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HomeMy WebLinkAboutORD 2023-57 - Historic Tax ExemptionORDINANCE NO. 2,OZ3 —5� AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, ADDING SECTION 4.16.080 TO THE CODE OF ORDINANCES TO MAKE AVAILABLE HISTORIC TAX EXEMPTIONS FOR HISTORIC HOMES; REPEALING CONFLICTING ORDINANCES AND RESOLUTIONS; INCLUDING A SEVERABILITY CLAUSE; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the Georgetown City Council desires to establish a program to assist owners of historic homes in Georgetown, Texas to maintain the historic nature of the structures; and WHEREAS, in October 2021, the City Council directed staff to research historic tax programs, and in April 2022 and October 2022, staff returned to Council with several program options; and WHEREAS, after considering the various tax exemption models, the City Council directed staff to design a project -based tax program with tiered exemption levels; and WHEREAS, pursuant to Section 11.24 of the Texas Tax Code, the City Council determines that the Downtown Overlay District and Old Town Overlay District are hereby designated as historically significant sites in need of tax relief to encourage their preservation; WHEREAS, the City Council finds it to be in the best interest of the public to establish the tax exemption program to encourage stewardship of Georgetown's historic structures, as set out herein. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, THAT: Section 1. The meeting at which this ordinance was approved was conducted in compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 2. The facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct and are incorporated by reference herein and expressly made a part hereof, as if copied verbatim. Section 3. Section 4.16.080 of the Code of Ordinances is hereby added, as shown in Exhibit A. Section 4. All ordinances or resolutions that conflict with the provisions of this ordinance are hereby repealed, and all other ordinances or resolutions of the City not in conflict with the provisions of this ordinance shall remain in full force and effect. Ordinance Number: ?L57 ?S. _�� Page 1 Description: Historic Tax Exemption Date Approved: n 12(, I U23 Section 5. If any provision of this ordinance, or application thereof, to any person or circumstance, shall be held invalid, such invalidity shall not affect the other provisions, or application thereof, of this ordinance, which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are hereby declared to be severable. Section 6. The Mayor is hereby authorized to sign this ordinance and the City Secretary to attest. This Ordinance shall become effective and be in full force and effect immediately in accordance with the provisions of the City Charter of the City of Georgetown. PASSED AND APPROVED on First Reading on the 2 of ' 2023. PASSED AND APPROVED on Second Reading on the '70-4- of `� 2023. CITY OFAE44kGETOWN, TEXAS Mayor / ►:1 Robyn D smore, �Cityecretary APPROVED AS TO FORM: S ye M sson City Attorney Ordinance Number: ZO-Z3 - Page 2 Description: Historic Tax ExcmpV Date Approved: C q ( 2(P / 1pl 5 EXHIBIT A Sec. 4.16.080. - Historic Tax Exemption Program. A. Purpose and Intent. As a matter of public policy, the identification, protection, enhancement, and perpetuation of landmarks or districts of historical, cultural, architectural, or archeological significance are necessary to safeguard and promote the economic, cultural, and general welfare of the public. This Section shall be referred to as the Historic Tax Exemption Program. The intent of the Historic Tax Exemption Program is to: (1) Encourage preservation of historically significant structures as part of the City of Georgetown's stewardship of the Historic Overlay Districts (defined below). (2) Provide a link to the past through preservation of the built environment and maintain the look and feel that makes the City of Georgetown an attractive place to live. (3) Recognize the investments made by historic homeowners in the City of Georgetown, who have additional design requirements for home improvement projects under the Historic District Design Guidelines to preserve the unique character of these neighborhoods. B. Authority. The tax exemption described in this Section is adopted pursuant to the authority provided in Article 8, Section 1-f of the Texas Constitution and Tex. Tax Code § 11.24. In accordance with Tex. Tax Code § 11.24, the eligible properties under this Ordinance and the land necessary for access to and use of those properties are deemed to be historically significant sites in need of tax relief to encourage their preservation. C. Historic Tax Exemption Program. The City of Georgetown will offer property owners who own and reside in residential property in the City's qualified Historic Overlay Districts the ability to obtain a partial ten-year tax exemption after the date that this ordinance goes into effect. (1) Timing of Program. No projects completed before the effective date of this ordinance will be considered. The continuation of this program is subject to the availability of funding and may be revoked at any time, provided that, any applications filed before