News

Henrico Proposes Tax Relief For Owners Of Lower Value Homes

By Katherine Calos

Richmond Times-Dispatch

Published: October 25, 2009

Older and lower-value homes in Henrico County may qualify for a tax break on major renovations next year, if supervisors follow through on a proposal from a recent work session.

To qualify, homes must be at least 40 years old and assessed at no more than $200,000. Renovations or additions must increase the value of the house by at least 20 percent but not increase the size of the house more than 100 percent.

Owners would be exempt from any increases in real estate taxes because of the improvements for seven years.

“The perception of Henrico County is that it’s a very rich county and it has all these houses valued at $750,000 or greater,” said County Manager Virgil R. Hazelett, “and yet 26 percent of total housing stock in Henrico County is valued at $200,000 or less.”

The partial tax exemption would be “a way to attract builders and others to make improvements in our older neighborhoods,” he said.

Areas that could benefit include Beverly Hills, where the average assessment is $184,500 and the average house was built 54 years ago; Regency Park/Farmington, $184,200 and 49 years; Ridgehaven, $169,800 and 52 years; Lakeside, $167,100 and 57 years; Sandston/Seven Pines, $149,200 and 52 years; and Laburnum Avenue West, $86,400 and 63 years.

The 20 percent increase in value applies to the structure only, not the land beneath it. If a property is assessed at $200,000 and the house has a value of $150,000, the minimum house improvement to qualify for the tax exemption would be $30,000.

The measure will be introduced at Tuesday’s Board of Supervisors meeting and have a public hearing at the Nov. 24 meeting. If adopted, it would become effective Jan. 1.