The tax-credit effect
Andrea Siegel reports today on historic property tax credits, which can save participating homeowners a lot of money and encourage rehabbers and redevelopers to do revitalization work. The city's credit lasts for 10 years and can be transferred during that time if the property is sold.
She notes properties that UrbanEx Development revamped in Mount Vernon and Charles Village:
For example, a one-bedroom condo with a den lists for $249,900. The annual property taxes on it would be about $6,000. But the estimated tax credit is about $5,300 a year, knocking the tax bill down to about $700.
That becomes the equivalent of more than $75,000 in additional buying power, or like buying that condo for about $175,000.
Do you have any thoughts about -- or experiences with -- historic property tax credits?