County Board Responds to BVSCA's E-mail on Proposed Real Estate Tax Abatement

Date: May 15, 1998

Dear Ernie:

Enclosed is the County Manager's response to my inquiry on your behalf about the possibility of real estate tax exemptions for renovated or replacement structures.

If you have questions after reviewing the enclosed, please let me know.

Signed Christopher Zimmerman, Chairman

The enclosed follows:

ARLINGTON COUNTY, VIRGINIA, INTERDEPARTMENTAL MEMORANDUM

DATE: May 11, 1998

TO: Christopher Zimmerman, Chairman, Arlington County Board

FROM: Willian T. Donahue, Acting County Manager

SUBJECT: G54602 - Real Estate Tax Exemption for Renovated or Replacement Structures

In regard to Mr. Ragland's letter and its ideas about real estate tax exemption:

(1) Arlington does provide a 10-year multi-family dwelling rehabilitation real estate tax exemption for the economic value of the rehabilitation.

(2) The County does not provide that real estate exemption for renovated or replacement single-family or commercial buildings.

(3) The Strategic Area Revitalization Study (SARPS), which is now in process, is examining this tax mechanism as a possible tool in serving as a rehabilitation incentive where the real estate economic marketplace is not making such investments. The SARPS examination includes a review of the rehabilitation, renovated and replacement tax exemption options now permitted under State Code.

As Mr. Ragland's material indicates, some thirty Virginia jurisdictions (including Arlington) have implemented the State- authorized programs in varying degrees.

When the SARPS study is complete and presented to the County Board, a further discussion of this option would be warranted.

C:

Mark Jinks, Acting Assistant County Manager
John Mausert-Mooney, Assistant County Manager
Bill Thomas, CPHD

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