Stafford County Inter-Local Neighborhood Revitalization Plan

Effective January 1, 2021 through December 31, 2025

This program is administered through the Stafford County Appraiser’s Office.

Questions and Answers

1. What is the Neighborhood Revitalization Plan?

During the 1994 legislative session, lawmakers passed Senate Bill 732, which provides tax rebates for new construction and the rehabilitation of existing structures. Each municipality may adopt a plan and designate an area in which they want to promote revitalization and development or redevelopment within the County.

2. What is a tax rebate?

It is a refund of the property taxes which would otherwise be payable on the actual value added to a property due to a qualified improvement. The rebate only applies to the additional taxes resulting from the increase in assessed value of the property due to the improvement. Under the Neighborhood Revitalization Plan, the taxes relating to the assessed value on the property prior to the improvement may not be reduced and will continue to be payable.

3. What is a qualified improvement?

A qualified improvement to a structure includes new construction, rehabilitation, and/or additions.

4. How is a structure defined?

Structure is defined as any building, wall, or other permanent fixture, including the improvements to existing structures and fixtures assimilated to the real estate.

5. What kind of improvements will increase the assessed value?

New construction, additions, and major rehabilitations will increase the assessed value. Repairs generally will not increase the assessed value unless there are several major repairs completed at the same time.

6. How long does the tax rebate run under the Neighborhood Revitalization Plan?

The plan will remain in effect through December 31, 2025, and will be re-evaluated at that time. A property owner may apply for a tax rebate as appropriate any time during the program. The length of the tax rebate will be for 7 years for all types of properties. Any application approved by December 31, 2025, will receive the tax rebate for the full 7 years.

7. How do the terms assessed valuation and appraised value differ?

Assessed valuation is the value of the property for taxing purposes. Appraised value is the value of the property for resale and financing purposes. For example, if the appraised value on a residential building is $100,000, the assessed value is $11,500.

8. How can I determine if I am eligible for a tax rebate?

There must be a minimum increase of $2,300 in assessed valuation for residential property (which equates to approximately $20,000 in appraised value) and $4,500 in assessed valuation (which equates to approximately $18,000 in appraised value depending on the type of business) for commercial, industrial or agricultural property. New, as well as existing, improvements must conform to all codes, rules, permits, and regulations in effect. You must secure a building permit for most improvements, where applicable, to be eligible for this program. Call the County or City Zoning Board to find out building permit requirements. If the building is in the three-mile zone surrounding the City of St. John, contact the St. John City Zoning Administrator.

Application Procedures

Prior to filing the Application for Tax Rebate, you will need to do the following:

Obtain an application from the County Appraiser’s office (2nd floor of the Stafford County Courthouse)

Before construction begins, complete Part 1 of the application form. This must be done to see if the project meets the criteria for a tax rebate. Part 1 should be modified if changes to the project adjust the cost or size of the project. The modification request must happen within 30 days of the changes.

Upon commencement of construction, complete Part 2 of the application and file a copy with the County Appraiser’s office.

If the improvement is partially completed on or before December 15, file Part 3 of the application with the County Appraiser’s office.

If the improvement is completed on or before January 1, before the start of the tax rebate period, file Part 3 of the application with the County Appraiser’s office before December 1.

Upon filing Part 3 of the application and determination of the new value of the property, the County Appraiser will notify the County Clerk and the property owner if the project meets eligibility requirements for a tax rebate. Upon payment in full of the real estate tax for the subject property for the initial and each succeeding year period extending through the specified rebate period, the tax rebate, less an administrative fee specified in the agreement, will be made to the property owner within a 30 day period following the date of payment in full of the said taxes.

Benefits of the Tax Rebate Program

It will provide incentives for housing improvements.

The benefits of this program will apply to individual homeowners as well as business owners.

It does not interfere with current property tax revenues.

The program will create new long-term tax revenue, without creating a fiscal burden for the Cities and the County.

It will offer incentives for development where development might not otherwise occur.

It will encourage housing, agricultural, commercial and industrial development in the County.

Stafford County Inter-Local Neighborhood Revitalization Plan

Questions and Answers

Application Procedures

Basic Plan

Criteria for Disaster Affected Properties

Benefits of the Tax Rebate Program

Participating Entities

For More Information

Stafford County Economic Development, Inc.

Our Mission