Partial Real Estate Tax Exemption for Historically Significant Rehabilitated Structures
In recognition of the educational and cultural value of the city's historically significant structures, the city council enacted an ordinance (City Code Sec. 35-80.1) allowing a partial exemption of real estate taxes. The partial exemption shall be applied to the increase in assessed value resulting from the rehabilitation of an existing, qualified structure. The exemption shall not apply to new construction.
Eligibility for this exemption requires the following:
- The structure shall be historically significant as determined by the City of Virginia Beach Historical Review Board and be listed on the Virginia Beach Historical Register.
- The structure shall be no less than fifty (50) years of age at the time the application is made.
Exemption for Rehabilitated Residential Structures:
- The exemption shall be an amount equal to the initial increase in assessed value of the structure above its base value resulting from the rehabilitation of the structure, as determined by the real estate assessor.
- 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 twenty (20) percent in the assessed value of the structure above the base value.
- No increase in assessment occurring after the first year of such rehabilitation exemption shall qualify for an increase in such exemption.
- In the event of a decrease in the property's assessed value after the first year of any rehabilitation exemption, the exemption shall be based on the difference in taxes computed on the base value and the decreased assessed value of the property.
Exemption for Rehabilitated Commercial or Industrial Structures:
- The exemption shall be an amount equal to fifty (50) percent of the qualified costs of rehabilitating the structure; provided, however, that the amount of the exemption shall not exceed the amount of the assessment of the structure at any time after its rehabilitation.
- The exemption shall run with the land for five (5) years.
- For any rehabilitation project to qualify for this exemption, the rehabilitation project costs must amount to at least twenty-five (25) percent of the structure's assessed value immediately prior to the rehabilitation work. Allowable costs are specified in City Code Section 35-80.1, at paragraph (g), sub-paragraph (1).
Application for Exemption:
- Application for a partial exemption for the rehabilitation of a historically significant structure must be filed prior to the commencement of any rehabilitation work for which 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) and the Historical Review Board with the Planning Department (757-385-4621).