Property Tax Exemption

The State of Florida has enacted legislation implementing the provisions of the State Constitution to specifically provide for ad valorem tax exemptions for historic properties.  The City Commission desires to take advantage of all available state and federal programs that may assist in the preservation of historic properties by encouraging the following actions (§50-32, Code of Ordinances):

  1. Provide a positive financial incentive for the designation of landmarks, landmark sites, and local historic districts within the City of New Smyrna Beach as provided in §50-7, Code of Ordinances;
  2. Encourage more restoration, rehabilitation and renovation of designated historic buildings and structures in New Smyrna Beach;
  3. Stabilize and improve property values, and enhance the property tax base of the City of New Smyrna Beach, by encouraging improvement of designated historic buildings and structures; and
  4. Improve the appearance of designated historic districts and landmarks in the City of New Smyrna Beach, thereby enhancing their appeal as places to live, work and visit.

Application & Fee

The owner or owners of a building, site, structure, or object which adds to the historical architectural qualities, historic associations, or archaeological values for which a district is significant because it was present during the period of significance and possesses historic integrity reflecting its character at that time, is capable of yielding important information about the period, or it independently meets the National Register of Historic Places criteria for evaluation set forth in 36 CFR Part 60.4, shall receive an exemption of 100 percent of the increase in the total value of a tax parcel, as determined by the Property Appraiser for the County of Volusia, excluding the value of land, of ad valorem taxes levied by the City of New Smyrna Beach which result from the restoration, renovation, or rehabilitation of such buildings or structure for the duration of the exemption period (§50-34, Code of Ordinances).

Applications for ad valorem tax exemptions for historic properties shall be made in accordance with §196.1997(8), Florida Statutes, and Rule 1A-38.003, Florida Administrative Code. Fill out the DOS Form No. HR3E101292 Application.

The City Commission shall establish, by resolution, a schedule of administration fees for historic preservation property ad valorem tax exemption. The applicant shall pay the required fees at the time the application is submitted. Administration fees shall be set and adjusted periodically by the City Commission. View the Complete List of Development Services Fees.

General Criteria

The tax exemptions allowed herein apply only to the ad valorem taxes assessed by the City of New Smyrna Beach. The exemption does not apply to taxes levied for the payment of bonds, to taxes authorized by a vote of the electors pursuant to Article VII, §9(b) or §12, Florida Constitution, or to improvements made prior to November 27, 2001 (§50-34, Code of Ordinances).

Real property in the City of New Smyrna Beach is eligible for the historic preservation property tax exemption, provided it meets the following criteria on the date the historic preservation property tax exemption is granted by the City Commission (§50-35, Code of Ordinances):

Is individually listed in the National Register of Historic Places pursuant to the National Historic Preservation Act of 1966, as amended;

  1. Is a contributing structure to a National Register of Historic Places Historic District; or
  2. Is designated as a historic property, or as a contributing property to a historic district, under the terms of the City's preservation ordinance.

The Division of Historical Resources must certify to the City Commission that the property for which an exemption is requested satisfies the above criteria.

Review Process

The Historic New Smyrna Beach Preservation Commission (HPC) is designated pursuant to §196.1997(6), Florida Statutes, to review applications for exemptions. Said review shall be in accordance with the rules adopted by the Department of State (§50-38, Code of Ordinances).

Approval of an application for historic preservation property ad valorem tax exemption shall be by resolution of the City Commission. Said resolution shall contain the items required by §196.1997(10), Florida Statutes (§50-39, Code of Ordinances).

Exemption Covenant

To qualify for an exemption, the property owner must enter into a covenant or agreement with the City for the term for which the exemption is granted. The historic preservation property tax exemption covenant form identified as Florida DOS Form No. HR3E111292, which provides that those benefiting from the tax exemption agree to maintain the character of the property, and the qualifying improvements to the property, be maintained during the period that the exemption is granted. The covenant or agreement shall be binding on the current property owner, transferees, and their heirs, successors, or assigns. Violation of the covenant or agreement results in the property owner being subject to the payment of the differences between the total amount of taxes which would have been due in March in each of the previous years in which the covenant or agreement was in effect had the property not received the exemption and the total amount of taxes actually paid in those years, plus interest on the difference calculated as provided in §212.12(3), Florida Statutes.