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HomeMy WebLinkAboutORD 83-24 ORDINANCE NO. ENTITLED AN ORDINANCE AMENDING CHAPTER 25 OF THE CODE OF ORDINANCES TO PROVIDE AN AD VALOREM TAX EXEMPTION PURSUANT TO SECTION 11. 24 OF THE PROPERTY TAX CODE FOR RESIDENTIAL AND COMMERCIAL HISTOR- ICALLY SIGNIFICANT SITES IN NEED OF TAX RELIEF TO ENCOURAGE THEIR PRESERVATION; PROVIDING AN EFFECTIVE DATE; PROVIDING FOR SEVERABILITY ; PROVIDING FOR REPEAL AND PROVIDING A PENALTY. WHEREAS, the 65th Legislature in June 1977 passed S . B . Number 595 amending Title 122, Revised Civil Statutes of Texas ( 1925) , by adding Article 71501 authorizing the governing body of a political subdivision to exempt historic sites from property taxation; and, WHEREAS, Article 7150i was made effective upon adoption of Section 1-f to Article VIII of the Texas Constitution which authorized the State Legislature to allow political subdivisions to exempt historical sites from property taxation; and, WHEREAS, Texas voters on November 7 , 1977, amended Article VIII of the Texas Constitution by adding Section 1-f; and, WHEREAS, effective January 1 , 1980, the 66th Legislature codified Section 7150i as Section 11 . 24 of the Property Tax Code ( 1979) ; WHEREAS, there are historically significant structures in the City of Beaumont in need of tax relief to encourage preservation; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: Section 1 . That Chapter 25 of the Code of Ordinances be amended to add a new Article IV to read as follows: ARTICLE IV EXEMPTION FOR HISTORICALLY SIGNIFICANT SITES SECTION 25-57: DEFINITIONS As used in this Article, the following terms shall have the meanings ascribed to them: (A) "Historically Significant Site in Need of Tax Relief to Encourage Preservation"--means a structure together with the land necessary for access and use of the structure which is determined pursuant to the terms of this ordinance to be in substantial need of rehabilitation or restoration and located in an H-C historic cultural landmark preservation overlay district designated by the City of Beaumont and certified by the Historical Landmark Commission as being of historic significance, to the City. (B) "Rehabilitation"--is defined as the act or process of returning a structure to a state of utility through repair or alteration which makes possible on official contemporary use while preserving those portions or features of the structure that are significant to its historical , architectural and cultural values. (C) "Restoration"--is defined as the act or process of aggregately recovering the form and details of a structure and its setting as it appeared at its significant historical , architectural or cultural period of time by means of the removal of later work or by the replacement of missing earlier work . ( D) "Structure"--is defined herein as a building located within the City of Beaumont. ( E) "Residential Building"--means a building whose use after rehabilitation or restroation will be for a single-family dwelling, or two- , three- , or four-family dwelling. ( F) "Commission"--means the City of Beaumont Historical Landmark Commission. (G) "Certification"--means the attestation by the Historical Landmark Commission that the structure in question is an "historically significant site in need of tax relief to encourage preservation" and that the plans submitted will substantially rehabilitate or restore the structure. (H) "Verification"--means the approval by the City of Beaumont Historical Landmark Commission that the rehabilitation or restoration of an "historically significant site in need of tax relief to encourage preservation" was substantially completed. ( I ) "Certified Applicant"--means an applicant pursuant to this ordinance whose plans for the restoration or rehabilitation of a historic structure have been approved pursuant to Section 25-60 herein. 2 - (J) "Assessed Value Prior to Preservation"--means the value assessed by the Jefferson County Appraisal District for the tax year of verification. (K) "Commercial Building"--means a building whose use after rehabilitation or restoration will be for other than a single- family dwelling , duplex, or three- or four-family dwelling. SECTION 25-58: HISTORIC STRUCTURE PRESERVATION TAX EXEMPTION FOR RESIDENTIAL AND COMMERCIAL BUILDINGS In accordance with the provisions of this ordinance, a residential or commercial building which meets the definition of an "historically significant site in need of tax relief to encourage preservation" and which is substantially rehabilitated and/or restored as certified by the Commission shall have the assessed value for ad valorem taxation equal to the assessed value prior to preservation for a period of ten ( 10) years. This exemption shall begin on the first day of the first tax year after verification of completion of the preservation required for certification; provided that, (A) The building shall comply with the applicable zoning regulations for its use and location; and (B) The deed, grant, sale, bequest, devise, foreclosure or receivership, bankruptcy or other transfer of owner- ship in the property or any part thereof , other than a lease of less than fifteen ( 15) years duration, except the donation of an historic easement on an exempt structure which donation shall qualify as a charitable contribution under Section 170( f) ( 3 ) of the Internal Revenue Code and its regulations as now exist or as they may hereafter be amended, shall cause the exemption provided herein to terminate on the last day of the tax year on which such transfer occurs. 