Rehabilitated Real Estate

 PURPOSE

The purpose of this Chapter is to implement the provisions of Virginia Code Section 58.1-3220 and Virginia Code Section 58.1-3221 and the Isle of Wight County Ordinance Section 15-35 which authorize the County to provide partial exemption from real estate taxation for qualifying rehabilitated, renovated or replacement residential/commercial structures.  Such exemptions will provide an economic incentive to owners to improve their properties.  These improvements will help to prevent the deterioration and abandonment of older properties, which is detrimental to the health and welfare of the County and its citizens. In addition, such exemptions may encourage the modification of those structures to meet the needs of the County’s disabled or elderly citizens.

 APPLICATION

Any person wishing to apply for the Rehabilitated Real Estate Tax Exemption program must first complete the Rehabilitated Real Estate Tax Application Form.  The application form must be filed with the Commissioner of Revenue’s Office (Real Estate).  Only one (1) application per structure can be approved.  Each application requires a processing fee of $20.00.

 ELIGIBILITY/QUALIFICATIONS CRITERIA

1. The property is lawfully used for single-family, owner-occupied residential purposes or commercial structures.

2. The owner of the dwelling/commercial shall be required to file an application with the Commissioner of the Revenue requesting the partial tax exemption not later than six months after completion of the rehabilitation or renovation of the building or structure.

3. The dwelling/commercial unit is at least thirty (30) years of age.

4. The dwelling/commercial unit has undergone “substantial rehabilitation, renovation or replacement” in a manner that increases the assessed value of the real estate by a minimum value of twenty-five (25) percent and increases the square footage of living area no more than fifteen (15) percent.

5. All required permits, certificates, approvals and inspections were obtained for the work conducted on the property.

6. No delinquent taxes are owed on the property.

7. No code violations exist on the property or are corrected within the time permitted by the County.

8. Landscaping, driveways, fencing, or other detached improvements do not qualify under this program.

9. A partial real estate tax exemption will be issued for each year of the five-year period.