the date of revocation may proceed. (2) Sunset provision. This Section 4.16.080 will automatically expire at 12:01 a.m. January 1, 2027, unless the City Council extends the program by ordinance after reviewing this Section's impact on the community and determining whether it has achieved the program's objectives. In such event, any applications filed before expiration of the Section may proceed, but applications filed after that time will not be accepted. D. Eligibility. Exhibit A Page 1 (1) Eligible Properties. To qualify for the historic tax exemption and be considered a "historic property" for purposes of this Section, the property must meet certain conditions: i. The property must have a building structure whose primary use is a residence in which the property owner resides, and the building structure must be the property owner's primary address. ii. The property must be included in the City's most current Historic Resource Survey, available at https://historic.georgetown.org/introduction/historie-resource-survey/, or the most recent historic resource survey. iii. The property must be located either in the Downtown Overlay District, referenced in Section 4.08.020(A) of the Unified Development Code, or the Old Town Overlay District, referenced in Section 4.08.020(B) of the Unified Development Code. Collectively for purposes of this Section, these two districts shall be referred to as the Historic Overlay Districts. iv. Notwithstanding subsections 4.16.080(D)(1)(ii) and (iii), any property meeting the criteria in subsection (D)(1)(i) within the corporate limits of the City that has received a Historic Landmark designation under Section 4.08.020 of the Unified Development Code is eligible for the Historic Tax Exemption Program under this Section, even if such property is outside the Historic Overlay Districts; provided that, such property must continue to meet the criteria in subsection (D)(1)(1) for the life of the exemption. Exhibit A Page 2 Downtown Overlay District C2NOST w 2%1) 8 WMS DOWNTOWN OVERLAY W aIto Sir E 3AD U1 E DISTRICT E 41" S7 w4m$7 Downtown w4T"Br- C ti Overlay District 514 31 Legend W6T.ST ............... -- —Y... $110fiq * : :HI Overt" WITHS, I 1 0111411,19er oetl RSwm if S1 Eat- ....... ...... E 9TH St E UTH %rj ST W QTH Sr 0 C IDT14 51 1UTH $T E OTH ST (A wW,.5T "T'IST z 0. IF UNIVERSITY AVE z W UNIVERSITY AVE w 131m S, f L 1 Old Town Overlay District ....... . ................ AMA ......... ..... I - r. wwl IT W—T .—T CwKY Uld Town Overlay District W11—T W UNIVCRSITYAVE it 77 .. ...... . .......... W 'IT. ereru ....... . .. W,nRIT s I. — 1W le 00.00w OLD TOWN OVERLAY DISTRICT Legend Southwestern University R.H..d ...... . ............ .. . ........ . ..... . ......... R... I, River Exhibit A Page 3 (2) Eligible Projects. The property owner must complete a home improvement project on a historic property that (a) requires a Certificate of Appropriateness ("COA") pursuant to Section 3.13.010 of the City's Unified Development Code, and (b) costs $10,000 or more. Eligible projects must be substantially related to the restoration of exterior, architectural features of the primary structure and accessory structures. Such restoration work includes, but is not limited to, the following categories, provided that a COA may be issued for the project: i. Restoration of Exterior Architectural Features. Refurbishment or replacement of a prominent or distinctive characteristic of a historic property in a way that preserves its historic, architectural, or cultural value, as determined by the City. Restoration that does not preserve the historic, architectural, or cultural value of the historic property is not eligible for tax exemption. Eligible restoration of exterior architectural features includes, but is not limited to, the following improvements: Door and Window Repair. Correcting portions of, or entirely replacing, deteriorated, damaged, or faulty exterior doors and windows. 2. Fagade Rehabilitation. Improving exterior elevation of a historic property through repair, alterations, and rehabilitation while preserving those portions or features reminiscent of a particular historical period, culture, and architecture. 3. Siding Work. Correcting deteriorated, damaged, or faulty materials used in the application of exterior siding of a historic property. ii. Structural Repair. Action to mitigate exterior deterioration of a historic property without altering its historic character and improve the ability of a structure to maintain stability against natural forces, including but not limited to, improvements to the roof structure that result in a visual change in the appearance of the roof form, slope, height, or material. (3) Ineligible Projects. Ineligible project costs include, but are not limited to, the following non-exclusive categories of work: i. Interior Work. Any work unrelated to structural repair as defined above, such as plumbing, mechanical, or electrical systems, fixtures replacement, fire protection systems, and flooring. ii. Ordinary Maintenance and Repair. Any work, the sole purpose and effect of which is to correct deterioration, decay, or damage, including repair of damage caused by fire, flood, hail, or