Residential Rehabilitation Property Tax Abatement

The Residential Rehabilitation Property Tax Abatement Program (RRPTA) for the City of Newport News is administered by the office of the Commissioner of the Revenue. This program is available on a city-wide basis and tax abatements can be utilized for all homes, regardless of value or homeowner’s income.


Residential Rehabilitation Property Tax Abatement Program

Facts

As authorized by state law, the City Council has provided a real estate tax abatement incentive to improve and maintain the quality of housing stock in the City. Section 40-55, Division 4 of the Newport News Code, Exemption for Certain Rehabilitated Residential and Commercial Real Estate, provides for the abatement of a portion of real estate tax when an owner undertakes the improvements, rehabilitation or replacement of residential property.


Program Requirements


 The ten (10) year property
Rehabilitation requirements are as follows:

  • The structure must be at least fifteen (15) years of age,
  • The structure must be located in the City of Newport News,
  • The eligible rehabilitation costs incurred by the applicant must be equal to at least 10% of the assessed value of the property immediately prior to beginning the rehabilitation,
  • Delinquent taxes must be paid to participate.    
                                                                                                                          The ten (10) year property Replacement requirements are as follows:

  • Granted when the existing structure is demolished and replaced with a new single family residence,
  • Excludes structures that are a registered Virginia landmark or are determined to contribute to the significance of a registered historic district,
  • The new residential structure must be a single-family or two-family residence that is at least 80% of the square footage of the demolished structure or at least 1000 square feet,
  • The post reconstruction real estate tax shall not be less than the pre-demolition tax for the property,
  • Delinquent taxes must be paid to participate. 
  • The structure must be at least fifteen (15) years of age,
  • The structure must be located in the City of Newport News,

Eligible RRPTA Expenditures

  • Expenditures associated with exterior, structural, mechanical (e.g. HVAC system), plumbing (e.g. water supply lines) and electrical upgrades undertaken in conjunction with the rehabilitation or expansion of a residential building.
  • Expenditures associated with excavations, grading, paving, driveways, roads, sidewalks, landscaping or other land improvements.
  • Expenditures including, but not limited to, demolition, carpentry, sheet rock, plaster, painting, ceilings, fixtures, doors, windows, fire suppression systems, roofing and flashing, exterior repair, cleaning and cleanup.
  • The value of the owner/applicant self-labor does not qualify.                           

Program Benefits

 The ten (10) year property Rehabilitation Tax benefits are as follows: 

  • For the first five (5) years, the tax abatement shall be an amount equal to 50% of the eligible costs of the rehabilitation,
  • In years six (6) through ten (10), the tax abatement shall be reduced by 20% of the original amount of the exemption for each succeeding year.                                                                                               
 The ten (10) year property Replacement Tax benefits are as follows:

  • For the first five (5) years, the tax abatement shall be equal to 20% of the eligible costs of improvements, 
  • In years six (6) through ten (10), the tax abatement shall be reduced by 10% of the original amount of the exemption for each succeeding year. 


Additional Information

  • All work done must conform to existing City regulations and codes.
  • No abatement will be granted on land value.
  • The tax abatement transfers with the title to the property.
  • The total amount of real estate taxes saved under this program may fluctuate according to changes in the real estate tax rate over time.
  • Any person falsely claiming an exemption shall be guilty of a Class 1 Misdemeanor.

*Try the RRPTA Calculator to estimate your benefit!* 

Applications

  • An application (PDF) for RRPTA must be filed with the Commissioner of the Revenue within eighteen (18) months from the date of completion of the renovation.                                               
  • A $25.00 processing fee made payable to the City of Newport News must accompany the application.                                                          
  • The application must contain the following:                                                      
    • All contractor required permits with final inspection/occupancy dates,
    • An itemized description of all the work, 
    • All paid bill receipts. 
The RRPTA application can also be obtained by contacting the office of the Commissioner of the Revenue at 757-926-8752, or via email.

Completed applications can be submitted by:    
 
  1. Mailing to:                                                                                                                                                                                                                                      City of Newport News                                                                                  Commissioner of the Revenue                                                                    2400 Washington Ave.                                                                                  Newport News, VA 23607                                                    
                                                                                                                                            
                                                                           
  2.  Visiting the Office of the Commissioner of the Revenue at:                                                                                                                                          2400 Washington Ave.        OR      12912 Jefferson Ave.                          Newport News, VA 23607              Newport News, VA 23608                                                                                                                                                     
  3.  Faxing to 757-247-2628

Please contact the Office of the Commissioner of the Revenue at 757-926-8752, or  email should you have any questions.
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