§ 15-67. Rehabilitated real estate tax exemption (RRETE).  


Latest version.
  • (a)

    Definition. The rehabilitated real estate tax exemption incentive, hereinafter referred to as "RRETE," is a three-year partial exemption from taxation of the increase in assessed value of rehabilitated real estate, as authorized by Code of Virginia (1950), § 58.1-3221 as amended and, for the residential portion of any mixed use building, pursuant to Code of Virginia (1950), § 58.1-3220, as amended.

    (b)

    Amount of incentive. Eighty (80) percent of the increase in the assessed value of the property resulting from the qualifying investment will be exempted from taxation in the first tax year following completion of the qualifying investment, sixty (60) percent in the second tax year; and forty (40) percent in the third tax year. The exemption shall expire after three (3) tax years.

    (c)

    Qualification requirements for RRETE.

    (1)

    The property being improved must be a structure at least fifteen (15) years old, located within the VEZ, and dedicated to commercial, industrial, or mixed use which includes either commercial or industrial; and

    (2)

    The assessed value of the property improvements after the completion of the rehabilitation must equal or exceed one hundred and twenty-five (125) percent of the assessed value of the property improvements prior to the commencement of the rehabilitation or addition; and

    (3)

    The applicant for the RRETE must be a qualified company that the zone administrator has determined is otherwise qualified for the real property tax grant as herein defined; and

    (4)

    The applicant for the RRETE cannot receive the RRETE if applicant, or a legal entity under the control of the applicant, or an immediate family member of the applicant, as defined in Code of Virginia (1950), § 2.2-3101, as amended, or a tenant of applicant is receiving, has received, or has applied for a real property tax grant pursuant to this ordinance for the same improvements to the same property; and

    (5)

    The applicant cannot receive the RRETE if the applicant is delinquent on any tax or fee levied by county against any property of applicant or delinquent on any tax levied against the subject property by any incorporated town in the county.

    (d)

    Repairs do not qualify. Increased assessments resulting from rebuilding or repair after a flood, fire, or other natural disaster do not qualify as improvements for the RRETE.

    (e)

    Qualification process for the RRETE.

    (1)

    To qualify for the RRETE applicant company must apply for the RRETE, prior to conducting any demolition, rehabilitation or addition to the qualifying property;

    (2)

    Applicant must present its plan for improvement to the zone administrator together with an application for a real property tax grant and state in writing its election to chose the RRETE rather than the real property tax grant;

    (3)

    The zone administrator shall evaluate the application pursuant to the procedures set forth herein. Upon a finding by the zone administrator that (a) the company is a qualified company, (b) that the company's proposed investment would be a qualifying investment for purposes of the real property tax grant, and (c) that the company has elected to receive the RRETE instead of the real property tax grant, the zone administrator shall issue a notice of qualification for the RRETE to the applicant;

    (4)

    Within twelve (12) months of completion of the qualifying improvement the applicant then must present the notice of qualification to the commissioner of revenue for Tazewell County. If the commissioner is satisfied that the applicant has complied with the requirements of this ordinance and has been qualified by the zone administrator, the commissioner, pursuant to Code of Virginia (1950), §§ 58.1-3220, 58.1-3221, shall adjust the qualified company's assessment in accordance with this ordinance, beginning with the first tax year after an exemption has been approved by the commissioner.

    (Ord. of 1-5-16)

(Ord. of 1-5-16)