[Added 11-13-2018 by Ord.
No. 18-10]
The following words, terms, and phrases, when used in this article,
shall have the meanings ascribed to them in this section, except where
the context clearly indicates a different meaning:
An increase in the square footage of a qualified structure
that expands the structure's utility.
The assessed value of real estate for which an application
has been filed in accordance with this article, as set forth in the
land book on January 1 of the tax year in which the application is
filed.
The shortest distance from one point to another, measured
horizontally in feet, where one foot is equal to 12 inches.
A structure or other improvement that has qualified for rehabilitation,
renovation or replacement in accordance with this article.
The process of restoring a qualified structure through:
The process of updating the utility of a qualified structure,
in whole or in part, including, but not limited to, the structure's
partial destruction and rebuilding.
The process of demolishing a qualified structure for which
an application has been filed in accordance with this article and
subsequently replacing such structure by constructing a new structure
on the same real estate upon which the qualified structure was situated.
Land containing a structure or other improvement of four
or fewer units constructed or used for residential purposes in accordance
with this Code and other applicable law.
The area of a structure or other improvement measured in
square feet.
A qualified structure's rehabilitation so as to increase
the assessed value over the base value of the qualified structure
by no less than 10% of the base value.
A.
In accordance with the criteria set out in Code of Virginia § 58.1-3220,
partial exemption is hereby provided from taxation of real estate
on which any qualified structure has undergone substantial rehabilitation
for residential use, subject to this article's conditions.
B.
In order to qualify for the partial exemption set forth in this article,
qualified structures on residential real estate shall meet the following
requirements:
(1)
On the date that an application for partial tax exemption has
been filed in accordance with this article, the qualified structure
is no less than 25 years of age; has been situated at its existing
location for no less than 25 years; and has exterior walls, the total
linear feet of which is at least 80% of the total linear feet of the
exterior walls of the structure or other improvement as such structure
or other improvement existed 25 years before the date of the application.
(2)
The qualified structure is substantially rehabilitated after the date on which an application is filed in accordance with this article but prior to the application's expiration date as provided in § 258-16.13.
(3)
For qualified structures substantially rehabilitated by replacement
or by renovation and the construction of an addition for residential
use, the total square footage of any such replacement structure or
addition does not exceed the total square footage of the qualified
structure by more than 100%.
C.
Determination of age and linear feet of original walls of a structure
or other improvement. The City Assessor's records shall be used to
determine the age of a structure or other improvement for which an
application for partial tax exemption has been filed in accordance
with this article, and the City Assessor's records also shall be used
to determine the total linear feet of the exterior walls of a structure
or other improvement as such structure or other improvement existed
25 years before the date that an application for partial tax exemption
has been filed. In determining the total linear feet of the exterior
walls of the structure or other improvement, the City Assessor shall
employ usual and customary methods.
D.
Determination of square footage of addition. Upon inspection of a structure to determine if it qualifies for the partial exemption in accordance with § 258-16.13, the City Assessor shall determine the square footage of any addition constructed in accordance with the requirements of this article. In determining the square footage of the addition, the City Assessor shall employ usual and customary methods.
A.
In order to qualify for the partial exemption provided for in § 258-16.14, the owner of residential real estate shall, prior to commencement of rehabilitation and after making application for a building permit for the rehabilitation of the structure, meet with the City Assessor to discuss the planned rehabilitation. To ensure that the owner understands the program, the City Assessor shall provide the owner with written material explaining the program. The written material shall include notice that the failure to pay each installment of the nonexempt amount of the property's real estate taxes by the installment's due date shall, pursuant to Subsection B of § 258-16.15, result in the irrevocable cancellation of any approved partial tax exemption. After the meeting, the owner shall file with the City Assessor, upon forms the City Assessor furnishes, an application to qualify the structure or other improvement upon residential real estate as a qualified structure. Upon receipt of an application for the partial exemption, the City Assessor shall view the property and provide the property owner with written notice of the base value of the qualified structure.
B.
The application to qualify for the partial exemption shall be effective
for two years from the date the application is submitted. If by such
expiration date the qualified structure has not been substantially
rehabilitated, a new application to qualify for tax exemption must
be filed. Upon the filing, the City Assessor shall provide the property
owner with notice of the property's base value as set forth in the
land book on January 1 of the tax year in which the application is
filed.
C.
Any initial and subsequent application to qualify for the rehabilitated
structure tax exemption must be accompanied by payment of a nonrefundable
fee of $125. The fee shall be applied to offset the cost of processing
the application, making required assessments, and making annual inspections
to determine the work's progress. During the period between the receipt
of the application and the specified fee, and the time the City Assessor
ascertains that the qualified structure has been substantially rehabilitated,
the City Assessor shall annually inspect the progress of the rehabilitation
undertaken; and the property owner shall be subject to taxation upon
the full value of the property's improvements. Once a qualified structure's
rehabilitation is complete, an owner may, at any time prior to the
application's expiration date, submit a written request to the City
Assessor to inspect the qualified structure to determine if it qualifies
for the partial exemption. When the City Assessor determines that
the minimum required increase in the assessed value has occurred,
the partial exemption shall become effective beginning on January
1 of the next calendar year.
