Commercial and Industrial structures that are 25 years or older are eligible for a 6-year exemption of the increased assessed value of the property after a substantial rehabilitation. The exemption commences on the first taxable year following completion at a rate of 100% of the increased assessed value for the first 3-years and 50% remaining 3-years. For a property to be considered substantially rehabilitated the value of the structure has to be increased by at least 60% without increasing the total square footage by more than 25%.
For an individual to claim this exemption they must file an application with the City Assessor’s office prior to any renovation being started. When renovations are completed the property owner must notify the Assessor to determine if all the requirements have been met. Applications are available at the City Assessor’s Office at 1 Franklin Street, Suite 602 (757) 727-8311. There is a $100 application fee due at the time of filing.