19951212 1995-29ORDINANCE NO. 1995-29
AN ORDINANCE AMENDING SECTIONS 8-78 AND 8-80,
ARTICLE XIII, CHAPTER 8, OF THE CODE
OF THE CITY OF FAIRFAX, VIRGINIA,
TO REDUCE THE AGE REQUIREMENT FOR
STRUCTURES ELIGIBLE ON THE PARTIAL
REAL ESTATE TAX EXEMPTION
Sec. 8-78. Definitions.
For the purposes of this article, the following words and phrases shall have the
meanings respectively ascribed to them by this section:
Assessor: Real estate assessor for the City of Fairfax.
Base value: The assessed value of the structure as of January 1 of the year in which
the rehabilitation begins.
Commercial use: The selling or providing of goods or services to individuals, firms
or corporations. Such use includes mixed use structures (used for both residential and
commercial purposes) predominantly used for commercial purposes.
Exemption: The real estate taxes resulting from the increase in the assessed value of a
commercial structure attributable to the substantial rehabilitation thereof. In no case shall an
exemption be permitted if the assessed value falls below the base value in any given year.
Exemption district:
a. The Old Town Fairfax Historic Overlay District and the Old Town Fairfax
Transition Overlay District as defined in sections 26-202 and 26-211 of this Code.
b. The Highway Corridor Overlay District as defined in section 26-192.3.
Owner: All persons or entities holding title to the real estate, structure or structures
thereon for which an exemption is requested.
Substantially rehabilitated commercial structure: An existing structure, no less than
~ twen _ty (20) years of age, which has been substantially improved so as to
increase the assessed value thereof by not less than thirty (30) per cent and which structure is
used for commercial use. (Ord. No. 1990-31, 12-18-90)
Sec. 8.79. Partial tax exemption for substantially rehabilitated commercial
and mixed use structures; policy and intent.
It is the purpose of this article to implement the provisions of Article 3, Chapter 32 of
Title 58.1 of the Code of Virginia to permit the city to allow a partial tax exemption for
substantially rehabilitated commercial structures. The exemption will provide an economic
incentive for improvement of such real estate and will prevent the deterioration and vacation
thereof which is harmful to the health and welfare of the city. This article provides a
for owners within certain designated areas in the City of Fairfax to obtain partial
estate tax exemptions for substantially rehabilitated commercial structures. (Ord. No.
i 1990-31, 12-18-90)
Sec. 8-80. Eligibility
Any owner of real estate upon which there exists a structure of no less than ~
~ twen_ty (20) years of age, proposed to be substantially rehabilitated for
commercial use and located, in whole or in part, within the boundaries of an exemption
district shall be eligible to apply for an exemption. (Ord. No. 1990-31, 12-18-90; Ord. No.
1992-18, 6-23-92)
Sec. 8-81. Application procedure and processing fee.
(a) Applications for exemptions shall be filed with the city manager or his
designee on forms provided for such purpose. A separate application shall be submitted for
each structure for which an exemption is requested.
1995-29
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(b) The appropriate building permits shall be acquired prior to the filing of
the application and the beginning of the rehabilitation.
(c) The city manager or his designee may require the applicant to submit
all documentation deemed necessary to establish eligibility for an exemption. All
such requested documentation shall be furnished to the assessor before an application
will be considered complete and will be processed
(d) A processing fee of twenty dollars ($20.00) shall be paid to the city
with each application.
(e) The exemption shall not automatically attach to commercial use
structures. Exemptions shall be granted only after the requirements of this article
have been satisfied. (Ord. No. 1990-31, 12-18-90)
Sec. 8-82. Inspections; notification to assessor.
(a) Upon receipt of a completed application for an exemption and
immediately prior to commencement of the proposed rehabilitation, the assessor or
his designee shall physically inspect the structure.
(b) After the initial inspection, the assessor or his designee shall annually
inspect the structure to determine the progress of the rehabilitation.
(c) An owner shall promptly notify the assessor in writing when the
rehabilitation of the structure is complete.
(d) During the period between the receipt of a completed application and
completion of the rehabilitation, the structure shall be subject to taxation upon the full
assessed value thereof.
(e) No structure shall be eligible for an exemption if the assessor or his
designee have been denied access to any portion thereof, either before, during or after
the rehabilitation for which an exemption is requested, which access is for the
purposes of assessing the structure and determining whether the requirements of this
article have been met. (Ord. No. 1990-31, 12-18-90).
Sec. 8-83. Commencement of exemption; land books.
(a) The exemption shall commence upon completion of the rehabilitation,
inspection thereof by the assessor or his designee, verification by the assessor or his
designee that the rehabilitation described in the application has been fully completed
and a determination by the city manager or his designee that the requirements of this
article have been met.
