What is the Assessment Moratorium Program?

APPLICATIONYou can download the application in two different formats. A PDF file that you can only view using Adobe Acrobat Reader or in a Microsoft Word Document. The Microsoft Word document is set up as a form that will allow you to edit only the blank spaces within the document. Application in PDF Application in Word Note: This form must be printed on Legal Paper that is 8.5" x 14". To download and install Acrobat Reader for free click here.

The assessment moratorium program was established by Section 172B of the Kentucky Constitution in 1982 in order to provide incentives for repairing, rehabilitating, restoring or stabilizing qualifying residential and commercial buildings in Kentucky. The basic statutes governing the moratorium are KRS 99.595, KRS 99.600 and KRS 99.605. Jefferson County has participated in a moratorium program since 1982. The program was continued by the Louisville-Jefferson County Metro Government by Ordinance 154.01-154.98, Property Assessment and Reassessment Moratorium Programs.

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

What structures qualify?

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

1. The cost to repair, rehabilitate, restore or stabilize is equal to at least 25% of the value of the improvements, (building, not land) as based on the latest assessment made by the Jefferson County PVA; 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 the tract have incomes below the poverty level. The costs 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.

How do I apply?

As required by law, applications for a moratorium certificate must be 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 time to inspect and value the property in its "as-is" condition. Each application for a moratorium includes:

• A general description of the property.
• Proof the property is at least 25 years old.
• A general description of the proposed use of the property.
• The nature and extent of the restoration, repair, rehabilitation or stabilization and cost estimates based on bids submitted to the owner.
• 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 standard, must accompany the application.
• A time schedule for undertaking and completing the project.

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) must be part of the application.

An application fee is charged when applying for a moratorium certificate. The PVA and IPL will maintain a record of all applications for 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 addition years. An application for a moratorium not acted upon by the applicant shall expire and become void two years from the date of application.

What happens when the improvements are completed?

Upon notice by the applicant to Louisville Metro Inspections, Permits and Licenses 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 that 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.

When will my property be reassessed?

If approved for a moratorium certificate, the qualifying property's pre-renovation assessed value will remain the same 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 government swill 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, fire department service districts.

Related Links

Jefferson County Property Valuation Administrator