The Heritage Tax Exemption Ordinance was established in 1984 to provide tax relief to owners of designated heritage properties, which can then be reinvested into maintenance and long-term preservation of historic structures. To receive a heritage tax exemption, properties are subject to an annual inspection, must make repairs as needed based upon inspection results, and shall meet all other eligibility requirements as stipulated in the Heritage Tax Exemption Ordinance. If approved, the property owner may receive an exemption ranging from 38% to 100% of the improvement value, based on use of the property and whether it is designated as a Heritage Landmark or is part of a Heritage District. Collin College and the Plano Independent School District also provide an equivalent tax exemption if approved by the City of Plano.
2024 Inspection Results
On January 3, 2024, city staff inspected 86 properties for compliance with the heritage tax exemption program eligibility requirements, including that all “Poor”-rated items identified in a previous inspection report had been completed. Last year’s inspection reports identified 30 “Poor”-rated issues and/or non-permitted construction among 19 different properties that had until January 1, 2024, to be completed. Following this year’s inspections, there were four remaining “Poor”-rated issues and/or non-permitted construction among two different properties.
Table 2: 2023 “Poor”-rated Repairs Summary
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2023 Inspection Reports
(March 2023)
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2024 Inspection Results
(January 2024)
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Number of “Poor”-rated Issue(s) and/or Non-permitted Construction
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30
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4
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Properties with “Poor”-rated Issue(s) and/or Non-permitted Construction
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19
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2
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As a result of these inspections, two properties were deemed ineligible by staff and notified on January 9, 2024, of their right to appeal or request an extension from the Heritage Commission.
Heritage Commission Appeals, Extensions, and Waivers
In accordance with recent changes to the Heritage Tax Exemption Program procedures, the Heritage Commission resumed considering appeals and extension requests related to heritage tax exemptions at its January meeting each year. Additionally, the recent amendments to the Heritage Tax Exemption Ordinance includes a new feature in the appeals process that allows the Commission to grant a one-year waiver from certain eligibility requirements. If granted a waiver, property owners would be recommended for approval at half of their eligible tax exemption rate (i.e., if a property was eligible for a 75% tax exemption, they could receive a 38% tax exemption with approval of a waiver).
On January 30, 2024, the Heritage Commission considered extension requests from both the properties deemed ineligible by staff.
1. 810 18th Street – Staff deemed the property ineligible due to exterior work completed without a Certificate of Appropriateness (CA) approval. A business sign at the front (north) facade was changed from a free-standing pole sign to a wall sign without a CA approval. At the meeting, the property owner presented evidence showing that the wall sign has been removed and the site is in compliance. The Commission granted an extension and with approval of the extension, the property is now eligible for 2024 Heritage Tax Exemption.
2. 910 18th Street – Staff deemed the property ineligible due to an outstanding “Poor”-rated issue – exterior painting not completed by the deadline of January 1, 2024, and the following exterior work completed in deviation of a previously approved CAs:
- The repair and replaced wood siding at several locations on the front (north), east, and west facades of the primary building did not match the existing/original siding in size and profile per previously approved CA2023-040.
- The four new window openings on the west facade of the secondary building were not of the same size, and their header heights were not aligned per previously approved CA2022-008.
At the meeting, the property owner’s representative expressed the willingness to address all the outstanding issues and requested additional time to secure the correct siding and fix the secondary building windows issues. The representative explained the reasons for the delays and anticipated to address all issues by March 2024. The Commission granted the extension, allowing the property owner to address all outstanding issues by January 1, 2025. With approval of the extension, the property is now eligible for 2024 Heritage Tax Exemption.
As a result of these approvals, a total of 86 heritage properties are recommended for approval of a 2024 heritage tax exemption.
Next Steps
If approved, the list of 86 properties recommended for approval in the draft ordinance will be provided to the Collin County Central Appraisal District. 2024 Inspection Reports, including any newly identified “Poor”-rated repairs to be completed by the end of this year, will be provided to all participating property owners after March 31, 2024. Property owners will then have the option to appeal these issues to the Commission in May.
Summary
A total of 86 properties are recommended for approval of heritage tax exemptions as listed in Exhibit A of the attached Ordinance. This exhibit lists information such as the exemption percentage applied, property improvement values, and estimated tax exemption values for each taxing entity. Based on current property values and tax rates, this equates to an estimated exemption of $84,368 in city taxes and a total estimated exemption of $318,535 among the three participating tax entities: City of Plano, Plano Independent School District, and Collin College (Collin County operates their own tax abatement program for historical properties). The actual value of the tax exemptions will be finalized after the taxing entities set their tax rates and after the values of the properties have been determined by the Collin Central Appraisal District (which includes other applicable property exemptions related to Homestead, Over 65, etc.).