The moratorium program is administered by the Metro Government Inspections Permits and Licensing Department, (IPL) and the Jefferson County Property Valuation Office (PVA). Certain guidelines and standards must be met before a moratorium is approved.

Qualifying Structures

All existing residential and commercial structures at least 25 years old may qualify for a reassessment moratorium if:

1. The cost of the improvements made to the structure to repair, rehabilitate, restore or stabilize it equal at least 25% of the value of the improvements, as based on the latest assessment made by the Jefferson County PVA office; or
2. The qualifying property is within a “target area,” a census tract where at least 70% of the residents living in the tract have income below 80% of the median income for Jefferson County, or 20% of the residents living in that tract have incomes below the poverty level. The cost of the improvements in this case must be at least 10% of the value of the improvements to the property based on the PVA’s latest assessment.

Application Process

As required by law, applications for a moratorium certificate are taken at the IPL office. Applications for a moratorium certificate must be made at least 30 days before any construction work on the property is begun. The 30-day time frame allows the PVA to inspect and value the property in its ‘as-is’ condition. Each application for a moratorium includes:

1. A general description of the property.
2. Proof the property is at least 25 years old.
3. A general description of the proposed use of the property.
4. The nature and extent of the restoration, repair, rehabilitation or stabilization and cost estimates based on bids submitted to the owner.
5. If the building is on the National Register of Historic Places, is on the survey of Historic Sites in Kentucky, is in a Preservation District or is designated a landmark, a certificate of approval from the Historic Landmarks Preservation Districts Commission, showing compliance with the Commission’s standards, must accompany the application.
6. A time schedule for undertaking and completing the project.
7. If the property is commercial, a descriptive list of the fixed building equipment, which will be part of the facility and a statement of the economic advantage, (including expected construction employment) shall be part of the application.

An application fee of $45.00 will be charged the applicant applying for a moratorium certificate. The PVA and IPL will maintain a record of all applications for a property assessment or reassessment moratorium. An applicant has two years to complete the improvements unless granted an extension by IPL. In no case shall the application be extended beyond two additional years. An application for a moratorium not acted upon by the applicant shall expire and become void two years from the date of application.

Completion of Improvements

Upon notice by the applicant to Metro Inspections, Permits and Licensing that the work on the property has been completed, IPL will conduct an on-site inspection of the property to certify that the improvements described in the application have been completed. IPL will then certify to the Property Valuation Administrator that the improvements have been completed and the moratorium certificate shall be issued. No moratorium certificate will be issued on a property in which there are delinquent Metro tax bills.

Assessment of Property Value

If approved for a moratorium certificate, the qualifying property’s pre-renovation assessed value will hold for a period of five years for purposes of the local tax levy. The moratorium will become effective on the assessment date next following the issuance of the moratorium certificate. In Kentucky, that date is January 1. The state rate, school rate and non-participating governments will continue to apply rates at the annually adjusted assessed value. Remember, the property tax break created by the moratorium program applies only to the local tax rates. The ‘frozen’ or moratorium value is delivered to the jurisdiction that participates in the moratorium program. An annual assessed value or ‘fair market value’ of the completed improvements will be delivered to the Commonwealth and other non-participating agencies, ex. Schools.

KEY POINTS  

1. The moratorium process begins at the office of Metro Inspections, Permits and Licensing.
2. Applications must be made at least 30 days prior to the start of construction.
3. The moratorium or ‘frozen’ value applies only to the local rate.
4. The state, school and non-participating government rates will reflect the annually assessed value of the property’s fair cash value.
5. Moratorium certificates expire 5 years from issuance.
6. Certificates are issued at the completion of scheduled repairs, and a valid inspection has been completed by IPL.
7. The property must be at least 25 years old.
8. The moratorium is transferable from the holder of the certificate to a new owner.