Significantly Rehabilitated Commercial or Industrial Structures Located in Exemption Districts

Partial Real Estate Tax Exemption 

To provide an Economic incentive for the improvement of real estate and prevent deterioration and decay that is harmful to the health and welfare of the city and its residents, the City Council enacted an ordinance (City Code Sec 35.70 through 35.74) allowing a partial exemption of real estate taxes. 

The partial exemption shall be applied to the increase in assessed value resulting from the rehabilitated, renovated, or replacement commercial or industrial structures within certain designated areas in the City of Virginia Beach.

Eligibility

  • The structure shall be within exemption districts with boundaries determined by City Council.
  • The structure shall be no less than 20 years of age at the time the application is made.

Exemption for Rehabilitated Commercial or Industrial Structures

  • The exemption shall be an amount equal to the increase in assessed value resulting from the rehabilitation of the structure.
  • The exemption shall run with the land for 15 years.
  • No rehabilitation project shall qualify for this exemption unless the rehabilitation results in an increase of at least 40% in the assessed value of the structure above the base value or at least 20% increase in the assessed value above the base value in the Accident Potential Zone 1 (APZ-1) property tax exemption district.
  • Exemption Districts are determined by City Council.
  • The APZ-1 property tax exemption district is established to encourage redevelopment and revitalization of real property in APZ-1 by converting nonconforming uses, as determined pursuant to Section 1804 of the City Zoning Ordinance, to conforming uses.
  • There is an initial application fee of $100.

Application for Exemption

  • The application shall be on a form created and supplied by the assessor.
  • Applications must be filed with the assessor prior to the commencement of any rehabilitation for which an exemption is sought.
  • No structure shall be eligible for exemption unless the appropriate building permits have been obtained.
  • Relief & Incentives
    • Disabled Veterans Exemption Energy-Efficient Buildings Energy-Efficient Buildings FAQ Historic Landmarks Exemption Historically Significant Structures Commercial or Industrial Structures Land Use Assessment Program Senior & Disabled Tax Relief