Partial Real Estate Tax Exemption for Certain Rehabilitated, Renovated, or Replacement Commercial or Industrial Structures
To provide an Economic incentive for improvement of real estate and prevent deterioration and decay that is harmful to the health and welfare of the city and its residents, the City Council enacted an ordinance (City Code Sec 35-70) allowing a partial exemption of real estate taxes. The partial exemption shall be applied to the increase in assessed value resulting from the rehabilitated, renovated, or replacement commercial or industrial structures within certain designated areas in the City of Virginia Beach.
Eligibility for this exemption requires the following:
Exemption for Rehabilitated Commercial or Industrial Structures:
The exemption shall be an amount equal to the increase in assessed value resulting from the rehabilitation of the structure.
The exemption shall run with the land for fifteen (15) years.
No rehabilitation project shall qualify for this exemption unless the rehabilitation results in an increase of at least forty (40) percent in assessed value of the structure above the base value or at least twenty (20) percent increase in assessed value above the base value in the Accident Potential Zone 1 (APZ-1) property tax exemption district.
The Accident Potential Zone 1 (APZ-1) property tax exemption district is established to encourage redevelopment and revitalization of real property in APZ-1 by converting nonconforming uses, as determined pursuant to Section 1804 of the City Zoning Ordinance, to conforming uses.
Application for Exemption:
Application for a partial exemption for the rehabilitation of a commercial or industrial structure must be filed prior to the commencement of any rehabilitation work for which the exemption is sought.
The owner of such structure shall, at the same time an application is made for a building permit to rehabilitate such a structure, file forms with the Real Estate Assessor (757-385-4601)
Commercial Rehabilitation Application.pdf