other disaster, and which does not result in a change in the existing appearance and materials of a historic property. Exhibit A Page 4 iii. Demolitions, Additions, or Relocations. The intentional destruction, razing, dismantling or removal of all or part of a building and sites, surfaces, utilities, or other improvements is not an eligible cost. Movements of a building or structure from one site to another site or to a different location on the same site is not an eligible project. Further, the expansion of the building footprint through an improvement that increases the square footage of the structure is ineligible. (4) Eligible Costs. i. Eligible costs include all costs directly incurred on an eligible project for labor and building materials required to complete the eligible project. Architectural and engineering costs directly related to the eligible projects outlined above are also eligible. ii. The following costs are not eligible: non -permanent resources, such as landscaping or furniture, the purchase or repair of appliances or equipment, and any costs related to administrative overhead, such as legal or accounting fees, permit fees, payroll, or taxes. E. Amount of Exemption. (1) Timing. i. After the City application is approved by the City Council, each year of the exemption, the property owner must submit the Williamson Central Appraisal District Application for Historic or Archaeological Site Property Tax Exemption ("WCAD Application for Exemption") to the City of Georgetown and to the Williamson Central Appraisal District. ii. The ten-year exemption period shall run from the first tax year it is approved by City Council, regardless of whether the homeowner submits the WCAD Application for Exemption that year or any subsequent year. (2) Municipal Tax Only. i. The tax exemption functions as an exemption of the municipal portion of property taxes by reducing the value of the historic property (which includes the value of both the land and the structure on which it is built) for purposes of calculating the municipal tax. ii. Historic properties will not be eligible for a tax exemption, nor will any property owner receive any form of refund of property taxes paid on the historic property for any years prior to verification and approval of a historic tax exemption under this section. (3) Calculation. The tax exemption amount is based on (a) the assessed value of the historic property and (b) the cost of the home improvement project. The taxable Exhibit A Page 5 value of the historic property will be reduced by a percentage (determined by the project cost amount noted below) of the assessed value of the historic property. Exemptions fall into one of the following tiers: i. Tier 1: Projects costing between $10,000450,000 will earn the property owner a 25% tax exemption. ii. Tier 2: Projects costing between $50,001-$100,000 will earn the property owner a 50% tax exemption. iii. Tier 3: Projects costing more than $100,001 will earn the property owner a 75% tax exemption. iv. In all instances, the tax exemption is a partial exemption. The City will not grant 100% exemption of the assessed value. v. For example, a homeowner who completed a $10,000 project whose home has an assessed value of $500,000 will see their taxable value reduced by $125,000 or 25% of the assessed value. (4) Multiple Projects. Subject to the restrictions in Section 5(i) and (ii) below, property owners who complete multiple projects can qualify for this program multiple times and thereby extend their exemption period. Each application will be considered separately. i. A property owner may only receive one exemption under this Chapter during the ten-year period at a time. If a homeowner applies for a second exemption while the first exemption is still in effect, the higher exemption amount will apply, and the exemption will run from the first year the higher exemption is granted. ii. For example, if a property owner receives a 25% exemption in Year 1 and a 50% exemption in Year 2, the 50% exemption will be the only exemption in effect upon its approval by City Council, and it will run for ten years after it is approved by City Council, for a total of eleven years of exemption. (5) Value Fluctuation. The assessed property value will fluctuate with the market over the ten-year period; therefore, the exempted value under the applicable tiers will also fluctuate. i. Below is an example of a 25% historic tax exemption applied to a historic property receiving the City's 5% homestead exemption on the appraised value but no other exemptions: o Year 1: Assessed value of $330,000 o Homestead Exemption - $16,500 o Historic Tax Exemption - $82,500 Exhibit A Page 6 Total Taxable Value in Base Year: $231,000 o Year 5: Assessed value increases to $483,153 o Homestead Exemption - $24,158 o Historic Tax Exemption - $120,788 Total Taxable Value in Year 5: $338,207 o Year 10: Assessed value increases to $658,206 o Homestead Exemption - $32,910 o Historic Tax Exemption - $164,552 Total Taxable Value in Year 10: $460, 744 F. Application Process. (1) The City of Georgetown Planning Department will administer the Historic Tax Exemption Program. Specifically, the City's