Tax Administration

Rehabilitated Real Estate

Prince William County’s Board of County Supervisors approved an ordinance enacting a tax exemption for real estate that is substantially repaired, rehabilitated, or replaced. The tax exemption program encourages renovation and revitalization of aging structures located in the County.

The tax exemption is applied during a 15-year period and is transferable to a new property owner. The total tax savings is equal to 100% of the exemption each year for the first 10 years. During the next five years the exemption is phased out as follows: 80% in year 11, 60% in year 12, 40% in year 13, 20% in year 14, and 0% in year 15. The total exemption is limited to $750,000 during the program period. There shall only be one application approved for any single property at any one time.

Requirements:

The increase in building value due to rehabilitation, renovation, or replacement must be 25% or more of the assessed value before any work is done.
Residential structures must be at least 15 years old and increase in size by no more than 30%.
Commercial/industrial structures must be at least 20 years old and increase in size no more than 100%.
Hotel or motel structures must be at least 35 years old and increase in size by no more than 100%.
Rehabilitation must be completed by December 31 of the third calendar year after the application was submitted.
The application and $50 non-refundable application fee must be submitted after you obtain appropriate building permits, but before any work is started.
Taxes must be kept current to qualify and remain in the program.
All work must conform to existing building and zoning regulations.

Steps to Exemption:

Building Permits: Obtain all necessary building permits before applying for tax exemption. Contact the Department of Development Services at 703-792-6930.
Complete Application: Complete an application for the Tax Exemption for Rehabilitated Real Estate Program. Include with the application copies of all necessary building permits and a $50 non-refundable application fee. Submit the application to the Real Estate Assessments Office.
Determine Base Value: Upon application approval, the Real Estate Assessments Office will inspect the property to determine the base value. The base value will be the assessed value before the commencement of any work.
Request Final Inspection: When rehabilitation is complete, submit a written request for inspection to the Real Estate Assessments Office. Requests should be received prior to November 1 of the year in which the rehabilitation is complete.
Begin Exemption: If the property qualifies for the tax exemption program, exemption will begin on January 1 of the next calendar year.