As of November 1, 2011, the Residential Rehabilitation Tax Abatement Program for the City of Newport News is administered by the office of the Commissioner of the Revenue. This program is available on a city-wide basis and tax abatements can be utilized for all homes, regardless of value or homeowners income.

 *Residential Rehabilitation Property Tax Abatement Program

Click here to download an application.

FACT SHEET

As authorized by state law, the City Council has provided a real estate tax abatement incentive to improve and maintain the quality of housing stock in the City. Section 40-55, Division 4 of the Newport News Code, Tax Abatement Revitalization Ordinance, provides for the abatement of a portion of real estate tax when an owner undertakes the improvements, rehabilitation or replacement of residential property. The Commissioner of the Revenue is the administering agency of this program.

Program Requirements:

The structure must be at least 15 years of age and located in the City of Newport News.
The eligible rehabilitation costs incurred by the applicant must be equal to at least 10% of the assessed value of the property immediately prior to beginning the rehabilitation.
An application for Residential Rehabilitation Property Tax Abatement (RRPTA) must be filed with the Commissioner of the Revenue within 18 months of the date of completion of the renovation.  A $25.00 processing fee made payable to the City of Newport News must accompany the application.
The application should contain the following: All contractor required permits with final inspection/occupancy dates, and an itemized description of all the work, along with all paid bill receipts.   Delinquent taxes must be paid to participate. And, the value of owner/applicant self-labor does not qualify.

 Eligible RRPTA Improvements:

Eligible improvements include: expenditures associated with exterior, structural, mechanical (i.e. HVAC system), plumbing (i.e. water supply lines) and electrical upgrades undertaken in conjunction with the rehabilitation or expansion of a residential building; expenditures associated with excavations, grading, paving, driveways, roads, sidewalks, landscaping or other land improvements; and expenditures including, but not limited to, demolition, carpentry, sheetrock, plaster, painting, ceilings, fixtures, doors, windows, fire suppression systems, roofing and flashing, exterior repair, cleaning and cleanup are also eligible.
The following costs are NOT eligible for inclusion (i) the cost of furnishings; (ii) appraisal, architectural, engineering and interior design fees, (iii) loan fees; points or capitalized interest; (iv) legal, accounting, realtor, sales and marketing or other professional fees; (v) closing costs, permits, user fees, zoning fees, impact fees, inspection fees; (vi) insurance, signage, utilities, bonding, copying, rent loss; (vii) the cost of temporary facilities during construction, utility hook-up or access fees, outbuildings or the cost of any well, septic, or sewer system; and (viii) the cost of acquiring land or an existing building.
Program Benefits:
· The ten year property RRPTA Program tax benefit is as follows:

For the first five years after RRPTA approval, the tax abatement shall be an amount equal to 50% of the eligible costs of the rehabilitation when costs equal or exceed 10% of the assessed value of the property prior to rehabilitation.

In years 6-10 after RRPTA approval, the tax abatement shall be reduced by 20% annually until the property is fully assessed beginning in year 11.

· The ten year property replacement tax benefit granted when the existing structure is demolished and replaced with a new single family residence, is as follows:

For the first five years after RRPTA approval, the tax abatement shall be equal to 20% of the eligible costs of improvements when the size of the replacement residential structure is at least 80% of the square footage of the demolished structure or at least 1000 square feet. However, the post reconstruction real estate tax shall not be less than the pre-demolition tax for the property.

In years 6-10, the tax abatement shall be reduced by 10% annually until the property is fully assessed beginning in year 11.

An exemption shall not apply when any structure demolished is a registered Virginia landmark or is determined by the Department of Historic Resources to contribute to the significance of a designated historic district.

Additional Information:
· All work done must conform to existing City regulations and codes.

· No abatement will be granted on land value.

· The tax abatement transfers with the title to the property.

· The total amount of real estate taxes saved under this program may fluctuate according to changes in the real estate tax rate over time.

· Any person falsely claiming an exemption shall be guilty of a Class 1 Misdemeanor.

The application for residential rehabilitation property tax abatement program (RRPTA) is available for viewing and printing from the City of Newport News website at:

Application for RRPTA

 *Try the RRPTA Calculator to estimate your benefit!*

The application can also be obtained by contacting the office of the Commissioner of the Revenue at (757)926-8752 or email commish@nngov.com. 

 Completed applications should be mailed to:

 City of Newport News

Commissioner of the Revenue

2400 Washington Avenue, Newport News VA 23607

or Fax (757)247-2628

For further questions, please contact the office of the Commissioner of the Revenue at (757)926-8752 or email at commish@nngov.com.