Historic Preservation Officer or designee will oversee the program. (2) Application Process Steps i. The property owner must complete the City's historic tax exemption application form. The City will detail the supporting documentation required as part of the submission to the Planning Department for cost verification, including an itemized list of final costs, receipts, and photographs of completed work. ii. The historic tax exemption application should be submitted after the project is completed. The application cannot be processed concurrently with the Certificate of Appropriateness and building permit applications, but the property owner may request the application form and list of requirements before commencing construction. iii. The application must demonstrate completion of the project and compliance with program requirements. iv. The property owner must also submit the completed WCAD Application for Exemption to the City of Georgetown as an attachment to the exemption application. This form is available at https://www.wcad.org/forms-and-applications/. For the application year only, the City will submit this form to the Williamson Central Appraisal District on the property owner's behalf. v. The completed historic tax exemption application demonstrating project completion and the WCAD Application for Exemption must be submitted to the City Planning Department following the submission instructions on the program webpage https://historic.georgetown.org/tax-exemption- program/ on or before March 31 for the tax exemption to apply to the upcoming tax year. Any application submitted after those deadlines will only be eligible for tax exemptions in the subsequent tax year. For Exhibit A Page 7 example, if the application is submitted by March 31, 2024, the exemption will apply in the 2024 tax year. If the application is submitted in May 2024, the exemption will not apply until the 2025 tax year. A. Staff will review the application within sixty (60) days of application submission. vii. The historic tax exemption application must be submitted to the City within one year of the completion date of the project. (3) The property owner must consent to a final inspection of the historic property completed by the Planning Department and Inspections staff to verify eligibility. That staff inspection will occur within sixty (60) days of application submission. (4) The Planning Department will notify applicants in writing if their application is found to be: (a) complete and approved for recommendation to City Council, or (b) complete but nonetheless denied. If the application is incomplete, applicants have until the next applicable deadline to remedy any deficiencies (or be bumped to the following tax year). (5) The Planning Department will provide the City Council with a list of properties with approved applications that are recommended for a historic tax exemption in June. (6) The City Council may declare the properties to be entitled to the historic tax exemption as provided herein by resolution. Upon such approval, the City will submit the Council -approved list to Williamson Central Appraisal District by July 1 and notify property owners in writing of City Council approval. (7) The property owner must enter into an agreement with the City that sets out the terms and conditions of the exemption (the "Historic Site Exemption Agreement"). The City Manager or designee is authorized to execute this agreement. Thereafter, provided the property owner completes the appropriate documentation and makes the annual application to the Williamson Central Appraisal District, the property owner will be entitled to the applicable tax exemption for that tax year. (8) Appeal: If the Planning Department denies a complete application, the applicant may seek reconsideration, provided that any exemption would apply to the subsequent tax year. To seek reconsideration, the applicant must send a written request for reconsideration to the Planning Department within thirty (30) days of the original rejection. The request for reconsideration must describe in detail the basis on which the applicant believes the decision to deny was incorrect, citing to specific ordinances where applicable. The Planning Department will respond within sixty (60) days to notify the applicant whether the original decision stands. G. Additional Conditions. Exhibit A Page 8 (1) Property owners must comply with all other applicable City ordinances (and all applicable federal and state regulations). Any non-compliance issues with City law must be corrected before the City will apply the tax exemption. (2) Property owners who are otherwise eligible, but delinquent in tax payments to the City at the time of tax exemption application, will not receive the tax exemption. (3) The historic tax exemptions are non -transferable in the event of the sale of the property to a new owner. (4) By submitting the City application for a historic tax exemption, property owners consent to the termination of the exemption granted by the Williamson Central Appraisal District pursuant to Tax Code Section 11.24 in the event the: (i) the property owner sells or transfers the property; (ii) property owner