRESPONDENT
EAST PALESTINE -- Any property owner working on new construction or remodeling a home or business in the city can apply for a new tax break.
City council enacted an ordinance Monday that provides property tax abatements for residential, commercial and industrial properties.
Council began working on the community reinvestment area ordinance earlier this year as part of the city's ongoing effort to promote growth and generate job opportunities.
"Basically, we're hoping this will encourage more people to settle here in town," said Gary Clark, city manager. "We're hoping more people will look at this as an opportunity to locate their homes and businesses here."
Numbers
Clark said according to U.S. Census figures, the city's population decreased by more than 150 residents between 1990 and 2000, and city officials are hoping the new tax breaks will help stall additional losses.
"It's been a gradual decline, but it still has an effect on the community," he said. "And if the decline continues, it could definitely have an impact."
For residential properties, the new ordinance provides a 10-year abatement if remodeling costs total at least $5,000 on dwellings that contain up to two housing units, or a five-year abatement for new dwellings that have up to two housing units.
How it works
Residential applications must be filed with the city's housing officer no later than six months after construction is completed. The tax abatement applies to the new or remodeled structure, not the current property.
That means that although the property owner is granted a tax abatement, the owner must continue paying current taxes for the property that existed before new construction or the remodeling project began.
For commercial or industrial property, the percentage of the tax exemption is to be considered on a case-by-case basis. All structures containing three or more dwelling units are considered commerical.
Commerical and industrial property owners can receive up to a 12-year tax exemption for current commerical and industrial facilities and up to a 15-year abatement for new commerical or industrial facilities.