Chesterfield County actively encourages investment in aging neighborhoods and offers an incentive program to homeowners who improve the value of homes that are at least 25 years old (built-in 1994 or earlier). Homeowners anywhere in the county who improve the assessed value of their home by at least 10% may realize a property tax exemption based on the assessed value of the improvement. This program applies to rehabilitation, renovation, or replacement of older structures. The benefit lasts 15 years and runs with the property. Rehabilitation tax exemptions are also available for commercial and industrial buildings, as well as for apartments and townhouses.
Here’s an example of how it works. If a homeowner builds an addition that improves the assessed value of the home by $50,000 (this figure is being used only to illustrate the benefit – the actual improvement value may vary), they could be eligible for an annual property tax break of $475. This benefit would equal $7,125 over 15 years. If the homeowner sells the property within the 15 year benefit period, the exemption conveys with the property.
The County has improved the program to increase the value of the benefit and ease of customer use. The application process is simple, free, and online. The program website offers an online calculator that illustrates potential tax savings for your project.
Program information is available at: