The Best Tax Incentive in Town
One of the most persistent questions I get from my clients is if there are tax incentives for residential properties in Lynchburg. Although there are great programs for commercial/ mixed use building, residential programs are a lot harder to come by. Lynchburg does offer one great program that too few people take advantage of: the Real Estate Rehabilitation and Renovation Program. This "tax exemption is equal to the increase in assessed value resulting from the substantial rehabilitation/ renovation of a structure as determined by the City Assessor. This program does not freeze taxes; however, the exemption is subtracted from the fair market value assessment before taxes are calculated". More or less it SUBSTANTIALLY reduces the property taxes you will be paying on your renovated home and in turn, your mortgage payment is reduced.
What you need to know
Who can Apply: The owner of a property that is 50 years or older
What types of residential properties qualify: Residential single family homes or multi family properties of more than 6 units
How much work needs to be done: Improvements need to increase the assessed value of the property by at least 40%
How long does the tax relief last: 15 years
What if I sell the property during that time period: no problem, the tax credit is transferable to the new owner- it conveys with the home/ property.
How long do I have to get the work done: 2 years from application filing.
Want more information? Want to Apply?
Real Estate and Renovation Program
Our project at 406 Norwood Street utilized this program resulting in an additional incentive we could offer in the sale and a big bonus for the buyers.