Cincinnati's first review of its tiered tax abatements is overdue

Cincinnati missed a Sept. 1 deadline for its first review of the residential tax abatement changes City Council approved in 2023, WVXU reported.

The reforms tied an abatement's value to the neighborhood, using three tiers based on income, poverty, home values and market conditions. Areas with less recent investment get bigger incentives, after a city-commissioned study found wealthier, majority-white neighborhoods benefited most under the old citywide rate.

About 300 abatements have been approved under the new rules: 156 in the highest-benefit Lift neighborhoods, 115 in middle-tier areas and 39 in the wealthiest tier. More than 1,000 approved since 2023 still fall under the old rules, because eligibility depends on when building permits were first approved.

Officials blamed a reorganization of the city's development staff for the delay. Division manager Roy Hackworth said the program needs at least another year of data and a five-year review by an outside party. Council members Anna Albi and Mark Jeffreys said Council may revisit the ordinance.