Authorizing a city or county to provide a property tax exemption for value added by improvements to residential property that is a public nuisance

The exemption is for a period of 10 years beginning not later than the first year in which all improvements described in the application are first assessed for taxation. The ordinance providing for the exemption from tax may designate a length of time of less than 10 years and may designate an exemption percentage or schedule of percentages that is less than 100 percent. The resolution approving the exemption application may also provide for a different period of exemption and exemption percentage than what is provided in the ordinance, but not exceeding the duration and percentages in the ordinance. The application for an exemption must be filed by the owner of the property with the governing body of the city or county in which the property is located by February 1 of the assessment year for which the exemption is first claimed, but not later than February 1 of the assessment year in which all improvements included in the application are first assessed for taxation. The bill authorizes an owner to submit an application for an exemption to receive prior approval for eligibility for a tax exemption. Such prior approval does not entitle the owner to exemption from taxation until the improvements have been completed, a physical review of the property has been conducted by the assessor, and the assessor has determined that the actual value of the property has increased as a result of the improvements. The bill requires the application to list all other federal, state, or local government tax credits, exemptions, grants, forgivable loans, or other forms of financial assistance received by or applied for by the owner for completion of the improvements. The bill requires the assessor to review each first-year application by making a physical review of the property, to determine if the improvements made increased the actual value of the approved property. If an application for exemption is denied as a result of failure to increase the value of the property, the owner may file a first application in a subsequent year when additional improvements are made. After the tax exemption is granted, the local assessor shall continue to grant the tax exemption, with periodic physical review by the assessor, for the time period authorized.7 does not apply to the property tax exemption to the bill.7 provides that for a property tax credit or exemption enacted on or after January 1, 1997, if a state appropriation made to fund the credit or exemption is not sufficient to fully fund the credit or exemption, the political subdivision is required to extend to the taxpayer only that portion of the credit or exemption estimated by the department of revenue to be funded by the state appropriation.