has delinquent ad valorem taxes owed to the City (provided the property owner retains the right to timely and properly protest such taxes); (iii) the property has been totally or partially destroyed or significantly altered in violation of the preservation criteria of the City Unified Development Code and/or the Certificate of Appropriateness. Exhibit A Page 9 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, ADDING SECTION 4.16.080 TO THE CODE OF ORDINANCES TO MAKE AVAILABLE HISTORIC TAX EXEMPTIONS FOR HISTORIC HOMES; REPEALING CONFLICTING ORDINANCES AND RESOLUTIONS; INCLUDING A SEVERABILITY CLAUSE; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the Georgetown City Council desires to establish a program to assist owners of historic homes in Georgetown, Texas to maintain the historic nature of the structures; and WHEREAS, in October 2021, the City Council directed staff to research historic tax programs, and in April 2022 and October 2022, staff returned to Council with several program options; and WHEREAS, after considering the various tax exemption models, the City Council directed staff to design a project -based tax program with tiered exemption levels; and WHEREAS, pursuant to Section 11.24 of the Texas Tax Code, the City Council determines that the Downtown Overlay District and Old Town Overlay Dist+fet! District are hereby designated as historically significant sites in need of tax relief to encourage their preservation; WHEREAS, the City Council finds it to be in the best interest of the public to establish the tax exemption program to encourage stewardship of Georgetown's historic structures, as set out herein. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, THAT: Section 1. The meeting at which this ordinance was approved was conducted in compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 2. The facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct and are incorporated by reference herein and expressly made a part hereof, as if copied verbatim. Section 3. Section 4.16.080 of the Code of Ordinances is hereby added, as shown in Exhibit A. Section 4. All ordinances or resolutions that conflict with the provisions of this ordinance are hereby repealed, and all other ordinances or resolutions of the City not in conflict with the provisions of this ordinance shall remain in full force and effect. Ordinance Number: Page i Description: Historic Tax Exemption Date Approved: Section 5. If any provision of this ordinance, or application thereof, to any person or circumstance, shall be held invalid, such invalidity shall not affect the other provisions, or application thereof, of this ordinance, which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are hereby declared to be severable. Section 6. The Mayor is hereby authorized to sign this ordinance and the City Secretary to attest. This Ordinance shall become effective and be in full appe"+Feefoivc and effect immediately in accordance with the provisions of the City Charter of the City of Georgetown. PASSED AND APPROVED on First Reading on the of , 2023. PASSED AND APPROVED on Second Reading on the of , 2023. CITY OF GEORGETOWN, TEXAS Josh Schroeder, Mayor ATTEST: Robyn Densmore, City Secretary APPROVED AS TO FORM: Skye Masson, City Attorney Ordinance Number: Page 2 Description: Historic Tax Exemption Date Approved: EXHIBIT A Sec. 4.16.080. - Historic Tax Exemption Program. A. Purpose and Intent. As a matter of public policy, the identification, protection, enhancement, and perpetuation of landmarks or districts of historical, cultural, architectural, or archeological significance are necessary to safeguard and promote the economic, cultural, and general welfare of the public. This Section shall be referred to as the Historic Tax Exemption Program. The intent of the Historic Tax Exemption Program is to: (1) Encourage preservation of historically significant structures as part of the City of Georgetown's stewardship of the Historic Overlay Districts (defined below). (2) Provide a link to the past through preservation of the built environment and maintain the look and feel that makes the City of Georgetown an attractive place to live. (3) Recognize the investments made by historic homeowners in the City of Georgetown, who have additional design requirements for home improvement projects under the Historic District Design Guidelines to preserve the unique character of these neighborhoods. B. Authority. The tax exemption described in this seetiet3Section is adopted pursuant to the authority provided in Article 8, Section 1-17 of the Texas Constitution and Tex. Tax Code § 11.24. In accordance with Tex. Tax Code § 11.24, the eligible properties under this Ordinance and the land necessary for access to and use of those properties are deemed to be historically significant sites in need of tax relief to encourage their preservation. C_Historic Tax Exemption Program. The City of Georgetown will offer property owners who own and reside in residential property in the C- y-W:k4eor"t�wf+14,itY's qualified Historic Overlay Districts (defined below) the ability to obtain a partial ten-year tax exemption after the date that this ordinance goes into effect. (1) Tinting