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Community Reinvestment Area
Property Tax Abatements
The City of Wadsworth created a Community Reinvestment Area (CRA) Tax Abatement zone in eight industrial areas and the downtown. The CRA program offers tax abatements on new construction and renovations for up to 100% for up to 15 years. Terms are negotiated in advance and depend upon the project’s total capital investment and the amount of new payroll.
Industrial CRA agreements are negotiated using the following guidelines:
PROJECT INVESTMENT | % OF TAX EXEMPTION |
---|---|
$ 100,000 - 249,000 | 10% |
$ 250,000 - 499,000 | 20% |
$ 500,000 - 999,000 | 30% |
$1,000,000 - 2,499,999 | 40% |
$2,500,000 - 4,999,000 | 50% |
$5,000,000 - 7,499,000 | 60% |
$7,500,000 - 9,999,000 | 70% |
$10,000,000 - 12,499,000 | 80% |
$12,500,000 - 14,999,000 | 90% |
$15,000,000 + | 100% |
NUMBER OF YEARS OF EXEMPTION
NEW PAYROLL | NEW | ADDITIONS |
---|---|---|
$ 40,000 - 99,999 | 5 | 3 |
$ 100,000 - 199,999 | 6 | 4 |
$ 200,000 - 299,999 | 7 | 5 |
$ 300,000 - 399,999 | 8 | 6 |
$ 400,000 - 749,999 | 9 | 7 |
$ 750,000 - 1,249,999 | 10 | 8 |
$1,250,000 - 2,499,999 | 11 | 9 |
$2,500,000 + | 12 | 10 |
Tax exemption agreements may also provide additional benefit to businesses based on the number of years the business is located in the City of Wadsworth per the following:
YEARS BUSINESS IN CITY | ADDITIONAL YEARS OF EXEMPTION |
---|---|
5 - 9 | 1 |
10 - 14 | 2 |
15 - 19 | 3 |
20+ | 4 |
CRA Example:
A company investing $10 million in an expansion project involving both new construction and machinery & equipment, adding new payroll of $2 million, would qualify for an 80% exemption for 11 years. If the company has been located in Wadsworth for 20+ years, the 80% exemption would extend for 15 years.
The tax abatement for the project is calculated on the Medina County Auditor’s valuation of the new or improved real property. Calculations of estimated tax exemption benefits assume that the building is valued at the amount invested in construction.
Estimated Savings for 15-Year, 80% Abatement
Real Property Investment | Estimated Total Property Tax Savings |
---|---|
$ 1 million | $263,389 |
$3 million | $790,167 |
$4 million | $1,053,556 |
$5 million | $1,316,945 |
$10 million | $2,633,890 |
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Jim Gray
Director of Economic DevelopmentPhone: 330-335-2707
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Ayten Anderson
Marketing CoordinatorPhone: 330-335-2727
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Economic Development
Physical Address
120 Maple Street
Wadsworth, OH 44281
Phone: 330-335-2707