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are hereby repealed, and all other ordinances or resolutions of the City not in conflict with the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
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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
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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