of Program. No projects completed before the effective date of this ordinance will be considered. The continuation of this program is subject to the availability of funding and may be revoked at any time, provided that, any applications filed before the date of revocation may proceed. Commented [JC1]: Councilmember French amendment ED. Eligibility. Exhibit A Page 1 (1) Eligible Properties. To qualify for the historic tax exemption and be considered "historic property" for purposes of this Section, the property must meet certain conditions: i. The property must have a building structure whose primary use is a residence in which the htAding owner Feside:,pronerty owner resides, and the building structure must he the property owner's primary address. ii .ii_The property must be included in the Eity-ef6ecgeIowWsC'ity's most current Historic Resource Survey, available at https://historic.georgetown.org/introduction/historic-resource-survey/, or the most recent historic resource survey. iY-Aii_The property must be located either jrLthe Downtown Overlay District, referenced in Section 4.08.020(A) of the Unified Development Code, or the Old Town Overlay District, referenced in Section 4.08.020(B) of the Unified Development Code. Collectively for purposes of this Section, these two districts shall be referred to as the Historic Overlay Districts. Commented [JC2]: Councilmember Parr amendment Exhibit A Page 2 Downtown Overlay District n ..r. v... D INIIVPSIOV[RLAI' w enn., 63fN ST t Dormer I..Mt Oormown wer.. r. t r � r •• Ovsrlsy .. District S: w # <>rw a• • Leyena w r,.rte .•••. r r utT ... .. Q r NMrYHG. _ n,rw ar �OMYKI � t�,y auue�Youm V * w•e. r• s...•a.m ire t • .............. tnw sr t.r „ nw., wtl r ntn tT n r�r�r f' � r •_ � s _ . E UNIVERSITV AVE W UNIVERSIN AVE _ a ... y Old Town Overlay District u '1- ` r.•.,r L t(n,C OLD TOW M OVERLAP DI,, rRICr wevc, wme. �, � • � � LeyenE .«. � .r.v € erowv r .rur4u L�TO� .wuu � touMwatun nYtwm omnrowe .•n � -Iewtt,�-rt ( ).rMY 1.�..-- ISM w unrvuisnr. � GRinll ..~- { l .w.w S •� � ..... .wrr. • � �t ExhibitA Page 3 (2) Eligible Projects. The property owner must complete a home improvement project on a historic property that (a) requires a Certificate of Appropriateness ("COA") pursuant to Section 3.13.010 of the City's Unified Development Code, and (b) costs $10,000 or more. Eligible projects must be substantially related to the restoration of exterior, architectural features of the primary structure and accessory structures. Such restoration work includes, but is not limited to, the following categories, provided that a COA may be issued for the project: i. Restoration of Exterior Architectural Features. Refurbishment or replacement of a prominent or distinctive characteristic of a historic property in a way that preserves its historic, architectural, or cultural value, as determined by the City eK+eorgeteww. Restoration that does not preserve the historic, architectural, or cultural value of the historic sttHetare �rl opcnY is not eligible for tax exemption. Eligible restoration of exterior architectural features includes, but is not limited to, the following improvements: Door and Window Repair. Correcting portions of, or entirely replacing, deteriorated, damaged, or faulty exterior doors and windows. Fagade Rehabilitation. Improving exterior elevation of a historic property through repair, alterations, and rehabilitation while preserving those portions or features reminiscent of a particular historical period, culture, and architecture. 3. Siding Work. Correcting deteriorated, damaged, or faulty materials used in the application of exterior siding of a historic property. ii—Structural Repair. Action to mitigate exterior deterioration of a historic property without altering its historic character and improve the ability of a structure to maintain stability against natural forces, including but riot limited to4he lbllewin& improvements-. to the roof structure(s) that result in a visual change in the appearance of the roof form, slope, height, or material. (3) Ineligible Projects. Ineligible project costs include, but are not limited to, the following non-exclusive categories of work: Interior Work. Any work unrelated to structural repair as defined above, such as plumbing, mechanical, or electrical systems, fixtures replacement, fire protection systems, and flooring. ii. Ordinary Maintenance and Repair. Any work, the sole purpose and effect of which is to correct deterioration, decay, or damage, including repair of damage caused by fire, flood, hail, or other disaster, and which Exhibit A Page 4 does not result in a change in the existing appearance and materials of a historic property. iii. Demolitions, Additions, or Relocations. The intentional destruction, razing, dismantling or removal of all or part of a building and sites, surfaces, utilities, or other improvements is not an eligible cost. Movements of a building or structure from one site to another site or to a different location on the same site is not an eligible project eest. Further, the expansion of the building footprint through an improvement that increases the square footage of the structure is ineligible. Eligible