Commercial Rehabilitation Property Tax Abatement

Overview
Read a summary of the tax abatement (PDF) online. If you have any questions, please contact Derek Perry via email or at 757-597-2840.

Process
  • Property owner desires to rehabilitate commercial property.
  • In order to qualify for Commercial Rehabilitation Property Tax Abatement (CRPTA), owner checks eligibility of building with the Department of Development. The eligibility requirements include:
    • The building is 20 years old, 15 if in an Enterprise Zone
    • The qualifying investment will equal at least 20% of the building’s value
    • The building’s square footage will be expanded by no more than 50%
  • Property owner starts construction and ensures proper permits are obtained from the City’s Codes Compliance Department.
  • Once building has final Certificate of Occupancy or Final Inspection, whichever is given by the Codes Compliance Department, the property owner has 18 months in which to apply for the CRPTA program.
  • Complete application for the CRPTA program (PDF), which can be found online.
  • Application and fee of $50 is received and processed by Department of Development. If the property does not qualify, or additional information or permits are needed, the owner will be notified.
  • Qualifying properties are given a 5-year tax abatement equal to half (50%) of qualifying costs. This abatement applies directly to the property owner’s tax obligation on the property. If property qualifies, then certification form is sent to both the property owner and the Real Estate Assessor’s office.
  • The property owner's tax obligation on the property is reduced over each of the next five years to reflect the abatement amount.