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Community Reinvestment Areas (CRA) are areas of land in which property owners can receive tax incentives for investing in real property improvements. The CRA Program is a direct incentive tax exemption program benefiting property owners who renovate existing or construct new buildings. The City of Painesville has five CRAs that provide businesses with real property tax exemptions of up to 100% for 10 years on new buildings and renovation projects.
Who is Eligible for the CRA Tax Exemption?
Owners of property within the four designated CRAs in the City of Painesville may be granted real property tax abatement on any increase in property valuation resulting from new construction or remodeling of existing structures. This includes residential, commercial or industrial facilities. If you are uncertain as to whether or not your property is within one of the four CRAs, please call the City of Painesville Economic Development Department at 440-392-5795 for clarification.
You may apply for CRA tax abatement at the completion of the construction or remodeling project. It is important to keep copies of all documents detailing expenditures associated with your construction or remodeling project, as this information must be submitted with your application.
To receive the full benefit of your abatement, you are encouraged to file for the abatement before the cost of the improvement or new structure is reflected on the Lake County tax role. You must file by December 1 in the year the construction is completed to be exempt for the following year.
How Do I Apply for a CRA Tax Exemption?
- Download the CRA Application Form and review all information. Contact the Economic Development office at 440-392-5795 for any questions.
- Determine if your property is located within one of the five CRAs shown on the map below.
- Make sure to complete Section “A” of the application and mail it, with a legal description of the property and documentation verifying the costs associated with the project, to:
When your completed application is received, it is reviewed for completeness and the allowable abatement term is determined. Then, your application is forwarded to the Real Estate Division of the Lake County Auditor’s office, for certification. A copy of the abatement-certified application is returned by the Auditor’s office to the City of Painesville. Shortly thereafter, you will receive an official notification from the City's Economic Development office that your request for abatement has been approved and certified.
When Does the Tax Abatement Begin?
The tax abatement begins in the year following the calendar year in which the certification is made to the Lake County Auditor; i.e., if you have applied for, and been awarded, an abatement during the 2020 calendar year, your abatement will be applied to your tax bill in the year 2021, payable in year 2022.
How Much is My Tax Abatement and How Long Will It Last?
The amount and length of tax abatements are determined by the property classification, location and the value and use of the property, taking into account the increase in property value, as determined by appraisal of the Lake County Auditor. See application for more information.