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1. What is tax abatement?

Tax abatement is the temporary elimination of increased real property taxes, generally offered as a stimulus for new development or as an incentive for redevelopment.

2. What types of development qualify for tax abatement?

Qualifying types include:

• New construction of buildings
• Improvements that cost more than $20,000 (Residential) and $75,000 (Commercial/Industrial) and would result in an increase in assessed value for real estate tax purposes

3. What kinds of improvements do not increases taxes?

Exterior Improvements

• Add windows, doors, awnings
• Add/replace gutters and downspouts
• Install aluminum siding; repair siding
• Install new roof
• Install outdoor lighting
• Install storm windows and doors
• Plant lawns, shrubs, plants

Normal repairs and maintenance will not increase the real estate tax assessment.

Interior Improvements

• Add electrical circuits or outlets
• Install or replace light fixtures
• Paint, wallpaper, redecorate
• Replace furnace (with one of the same type)
• Replace hot water heater
• Replace oil or gas burner
• Replace plumbing
• Resurface ceilings, walls, floors
• Rewire completely

4. What types of improvements do increase the assessed value of property?

Improvements that do increase the assessed value of property include:

• Add on to existing building
• Build new building
• Install additional bathroom or toilet