Special Valuation for Historic Buildings
The City of Dayton is a Participant in the Certified Local Government (CLG) Program.
What is the CLG program? The 1980 amendments to the National Historic Preservation Act of 1966, as amended, provided for the establishments of a CLG to encourage the direct participation of local governments in the identification, evaluation, registration, and preservation of historic properties within their jurisdictions and to integrate local preservation interests into local planning and decision-making policy.
How does this translate to incentivizing investment? Since the City of Dayton has taken such a proactive role in the identification of historic buildings throughout the City, there are hundreds of structures that are eligible to participate and receive a Special Valuation Tax Relief. Investments in certain buildings in the City may be considered exempt from property tax if determined eligible for the program.
Can you break it down for me? Sure thing.
Step one: Determine if the building you are considering investing in is registered on any local, state, or federal historic registries. This can be completed by either visiting the Dept. of Archaeology and Historic Preservation website of by contacting City Hall.
Step two: Assuming the property of question is within the registry, take note of the assessed value prior to your investment. It is necessary that at least 25% of the current assessed value (not including the land) is invested into the structure. This can include interior or exterior improvements, and should be done according to the Secretary of the Interior's Standards for Rehabilitation.
Step three: Submit application to the Dayton Historic Preservation Commission. It is a requirement that all work completed must have been completed within two years prior to the application for special valuation.
Step four: Sit back and enjoy your newly rehabilitated property and 10 years (or more) of a property tax break. Whatever you invested is exempt from property taxes for the duration of the contract unless canceled.
Is it really that simple? Yes and no - the information here is quite summarized and simplified. You are encouraged to schedule pre-application meetings with staff and the Historic Preservation Commission prior to moving ahead with any projects. Staff and the commission will ensure you are on the right path to success.
Additional Resources:Special Tax ValuationSpecial Tax Valuation - Process ExpandedApplication for Special Tax Valuation