For home and business owners who are planning a rehabilitation, renovation or replacement project, filling out a short application could help them tap into a tax break.
Real estate incentive programs aren’t new to Chesterfield County, but a fully electronic application that takes only minutes to complete and submit has made the process faster and more user-friendly. Established in 1996 for residential property and in 1997 for commercial, industrial and historic properties, and improved in 2016, the program is available to property owners who rehabilitate, renovate or replace eligible structures.
Buildings must be at least 25 years old for an owner to take advantage of the program, and the planned improvements must increase the assessed value by 10 percent for residential structures and by 15 percent for other qualifying buildings. Typically qualifying projects include building additions, significant or substantial structural renovation and building replacement. An online calculator is available, so property owners can estimate their potential property tax savings.
Once a tax exemption has been approved, it is attached to the land and conveys when the property is sold. Residential benefits remain in place for 15 years. Other structures receive a seven-year benefit.
There is no fee for the program. To learn more about rehabilitation tax exemptions and find out if a project is eligible, call the Department of Community Enhancement at (804) 748-1500 or visit chesterfield.gov and search for “rehabilitation tax exemption.”