Special Tax Valuation
December 20, 2022 | 2:32 pm
from Washington Trust
The primary benefit of Special Valuation is that during the ten-year special valuation period, property taxes will not reflect substantial improvements made to properties that are eligible for special valuation, and designates a local review board that reviews applications. For example, if a property owner incurs qualified rehabilitation costs that equal at least 25% of the building’s assessed value within a 24-month period prior to application, those qualified costs can be subtracted from the newly assessed value of the property for 10 years. The intent of the legislation was to take away the disincentive of increased property taxes that was created when a property owner substantially improved a property.
While this program was created at the state level, local jurisdictions are required to adopt an ordinance in order to allow property owners to take advantage of the tax deduction.