Local Incentives
Purpose:
The Ralph Bunche Revitalization Zone was established for the purpose of providing incentives to private entities to rehabilitate or develop the assembled parcels for the purposes of community development and economic development.
Revitalization District:
The district consists of the parcel improved by Ralph Bunche High School and adjoining county-owned property tax parcels 25-83 (10 acres) and tax parcel 29-125 (23.8 acres)
Project Eligibility:
Proposed projects must me the following criteria; expenditure of either:
- At least $100,000.00 in real property investments to consist of rehabilitation, preservation, or enhancement of existing structures; and
- At least $500,00.00 in expansion of existing structures or new construction; and
- Creation of at least four net new permanent, full-time employment positions located within the county filled within the first three years from the issuance of a certificate of occupancy; and
- If a commercial project, investment of at least $100,000.00 in tangible personal property or machinery and tools to have situs at the property; and
- Commercial uses shall have a primary use to provide economic development, tourism, and/or community amenities including but not limited to community centers, daycare facilities, indoor commercial recreation facilities, office building, indoor theater, recording or broadcast studio, or indoor research and development (laboratories, research, experimentation, or testing).
Application Process:
- Application must be submitted online and include
- Development plan as well as any additional schedules,
- Plan, specifications
- Estimated fair market value of the real property upon completion.
- Upon receipt of an application, the director will determine whether the application meets the eligibility criteria herein, the comprehensive plan, and all laws and policies related to historical preservation as applicable. If the application is found eligible, the director will forward it to the commissioner of revenue for calculation of an estimated base fair market value based upon existing conditions. Any application failing to meet the eligibility criteria will be denied and will be reconsidered only after the missing criteria are met.
- The director will submit an eligible application to the board of supervisors for approval either in conjunction with a concurrent rezoning application or separately for a by-right development proposal. No improvements made to real property are eligible for real estate tax incentives pursuant to this article unless approved by the board of supervisors.
Calculation of partial real estate tax exemption
A qualifying property shall receive a partial tax exemption to the general real property tax in an amount that is equal to the difference between the: (i) base fair market value and, (ii) the fair market value of the parcel including all new structures, expansions, or other improvements at the time of the final inspection and valuation. The partial exemption shall also include any increase or decrease any tax-exempt portion of the qualifying property as periodically assessed by the commissioner of revenue or other local assessing officer designated pursuant to Code of Virginia, tit. 58.1, as amended ("commissioner or other designee").
- Following board approval of the application and upon written request from the applicant, the commissioner will determine a final base fair market value ("base value") for the qualifying property at the time of the determination.
- Applicant shall submit a written request for final inspection and valuation by the commissioner at any time after the construction of any structure is substantially complete (meaning the point where the building is suitable for its intended use). If the property development contains multiple structures to be constructed or repurposed in multiple stages, the tax exemption shall be recalculated no more than annually upon substantial completion of structures and a final inspection and written valuation request from the applicant.
- The commissioner shall provide written notification to the applicant of the amount of the assessment of the property that will be temporarily exempt from real property taxation for a period of five years from January 1 of the year following issuance of the certificate of occupancy associated with project completion (in the case of a phased development, assessed value increases above base value associated with each phase of completion shall be separately eligible for a five-year partial tax exemption for the value of improvements in such phase above the base value).
- The partial tax exemption shall run with the land, and except as otherwise provided in this article, an eligible owner or tenant of such property during each year of the partial exemption shall be entitled to receive such exemption for the applicable period.
Other Economic Incentives
Economic incentives negotiated in a performance agreement approved by the board of supervisors and county economic development authority may include certain tax rebates for a term of up to ten years. Possible tax rebates subject to performance agreement may extend in whole or part to:
- Business, professional and occupational license taxes imposed by chapter 8 of the County Code, provided that rebates shall only be applicable to taxes directly attributable gross receipts associates with a new or expanded business; and/or
- Tangible business personal property taxes imposed by section 14-2 of the County Code; and/or
- Machinery and tools taxes imposed by the County Code and Code of Virginia, tit. 58.1, ch. 35, as amended, provided that rebates shall only be applicable to taxes assessed on the acquired machinery and tolls directly attributable to a new or expanded business.