Historic Rehabilitation Tax Exemptions
City Council has approved an ordinance enacting a tax exemption for real estate that is substantially repaired, rehabilitated, or replaced. The tax exemption program encourages renovation and revitalization of aging structures.
- Building must be 25 years old.
- Residential rehabilitation must increase the base assessed value by at least 40% with less than 15% structural addition.*
- Commercial and industrial rehabilitation must increase the base value by at least 60% with less than 15% structural addition.**
The owner or agent must file application along with a $50.00 application fee, with the City Assessor within 10 days after obtaining building permits to perform the rehabilitation. - The exemption period is 10 years
Properties located within Enterprise Zone #1 or #2
- Applies to qualifying commercial, industrial and mixed-use properties.***
- The $50 application fee is waived.
- The building age requirement is reduced to 15 years.
- If base assessed value increases by at least 100%, qualifying properties may receive an additional 5 years of partial exemption.
*If the total square footage of such rehabilitated, renovated, or replacement structure exceeds that of the original structure by more than 15%, the excess square footage above said additional 15% shall not be entitled to the real estate exemption.
**In the event of a complete replacement, the portion of the replacement eligible for the real estate tax exemption shall not exceed 110% of the square footage of the original structure.
***The term mixed-use means any building developed as mixed-use as defined in Chapter 40.1 of the City Code
Environmental Restoration Site Tax Exemption (ERSTE)
This existing city-wide program provides for a 5-year real estate tax exemption for environmental restoration sites on the full assessed value of land and improvements up to a maximum of assessed value of $3,000,000. Any assessed value in excess of $3,000,000 is fully taxable. Within the proposed (second) Virginia Enterprise Zone, the maximum assessed value for the with the ERSTE applies will be increased to $5,000,000. Any assessed value in excess of $5,000,000 would be fully taxable but could leverage an REIG.
For more information, contact the City Assessor's office at 757-393-8631.