Ad-Valorem Tax Exemption

Frequently Asked Questions

• What is the 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.

• Which properties qualify for it?

  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.

• When do you have to apply?

  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.

• How is the tax exemption calculated?

  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.)

• Who is responsible for calculating the value?

  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.

• How long is the exemption for?

  The tax exemption runs for a period of 10 years.

• What happens when the 10 years is up?

  When the 10 years has lapsed, the tax exemption is removed from that folio number and the building is

  assessed as normal.