The historic property tax abatement program is intended to encourage historic preservation within the city by providing a property tax abatement to property owners with property in historic overlay zones. The tax abatement will provide an incentive for property owners to request historic overlay zoning and to improve, rehabilitate and maintain property within the historic overlay zoning districts. Two tax abatement programs are available.

(1959 Code, sec. 12-1-1; 1996 Code, sec. 12.801)

(a)

The historic overlay zone tax abatement requires no application from the property owner and shall be automatically provided when a property is zoned historic overlay zone. The tax abatement shall remain until the city council decides to discontinue the program or the abatement is removed from a subject property, or the design and historic review commission withholds tax abatement until restorations or repairs are made to the structure, as provided under subsection (d) [(e)] of this section and section 12.08.003 of this article (historic project tax abatement).

(b)

Upon final council approval of any historic overlay zoning, the historic preservation officer or city staff shall notify the Tom Green County tax appraisal district. The tax assessor shall abate the real property taxes for said zone starting on January 1st of the following year and each year thereafter.

(c)

Abatement method for contributing properties with historic overlay zoning.

(1)

A contributing property within a historic overlay zone is a property that is considered to be historically significant by local, state, or federal governments that rank historic properties and generally follow the guidelines of the National Park Service, Department of the Interior, for listing on the National Register of Historic Places.

(2)

The tax assessor shall provide a real property tax abatement of up to $200.00 per year or, a real property tax abatement equal to 20 percent of the annual taxes, whichever is greater, for contributing properties in historic overlay zones. The annual tax abatement shall not exceed $1,000.00 for an individual property. Tax abatement shall not be construed to mean a reduction per year which is greater than the annual taxes which would normally be charged, nor shall the abatement reduce the annual taxes to an amount less than $50.00.

(3)

The tax assessor shall apply the historic tax abatement prior to any other tax reductions that the historic overlay zone may be eligible for as described in this article.

(d)

Tax reduction for noncontributing properties within historic overlay zoning districts.

(1)

A noncontributing property within a historic overlay zone is a property that is considered not to be historically significant by state, local or federal governments that rank historic properties and generally follow the guidelines of the National Park Service, Department of the Interior, for listing on the National Register of Historic Places.

(2)

The tax abatement for noncontributing properties shall be 10 percent or $100.00 per year, whichever is greater. The tax abatement shall not be construed to mean a reduction per year which is greater than the annual taxes which would normally be charged, nor shall the abatement reduce the taxes to an amount less than $50.00. The annual tax abatement shall not exceed $500.00 for an individual property. Whenever an historic overlay zone is approved by the city council, the tax appraisal district shall be notified of the tax abatement. The property owner need not apply.

(3)

Tax abatement shall remain in place as long as the city council continues the historic tax abatement program.

(4)

Noncontributing properties do not qualify for the historic project tax abatement as outlined in section 12.08.003 of this article.

(5)

Neither method of tax abatement (10 percent or $100.00) shall be construed to mean a reduction per year which is greater than the annual taxes which would normally be charged, nor shall the abatement reduce the annual taxes to an amount less than $50.00.

(6)

The tax assessor shall apply the historic tax abatement prior to any other tax reductions that the historic overlay zone may be eligible for as described in this article.

(e)

If a historic landmark within a historic overlay zone is altered or destroyed, the following may apply:

(1)

If the historic preservation officer or planning manager has reason to believe that a contributing property within a historic overlay zone has been totally or partially destroyed or altered by the willful act or negligence of the owner or his or her representative, the historic preservation officer or planning manager shall schedule the matter for the earliest possible consideration by the design and historic review commission. If, after giving notice to the landowner and public hearing, the design and historic review commission determines that the property has been totally or partially destroyed or altered by the willful act or negligence of the owner or his or her representative, the design and historic review commission shall recommend to the city council:

(A)

That the historic overlay zone remain for a specified period of time for repair or restoration of the structure;

(B)

That the historic overlay zone be removed from the property and that the tax abatement terminate; or

(C)

That the historic overlay zone be continued and that the property become a noncontributing property as determined under subsection (d) of this section.

The city council shall give notice and conduct a public hearing according to the same procedures as provided in article 2 of the zoning ordinance. The decision of the city council shall be final.