(b) Nothing in this article shall be construed to permit the assessor to list
upon the land books any reduced assessed value due to the exemption created by this
article. (Ord. No. 1990-31, 12-18-90)
Sec. 8-84. Amount, duration, schedules, retail criteria.
(a) Old Town Fairfax Historic Overlay District and the Old Town Fairfax
Transition Overlay District:
(1) The amount of the exemption shall be determined in accordance with
the definition thereof in section 8-78 and schedules in this subsection.
(2) The increase in assessed value attributable to the rehabilitation shall be
applicable only to any subsequent assessment or reassessment after
completion of the rehabilitation. Any increase in an assessment occurring
after the first year of the exemption shall not result in an increase in the
exemption.
(3) The exemption shall mn with the real estate for a period of ten (10)
years according to the following schedules:
1995-29
Year
First-Fifth
Sixth
Seventh
Eight
Ninth
Tenth
Amount of Exemption
For Structures
Meeting Retail
Criteria in (4)
(percent)
100
83
67
50
33
17
Amount of Exemption
For Structures Not
Meeting Retail
Criteria in (4)
(percent)
5O
42
34
25
17
9
(4) The retail criteria are:
At least seventy-five (75) percent of the gross square footage
of the street level floor or floors of the structure are used for
retail purposes.
(b)
As used in this section, the term "retail" means the sale of
merchandise, food, beverages or lodging for use or
consumption by the immediate purchaser.
Highway Corridor Overlay District:
(1)
The amount of the exemption shall be determined in accordance with
the definition thereof in section 8-78 and schedules in this subsection.
(2)
The increase in assessed value attributable to the rehabilitation shall be
applicable only to any subsequent assessment or reassessment after
completion of the rehabilitation. An increase in an assessment
occurring after the first year of the exemption shall not result in an
increase in the exemption.
Amount of Exemption
Year (percent)
First-Fifth 100
Sixth 83
Seventh 67
Eighth 50
Ninth 33
Tenth 17
(3)
To qualify for an exemption under the subsection (b), the proposed
rehabilitation shall meet each of the following criteria:
The rehabilitation shall comply with the building and site
design and landscape criteria contained in the Lee Highway
component of the Community Appearance Plan and with all
applicable provisions of the City Code.
The substantially rehabilitated commercial structure shall be
used for research and computer software firms, national
associations, corporate headquarters or other uses permitted,
by right or by special use permit, in the underlying zoning
district.
(Ord. No. 1990-31, 12-18-90; Ord. No. 1992-18, 6-23-92)
Sec. 8-85. Commercial use of structure required.
The exemption shall be available to an owner so long as the substantially
rehabilitated structure is used for commercial use. (Ord. No. 1990-13, 12-18-90)
Sec. 8-86. Vacant land, demolition and replacement of existing
structures.
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(a) No improvements made upon vacant land shall be eligible for an
exemption under this article.
(b) In the Old Town Fairfax Historic Overlay District and in the Old
Town Fairfax Transition Overlay District, the terms "rehabilitation: or "rehabilitated"
do not include situations in which a structure has been completely demolished or the
gross floor area of a structure has been reduced by greater than seventy-five (75)
percent.
(c) In the Highway Corridor Overlay District the terms "rehabilitation" or
"rehabilitated" include situations in which the original structure has been completely
demolished. (Ord. No. 1990-31, 12-18-90; Ord. No. 1992-18, 6-23-92)
Sec. 8-87. Assessment methods.
In determining the base value and any increase in the assessed value of a
substantially rehabilitated structure, the assessor shall employ customary and
generally accepted methods of real estate assessment. (Ord. No. 1990-31, 12-18-90)
Sec. 8-88. Rules and regulations.
The city manager or his designee may prescribe roles and regulations,
consistent with this article, deemed necessary for the effective administration hereof.
A copy of any such rules and regulations shall be available upon request
Sec. 8-89. Other laws and ordinances.
Nothing in this article shall be construed to relieve an owner or any other
person or entity from complying with all other applicable laws and ordinances related
to the development, use, rehabilitation or taxation of real estate.
Sec. 8-90. Applicability to rehabilitation commencing before
enactment of article.
An owner may apply for an exemption if a building permit for the proposed
rehabilitation was issued on or after January 1, 1989, and the work authorized by
such permit was completed, as determined by the building official, on or after
January 1, 1990. (Ord. No. 1990-31, 12-18-90)
This ordinance shall become effective as provided by law.
INTRODUCED:
PUBLIC HEARING:
ADOPTED:
November 28, 1995
December 12, 1995
December 12, 1995
Mayor
Date
ATTEST:
C~ Cie~
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