Tax Abatement Informaiton

A tax abatement means the City reduces the property taxes you have to pay for a set time.
It is like a temporary tax break.

When the abatement starts

The abatement starts when the Building Inspector approves the Occupancy Permit.

  • If the Occupancy Permit is issued on or before September 30, the abatement starts January 1 of the next year.
  • If the Occupancy Permit is issued on or after October 1, the abatement starts January 1 of the year after next.

Examples

  • Occupancy Permit on September 25, 2026 → abatement starts January 1, 2027
  • Occupancy Permit on October 5, 2026 → abatement starts January 1, 2028

How much the abatement covers

  • The abatement only applies up to $500,000 of the assessed value.
  • If the eligible assessed value is more than $500,000, only up to $500,000 is abated.

Abatement Schedule

  • Year 1: 100% abatement
  • Year 2: 75% abatement
  • Year 3: 50% abatement
  • Year 4: No abatement (back to full taxes)

Examples

Example 1 — Property with an assessed value under the $500,000 cap

Assessed value: $400,000
Cap check: $400,000 is under $500,000 → all $400,000 is eligible.

Abatement schedule (eligible part only):

  • Year 1: 100% abatement
  • Year 2: 75% abatement
  • Year 3: 50% abatement
  • Year 4: no abatement

What the tax notice shows:

  • Year 1: No taxes on the eligible part (100% abated)
  • Years 2 and 3: You pay the part not abated (25% in Year 2, and 50% in Year 3)
  • Year 4: Back to full taxes

Example 2 — Property with an assessed value over the $500,000 cap

Assessed value of the vacant space: $700,000
Cap check: Only $500,000 is eligible → $200,000 is not eligible.

Abatement schedule (eligible part only):

  • Year 1: 100% abatement on $500,000
  • Year 2: 75% abatement on $500,000
  • Year 3: 50% abatement on $500,000
  • Year 4: no abatement

What the tax notice shows:

  • You still receive a tax notice for the taxes applied to the $200,000 not covered by the abatement (because it is above the cap).

Example 3 — 3-unit plaza (1 unit vacant)

Situation: The plaza has 3 equal units. Only 1 unit is vacant and approved.
Total assessed value: $600,000
Assessed value per unit: $600,000 ÷ 3 = $200,000
Eligible assessed value: $200,000 (only the vacant unit)

Abatement schedule (eligible part only):

  • Year 1: 100% abatement on $200,000
  • Year 2: 75% abatement on $200,000
  • Year 3: 50% abatement on $200,000
  • Year 4: no abatement

What the tax notice shows (Year 1):

  • You still pay taxes on $400,000