Purpose

On September 26, 2023, the City Council voted to adopt an ordinance establishing a Historic Tax Exemption program. The purpose of the Program is to:

1. Encourage preservation of historically significant structures as part of the City of Georgetown’s stewardship of the Historic Overlay Districts.
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.

The Historic Tax Exemption Program is a partial ten-year tax exemption applied by reducing the taxable value of a historic property subject to the municipal portion of property taxes (which includes the value of both the land and the structure on which it is built) by a percentage based on the eligible project cost tier. In order to obtain an approved exemption, a property owner must complete an eligible renovation project totaling at least $10,000 in eligible project costs. The property owner must provide an application for the tax exemption to the City each year in the ten-year period.

A copy of the full ordinance can be found online here. The Historic Tax Program was discussed at length at the July 25, 2023 City Council workshop. A video of the workshop presentation and discussion can be viewed here.

Eligibility

To be eligible for the program:

• The property must be used residentially;
• The property must be the homeowner’s primary residence;
• The property must either be identified on the most recent Historic Resource Survey and fall; within a local Historic Overlay District or must be a recognized Historic Landmark;
• The renovation project must have received an approved Certificate of Appropriateness (“COA”);
• The renovation project must total $10,000 in eligible project costs;
• The renovation project must be complete at the time of the application for the exemption.

FAQs

Is my property eligible?

Your property must be your primary residence and located within a Historic Overlay District and identified on the most recently adopted Historic Resource Survey. Historic Landmarks located outside of the Overlay District are also eligible. To check if your property is located within a Historic Overlay District and if your home is included in the Historic Resource Survey, see the City’s Historic Resource web map.

Is my project eligible?

Eligible project types are those that require approval of a COA to renovate or restore a historic house. Some examples of eligible project types include: replacing/restoring siding, exterior windows and door, or roof material, façade rehabilitation, porch restorations, and restoration of woodwork and trim are all eligible. The total project cost must be at least $10,000. Eligible costs are the costs related to the labor and building materials to complete eligible project scopes. Architectural and engineering costs may also apply as eligible costs.

The program is not retroactive. Projects completed before September 26, 2023 are not eligible for the exemption.

What type of projects are not eligible?

Ineligible projects are those that do not require a Certificate of Appropriateness (exterior painting, foundation work, interior remodels, landscaping, minor and routine repairs) or for additions, demolitions, or relocations.

How do I apply?

A homeowner must first obtain approval of a Certificate of Appropriateness and any other applicable permits. Once the project has received full approval and the work has been completed, the homeowner may apply for the Historic Tax Exemption. Applications can be submitted through the MyGovernmentOnline.org permitting portal. A complete application checklist to apply for the exemption is coming soon! Generally, the following will be required when applying for the exemption:

• A completed Historic Tax Exemption Program Checklist
• Photographs/documentation of the completed project
• An itemized list of all eligible project costs
• Copy of Signed Certificate of Appropriateness
• WCAD 50-122 Form

Staff will determine if the application meets the eligibility criteria and the exemption tier the project falls under. Complete applications must be submitted no later than March 31^st in order for the exemption to apply to that same tax year.

Applications will be accepted beginning on January 1, 2024.

What are the exemption tiers?

The Historic Tax Exemption may be applied over a 10 Year Exemption Period applied to the municipal portion of a homeowner’s property tax.

• Three Tiers Based on Project Cost:
  • 25% tax exemption ($10,000-$50,000)
  • 50% tax exemption ($50,001-$100,000)
  • 75% tax exemption (>$100,001)

The exempted value fluctuates with assessed property value.

Do I have to apply every year to receive my exemption?

Yes, the property owner must apply for every year within the 10-Year exemption period. The full list of supporting documents are not required for Years 2-10. The exemption period begins the first year of an approved exemption, therefore, if the property owner fails to file a request for an exemption the following year, the exemption period is not delayed. The application checklist will provide the complete list of information for re-application for the exemption.