In effect since February 14, 1994, the City Commission of West Palm Beach approved an
Ad Valorem Tax Exemption Program for designated historic properties. These can be contributing to a district or individually-designated and listed either on the National or Local registers of historic places.
Purpose: allows the exemption of up to 100% of the assessed value of the improvements (interior or exterior) to historic properties resulting from renovation, restoration or rehabilitation of such properties. For example, a house is assessed at $250k and the new owners propose to add a new kitchen, master bedroom and bath, and rear porch. Once plans are approved by the Historic Preservation Board, they complete the work and the Palm Beach County property appraiser re-assesses their house. Instead of $250k, the house increases in taxable value to $290k – so the difference in value ($40k) is now exempt from a portion of the ad valorem taxes for a period of ten years.
How it works: the Preconstruction Application for proposed work must be approved by the Historic Preservation Board prior to work. The improvements must be completed within two (2) years of application approval and should follow the Secretary of the Interior’s Standards for Rehabilitation.