Residential Tax Abatement

The Village of Jackson Center Community Reinvestment Area (CRA) Tax Abatement Program stimulates revitalization, retains residents, and attracts new homeowners.  The program provides a benefit for residents who improve their homes and encourages home shoppers to buy in the Village of Jackson Center.

Any homeowner in the Village may be eligible for property tax abatement if they have renovated their home or purchased a newly constructed home.  The home must be either a one, or two unit residential structure.  For multi-family units that are three units or greater, see Commercial CRA Tax Abatement.

Improvements made to your property resulting in an increased property valuation qualify for tax abatement. The owner of a property that gains value because of remodeling or substantial improvement is not charged the extra property tax for a period of five years.

For example, if the owner of a $75,000 home makes $25,000 in improvements, the owner is only responsible for taxes based on the home's original value for a period of five years.  The portion of the tax by which the remodeling increased the value of the structure may be abated.  It should be noted that some types of remodeling do not increase value. Landscaping, retaining walls, driveways and the like do not qualify.

The Village also offers a tax abatement incentive to build a new home within the Village of Jackson Center with a cost of construction at least $50,000.  For example, new construction of structures containing a one or two unit residential structure are eligible for a 5-year abatement. The following is an example of the estimated tax savings:

  • Total Investment Eligible for Exemption (fair market value): $275,000
  • Assessed Value/Taxable Value is 35% of fair market value: $96,250
  • Assessed Value Multiplied by Tax Rate (.0503444): $4,845.64 
10%
  • Rollback: $484.56
Estimated tax abated for one year: $4,361.08
  • 
(Estimate determined in 2008 using 0.0503444 tax rate)

The Shelby County Auditor's Office determines the abatement amount based on the type of improvements.  You will receive a letter from the Auditor's Office after the Auditor's appraisal has been completed.  The period for tax abatement begins with the date of documented completion of work.

An increase or decrease in taxes during the abatement period may result when voted changes in tax rates, state-mandated reappraisals, or updates reflecting neighborhood trends are adopted.

For more information about this program contact 937-596-6314.  To complete an application for a tax exemption, please click on the link below to print out a CRA Exemption Application.  Residential applications must be filed with the Housing Officer no later than six (6) months after construction is complete.

Residential Tax Abatement Application