. All rights reserved. City of Houston. value="77598">77598

City Seal

 

 

 

Department of Finance > Economic Development > Enterprise Zones
Historic Site Tax Exemption

(Tax relief for the restoration or preservation of historic sites)

GENERAL GUIDELINES

The following is a brief summary of the Historic Site Tax Exemption program of the City of Houston. Further details on this program can be found in the City's Code of Ordinances, Chapter 33, at www.houstontx.gov/codes.

Historic Site Designation

Based upon the recommendation of the Planning Commission and the Houston Archaeological and Historic Commission (HAHC), only City Council can designate historic properties. The HAHC must approve a Certificate of Appropriateness for any work on the exterior of a historic site or structure.

For information regarding historic designation, please e-mail: Randy Pace or call Mr. Pace at (713)837-7796 to make an appointment for assistance with planning your project. Historic preservation forms can be found at the following website: www.houstontx.gov/planning/forms/forms.htm.

Applications for historic designations and Certificates of Appropriateness are also available at the Planning & Development Department, 6th floor, 611 Walker Building.

After the site is designated "historic" by City Council, each owner desiring the tax exemption must make sworn application (.pdf) to the City's Director of Finance Department.

Exemption From City Ad Valorem Taxes

Once the historic site is designated, the City Council may, by ordinance, grant tax relief in the form of an exemption from ad valorem taxation. Each historic site for which a tax exemption is sought must meet the applicable qualifications set out in the aforementioned Historic Site Tax Exemption ordinance.

The historic site must have a Certificate of Appropriateness obtained through the Planning Department to become eligible for the Tax Exemption.

The historic site must not be or have been the subject of a Certificate of Appropriateness issued pursuant to sections 33-247 or 33-250 (noted in ordinance #2007-658) which shall be grounds for denial or revocation of the exemption.

At any time following the designation of the historic site by City Council, the owner must perform restoration or preservation (R&P) work on the historic site to encourage its preservation.

The work performed must be at a cost of at least 50% of the assessed taxable value of the historic structure or improvements (not land value). The owner shall demonstrate to the Finance Department Director that qualifying expenditures were made for R&P purposes.

The required expenditures shall be determined by the Director of Finance based on the assessed taxable value of the historic structure or improvements (not land) prior to the work ('Base Value').

Only expenditures made for work performed following or within 5 years of the designation of the property by City Council may be applied.

The Exemption shall be computed on the following basis:

  1. If the R&P expenditures are at least 50% but less than 100% of the Base Value, then the exemption on the assessed value of the structure shall be equal to the amount of qualifying R&P expenditures.
  2. If the R&P expenditures are 100% or more of the Base Value of the improvements, then the exemption shall be 100% of the assessed taxable value of the historic structure but not the land.

The duration of the Exemption shall be for 15 years if the project receives no financial incentive from the City funded municipal hotel occupancy taxes; 10 years otherwise. The Exemption amount shall not exceed the amount of the initial Exemption during the term of the Exemption.

The Exemption shall begin on January 1 st of the year following the date that the Director of Finance makes the determination that the owner has met all of the requirements of the Ordinance.

An Exemption granted shall be effective as of January 1st of the year following (1) demonstration of completion of the R&P work and (2) demonstration of the making of the qualifying expenditures to the F&A Director.

If sufficient restoration work has not been completed to satisfy the percentage of tax exemption within 5 years of the passage of an historic site tax exemption ordinance then the exemption ordinance will expire.

The applicant must re-apply for the exemption each year before April 30th with the Harris County Appraisal District.

The exemption shall automatically continue as of January 1st of each year succeeding the year the exemption was first granted for the duration of the 10 or 15-year period. However, the Finance Department Director shall conduct an annual review of each property granted an exemption, and if they find (1) taxes assessed on the property are delinquent, (2) the historic site has deteriorated, has been demolished or destroyed, or (3) has been the subject to a Certificate of Appropriateness issued pursuant to sections 33-247 or 33-250, then the changed conditions shall constitute grounds for revocation of the Exemption.

For more information regarding the tax exemption, please call Julia Gee at (713) 837-7828 or by e-mail at julia.gee@cityofhouston.net.