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DURHAM -- County Commissioners said Monday they'd like to see a tax break for the owners of designated historic landmarks pared back, by putting a cap on applications or by lowering the credit that owners receive.
One commissioner, Ellen Reckhow, said local officials should enlist the help of statewide trade groups for city and county governments to perhaps convince the N.C. General Assembly to make changes to the state law underlying the program.
"What's so magic about 50 percent?" she said, referring to the discount landmark owners receive on the taxes once the city or county governments approve their application.
The comments from Reckhow and fellow commissioner Becky Heron came four days after City Council members, facing half a dozen new applications, also signaled that they'd like to see changes.
City and county officials alike said they're worried about cumulative revenue losses from the program.
Among City Council members, a cap on the number of applications the City/County Planning Department processes each year and a one-year suspension of considering new applications were the two options that received the loudest support.
"Your counterparts on the council are on the same wavelength," City/County Planning Director Steve Medlin assured Heron on Monday when she suggested an application cap.
The six applications the council is considering would cost the two governments a combined $41,902 in annual revenue. The county's share of that is $23,773 annual.
Reckhow noted that the tax break - offered, in theory, to offset the higher costs of maintaining older buildings -- lacks a sunset provision.
"Once they get this abatement, it's available, conceivably, forever -- unless you stop the program," she said.
She added that it might make sense to lower the property tax break to 25 percent or 30 percent, depending on how much it generally costs to maintain an old building and a cost-benefit study of the program.
The commissioners got a chance to wade into the issue because Medlin and his staff were asking them to join the City Council in approving some changes to the local law the governments use in judging the merit of landmark applications.
The main change was to say that officials can only label a property a landmark if it passes one of three tests:
- It's on the National Register of Historic Places or a national register study list;
- It's judged by officials in the State Preservation Office to have statewide historic significance;
- It's in relative terms still in its original condition with regard to "location, design, setting, materials and workmanship," and represents events, people, characteristics or architecture important to the Durham community.
The change also says officials won't label as a landmark any property that's actively under renovation, except if its owner has received state or federal preservation tax credits.
Commissioners agreed to the change unanimously, echoing a vote the previous week by the City Council.
Planners said the change came in response to similar questions about the program that came up as officials were considering a set of applications that went through the council last year.
