Lawsuit claims Cincinnati’s residential tax abatement program increases racial disparity

Cincinnati’s residential property tax abatement program “rewards wealthy white homeowners in predominantly white neighborhoods while punishing minorities and poor people who often don’t qualify for tax breaks,” a lawsuit filed against the city claims, according to a recent article. The lawsuit claims the rule mandating homeowners “spend at least $5,000 on a home improvement project” to qualify leads to exacerbation of “the racially segregated residency pattern” in the city. Some city officials have expressed concern about the program over the years; Cincinnati City Council “created the Property Tax Working Group more than a year ago to examine the system and propose changes.” For more, read the full article.

Economic Development, Financial Incentives, State Updates