Tax Abatement - Revitalization Program
Program Expired September 1, 2010 - New applications no longer accepted.
(Partial Tax Exemption Ordinance Amendment
effective September 1, 2007)
Article 24, Chapter 4 of the Fairfax County Code, Partial Tax Exemption Ordinance, as amended by the Fairfax County Board of Supervisors on July 23, 2007, provides for the renovation, rehabilitation or replacement of certain multifamily, commercial or industrial property. As authorized by state law, the Board provides a partial tax exemption incentive to improve and maintain the quality of buildings in the County. The Department of Tax Administration (DTA) is the administering agency of this program. Program highlights include:
Program Eligibility and Requirements:
- Commercial and industrial structures located within Revitalization Districts are eligible for the program. Contact DTA to verify that the property is located within a Revitalization District. The building age must be at least 25 years old. If the improved structure total floor area is more than 80,000 sq. ft., then the project must be mixed-use. Minimum market value increase due to improvements is 25 percent.
- Multifamily structures located countywide are eligible for the program. The Multifamily structure (building) must be at least 20 years old. Review Moderate Rental Apartment ratio criteria. Minimum market value increase due to improvements is 25 percent.
- An application for Partial Tax Exemption must be filed with DTA at the time a permit is filed for the improvements. Review the ordinance criteria prior to filing the application, to determine if the planned revitalization qualifies (contact DTA for assistance).
- DTA will schedule an inspection for an appraisal of the existing structure once a partial tax exemption application is received. This appraisal will establish the structure’s base value for the program. Any structural changes made prior to inspection will be incorporated in the structure’s base value.
- Work must be completed by December 31st of the third year following the year in which the application for partial tax exemption is made. A detailed listing of actual costs must be submitted to DTA.
- DTA will make a final appraisal upon substantial completion of work on the structure. This will establish the structure’s final value. The request for final appraisal must be made before November 1 for partial exemption in the following calendar year.
- Review ordinance criteria for further information.
- Hotels are not eligible for this program, unless part of a mixed use project.
Qualifying property owners receive a partial exemption of the taxes associated with the increase in structural value due to renovation, rehabilitation or replacement (i.e. final structural value compared to base structural value), provided all program requirements are met. Owner will receive an exemption over specified time period.
- The partial tax exemption will transfer with the property.
- Application for exemption must be made by September 1, 2010.
- No exemption will be granted on land value.
- All work done must conform to existing County regulations.
- The amount of partial tax exemption will be fixed and will not grow over time. It may be reduced in the event the value of property declines in the future.
- Taxes will be assessed and due at 100% during the construction phase (i.e. prior to final appraisal).
- There is a $250 program application fee (nonrefundable).
- Amenities such as swimming pools generally will not qualify for the program.
For more information, refer to the application procedures and the Partial Tax Exemption Ordinance in its entirety. The application and the other documents are available for viewing and printing from the Department of Tax Administration (DTA) website at: www.fairfaxcounty.gov/dta. The application can also be obtained by contacting the DTA office at 703-222-8234, [TTY 703-222-7594; Español 703-324-3855]. Completed application forms should be mailed to: Fairfax County Department of Tax Administration, 12000 Government Center Parkway, Suite 223, Fairfax, VA 22035.