Remodeled or Expanded Commercial Property Tax Exemption
Eligibility
Property may be eligible if:
- The property couldn't be used in any business for at least six months before applying for the exemption;
- The remodeled, reconstructed, or expanded property value is at least 5% higher than before the remodel; and
- The exemption is approved by the local government.
Benefit
A property tax exemption on the increased property value during construction and for five years after construction, then phased-out.
- The exemption only applies to the increase in property value.
| Time period | Reduction on increased value |
|---|---|
| Construction period (up to 12 months) | 100% reduction |
| First five years | 100% reduction |
| Sixth year | 80% reduction |
| Seventh year | 60% reduction |
| Eighth year | 40% reduction |
| Ninth year | 20% reduction |