Cincinnati mayor, school district reach agreement on abatements

A new agreement announced by Cincinnati Mayor John Cranley and the Cincinnati Public Schools (CPS) Board of Education will allow tax abatements for commercial developers to continue, while requiring developers to pay more than previously, the Cincinnati Business Courier reports. The school district said “it needs to receive a payment in lieu of taxes (PILOT) of 33% of the total millage on improvements to get the same amount of tax revenue it would have received” without abatements, according to the article. Under the previous agreement, which expired December 31, 2019, developers paid CPS “either 25% or 27% of the total effective millage” of the property. Because these payments did not make the district whole, the city gave CPS additional money out of its general fund. Cranley said the city and school district “still disagree on the mathematics of the abatement debate but that he was accepting CPS’s position.” For more, read the full article.

Economic Development, Financial Incentives, State Updates