(2)

If the historic overlay zone is removed, the design and historic review commission shall require the owner, or his heirs, assigns, or successors, to pay, during the forthcoming seven-year period, any taxes that may have been abated during the previous seven years under this article. Upon making such findings, the design and historic review commission or its representative shall file a written request with the tax assessor to discontinue the historic zone tax abatement for the property. Abated taxes will be recaptured over the same number of years for which abatement was received. The amount of taxes to be recaptured each year shall be according to the following formula:

Total taxes abated for the previous seven years divided by the number of years taxes were abated.

(3)

Where a historic landmark is totally or partially destroyed or altered other than by the willful act or negligence of the owner or his or her representative, the owner shall, within 30 days, request a demolition permit when restoration or repair is not feasible, or request a building permit to reconstruct the historic landmark in accordance with the zoning ordinance. The determination as to whether restoration is feasible shall be made by the design and historic review commission, as part of the certificate of appropriateness review procedure, outlined in the zoning ordinance, required to be followed in obtaining a demolition or building permit. In cases where a demolition permit is issued by the city because restoration is not feasible, the commission shall recommend to the planning commission and the planning commission recommend to the city council that the historic overlay zoning be removed. In addition, the design and historic review commission shall remove all historic zone tax abatement and any other tax abatements described in this article and applicable to the subject zone.

(1959 Code, sec. 12-1-2; 1996 Code, sec. 12.802; Ordinance adopted 9-4-12, § 8)

(a)

Owners of property within a historic overlay zone shall be eligible to apply to the design and historic review commission for a project tax abatement.

(b)

A property owner or his or her agent may apply for up to a 50 percent real property tax abatement of city taxes for property improvements within a historic overlay zone. The 50 percent credit shall be limited to ten years per approved project, or until the amount received by the property owner through tax abatement equals the eligible project costs, whichever occurs first. A current or new owner shall continue to receive credit until the ten-year credit period expires. After an existing ten-year period expires, a new year ten credit period may be applied for; credit time periods shall not run concurrently. The planning manager shall keep records of all approved work and allotted time periods. All information shall be forwarded to the Tom Green County tax appraisal district.

(c)

Eligible projects shall amount to $10,000.00 or more and may include exterior improvements and some interior improvements limited to the frame (walls, floor and ceiling) as well as plumbing, electrical wiring, and mechanical items (heating, cooling, and ventilation). Fixtures, decorative items and personal property shall not normally be eligible for consideration (see subsection (d) below). Appropriate costs for tax abatement projects on all structures will include material and labor for repairing, replacing, or adding, if like the original, or as close to the original as possible, subject to compliance with applicable building codes, any of the following:

(1)

Structural walls;

(2)

Structural subfloors;

(3)

Structural ceilings;

(4)

Exterior doors;

(5)

Exterior paint;

(6)

Mechanical equipment;

(7)

Windows;

(8)

Any exterior brick veneers, or treatments;

(9)

All electrical wiring and no fixtures (see subsection (d) below);

(10)

Roof - structural and integrity, gutter or roof drainage systems;

(11)

Facade items;

(12)

Elevators in commercial buildings;

(13)

Architectural, engineering, constructive demolition and cleanup if it is directly related to work contained in the COA or project proposal;

(14)

Foundations;

(15)

Any termite damage or treatment; or

(16)

Security or fire protection systems - in relation to the protection of the building.

(d)

Provable, documented replacement of historic fixtures may be considered as eligible. This determination will be made by the design and historic review commission.

(e)

Ineligible costs include but are not limited to the following:

(1)

Overhead;

(2)

Taxes;

(3)

Postage;

(4)

Administrative payroll (on-site employee payroll shall be eligible);

(5)

Equipment repairs;

(6)

Tools;

(7)

Interior cabinets;

(8)

Portable restrooms;

(9)

Lodging and meals;

(10)

Any items not directly related to the structural integrity or viability of the building; or

(11)

Fixtures (see subsection (d) above).

(f)

A property owner currently receiving a project tax abatement may apply for tax abatement for additional projects which, if approved, shall be credited to the owner's project tax abatement account. After a current project has received tax abatement equal to the eligible costs, or the ten-year period has expired, then tax abatement may commence for another approved project up to a maximum of ten years per project.

(g)

All approved project tax abatements shall run with the land and shall not be affected by changes in property ownership.

(h)

The 50 percent tax abatement shall apply to any subsequent increase in the rate of taxation or assessed valuation.