3 - SECTION 25-59: APPLICATION PROCESS Applications for an historic structure preservation tax exemption pursuant to this ordinance are to be filed with the Planning Department for submission to the Commission. Each application shall be signed and sworn to by the owner of the property and shall: (A) State the legal description of the property proposed for certification; (B) Provide proof of title in the applicant to the property proposed for certification; (C) Include an affidavit by the owner describing the historic significance of the structure in need of tax relief and its compliance with the requirements of Section 25-58 herein; (D) Provide proof that taxes or other assessments are not delinquent on the property; ( E) Include a final complete set of plans for the historic structure' s restoration or rehabilitation; ( F) Include a statement of costs for the restoration or rehabilitation work; (G) Include a projection of the estimated construction time and predicted completion date of the histsoric restoration or rehabilitation; ( H) Authorize the members of the Commission and City officials to visit and inspect the property proposed for certification and the records and books of the owners as necessary to certify that the property in question is in substantial need of restoration or rehabilitation; ( I ) Include a detailed statement of the proposed use for the property; and (J) Provide any additional information to the Board which the owner deems relevant or useful such as the history of the structure or access to the structure by the public. - 4 - Each application shall contain sufficient documentation conforming or supporting the information submitted therein. SECTION 25-60 : CERTIFICATION PROCESS Upon receipt of the sworn application, the Commission shall make an investigation of the property and shall certify the facts to the Planning Director of the City of Beaumont within thirty ( 30) days along with the Commission' s documentation and recommendation for approval or disapproval of the application for exemption. Upon receipt of the application for tax exemption as well as the recommendation of the Board, the City' s Planning Director shall immediately forward the application to the City Council and, within thirty ( 30) days, the Council shall approve or disapprove eligibility of the property for tax relief pursuant to this ordinance. Approval or disapproval shall be provided in writing to the applicant. In determining eligibility , the City Council shall first determine that all the requirements of this ordinance have been met and that only the historic structure and the land reasonably necessary for access and use thereof is to be provided favorable tax relief as provided in Section 25-58 herein. SECTION 25-61 : VERIFICATION PROCESS Upon completion of the restoration and rehabilitation, the certified applicant shall submit a sworn statement of completion acknowledging that the "historically significant site in need of tax relief to encourage preservation" has been substantially rehabilitated or restored as certified by the Commission. The Commission upon receipt of the sworn statement of completion, but no later than thirty ( 30) days thereafter, shall make an investigation of the property and shall approve or disapprove the fact that the property has been substantially completed as required for certification. If verification of completion shall be deemed unfavorable, the certified applicant shall be required to complete the restoration or rehabilitation in order to secure the tax exemption provided herein. If the verification of completion is favorable, the Commission shall notify the Chief Appraiser of the Jefferson County Appraisal District in writing of compliance. - 5 - Thereafter, the Chief Appraiser of the Jefferson County Appraisal District shall provide the property with the historic tax exemption provided in Section 25-58 herein. SECTION 25-62: EXCEPTIONS The tax exemption provided by this ordinance may not be initially granated within any reinvestment zone established within the City. Section 2 . EFFECTIVE DATE This ordinance shall become effective 1993. Section 3 . The provisions of this ordinance are severable. If any provision of this ordinance or the application thereof to any person or circumstances shall be held to be invalid or unconstitutional , the remainder of this ordinance shall nevertheless be valid. Section 4 . That all ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. Section 5 . That any person who violates any provision of this ordinance shall, upon conviction, be punished as provided in Section 1-8 of the Code of Ordinances of Beaumont, Texas. PASSED BY THE CITY COUNCIL of the City of Beaumont this day of �c..1�_� 19 . - Mayor - P,eO_7-,r- '1 A ATTEST: City Clem 6 - § 11.23 PROPERTY TAX CODE Ch. 11 (1) be organized to promote and must engage primarily in promoting: (A) the religious, educational, and physical development of boys, girls, young men, or young women; (B) the development of the concepts of patriotism and love of country; and (C) the development of interest in community, national, and international affairs; (2) be affiliated with a state or national organization of sim- ilar purpose; (3) be open to membership without regard to race, religion, or national origin; and (4) be operated in a way that does not result in accrual of distributable profits, realization of private gain resulting from payment of compensation in excess of a reasonable allowance for salary or other compensation for services rendered, or realization of any other form of private gain. 1 Vernon's Ann.Civ.St. art. 1396-1.01 et seq. Library References Taxation x191. C.J.S. Taxation §§ 215, 216, 1098. § 11.24. Historic sites The governing body of a taxing unit by official action of the body adopted in the manner required by law for official actions may ex- empt from taxation part or all of the assessed value of a structure and the land necessary for access to and use of the structure, if the structure is: (1) designated as a Recorded Texas Historical Landmark by the Texas Historical Commission and by the governing body of the taxing unit; or j (2) designated as a historically significant site in need of tax relief to encourage its preservation pursuant to an ordinance or other law adopted by the governing body of the unit. I Library References Taxation x213. C.J.S. Taxation §§ 251, 253, 259, 260. i § 11.25. Automobiles (a) A family or an individual who is not a member of a family is entitled to exemption from state ad valorem taxation of all auto- mobiles that the family or individual owns and does not hold or use s for production of income. 142 i S 8