[HISTORY: Adopted by the City Council of
the City of Galax as indicated in article histories. Amendments noted
where applicable.]
[Adopted 11-13-2007]
In order to encourage improvements to those
residential, commercial and industrial buildings located within the
City's historic district, the Galax Historical Properties Tax Abatement
Program allows for the abatement of a portion of the increase in the
City real property taxes resulting in the completed improvements to
eligible historic residential, commercial and industrial buildings
within the historic district of the City of Galax.
To be eligible for tax abatement under the Galax
Historical Properties Tax Abatement Program, the historic buildings
must be no less than 20 years of age and be within the City's historic
district. The abatement shall result only when new private investment
for improvements on eligible properties within the City's historic
district comply with the U.S. Secretary of Interior's Standards of
Rehabilitation (United States Department of Interior Regulations,
36 CFR 67, or as may be amended from time to time), and shall extend
up to a maximum of 12 years. Normal City real property tax reassessment
increases shall still apply and not be subject to abatement The portion
of the increase in the reassessment not subject to the abatement shall
be based on a factor. The factor, which is calculated by taking the
average percentage of increase resulting from the reassessment of
all City residential, commercial or industrial properties and multiplying
that average percentage of increase with the assessed value of the
subject residential, commercial or industrial property immediately
before the improvements were made. The abatement shall be contingent
upon all work and materials being preapproved by the City or its agent
(as defined below), and all work inspected by the City or its agent,
to ensure compatibility with the existing historic character of the
district. Taxes shall be paid only on the pre-rehabilitation value
for the building for up to a maximum of 12 years, as determined by
the amount of reinvestment, and factoring the average percentage of
increase from a reassessment, as set forth above. An investment increasing
the value of the property for between 20% and 39% shall be eligible
to receive four years' abatement. An investment increasing property
value of between 40% and 59% shall be eligible to receive eight years'
abatement. An investment increasing the value of the property value
60% or more shall be eligible for the maximum abatement of 12 years.
Upon expiration of the relevant abatement period, taxes shall be paid
on the full value of the property.
The City's agent shall be a designated organization
or individual selected by the City Council. For property owners applying
for federal or Virginia tax abatements, the Agent shall be the US
Department of the Interior or the Virginia Department of Historic
Resources. For other property owners, the Agent shall be the City
Building Official.
Qualifying abatements shall be calculated as provided in § 136-2 of this article. For guidance in calculation, the following example is provided:
|
Assessed value prior to improvements being started
at $100,000. Assessed value with completed improvements: $150,000.
Average increase in value resulting from first reassessment:
10%. Amount not subject to abatement: $100,000.00 x 1.10 = $110,000.
Average increase in value resulting in second reassessment: 15%. Amount
not subject to abatement: $110,000 x 1.15 = $126,500. Average increase
in value resulting from third reassessment: 20% Amount not subject
to abatement: $126,500 x 1.20 = $151,800.
|
The tax abatement provided by this article shall
become effective for the tax year beginning January 1, 2008.
