To provide certain Heritage Resources within the City of Plano ad valorem tax relief as allowed by the Heritage Tax Exemption Ordinance to provide for reinvestment into maintenance and long-term preservation of historic structures, providing a severability clause, and an effective date. Adopted Ordinance No. 2025-2-5

A total of 89 properties are participating in the heritage tax exemption program for 2025.  This includes two new properties that applied for participation in 2025 and a property that has reapplied after being denied an exemption in 2022.

On January 6, 2025, staff inspected all 89 properties for compliance with the heritage tax exemption program eligibility requirements to ensure that identified repairs/issues had been addressed by the January 1, 2025, deadline.  Inspection reports from last year identified 32 “Poor”-rated issues and/or non-permitted construction among 26 properties.  After this year’s inspections, staff found 85 properties eligible and four properties ineligible due to six outstanding “Poor”-rated issues and/or non-permitted construction between them.

2025 Inspection Reports, including any newly identified “Poor”-rated repairs, to be completed by the end of this year, are still being processed by staff and will be provided to all participating property representatives after March 31, 2025.  Property owners will then have the option to appeal these issues to the Heritage Commission in May.

This item will result in property tax exemptions to eighty-nine (89) properties ranging from 38% to 100% of the appraised improvement value in the 2024-25 fiscal year.  The initial estimate of revenue lost from these exemptions totals $93,272 based on the 2024 appraised improvement value and tax rate.  However, since 2025 appraised values have not been established and the 2025 property tax rate has not been set, the actual value of these exemptions will not be determined until September 2025.

Approval of this item supports the City's Strategic Plan Critical Success Factors of Excellent, Innovative, and Accountable City Government.