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Real Estate Tax Exemption Programs

Substantial relief from real estate taxes is available to property owners who rescue, repair and rehabilitate qualified older buildings located within the City. Subject to the following qualifications, real estate tax is deferred on the value of the improvements to the property.  For more information in tax exemption programs within the City of Roanoke, please contact the Office of Real Estate Valuation at (540) 853-2771.

 

Eligibility of Industrial and Commercial Real Property

  • Be no less than 25 years of age (15 years of age within Enterprise Zone One A).
  • Be improved so as to increase the assessed value of the structure by no less than 60 percent (improved by at least $50,000 within Enterprise Zone One A).
  • Be improved without increasing the total square footage of such structure by more than 100 percent.
  • Be designed for and suitable for commercial or industrial use after completion of such improvement (must have at least 20% of the total square footage of the structure dedicated to commercial use in the case of a mixed-use building).

*Note: If an exemption is granted for commercial or industrial properties, no other exemption, including ones pertaining to Enterprise Zones, will be granted, even if the use of the property changes.

 

Application Requirements

  • The application form must be filed with Real Estate Valuation by the owner of the building prior to the commencement of any rehabilitation work.
  • The application fee is $50.00. In those cases where new tax numbers are created, the fee is $50 for each new number created under this program.
  • An “on site” inspection and appraisal must be conducted by an appraiser from the Office of Real Estate Valuation prior to the commencement of any rehabilitation work and immediately following such work.
  • No exemption shall be granted if access to the entire property is denied to the Office of Real Estate Valuation for either inspection or appraisal.
  • All appropriate building permits must be obtained prior to the commencement of any work.

Effective Date/Amount/Duration of Exemption

  • The exemption for a qualifying structure commences on July 1 of the tax year following the completion date
  • The amount of the exemption shall be a fixed amount equal to the difference in the appraised value immediately before commencement of substantial rehabilitation and the appraised value immediately after completion of substantial rehabilitation, as determined by the Office of Real Estate valuation.
  • Only one exemption per structure is applicable at any point in time.
  • The exemption shall run with the real estate for a period of five consecutive years, except exemptions in the H-1 & H-2 Historical Districts and the Conservation/Rehabilitation Districts shall run for a period of ten consecutive years.  Within Enterprise Zone One A, the exemption shall run for a period of seven years with a maximum tax exemption capped at $100,000.

Tax Exemption for Use of Certified Solar Energy Equipment

As a result of an amendment to Sections 32-103.5 through 32-103.17 of the code of the City of Roanoke, addition of new Division 8, owners of real estate to which certified energy equipment, facilities, or devices are attached can apply for tax exemption as follows:

  • Amount of the exemption will be determined by applying the tax rate to the value of the certified solar equipment, facilities, or devices and subtracting that amount from the total real estate property tax due on the real property to which such equipment, facilities, or devices are attached, or if such equipment, facilities, or devices are taxable as machinery and tools, from the total machinery and tool tax due on such equipment, facilities, or devices, at the election of the taxpayer.
  • The exemption shall be effective for five years, and can apply to properties installing new solar equipment, facilities, or devices as well as to properties with existing solar equipment, facilities, or devices.
  • The exemption will be administered by the Department of Planning, Building, and Development, the Department of Real Estate Valuation, the Commissioner of the Revenue’s Office, and the City Treasurer’s Office.