D.
During the effective period of the partial exemption, no more than
one additional application to qualify for such partial exemption shall
be accepted for the same property. However, upon approval of a partial
exemption based on an additional application, the owner of the residential
real estate shall waive all rights to and interest in any unexpired
partial exemption existing at the time that an additional application
is approved; and the unexpired original partial exemption shall cease.
If the owner fails or refuses to waive such rights or interest, the
approval of the partial exemption based on the additional application
shall be revoked; but the existing partial exemption shall continue
in effect for the remainder of the exemption period.
E.
No application shall be for the:
(1)
Renovation of a structure or other improvement, or any portion
of a structure or other improvement, that is less than 25 years of
age;
(2)
Replacement of a qualified structure on which an existing partial
exemption is based;
(3)
Construction of an addition to be attached to a structure or
other improvement that is less than 25 years of age;
(5)
Rehabilitation of a structure or other improvement of five or
more units constructed or used for residential purposes, as such a
structure or other improvement is ineligible for inclusion in this
partial tax exemption program.
A.
Except for structures in which an additional application has been approved for partial exemption, the owner of property qualifying for partial exemption of real estate taxes because of rehabilitation of a residential structure or other improvement, shall receive a credit in the full amount of the difference in taxes computed upon the base value and the initial rehabilitated assessed value of the property for each year of a ten-year period of exemption. However, for any structure which has been substantially rehabilitated by replacement or by renovation and the construction of an addition, the owner of property qualifying for partial exemption of real estate taxes shall receive a credit for the amount of the difference in taxes computed upon the base value and the initial rehabilitated assessed value attributable to any square footage not exceeding the applicable limitations on square footage specified in Subsection B(3) of § 258-16.12.
B.
No exemption shall be issued during an exemption's effective period for any rehabilitation on the same property for which an additional application has been filed in accordance with § 258-16.13 that is based on:
(1)
Renovation of a structure or other improvement, or any portion
of a structure or other improvement, that is less than 25 years old;
(2)
Replacement of a qualified structure on which an existing partial
exemption is based;
(3)
Construction of an addition to be attached to a structure or
other improvement, or any portion of a structure or other improvement,
that is less than 25 years of age; or
C.
An increase in assessment occurring after the first year of the partial
exemption shall not qualify to increase the partial exemption. The
credit shall be applied towards the payment of the real estate taxes
due and payable for the tax year for which the credit has been issued.
No property may have more than one credit in a given year.
A.
Exemption runs with real estate. Exemption from real property taxation
qualifying for the partial tax exemption provided for in this article
shall run with the real estate; and the owner of the property shall
be entitled to receive, during each of the years of partial exemption,
a credit for the partial exemption from taxation.
B.
Forfeiture of exemption. For real property qualifying for partial
exemption of real estate taxes in accordance with this article, the
partial exemption shall be conditioned upon payment of each installment
of the nonexempt amount of the property's real estate taxes by the
installment's due date. Upon the failure to pay such real estate taxes
by the due date, the partial exemption shall be irrevocably canceled
for that tax year and all other tax years remaining in the ten-year
exemption period.
A.
Demolition of certain structures. No exemption for residential real
estate shall be allowed if substantial rehabilitation is achieved
through the demolition and replacement of any structure either registered
as a Virginia Landmark or determined by the Department of Historic
Resources to contribute to the significance of a registered historic
district, regardless of any changes in ownership or of any changes
in the boundaries of the parcel that may occur after the demolition.
If any qualified structure is designated as a Virginia Landmark, or
listed as a structure contributing to the significance of a registered
historic district or a registered historic landmark, and the structure's
exterior is or is proposed to be altered in any manner during the
rehabilitation process this article provides, the City Assessor shall
obtain written confirmation from the Director of Planning and Community
Development that such rehabilitation complies with the requirements
of the designation or listing before continuing with the qualifying
process.
C.
Improvements on vacant land not qualified. No improvements made upon
vacant land shall be eligible for the partial exemption from real
estate taxation that this article provides. For purposes of this article,
the phrase "vacant land" means real estate with no structures or other
improvements.
A.
The City Assessor shall furnish to the Director of Finance a list
of all properties with qualified structures for which application
has been made in accordance with this division, which list shall show
the base value and initial rehabilitated assessed value for each qualified
structure. The Director of Finance, upon receipt of the City Assessor's
notice that a structure qualifies for partial tax exemption as a rehabilitated
structure or other improvement, shall cause to be issued a credit
in the property owner's name, in an amount equal to the difference
in taxes as computed upon the base value and the initial rehabilitated
assessed value. The credit shall be shown on the tax statement for
the qualified structure.
B.
The City Assessor shall prepare and have available in his office
an application or applications for use by property owners who propose
to rehabilitate qualified structures.
C.
The City Assessor shall prescribe such written rules and regulations
as he deems necessary for processing applications for exemptions and
exempting the property. A copy of any rules and regulations prescribed
shall be available in the Office of the City Assessor.