(i)

Application and approval process. Prior to filing an application with the planning division for a historic project tax abatement, the prospective applicant shall:

(1)

Certify to the planning manager or his representative that the subject property is within a historic overlay zone.

(2)

Certify to the planning manager or his representative that the project abatement request is for a project which has received a certificate of appropriateness. If a certificate of appropriateness has not been acquired, the applicant shall submit a "project proposal" to the planning division for presentation to the design and historic review commission for tentative or conditional approval before the property owner proceeds further.

(3)

Complete the process set forth under chapter 12, exhibit A, article 2, and secure a historic overlay zone designation.

(4)

Certify to the planning manager or his representative that the improvement project for which the applicant wishes to apply for a tax abatement has been completed.

(5)

An application for an improvement project for a tax abatement shall be initiated by the owner of the subject property or his agent, by completion of the appropriate application forms provided by the planning manager or his representative. The application shall include all receipts for the cost of the project as well as an affidavit affirming that all information on the application is correct and that the receipts presented are for the cost of the project. Said applications shall be received by the planning manager or his representative at least 20 days prior to a public hearing by the design and historic review commission. This same procedure applies in the case of a historic overlay zone or an historic overlay district. In each case if desired the property owner must apply for a project tax abatement.

(6)

The planning manager or his designee shall prepare a report for the design and historic review commission members assessing whether the project was completed as proposed in the project proposal or the certificate of appropriateness and stating any other facts or information that may be useful to the commission when reviewing the application.

(7)

The design and historic review commission shall hold a public hearing on all requests for historic project tax abatement. Said hearing shall not be scheduled until the completed application form is submitted.

(8)

Public notice shall include the date, time, and place of the public hearing, legal description of the property, and a general description of the applicant's request for a project tax abatement. Said notice shall be posted at city hall and published in the official newspaper as required by the Texas Open Meetings Act.

(9)

The planning manager shall be responsible for notice requirements. When the planning manager has provided such notice as required on a request for historic project tax abatement, the interest of the public will be deemed to have been attached to the request, and the proponent may not then withdraw the request prior to the hearing.

(10)

After hearing the request, the design and historic review commission may allow the withdrawal of the request upon the affirmative vote of six of its members.

(11)

At the public hearing, the design and historic review commission shall determine, from the data submitted by the applicant and the information provided by staff, if the completed project is substantially in compliance with the project proposal or the certificate of appropriateness. If the commission finds that additional information relative to the pending application is necessary for its review, the commission may postpone the public hearing on an application until such information is provided.

(12)

The design and historic review commission shall have the authority to approve or disapprove an application for project tax abatement, or to approve a request with such conditions as the commission deems necessary to bring the project into compliance with the approved project proposal or the certificate of appropriateness. The commission shall not approve requests for historic project tax abatement where the project was completed prior to the adoption of this article and the applicant has not obtained a certificate of appropriateness, if one is required, or where the applicant has not substantially complied with the requirements imposed on a project proposal or certificate of appropriateness.

(j)

Appeals.

(1)

Any request for historic project tax abatement that has been denied by the design and historic review commission may, within ten days of said decision, be appealed to the city council. The appellant must, within the time specified, submit a written notice to the city manager or his representative. The city manager shall ensure that the proposed change is placed on the agenda of the city council at the earliest practical date.

(2)

An affirmative vote of at least five members of the city council shall be necessary to overturn a decision appealed from the design and historic review commission. The decision of the city council shall be final.

(k)

Effective date. The tax assessor shall abate taxes upon final design and historic review commission approval or where the city council has provided approval for a historic project tax abatement. Upon approval, the planning manager shall, within ten days of said decision, notify the tax assessor. The tax assessor shall abate the taxes for the subject zone in accordance with this article and as indicated by the approved request. Such tax abatement shall take effect starting on January first of the following year and each year thereafter until the amount of taxes abated equals the eligible project costs or until the expiration of the ten-year period, or until the city council notifies the tax assessor to terminate the project tax abatement.

(l)

Program discontinuance. Should the city council decide to discontinue the historic project tax abatement program, all project tax abatements shall be permitted to continue for up to 20 years, subject to recapture. Once the council discontinues the program, the historic preservation officer shall not accept any new applications for historic project tax abatement.

(1959 Code, sec. 12-1-3; 1996 Code, sec. 12.803; Ordinance adopted 9-4-12, § 8)