How to get a tax exemption

McKinney has a unique history with much of its architecture standing unchanged from its early origins. The City of McKinney has recognized that without the architecture that defines McKinney, this town would be just another Dallas suburb. That is why the City created a program to reward homeowners who work to preserve the character of their historic homes. The reward comes in the form of a 10-year exemption from paying City property taxes. 

This is a generous "reward" and is meant to incentivize homeowners to maintain and preserve their homes. However, the program has one major hurdle. It requires that a homeowner produce repair/remodeling receipts in excess of $10,000 during the previous three years that went toward maintaining or rehabilitating the house. This work would include things like painting, roofing, and foundation on the exterior and insulation, HVAC, electrical, and plumbing on the inside. As daunting as it sounds, spending $10,000 over three years is not uncommon for a historic home.

Despite the City's good intentions, the two-part process for applying for the tax exemption is not an easy one. For newly initiated restoration, it requires applying for a Certificate of Appropriateness (COA) from the City Planning Department, acquiring the proper building permits, and verification of completed work. As a separate application process, a homeowner would need to apply for a Historic Marker. A flowchart of this process can be viewed here.

Getting the proper COA for your house is something that your contractors can provide for you. Just be sure to tell them that you intend to abide by the City's requirements that will allow you to receive the tax exemption. 

The other part of the application process requires gathering and presenting historic information about your house and those who lived in it. This requires a deed search, finding newspaper stories, site plans, historic photographs, and writing biographies of people connected with your house. It also requires the final approval of the Historic Preservation Advisory Board.  

Doing the research to obtain your Historical Marker and tax exemption can be fun if you like detective work and have the time to pour over 100 year-old courthouse documents. If you do, you can download an application from the City Website and start your adventure. On the other hand, I can do the work for you. I have extensive experience with this and have prepared dozens of Historic Marker applications for homeowners, allowing them to go on to receive their tax exemption.  

For more information about the Historic Marker application that I provide and what I charge, click here.