A new incentive to save Va. history

Owners of many historic properties in Virginia may soon have more incentive to preserve them: an annual reduction on their property tax.

Although the Virginia Beach Historic Preservation Commission has suffered defeats over the past few years - losing bids to save the old Oceanfront post office and the former Roland Court Theater building from the wrecking ball - it helped push through legislation that could save buildings throughout the state.

The bill, included as part of Virginia Beach's legislative requests package, was signed recently by Gov. Bob McDonnell.

City Councilwoman Rosemary Wilson advocated for the law, which allows localities to offer reductions on property taxes to owners of older properties listed on the Virginia Landmarks Register.

All localities will benefit, she said.

"It gives you another incentive tool in the box to preserve local historic properties," Wilson said. "It creates more public awareness, which is a good thing too."

Unlike the tax credits that home-owners currently receive for construction improvements, usually a one-time deduction, the new law allows cities to grant an annual reduction on property tax for as long as the historic integrity of the property is maintained.

The law goes into effect July 1, and the property tax rate reduction will be determined by each locality. Dr. Glenn Carwell, who chaired the committee that crafted the legislation, said the Virginia Beach City Council will likely discuss the rate amount later in the summer or fall.

"I think it would encourage people to undertake a property that could be challenging," Alice Allen-Grimes, president of the Norfolk Preservation Alliance, said. "This might make it seem less challenging financially."

Mac Rawls, chairman of the Beach's historic preservation commission, said the legislation will encourage homeowners to get their properties on the Virginia Landmarks Register and preserve their integrity.

Should a homeowner ever adversely alter the property - add thermal windows or vinyl siding or paint over original Flemish bond brick - they would lose the tax break.

"More people will seek to enter and keep their homes on the historical register," Rawls said. "There was no mechanism in place to allow this prior to this legislation."

Carwell said he got the idea after living in North Carolina.

There, Carwell said, localities may give a 50 percent tax break on historic buildings, if the historic integrity is preserved. The reduction applies to the building, not to the land.

Carwell said the commission first proposed it to the Beach council almost two years ago, when it was included in last year's city package of state legislative requests.

It was again included this year, and Carwell said legislators passed it nearly unanimously.

"The structure in Virginia Beach that this would have significant effect on - in my mind - is the Cavalier Hotel," Carwell said. "It may be a motivator to keep it and not just tear it down one day and put up a high-rise. It would give them a significant break on their property taxes."

Currently, Virginia Beach has 24 properties on the state's landmarks register.

Rawls said that nearly 20 more city structures could be eligible, and he hopes the new law will tempt these property owners to get them listed.

"People don't get any credit whatsoever for keeping it up, so this is an incentive for people to maintain a historic house," Rawls said. "It could have a great impact on preserving what few historic properties we have left in Virginia Beach."

Rita Frankenberry, (757) 222-5102, rita.frankenberry@pilotonline.com