Costs. iv:i_Eligible costs include all costs directly incurred on an eligible project for labor and building materials required to complete the eligible project. Architectural and engineering costs directly related to the eligible projects outlined above are also eligible. v.ii_The following costs are not eligible: non -permanent resources, such as landscaping or furniture, the purchase or repair of appliances or equipment, and any costs related to administrative overhead, such as legal or accounting fees, permit fees, payroll, or taxes. B.E. Amount of Exemption. Timing. After the City application is approved4sry the itinue, the } ' City Council, each year of the exemption !hro gh M ki9ieii of. the property owner must submit the Williamson Central Appraisal District{-WL=A-M Application for Historic or Archaeological Site Property Tax Exemption ("WCAD Application for Exemption") to the City of Georgetown ofand to the Williamson EetintyCentral Appraisal District. ii. The ten-year exemption period shall run from the first tax year it is approved by City -Council, regardless of whether the homeowner submits the WCAD Application for Exemption eveFythat year or an stY dneduent year. (2) Municipal Tax Only. i. The tax exemption functions as an exemption of the municipal portion of property taxes by reducing the value of the historic property (which includes the value of both the land and the structure on which it is built) for purposes of calculating the municipal tax. Exhibit A Page 5 ii. Historic properties will not be eligible for a tax exemption, nor will any property owner receive any form of refund €prof property taxes paid on the historic property for any years prior to verification and approval of a historic tax exemption under this section. (3) Calculation. The tax exemption amount is based on (a) the assessed value of the historic property and (b) the cost of the home improvement project. The taxable value of the historic property will be reduced by a percentage (determined by the project cost amount noted below) of the assessed value of the historic property. Exemptions fall into one of the following tiers: i. Tier 1: Projects costing between $10,000-$50,000 will earn the property owner a 25% tax exemption. ii. Tier 2: Projects costing between $50,001-$100,000 will earn the property owner a 50% tax exemption. iii. Tier 3: Projects costing more than $100,001 will cam the property owner a 75% tax exemption. iv. In all instances, the tax exemption is a partial exemption. The City will not grant 100% exemption of the assessed value. v. For example, a homeowner who completed a $10,000 project whose home has an assessed value of $500,000 will see their taxable value reduced by $125,000 or 25% of the assessed value. (4) Multiple Projects. Subject to the restrictions in Section 5(i) and (ii) below, property owners who complete multiple projects can qualify for this program multiple times and thereby extend their exemption period. Each regt►e.4tppglication will be considered separately. i. A may only receive one exemption under this Chapter during the ten-year period at a time. If a homeowner applies for a second exemption while the first exemption is still in effect, the higher exemption amount will apply, and the exemption will run from the first year the higher exemption is granted. ii. For example, if a heeneewnerproperty owncr receives a 25% exemption in Year 1 and a 50% exemption in Year 2, the 50% exemption will be the only exemption in effect upon its approval by City Council, and it will run for ten years after it is approved by City Council, for a total of eleven years of exemption. (5) Value Fluctuation. The assessed property value will fluctuate with the market over the ten-year period; therefore, the exempted value under the applicable tiers will also fluctuate. Exhibit A Page 6 i. Below is an example of a 25% historic tax exemption applied to a historic property receiving the e4y2sCity's 5% homestead exemption on the appraised value but no other exemptions: o Year 1: Assessed value of $330.000 o Homestead Exemption - $16,500 o Historic Tax Exemption - $82,500 Total Taxable Value in Base Year: $231, 000 o Year 5: Assessed value increases to $483,153 o Homestead Exemption - $24,158 o Historic Tax Exemption - $120,788 Total Taxable Value in Year 5: $338,207 o Year 10: Assessed value increases to $658,206 o Homestead Exemption - $32,910 o Historic Tax Exemption - $164,552 Total Taxable Value in Year 10: $460,744 R.L.-Application Process. (1), The City of Georgetown Planning Department will administer the Historic Tax Exemption Program. Specifically, the City's Historic Preservation Officer or designee will oversee the program. (2) Application Process Steps i. The property owner must complete the Gity ofGeergeiewn'! Cli.Iy_s historic tax exemption application form. The City e f Geefgetewn will detail the supporting documentation required as part of the submission to the Planning Department for cost verification, including an itemized list of final costs, receipts, and photesphoto rg aphs of completed work. ii. The historic tax exemption application should be submitted after the project is completed. The application cannot be processed concurrently with the Certificate of Appropriateness and building permit applications, but the property owner may request the application form and list of requirements before commencing construction. W. The application must demonstrate completion of the project and compliance with program requirements. iv. The property owner must also fill eutsubmit the completed WCAD Application for Exemption and submi! to the City of Georgetown as an attachment to the exemption application.