historic neighborhood improvement zone are eligible to receive up to a 70% exemption of the city’s
ad valorem tax for the structure for a period of 10 years. Also, minor interior or exterior
improvements equally $15,000 or more to residential structures located within the historic
neighborhood improvement zone may receive up to 40% exemption of the city’s ad valorem tax for
the structure for a period of 10 years.
http://www.granbury.org/index.aspx?NID=634
HOUSTON
City of Houston Landmarks, Protected Landmarks, or buildings that have been classified as
“contributing” or “potentially contributing” within a Historic District qualify for the tax exemption.
The rehabilitation must amount to at least 25% of the assessed value of the improvements on the
land. The percentage of the tax exemption (from 25% up to 100%) is dependent on the amount of
qualified expenditures relative to the pre-rehabilitation value. The tax exemption applies to the tax on
the improvement only, not the land, for up to 15 years. The exemption only applies to the City of
Houston taxes.
The City of Houston also offers a tax exemption for “significant” historic buildings. The building
must have more than four residential units and originally built and used for non-residential purposes.
The significant historic building may be exempted from city ad valorem taxes for both improvements
and land, up to $30,000 per year in perpetuity.
http://www.houstontx.gov/planning/HistoricPres/hist-incentives-broch.pdf
KILLEEN
Commercial and multifamily units are eligible to receive a tax exemption on the added value of a
property after a rehabilitation for up to five years. Rehabilitation must equal at least 25% of the
assessed value.
http://www.killeentexas.gov/index.php?section=310
KINGSVILLE
Properties designated at the federal, state, or local level may apply to the city for municipal ad
valorem tax relief based on rehabilitation expenses.
http://www.cityofkingsville.com/departments/planning-and-development-services/community-
appearance-grants/
MCALLEN
Currently, the City of McAllen offers an exemption from the annual city ad valorem taxation to
incentivize local designation, proper maintenance, and rehabilitation of historic properties. The
incentive program also ensures that property owners comply with the requirements of the Certificate
of Appropriateness process.
To encourage regular maintenance, local landmarks may apply for a tax exemption in perpetuity
equal up to 50% of the assessed value of the historic structure and the land. While properties
designated at the federal or state level qualify for an exemption equal up to 100% of the assessed
value of the structure and land.
The City also incentivizes historic rehabilitation. Heritage Properties, which are defined as properties
that are at least 50 years old but are not listed as local landmarks, qualify for an ad valorem tax
exemption equal to 100% of the increase in the assessed value post rehabilitation. The exemption is