Home > Regulatory and Economic Resources > Historic Preservation > Ad-Valorem Tax Exemption

Ad-Valorem Tax Exemption

The Ad-Valorem Tax Exemption is an incentive that is provided by state and County law that is intended to encourage the rehabilitation and maintenance of historic structures.

Eligibility requirements

In order to be eligible for the tax exemption, properties must be listed in the National Register of Historic Places, or a locally designated historic structure (designated by the County’s historic preservation board or by a local municipality’s preservation board) and must be about to undergo restoration and/or rehabilitation.

Part I of the application, also known as the Pre-Construction application, must be turned into the County’s Office of Historic and Archaeological Resources prior to construction. Part II is submitted after the construction has been completed.

Is this a complete exemption of all my taxes?

No. The exemption is based on how much additional value was added to your property because of the restoration work. In other words, if a property is valued at $100,000 before construction, and then it is valued at $300,000 after construction, the added value is $200,000. The taxes on that $200,000 figure is what is reduced from your taxes each year. Additionally, it is only the county operating portion of the taxes that is abated; you still pay the other property taxes such as debt service, school, fire, etc.

Calculating the value

The millage rate, for the year in which the project was completed, is multiplied by the additional value figure (the change in value from before restoration to after restoration.) 

The Property Appraiser’s office will come out to re-evaluate the property after the construction is completed, and they will determine the amount of the exemption.

Exemption timeframe

The tax exemption runs for a period of 10 years. When the 10 years have lapsed, the tax exemption is removed from that folio number and the building is assessed as normal.

Frequently Asked Questions