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Community Enhancement -Tax Rehabilitation Program

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1. Who runs this program?

Community Enhancement administers the program. The Assessor's Office is responsible for field inspections to verify the existing and rehabilitated, renovated, or replaced structure. The Assessor's Office will also determine the base value and the value after renovation.

2. Where do I get an application form?

You have three options - pick the one that works best for you:

1. Fill out this simple online application form (This is the fastest option)
2. Print out the appropriate application form, fill it out, and mail it to Community Enhancement - Residential - Commercial - Historical
3. Email the application to CE@chesterfield.gov

3. How do I apply?

You must first apply for a building permit for the work. Then fill out and submit your application.

4. What happens after I apply?

There are several steps in the process:

1. County staff reviews your application for completeness and determines whether it may qualify for the exemption program. If there is any missing information or potential problems with the application, staff will notify you.
2. If your application is complete and potentially qualifies for this program, the Assessor’s Office will contact you to schedule an initial inspection of the existing building to determine its base assessed value.
3. The Assessor’s Office conducts the initial inspection.
4. You complete the work on the project and obtain a certificate of occupancy from Chesterfield Building Inspection.
5. You notify the Assessor’s Office to schedule a follow-up inspection to determine the new assessed value of the structure.
6. The Assessor’s Office conducts the follow-up inspection.
7. The Assessor’s Office informs you if the improvements meet program requirements for minimum increased assessed value (10% for residential, commercial, and industrial, or 25% for historic buildings).  Please note that the amount spent on a rehabilitation project may not result in an assessment change that is significant enough to qualify for partial tax exemption.  Application for a partial tax exemption does not guarantee approval, which is based solely on the Assessor's Office review assessed structure values resulting for your specific improvements. 
8. If the assessed value meets program requirements, the Assessor’s Office notifies the Treasurer’s Office of the amount of the increased assessed value of the structure. This amount becomes the amount of the partial tax exemption, beginning the next calendar year.

5. Who may apply?

The property owner.

6. May a tenant or person other than the property owner apply?

No

7. How long does it take to get the exemption?

The exemption is awarded for the calendar year after completion and inspection of the rehabilitation, renovation, or replacement of the structure. The time required varies based on:

1. The completeness of application
2. The promptness of communication from the applicant to the Assessor's Office for required inspections
3. The length of the construction process

8. Is a building permit needed to qualify for this program?

Yes

9. Does this program apply to a demolition and replacement of a structure?

Yes, for non-historic buildings.  If the building to be demolished meets minimum building age requirements and the replacement building meets applicable program standards (such as minimum increased assessed structure value).  This program does not provide a tax benefit for the demolition and replacement of historic buildings.

10. I've already demolished the building. Can I still apply?

Yes, if all the other program qualifications are satisfied. It is highly recommended to apply for the tax exemption before you demolish the existing structure. That way, the Assessor's Office may more accurately determine the existing building's value.

11. I've already demolished the building. How would the base value be determined?

The book value of the structure, per the records of the Assessor's Office, will be used as the base value.

12. I haven't demolished the building yet. How will the base value be determined?

After the county receives a complete application for a project that may meet program qualifications, the Assessor's Office will contact you to arrange an inspection of the existing building. Please wait on demolition activities until after the inspection is made.

13. I've applied for this program. How long is the application good for?

Two years from the date that the Assessor's Office determines the base value of the structure.

14. My application has expired. What do I do now?

You may reapply, using a new application form.

15. Is there an application fee?

No.

16. My project will increase the size of the existing building. Are there limits on how much larger the proposed building may be?

Several rules apply, based on project type:

1. Residential: the exemption shall apply to 200 percent of the square footage of the original structure(s) that have been replaced or rehabilitated if the resulting structure is used for residential purposes.
2. Mixed Use: the 200 percent limitation (above) shall apply only to the residential portion of the resulting structure.
3. Commercial and Industrial: no limitation except for the 200 percent limitation residential portion (above) of mixed-use projects.

17. Does this program apply to mixed-use development?

Yes, so long as the project meets applicable program criteria.

18. What projects may qualify for the exemption?

• Rehabilitation, renovation, or replacement of residential structures that  are at least 25 years old
• Rehabilitation, renovation, or replacement of commercial or industrial projects that are at least 20 years old (15 years if located in a Technology Zone)
• Rehabilitation, renovation, or replacement of hotels or motels that are at least 35 years old
• Rehabilitation of historic structures (designated as a county historical landmark or located in an area that has been designated a county historical district) that are at least 50 years old

19. What type of improvements may qualify for an exemption?

Any improvement to the structure that increases its assessed value by at least 10%, or 25% (historic). This typically involves:

1. Major structural rehabilitation or renovations
2. Building additions
3. Replacement of a significantly dilapidated structure.

20. What type of improvements don't qualify for an exemption?

Several types of improvements and/or replacement projects don’t qualify for an exemption.

1. Improvement/replacement of accessory structures, such as:
   • Arbors
   • Detached Carports
   • Detached Decks
   • Detached garages
   • Fences
   • Detached Gazebos
   • Retaining Walls
   • Sheds
   • Signs
   • Swimming pools
2. Improvement/replacement of items that are not considered to be a structure, such as:
   • Driveways
   • Grading and flatwork
   • Landscaping
   • Manufactured/mobile home that is not real property
   • Parking lots
   • Walkways
3. Improvement/replacement projects that don’t meet minimum program requirements:
   • Structures that don’t meet the minimum age requirement
   • Projects that don’t have or require a building permit
   • Projects that don’t increase the minimum assessed structure value by at least 10%, or 25% (historic).  For residential projects, certain types of projects often do not increase the assessed value of the structure by at least 10%.
     1. Crawl space repairs, including sealing, liners, sill replacement, joist sistering, and dehumidifiers
     2. Routine maintenance or replacement of existing floors, HVAC equipment, paint, roofing, and/or siding 
     3. Screened porches
     4. Solar panels
     5. Sunrooms

21. Who do I contact if I have additional questions?

Community Enhancement will address questions about your application, program qualification, and other technical questions. The Assessor's Office will address questions related to inspections and assessed valuation.