The purpose of the Tax Abatement Program is to encourage significant improvement of residential, commercial and industrial properties throughout the City of Norfolk, that is of the highest construction quality and architectural design complementing the surrounding area.

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• Basic Requirements
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DETAILS

This program offers taxpayers an opportunity to improve residential , commercial or industrial structures and not pay full taxes on those improvements for 14 years.

The increase in assessed value due to the improvements listed on the application will not be recognized for tax purposes for the first ten years following the commencement of the abatement period.

The increase in assessed value due to the improvements will be recognized for tax purposes on the following sliding scale in years 11 through 15 following the start of the tax abatement.

For properties located in designated Enterprise Zones, the abatement is for all 15 years.

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BASIC REQUIREMENTS

Residential - four or fewer units

• The rehabilitation must be done on an existing structure.

• The structure must be at least 15 years old.

• Improvements to the structure must increase the assessed value by at least 20%

Multi-family - five or more units

• The rehabilitation must be done on an existing structure.
• Structure must be at least 50 year old.
• Improvements to the structure must increase the assessed value by at least 40%

Commercial/Industrial

• The rehabilitation must be on an existing commercial/Industrial structure.

• The structure must be at least 50 years old (20 years old in an Enterprise Zone)

• Improvements to the structure must increase assessed value by at least 40%.

General Requirements:

• Only one approved application per structure will be allowed during the abatement period (with the exception of condominium conversions).

• Rehabilitation work SHALL NOT begin until receipt of an approval letter from the City Assessor and building permits are issued.

• All improvements must be completed within 3 years from the date of the approval letter.

• All taxes must be current.

• Make sure all work to be done is listed on the attached application.

• Rehabilitation must increase the property’s assessed value by at least 20 percent (this will be determined by the assessor’s office prior to the start of work.

• Abatement is limited to original applicant and one transfer.

• No owner shall own more than 20% of condominium units after 3 years from commencement of the tax abatement.

Note: Not all improvements increase the assessed value of a house, or meet the minimum increase of 20 percent in assessed value. Examples of work that might increase the assessed value include room addition, new porch, new deck, and extensive alterations.

Tax Abatement only applies to main dwelling.  Detached garages, swimming pools, spas, fences, sheds, etc. will not be considered for abatement.

Tax Abatement does not apply to new construction.  The integrity of the original structure must remain.

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HOW DO I APPLY?

Fill out application and take it, along with four (4) copies of your building plans, survey, elevation drawings and specifications, to Building and Construction Services, 400 Granby Street.

Submission Requirements:

1. Complete application form

2. Physical survey

3. Photos of all four existing elevations

4. Scaled drawings of existing and proposed conditions

5. Detailed description of work

Click here for a sample Residential Application

Click here for a sample Commercial Application

Fees

Residential:  $50 NON-REFUNDABLE fee

Commercial/Industrial:  $250 NON-REFUNDABLE fee.  *Dependent on type of variation, the fee may increase.

After a successful review, an application approval letter will be mailed to the property owner.  NO WORK may commence prior to approval and issuance of a building permit.

Approval process can take up to 15-20 working days.

Abatement shall be contingent upon approval of building exteriors by the Director of Planning and Community Development, based upon design compatibility, quality, value enhancement, bulk, massing and height.  Properties located in historic districts will be required to apply and obtain certificates of appropriateness.

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For more information contact:

Office of the Real Estate Assessor

402 City Hall Building

Norfolk, VA 23510

Phone:  (757) 664-4732

 

Neighborhood Design and Resource Center

111 Granby Street

Norfolk, VA 23510

Phone:  (757) 664-6770