§ 12.35.050. Deteriorated property.

A.

Deteriorated property shall be partially or totally exempt from taxation under Chapter 12.15 for up to ten years starting in the year beginning January 1 after:

1.

An application for exemption has been approved in accordance with section 12.35.010, and

2.

Substantial completion or beneficial occupancy of the rehabilitation, renovation, demolition, removal or replacement.

B.

An exemption may be transferred, in whole only, to another entity or owner after substantial completion or beneficial occupancy as set forth in subsection A.2. above, or earlier when the change in ownership is required for the inclusion of low income housing, under the low income housing tax credit program or another program funding low income housing if:

1.

The original applicant has affirmatively exercised the exemption;

2.

The exemption authorized by state statute has not sunset; and

3.

The transfer is recommended by the municipality and approved by the assembly by resolution.

C.

In accordance with section 12.35.010, deteriorated property applications may be granted to defer payment of taxes on all or some types of deteriorated property for up to five years beginning on or any time after the day substantial rehabilitation, renovation, demolition, removal or replacement of any structure on the property begins. However, if the ownership of property for which a deferral has been granted is transferred, all tax payments deferred under this subsection are immediately due and the deferral ends or, if ownership of any part of the property is transferred, all tax payments are immediately due, unless the change in ownership is required for the inclusion of low income housing, under the low income housing tax credit program or another program funding low income housing, with municipal approval.

1.

Deferred taxes shall be assessed in the year of deferral in accordance with chapter 12.15 and any appeal of an assessment of deferred taxes shall be filed in accordance with section 12.05.055 within 30 days from the date the assessment notice was mailed.

2.

The amount deferred each year is a lien on that property for that year.

3.

The deferral shall be effective until:

a.

The ownership of the property for which a deferral has been granted is transferred, in whole or in part. Upon transfer, all tax payments deferred under this subsection are immediately due and the deferral ends. Deferred taxes not paid at the time of transfer shall be assessed interest and penalties from date of the transfer.

4.

This subsection C. shall not apply to a lease of all or part of the property.

D.

Only one exemption and only one deferral may be granted to the same property under this section. An exemption and deferral granted the same property may not be in effect on the same portion of the property during the same time.

E.

An application for deteriorated property tax relief may be submitted and approved prior to the commencement of rehabilitation work.

F.

Any amendments or revisions to an approved application including, but not limited to, extended time periods under subsequent amendments to state statute or this chapter, shall be submitted by the original applicant, prior to substantial completion or beneficial occupancy and prior to scheduled sunset of the statute authorizing the exemption or deferral, under the process set forth in subsection 12.35.010.

(AO No. 2002-103(S), § 1, 8-6-02; AO No. 2004-116(S-1), § 4, 9-8-04; AO No. 2007-69, § 1, 5-1-07; AO No. 2009-74(S-1), § 2, 2-16-10)