Tax Moratorium

 
What is the Assessment Moratorium Program?
The assessment moratorium program provides an incentive for making improvements to qualifying residential and commercial buildings in Louisville Metro by providing a 5 year moratorium of some of the local tax assessment that would result from the improvements.

The state rate, school rate and non-participating governments will continue to apply rates at the annually adjusted assessed value. The property tax break created by the moratorium program applies only to the local tax rates. The "frozen" or moratorium value is delivered to the jurisdiction that participates in the moratorium program. An annual assessed value or "fair market value" of the completed improvements will be delivered to the Commonwealth and other non-participating agencies, ex. schools, fire department service districts.

No moratorium certificate will be issued on a property in which there are delinquent Metro tax bills.

The program is established by the Louisville-Jefferson County Metro Government by Ordinance Chapter 154, “Property Assessment and Reassessment Moratorium Programs.”   The moratorium program is administered by the Louisville Metro Department of Codes and Regulations, Construction Review division and the Office of the Jefferson County Property Valuation Administrator (PVA). 
 
Qualifying Structures and Improvements
To be eligible the structure must be at least 25 years old and the improvement must comply with one of the following:
  1. The cost to repair, rehabilitate, restore or stabilize is equal to at least 25% of the value of the improvements, (building, not land) as based on the latest assessment made by the Jefferson County PVA; or 
  2. The qualifying property is within a "target area," a census tract where at least 70% of the residents living in the tract have income below 80% of the median income for Jefferson County, or 20% of the residents living in the tract have incomes below the poverty level. PVA can assist in identifying these target areas.  The costs of the improvements in this case must be at least 10% of the value of the improvements to the property based on the PVA's latest assessment; or
  3. The qualifying property will, at the conclusion of the plan of improvement, be a LEED Certified property based on the Leadership in Energy and Environmental Design standards in effect at the time of application.
Application shall be completed and submitted to the Office of Construction Review along with the $40 application fee. The application must be made at least 30 days BEFORE any construction work on the property is begun. The 30-day time frame allows the PVA time to inspect and value the property in its "as-is" condition.  The application must be complete and fee paid at time of application. 

All other required permits and approvals shall be properly obtained prior to beginning any work.

Issuance of the Tax Moratorium Certificate
The applicant has 2 years to complete the work but extensions not exceeding 2 additional years may be granted if needed.  Upon completion of the work the applicant shall notify Construction Review.   Construction Review staff will conduct an on-site inspection of the property to confirm that the improvements have been completed as proposed and will then certify same to PVA.  PVA will then issue the moratorium certificate to the applicant.  The moratorium will become effective on the next assessment date, January 1, following the issuance of the moratorium certificate. 

Additional details are available by reading Ordinance 154
 
 

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