City of Lubbock, TX TAX INCENTIVES FOR HISTORICAL PRESERVATION

Properties individually designated as Lubbock Historic Landmarks that have been substantially rehabilitated may be eligible for partial tax exemption as described in section 18.04.003.

Any partial tax exemption under this article shall not exceed the total city tax liability due for the property during the period of eligibility.

As an incentive for property owners interested in having their property individually designated as a Lubbock Historic Landmark, during the months of January and February of each year, the zone case fee for designation shall be waived.

§ 18.04.003 Partial property tax exemption for substantial rehabilitation of certain properties zoned design historic.

Only properties that have been individually designated as a Lubbock Historic Landmark are eligible for partial tax exemption under this article.

(e)

Property subject to the partial tax exemptions shall include the designated structure and only the land necessary for reasonable access to the structure. Determination of the amount of land necessary for reasonable access to a structure shall be determined by the Lubbock Central Appraisal District as allowed by the Texas Tax Code, section 11.24.

(f)

To receive the annual tax reduction, property owners must comply with all applicable city codes, regulations, and ordinances. These include, but are not limited to, complying with the standards and procedures of the historical preservation and urban design district portion of article 40.03, division 28, the property maintenance code adopted in section 34.01.001, and chapter 40 (zoning) of this code.

(g)

Properties located in a tax increment finance reinvestment (TIF) zone must be approved by the responsible TIF board of directors before a tax exemption may be granted.

(h)

Current and delinquent taxes, as well as municipal assessments, must be paid in full in order to receive any tax reduction.

(1983 Code, sec. 26-33; Ordinance 2003-O0063, sec. 2, adopted 8/6/2003; Ordinance 2012-O0071, sec. 1, adopted 7/26/2012)

Eligibility.

A structure individually designated as a historical landmark, which is substantially rehabilitated in accordance with this section, shall be eligible for an exemption from real property ad valorem taxes levied by the city to the extent of the tax on fifty (50) percent of the total approved project costs for rehabilitation of the designated historic site. The exemption shall begin the tax year after the project is completed and extend for a period not to exceed five (5) years or an amount in excess of the total eligible project cost.

Projects.

Eligible projects shall be limited to the exterior of the structure and to those interior elements determined by the urban design and historic preservation commission to be necessary to maintain the historic and structural integrity of the structure. “Total approved project costs” for use in calculation of the tax exemption in subsection (a) shall be determined by the commission upon completion of each project.

Retroactivity.

This program is not retroactive for previously completed projects. Only projects approved by the commission after the effective date of Ordinance No. 2003-O0063 shall be eligible for tax exemption under this section.

Insurance.

Projects initiated as a result of destruction or alteration of the structure or site by natural causes (e.g., fire, tornado, water damage, etc.) will only be eligible for that portion of the cost that is in excess of any insurance settlement.

(e)

Application and approval process.

Upon application to receive the rehabilitation tax exemption, the urban design and historic preservation commission shall review the project for approval under sections 40.03.3217 and 40.03.3219 of this code, the ordinance designating the property as a Lubbock Historic Landmark, and the Secretary of the Interior’s Standards for Rehabilitation (36 CFR part 67). Approval by the commission shall be forwarded as a recommendation to the city council for final action granting the tax exemption. Denial of the application by the commission may be appealed by the owner to the city council with notice to the city manager within ten (10) days of receipt of the commission’s written order.

(f)

Appraisal district requirements.

Nothing in this article relieves the owner from the responsibility to submit an application for the exemption each year to the Lubbock Central Appraisal District pursuant to section 11.43(b) of the Texas Tax Code. By filing said application, the property owner grants the urban design and historic preservation commission the right to make an annual inspection of the property as detailed in section 18.04.004.

(1983 Code, sec. 26-34; Ordinance 2003-O0063, sec. 2, adopted 8/6/2003; Ordinance 2012-O0071, sec. 1, adopted 7/26/2012)

§ 18.04.004 Verification process.

The urban design and historic preservation commission shall review annually all those properties that have been granted tax exemptions under this article.

If, in the opinion of the commission, a property that has been granted an exemption is no longer being maintained in an acceptable state of repair, the commission shall contact the owners of the property and discuss the commission’s concerns with them.

Following this discussion, the commission shall report to the city council either recommending that the tax exemption for that property be terminated on the last day of the tax year, or outlining the steps the owner must take to bring the property into compliance.

The city council, upon receipt of the report of the commission, and after such notice as may be required by law, may remove the tax exemption if it deems such action appropriate.

(1983 Code, sec. 26-35; Ordinance 2003-O0063, sec. 2, adopted 8/6/2003; Ordinance 2012-O0071, sec. 1, adopted 7/26/2012)

§ 18.04.005 Transferability of tax benefits.

The benefits of these city ad valorem tax incentive programs relating to structures designated as Lubbock Historic Landmarks are transferable and run with the property.

(1983 Code, sec. 26-36; Ordinance 2003-O0063, sec. 2, adopted 8/6/2003; Ordinance 2012-O0071, sec. 1, adopted 7/26/2012)

§ 18.04.006 Recapture of taxes.

In order to maintain eligibility for a tax exemption in accordance with this article, the owner and any representative shall not alter or totally or partially destroy the historically significant structure or site by willful act or negligence during the period of the exemption. Maintenance of historic landmarks is required by section 40.03.3220 of this code.

In the event that the owner has requested and been granted removal of the designation as a Lubbock Historic Landmark, or if the landmark or the site is altered or totally or partially destroyed, the owner shall notify the planning department of the city and the chief appraiser of the Lubbock Central Appraisal District that he is no longer entitled to the exemption.

If the urban design and historic preservation commission has reason to believe that a structure or site benefiting from a tax exemption has been altered or totally or partially destroyed by the willful act or negligence of its owner or a representative during the period of the exemption, the commission shall request that the city manager immediately cause the matter to be scheduled for the earliest possible consideration by the city council.