Historic property rehabilitation

From the 2024 DOR Tax Exemption Study

84.26.070 - Historic property rehabilitation Description Eligible historic property may receive a special valuation upon approval of the owner’s application. The property may have a 10-year special valuation by subtracting rehabilitation costs that exceed 25% of historic property from the assessed value. A historic property is also eligible for two seven-year extensions of the special valuation if located in a county that is listed as a distressed area and in a city with less than 20,000 in population, and if the property continues to meet the special valuation criteria. Purpose Encourages the renovation of historic buildings while preserving their architectural and cultural value. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $2.530 $2.557 $2.583 $2.611 Local Taxes $7.485 $7.798 $8.125 $8.466 Repeal of Repealing a property tax exemption would not increase state revenues. The repeal exemption shifts the state property tax to the currently exempt taxpayers and reduces the tax burden of other taxpayers. The repeal may decrease the local rate. Local taxing districts at their statutory maximum may experience a revenue increase. Potential ($ in millions):