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Tax Exempt Program
OPRA
Obsolete Property Rehabilitation Act
A means to encourage the rehabilitation of obsolete property and to increase commercial/residential housing available in downtowns or other areas characterized by underused or functionally obsolete properties. Functional obsolescence as defined by the state includes more than outdated electrical, heating or plumbing. Oversized or undersized rooms, poor layouts and traffic flow problems, which also may qualify.
OPRA allows partial tax exemption for commercial or commercial/residential properties. After the city creates a district and grants an exemption for up to 12 years, and the state gives final approval, the taxable value on the building is frozen at the pre-improvement level for all taxes except state education tax (6 mills) and school operating (18 mills). These 24 mills are levied on the taxable value with improvements as set by the assessor. Unlike other exemptions, OPRA exemptions can be transferred to new property owners with local approval. The process starts at the local assessor’s office.
The Escanaba City Assessor can be reached by calling (906) 786-9402.
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