- This form is available at https://www.wcad.org/forms-and-applications/. for the application ycar only, the City will submit this form to the Williamson Central Appraisal District on the property owner's behalf. Exhibit A Page 7 v. The completed historic tax exemption application demonstrating project completion and the WCAD Application for Exemption must be submitted to the City Planning Department following the submission instructions on the program webpage https://historie.georgetown.org/tax-exemption- program/ on or before March 31 for the tax exemption to apply to the upcoming tax year. Any application submitted after those deadlines will only be eligible for tax exemptions in the subsequent tax year. For example, if the application is submitted by March 31, 2024, the exemption will apply in the 2024 tax year. If the application is submitted in May 2024, the exemption will not apply until the 2025 tax year. A Staff will review the application within sixty (60) days of application submission. vii. The historic tax exemption application must be submitted to the City of Geergetewii within one year of the completion date of the project. (3) The property owner must consent to a final inspection of the historic property completed by the Planning Department and Inspections staff to verify eligibility. That staff inspection will occur within sixty (60) days of application submission. (4) The Planning Department will notify applicants in writing if their application is found to be: (a) complete and approved for recommendation to City Council, or (b) complete but nonetheless denied. If the application is incomplete, applicants have until the next applicable deadline to remedy any deficiencies (or be bumped to the following tax year). (5) The Planning Department will provide the City Council with a list of properties with approved applications that are recommended for a historic tax exemption in June. (6) The City Council may declare the properties to be entitled to the historic tax exemption as provided herein by resolution. Upon such approval, the City will submit the Council -approved list to Williamson EemityCentral Appraisal District by July 1 and notify property owners in writing of City Council approval. (7) The property owner must enter into an agreement with the City that sets out the terms and conditions of the exemption: (the "Ilistoric Site Excm Lion Agreement"). The Ci1X Manager or designee is authorized to execute this agreement. Thereafter, provided the property owner completes the appropriate documentation and makes the annual application to the Williamson Central Appraisal Districl, the property owner will be entitled to the applicable tax exempt ionreonwnefiei ng januaFy 1 of the Im that tax year4minedietely-Ie11owi+►g Yerifiemio 061. (8) -Appeal: If the Planning Department denies a complete application, the applicant 1►lis thinyi3kl}ckyw tem�ry seek reconsideration. provided that unv exemption Exhibit A Page 8 would apply to Cite subsequent tax year. To seek reconsideration, the applicant must send a written request for reconsideration to the Planning Department within thi (30) days of the original r ection. The request for reconsideration must describe in detail the basis on which the applicant believes the decision to deny was incorrect, citing to specific ordinances where applicable. The Planning Department will respond within sixty (60) days to notify the applicant whether the original decision stands. RG. Additional Conditions. (1) Property owners must comply with all other applicable City of Georgetown ordinances (and all applicable federal and state regulations). Any non-compliance issues with City law must be corrected before the City of Georgetown ealiwill apply the tax exemption. (2) Property owners who are otherwise eligible, but delinquent in tax payments to the City at the time of tax exemption application, will not receive the tax exemption. (3) The historic tax exemptions are non -transferable in the event of the sale of the property to a new owner. (4) By submitting the City application for a historic tax exemption, property owners consent to the tennination of the exemption granted by the Williamson Central Appraisal District pursuant to Tax Code Section 11.24 in the event the: M the property owner sells or transfers the property, tit) property owner has delinquent ad valorem taxes owed to the City (provided the property owner retains the right to timely and properly protest such taxes); (iii) the property has been totally or paniall dyed or significantly altered in violation of the preservation criteria ol'the City Unified Development Code and/or the Certificate of Appropriateness. Exhibit A Page 9