Historic Properties - Tax Incentives
We work closely with our clients' architects, attorneys and accountants in order to maximize the available Federal and local benefits.
Our knowledge of historic properties is a major attribute in seeking ad valorem tax relief.
Mr. Appel currently serves on:
- The City of Miami Historic and Environmental Preservation Board;
- The City of Miami Beach Planning Board; and
- The Executive Committee of the Board of Directors of the Miami Design Preservation League (the non-profit organization responsible for the national listing of the Historic Miami Beach Architectural District - a/k/a "South Beach").
We represent Property Owners in applying for the:
- The 20% Federal Tax Credit Program;
- The 10% Federal Tax Credit Program; and
- The Federal Tax Deduction for Donation of the Facade of a Historic Structure.
The most beneficial Federal program is thethe 20% federal tax credit which is available only to a certified historic structure that undergoes a substantial rehabilitation in accordance with the Secretary of the Interior’s Standards for rehabilitations and timely submits each of the three (3) parts of the Application, which are all reviewed by the State Historic Preservation Office and the National Park Service and subsequently approved. Every word has a specific definition.
- Part 1 describes the historic attributes of the building.
- Part 2 describes in extreme detail every aspect of the renovation, accompanied by photographs, construction plans and historic data.
- Part 3 certifies that the work was completed in accordance with the Part 2 description and the amount of Qualified Expenditures (as defined by the IRS) is noted.
In addition, PTA represents property owners and lessees applying for Local tax benefits for rehabilitating historic buildings. For example, both the City of Miami and Miami-Dade County will abate their portion of the increases in real property taxes based on an approved rehabilitation for ten (10) years. Pre-1942 homes in Miami Beach are eligible for the city benefit.Often, historic buildings in need of rehabilitations are located within Local, State or Federal Districts that make the properties eligible for tax benefits related to the creation of jobs and the purchase of building materials, furniture and fixtures. These benefits are also applied for under the Enterprise Zone Program.
During the rehabilitation phase, we seek to minimize ad valorem taxes (usually successfully!!)
As part of our practice, we work closely with local governments in promoting the rehabilitation of protected historic buildings through economic incentives. For example, we worked with the City of Miami Beach, the State of Florida Bureau of Historic Preservation and the National Park Service in extending the period of significance of the Miami Beach Archhitectural District from 1945 to 1950. We individually analyzed, inspected and described each of the buildings between 1945 and 1950 located within the District. Extending the period of significance resulted in approximately 129 buildings being deemed contributing structures to the District and eligible for Federal Tax Credits.
Currently, we are involved in conducting education programs on historic preservation and available tax benefits for rehabilitation; and qualifying other local historic districts for tax benefits,(Most recently the Ocean Beach Historic District in South Beach).
Past and present clients in this area of practice include:
- 601 Washington Avenue Retail
- Addison Mizner’s Administration Buildings
- Anglers Hotel
- Brooklyn Hotel
- Brown's Hotel (Prime 112)
- Bouley Resturants
- Cadillac Hotel
- Chanel, Inc. (Worth Avenue, Palm Beach),
- Chelsea Hotel
- Clinton Hotel
- Dade Commonwealth Office Building
- Eastview Hotel/Courtyard by Marriott
- Eden Roc Hotel
- Euclid Lofts
- Fontainebleau Hotel
- Ian Schrager Co.
- Mc Alpin Hotels
- Nakash Holdings
- Old Post Office Building
- Pan American Bank Building
- Sagamore Hotel
- Shore Club Hotel/Sharalton Hotel
- Sinclair Hotel
- Surfcomber and Seacomber Hotels
- Tiffany Hotel
- Victor Hotel
- Webster Hotel
- Whitelaw Hotel
- Winterhaven Hotel
Historic Tax Credit - Success Stories
Surfcomer/Seacomber Hotel - Recipient of the prestigious Barbara Baer Capitman Award from the Miami Design Preservation League recognizing the outstanding rehabilitation of these two (2) historic hotels fronting the Ocean on Collins Avenue containing 200 guest rooms. Property Tax Adjusters, Inc. successfully represented the Ownership in the Federal Historic Preservation Certification Application Process resulting in the obtainment of a multi-million dollar Federal Tax Credit. We were able to overcome a number of issues including obtaining approval for the historically sensitive design of the new glass enclosed construction connecting the two (2) hotels. An additional issue was that the hotels were constructed in 1948, which is after the period of significance for the National Historic District (1945 or prior). Therefore, they were not eligible for Federal Tax Credit as a Contributing Structure. This issue was overcome by extending the period of significance to 1950 as noted above. Additional benefits have been secured via the Florida enterprise Zone Program and in ensuring fair property tax assessments.
Courtyard by Marriott (a/k/a Cadillac Hotel) - Recipient of the 2003 MiMo Award from the Miami Design Preservation League. Property Tax Adjusters, Inc. represented the ownership in successfully obtaining significant Federal Tax Credits for the restoration of this formally dilapidated structure. Additional tax benefits obtained under the County Historic Preservation Program and the State and Local Enterprise Zone Programs. Significant property tax adjustments obtained during the construction period.
Shore Club Hotel - On behalf of Schrager Hotels and Philips International, we were able to overcome numerous obstacles over the four (4) year rehabilitation process. Obstacles included listing the Sharalton as certified historic structure in spite of its interior gutted condition; listing the Shore Club as a certified historic structure in spite of its construction after 1945; and successfully appealing the initial denial of tax credits by attending a hearing in Washington, DC to explain why the Sharalton's roof top addition, the Shore Club's new attached tower, and other changes required by the post-Hurricane Andrew Florida Building Code were within the Secretary of the Interior's Standards for rehabilitating historic structures.
Brown's Hotel (a/k/a Prime 112 Restaurant) - Successfully applied for Federal tax credits for the owners of the oldest hotel in Miami Beach which included a rear addition.
Dade Commonwealth Office Building - Successful Federal tax credit application on behalf of the ownership of this 1920's office building in downtown Miami.
Fountainebleau Hotel Famed resort recently reopened after an extensive rehabiliation to both the Lapidus and Mathus designed connected structures from the 1950's. The Application is pending.
